More than 15 years have passed since the death of Ed McMahon, who was best-known as the Tonight Show sidekick and for his appearances in sweepstakes advertisements, awarding surprised Americans with oversized seven-figure checks.
Yet, on Friday, McMahon’s name was echoed in the halls of Harrah’s Hotel at Caesars New Orleans among the country’s top gambling regulators.
In preparation for a senate hearing in Washington, D.C. next week concerning sports betting, a discussion panel was held on the subject of the online sweepstakes casino landscape—a subject that’s rapidly gaining traction within the broader gaming industry. The panel, whimsically titled “This Ain’t Your Granddad’s Sweepstakes,” explored significant issues regarding licensing, regulation, and taxation in this multi-billion-dollar domain.
The session marked the start of the daily agenda at the National Council of Legislators From Gaming States (NCLGS) 2024 Winter Meeting. Chris Kannady, a state representative from Oklahoma, moderated the discussion in front of an eager audience. Kannady, a former Marine, emphasized in his opening statements that this panel promised to be the highlight of the weekend. At the very least, the animated dialogue underscored the contentious aspects of the subject.
Beyond the traditional definition of gambling, a key concern is the degree to which a state has legal authority to dictate the rules of conducting a sweepstakes contest. Andromeda Morrison, general counsel at the Ohio Casino Control Commission, aimed to outline potential pathways for state actions.
“For regulators here, this is a very complex issue,” Morrison noted. “Legislators, use your regulators as a valuable resource.… Our goal is to ensure everyone in Ohio operates both legally and responsibly.”
### Understanding a Dual-Currency Framework
For those less familiar with sweepstakes operators, their system is based on a dual-currency setup. A critical difference exists between “virtual coins,” available free, and “virtual cash,” the currency usable on these platforms. While participants might receive many coins periodically, only the latter can be exchanged for real money.
This sweepstakes framework has [gained substantial popularity](https://igamingbusiness.com/sports-betting/sweepstakes-tribal-gaming-fight/), appearing in diverse online gaming contests. Virtual Gaming World (VGW), a sweepstakes casino and poker provider, has faced orders to halt its operations in several states. Another provider, Kickr Games, offers a variety of gaming options, including video slots, scratch games, blackjack, and stud poker.
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