* Washington Post…

With names such as Chumba Casino and McLuck, sweepstakes social casinos are at the forefront of a booming, multibillion-dollar industry operating in a legal gray area. Players have the option of playing for free — or they can feed money into the games, unlocking a secondary “currency” that effectively turns their smartphone into a slot machine, blackjack table or roulette wheel. Sweepstakes operators aren’t regulated, licensed in the United States or subject to gaming taxes, and though they target American consumers, the biggest ones operate from offshore locales including Cyprus, Malta and Gibraltar. […]

Unlike regulated sportsbooks and casinos, sweepstakes casinos don’t have to offer responsible gambling services, age verification or other consumer protections. Yet more than a million Americans play each month, and the games drew nearly $6 billion in player purchases last year, including $1.9 billion in net revenue, according to Eilers & Krejcik Gaming, a research analyst firm. The firm predicts those numbers will more than double next year.

Australia-based Virtual Gaming Worlds (VGW), which operates Chumba Casino, LuckyLand Slots and Global Poker, alone brought in $4 billion in revenue in 2023, including $322 million in net earnings, according to its most recent financial report. Even amid legal challenges, it’s now a primary sponsor of Ferrari’s Formula One team and enlists celebrities Ryan Seacrest, Michael Phelps, DJ Khaled and others as pitchmen. […]

The [American Gaming Association] recently asked states to investigate the sweepstakes games, and states have begun responding, with some accusing the companies of flouting gambling laws and ordering them to cease operating.

“They look like a casino, talk like a casino, walk like a casino,” said Shawn Fluharty, a West Virginia delegate and president of the National Council of Legislators from Gaming States. “And they’re trying to tell us they’re not a casino.”

* A sample of this online sweepstakes gambling…

WOW Vegas is a sweepstakes casino available to players across most US states, allowing users to enjoy games and earn prizes while participating within legal boundaries. Players aged 18 or older residing in eligible states can create an account and access the wide selection of slots, promotional events, and other features unique to the platform. However, WOW Vegas is not available in Washington, Nevada, Idaho, Montana, Connecticut, or Michigan. Users dwelling in these locations need to look for other online gaming opportunities.

Unlike traditional online casinos, WOW Vegas operates under sweepstakes laws, not online gambling laws. This structure means players use virtual currencies—WOW Coins and Sweepstakes Coins—rather than directly wagering money. While WOW Coins are primarily for play with no cash value, Sweepstakes Coins can be redeemed for real cash once certain conditions are met. Sweepstakes Coins play an important role in WOW Vegas, allowing users to continue gaming and ultimately cash in on their rewards through this currency system.

WOW Vegas offers users two key types of currency: WOW Coins and Sweepstakes Coins. New players usually receive a bonus when joining the platform, helping them get started with no actual deposit required. Offers vary but often include between 150,000–1.5 million WOW Coins alongside a smaller allocation of Sweepstakes Coins. Along with the initial bonus, there are several ways to collect more currency: email promos, daily races, mail-in sweepstakes, and loyalty-based methods such as referrals. The challenge lies in extending gameplay as much as possible using these resources; fortunately, WOW Vegas offers a variety of bonuses and consistent promotions that reward frequent players.

* Charles Gillespie, CEO of Gambling.com Group, made his case for regulating online gambling in July…

Sports wagering has only been legal in the state since 2020, and companies entering the state have already paid as much as $25 million per license just for the privilege to operate. Despite the high entry cost, legal operators have transformed a once-thriving illegal market into a cash cow, paying over $155 million in state and local taxes in 2023. But now the future of Illinois sports betting is very much in question

Lawmakers didn’t need to resort to this punitive tax on sports betting — they can grow the tax revenue pie even more by legalizing, regulating and taxing iGaming, the online casino games that millions of people in Illinois already play via offshore websites and downloadable apps.

Illinois gains nothing by allowing unregulated online casinos to run amok. They pay no taxes, provide no responsible gaming protections and leave the state to deal with the problems they create. The better option is to regulate and tax iGaming, which could add nearly $10 billion in new gaming revenue over the next five years. When combined with online sports betting, iGaming will create a consumer-friendly mobile gaming experience that protects consumers and provides real, evidence-based solutions to address and mitigate problem gaming issues.

The negative effects of Illinois’ massive tax increase on sports betting will be felt by the industry for years, but sports betting operators may be able to look past their grievances with sports betting tax increases if the state is quick to authorize iGaming. I urge Illinois lawmakers to make smart iGaming regulation a priority in the next legislative session.

* Covers website in July…

State Rep. Edgar Gonzalez Jr. (D-Chicago) is determined to bring legalized iGaming to The Prairie State. […]

In Feb. 2023, Gonzalez introduced House Bill 2239. It took nearly a year to have the bill assigned to the House Gaming Committee, where it was then referred to the House Rules Committee. However, the bill failed to pass the committee and never made it to a vote.

A similar bill, Senate Bill 1565, was sponsored by State Sen. Cristina Castro and introduced several times. But much like Gonzalez’s legislation attempts, it failed to make it past the committee.

Both bills proposed that online casino operators licensed by the Illinois Gaming Board would operate up to three ‘skins’ and pay a 15% tax on Gross Gaming Revenue (GGR).

Illinois won’t see any progress in iGaming legislation until the General Assembly meets in January. At that time, both Gonzalez and Castro could reintroduce their bills to the assembly.

* Poker Industry Pro…

Speaking to PRO [in July], Gonzalez said opposition from businesses invested in video gaming terminals (VGTs) helped dash any hopes that HB 2239 would get a hearing from the House Gaming Committee during the current session.

“Our priority this session was the budget, and although igaming was presented as a potential new revenue stream for the state, members of the House and Senate were wary of its implementation, especially after VGTs expressed opposition to the bill,” Gonzalez told PRO on Monday.