The unregulated: Delta-8 and sweepstakes
Friday, Mar 28, 2025 - Posted by Rich Miller
* Daily Herald…
A loophole in regulations that legalized hemp production in 2018 has opened a path for gas stations and smoke shops to sell an unregulated hemp-derived intoxicant, Delta-8 THC, packaged to look like popular snack foods.
The fallout has left some communities scrambling to craft regulations without waiting for the state to act.
The growing list of communities passing their own regulations includes Rolling Meadows, Buffalo Grove, Elk Grove Village, Wheeling, Des Plaines, Lake Zurich, Elgin and Antioch.
Rolling Meadows’ ban on Hemp-derived THC went into effect in February. Licensed cannabis dispensaries are exempt.
* Moving on to another shady industry…
In most states, playing slot machines online for real money is illegal. But a group of companies known as sweepstakes casinos has found a way around the law to let users play classic casino games online.
Their revenues have grown 10-fold in the last five years, and they’re now large enough to feature ads with Ryan Seacrest, Drake and Michael Phelps. Only recently have states like New York and Maryland contemplated restricting them, with billions of tax dollars at stake. But the loophole used by sweepstakes casinos complicates the states’ ability — and desire — to take action.
That loophole? The “no purchase necessary” rule that differentiates a legal sweepstakes from an illegal lottery.
And, so far, no real Statehouse movement to regulate the manufacture and sale of Delta-8, nor anything about sweepstakes machines and these online faux casinos.
- Leslie K - Friday, Mar 28, 25 @ 12:54 pm:
==Only recently have states like New York and Maryland contemplated restricting them==
Not exactly true. Florida, North Carolina, and Ohio were trying to re-ban the physical sweepstakes machines (which were often housed in stand-alone “parlours” in addition to the odd gas station etc.) since at least 2013 (in Ohio they attempted to render them unprofitable by limiting payouts to $10). The operators would just slightly alter the play to get around the legislative changes. A bill to fix the problem that was introduced into Illinois law in 2013 has been floating around since 2014 (I’m not sure the last time it or a related bill was filed, however).
I haven’t closely followed the sage in awhile, so I’m not sure where other states stand at the moment. But apparently these grey games are now in the online world as well? I guess that shouldn’t surprise anyone.
- Perrid - Friday, Mar 28, 25 @ 1:11 pm:
I know the hold up with hemp, the Black caucus feels like they were cheated or left out of the weed business and would rather let shady businesses sell unregulated weed to kids than be “burned” twice. But I don’t know the hold up for the sweepstakes stuff, who has their finger on the scales for them?
- Bob - Friday, Mar 28, 25 @ 1:25 pm:
What’s wrong with dispensary product? Why are people buying this gas station garbage in the first place? I feel like there’s some regulatory failure here beyond “we haven’t banned derivatives hard enough.”
- Bob - Friday, Mar 28, 25 @ 1:27 pm:
@Perrid
They’re not wrong. Nixon’s own advisor has acknowledged that the war on drugs was for targeting hippies and black communities, and that it was successfully leveraged to do so.
There’s this trend in America where we want to try to pretend we’re fixing something, without acknowledging or helping the people who were (often intentionally) shoved into the ditch along the way.
- Back to the Future - Friday, Mar 28, 25 @ 1:39 pm:
On the gambling operations, gamblers are probably looking to throw their money away in a system that is least expensive, has the best or the same odds, is convenient and where thy trust whoever os running these places.
Frankly it is the gamblers money so why get involved.
- Sammy - Friday, Mar 28, 25 @ 1:45 pm:
== I don’t know the hold up for the sweepstakes stuff ==
The legal and licensed online gaming folks (sports betting apps) claim the best way to fight unlicensed online sweepstakes wagering is to legalize I-Gaming, which they claim will naturally drive the shady sweepstakes wagering out of the market — and of course, make the sports betting apps tons of money by allowing them to expand to I-gaming.
I dunno, it seems a law to prevent credit card companies and banks from wiring payments to the shady sweepstakes companies might work just as well, without putting online casinos on everyone’s phone. A similar federal law put a lot of (but not all) online poker games out of business.
- Leslie K - Friday, Mar 28, 25 @ 2:01 pm:
Self @ 12:54–”saga” not “sage.” Sorry about that.
==has the best or the same odds==
That’s part of the point–these sweepstakes machines are completely unregulated and unmonitored, so no one knows what the odds are. But I’m gonna go out on a limb and say they aren’t the best or the same as regulated gambling.
==Frankly it is the gamblers money so why get involved==
Consumer fraud and other criminality to start.
- Rich Miller - Friday, Mar 28, 25 @ 2:13 pm:
===I’m gonna go out on a limb and say they aren’t the best or the same as regulated gambling===
Since we know some very shady characters have been involved in that industry, I would concur.
Same with intoxicating hemp. You just don’t know what’s in it.
- Homebody - Friday, Mar 28, 25 @ 2:23 pm:
In both cases it is embarrassing that these black markets (or gray markets, if you’re being charitable) have existed for so long. No one with any authority seems to care about enforcing the laws as written, or fixing the loopholes that may exist.
- Sammy - Friday, Mar 28, 25 @ 2:37 pm:
==Frankly it is the gamblers money so why get involved==
In addition to the problems with consumer fraud mentioned above, it also worth considering that sweepstakes games evade paying taxes to the state, unlike the legal and licensed entities. Kinda like selling cigarettes off the back of a truck without the tax stamp.
So, they are defrauding the taxpayers. I suppose the AG could go after them more vigorously, but he’s kinda busy playing Trump wack-o-mole.
- Candy Dogood - Friday, Mar 28, 25 @ 2:50 pm:
===no real Statehouse movement to regulate the manufacture and sale of Delta-8, nor anything about sweepstakes machines and these online faux casinos===
The fact that this is happening should be a red flag for all parties involved. Don’t light a fire. Don’t go into the water.
Figure out where the relationship(s) are frayed and [redacted] fix it. Eat whatever crow. Swallow whatever pride. Take whatever psychedelics are required to reset.
Fix it. We do not have the bandwidth for whatever nonsense is causing this problem. Fix it. Fix it before it becomes a bigger problem, before it becomes an exploit, and before it weakens the bastion of civil rights and civil liberties that Illinois has become.
Warriors are ineffective if they stand alone, no matter how happy.
- Frida's Boss - Friday, Mar 28, 25 @ 2:50 pm:
Illinois is in a budget deficit, just find a way to slap some regulations on it and legalize it all.
Let these small businesses keep what they have, and for the multi-million dollar corporations that don’t want competition, it’s too bad. They created this mess with massive lobbying efforts to monopolize the markets.
If the barriers and capital needed to get into these markets weren’t so high, people wouldn’t be looking for workarounds.
- Rich Miller - Friday, Mar 28, 25 @ 3:08 pm:
=== I suppose the AG could go after them more vigorously===
The law is toothless. A Gaming Board official testified in a committee the other day that when they seize the machines, they have to return them within 90 days.
- Leatherneck - Friday, Mar 28, 25 @ 3:12 pm:
At this rate I expect the GA to be more likely to regulate your grandparents’ or great-grandparents old Delta 88 in the garage before they get around to regulating Delta-8.
- ArchPundit - Friday, Mar 28, 25 @ 3:22 pm:
What will podcasts do with those Seacrest ads?
—Same with intoxicating hemp. You just don’t know what’s in it.
This is really the key. We legalized weed to make it safer, reduce criminalization for recreational use, and keep it from kids and allowing intoxicating hemp makes it less safe and available easily to kids.