Legal Sports Betting Brief: March 11, 2025

• Sweepstakes Casino Crackdown: New Jersey and Maryland are pushing to ban online sweepstakes casinos, while Kentucky’s lawsuit against VGW could have nationwide implications.
• Mississippi’s Mobile Betting Battle: The House Gaming Committee is keeping online sports betting alive, but Senate opposition may kill its chances before the April 6 deadline.
• Nebraska Sports Betting Debate: Lawmakers are considering multiple bills to legalize online sports betting, regulate DFS, and lift restrictions on in-state team wagering.
• SAFE Bet Act Hearing: Congress is reviewing federal regulations on sports betting advertising and promotions, including bans on “risk-free bets” and daytime commercials.
• Missouri Sports Betting Rules: The state has released draft regulations for legal sports betting, allowing wagers at casinos and mobile platforms while restricting certain bet types.

WASHINGTON – Recent developments in sports betting legislation and litigation across the United States include significant actions concerning sweepstakes casinos, potential mobile betting in Mississippi, debates over online sports wagering in Nebraska, federal discussions on the SAFE Bet Act, and rules for Missouri sports betting being posted.

Sweepstakes Casino Bans and Lawsuits

In New Jersey, assemblyman Clint Calabrese introduced Assembly Bill 5447, aiming to ban the sweepstakes model of wagering and establish new penalties for unlawful gambling operations.

This marks a shift from previous efforts to regulate these platforms to outright prohibition.

This theme is common across the US as Maryland’s Senate Budget and Taxation Committee unanimously approved a bill to ban online sweepstakes casinos with a 13-0 vote on Monday. Meanwhile, a companion bill (HB 1140) is scheduled for a hearing by the House Ways and Means Committee at 1 pm on Tuesday.

Perhaps even larger news about sweepstakes casinos comes from Kentucky where operator VGW faces a lawsuit seeking triple damages for all individuals who lost money on platforms like Chumba and Luckyland.

The complaint emphasizes the direct correlation between U.S. dollars and Sweeps Coins, highlighting concerns about the business model’s legality. These developments are part of a broader trend, with recent lawsuits also filed against DingDingDing in California and Blazesoft in Illinois, all pointing to the nearly 1:1 ratio between money spent and Sweeps Coins received.

Mississippi’s Move Towards Mobile Betting

The Mississippi House Gaming Committee recently employed a procedural tactic to keep online sports betting legislation active. By inserting the language from the approved sports betting bill, HB 1302, into two Senate bills targeting sweepstakes gaming, the committee aims to advance the conversation before the April 6 session deadline.

Despite these efforts, Senate Gaming Committee Chairman David Blount has expressed opposition to online Mississippi sports betting and has not scheduled the bill for a committee vote. Representative Casey Eure, the bill’s author, voiced frustration over the Senate’s inaction, noting that the House made numerous concessions to address previous concerns.

Key provisions of HB 1302 include allocating $6 million annually to a Retail Sports Wagering Protection Fund, allowing casinos to partner with up to two online sports betting operators, and implementing a tiered tax system on adjusted sports betting revenue.

The bill proposes a universal launch date no later than December 8, 2025.

Nebraska’s Online Sports Betting Debate

The Nebraska General Affairs Committee held a hearing Monday to discuss several sports betting bills. Among them:

• LB 421: Introduced by Senator Robert Clouse, this bill proposes allowing authorized gaming operators to conduct sports wagering via online platforms under the Nebraska Racetrack Gaming Act.
• LB 438: Senator Spivey’s bill, similar to LB 421, emphasizes that voters have already approved sports betting, suggesting no need for a constitutional amendment. It also earmarks funds for state education.
• LB 463: Senator Brandt’s proposal seeks to lift the prohibition on betting for in-state teams playing within Nebraska. Currently, wagers on teams like the Huskers or Creighton are only permitted when they play out-of-state.
• LB 342: Also from Senator Brandt, this bill aims to establish a framework for Daily Fantasy Sports (DFS) games, addressing the current regulatory gray area in Nebraska.

The hearing saw extensive testimony, with opponents of Nebraska sports betting going mobile outnumbering supporters. Concerns raised included potential increases in addiction, bankruptcy, and domestic issues, as well as reduced household spending and savings.

SAFE Bet Act Hearing

A hearing on the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act will be held Tuesday at 2 pm. The act proposes federal regulations on the legal sports betting industry to enhance consumer protections.

Key measures include advertising restrictions, which would ban sports betting advertisements on television and streaming platforms between 8 am and 10 pm, including during live sports events.

It also focuses on outlawing terms like “risk-free bets” and certain sportsbook bonuses to prevent misleading promotions.

Missouri Releases Draft Sports Betting Regulations

The Missouri Gaming Commission has officially released its proposed rules for sports betting, outlining how both retail and online wagering will be regulated within the state.

Under these regulations, Missouri sports betting will be allowed at casinos and designated sports districts, including stadiums of professional teams. Mobile sports betting will also be available.

To participate in sports betting, individuals must meet the minimum age to bet on sports – 21 years or older. However, wagering on Missouri college athletes’ individual performances is prohibited, though team-based bets may be allowed.

Like in other states with legal sports betting, non-sporting events, such as political elections and entertainment awards shows, are also off-limits.

As for financial regulations, the rules include a ban on credit betting, meaning operators cannot offer loans or accept credit card sportsbook deposits for wagering. Deposits must be made using cash, debit cards, or other approved methods.

The public is invited to submit comments on these regulations until April 17, 2025, before the final rules are enacted.

News tags: Kentucky | Maryland | Mississippi | Missouri | Missouri Gaming Commission | Nebraska | New Jersey | SAFE Bet Act | United States