The Louisiana Gaming Control Board (LGCB) and the Mississippi Gaming Commission (MGC) have taken aim at online sweepstakes operators with a flurry of cease-and-desist orders issued, in what some have labelled ‘Black Tuesday’ for the sector.
As the rapidly growing vertical continues to fall under increasing scrutiny, the LGCB ramped up the pressure on Tuesday, 17 June, as it issued warnings to more than 40 online sweepstakes casino operators.
The regulator did not disclose which operators had been sent the cease-and-desist orders, with the latest action taken just days after Louisiana Governor Jeff Landry vetoed a bill that would have outlawed sweepstakes in the state.
Despite receiving overwhelming backing from the House in the form of a 39-0 vote in favour, Landry said SB 181 was “overly broad and could be interpreted in an adverse manner”, while serving as an obstacle to the work already conducted by the LGCB.
Landry added that efforts to push back against sweeps and offshore bookmakers were suffice, and the introduction of legislation was not needed.
An update from the Pelican State regulator noted: “In coordination with the Louisiana Attorney General’s Office and the Louisiana State Police Gaming Enforcement Division, the board has taken a firm stance against illegal gambling operators that violate state law and jeopardise the integrity of the regulated market.”
As per Sweepsy.com, LGCB chairman Christopher B Hebert added: “Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry.
“We will continue to use every enforcement tool available to protect the public and uphold the law.”
Meanwhile, the MGC has also taken action against VGW’s Chumba Casino, as well as nine unlicensed sportsbooks, all of which are alleged to have breached several state laws.
Those include the Mississippi Racketeer Influenced and Corrupt Organisation (RICO) Act, the Mississippi Gaming Control Act and the Unlawful Internet Gambling Enforcement Act.
The MGC also warned players against engaging with these operators, as they too could be subject to criminal prosecution and a forfeiture of money deposited with said platforms.
Jay McDaniel, MGC executive director, said: “Our laws are clear that casino-style gaming and sports wagering are not allowed online in Mississippi outside of a licensed casino.
“The MGC will aggressively pursue both domestic and offshore illegal operators and the MGC is currently providing criminal case files to our state and federal law enforcement partners and requesting prosecution.”
McDaniel went on to bemoan the lack of tax revenue or “other tangible benefit” generated by these unlicensed operators.
Elsewhere, Connecticut has become the latest state to officially outlaw sweepstakes, just weeks after Montana became the first to do so, with both bans set to come into effect later this year.
In New York, a bill looking to prohibit the sector continues to make progress, with S5935 passing the Senate and now heading to the Assembly floor, before potentially being sent to Governor Kathy Hochul in its final step towards becoming law.
The post Sweepstakes operators hit with flurry of cease-and-desist orders in Mississippi and Louisiana first appeared on EGR Intel.
Both state regulators have ordered multiple sweepstakes operators to halt all activities, with offshore, unlicensed bookmakers also caught in regulatory sting
The post Sweepstakes operators hit with flurry of cease-and-desist orders in Mississippi and Louisiana first appeared on EGR Intel.