Source: West Virginia Attorney General Serves Subpoenas To ‘Sweepstakes’ Operators

The same source with direct knowledge that informed Casino Reports last week that West Virginia Attorney General JB McCuskey was preparing to subpoena “sweepstakes” gaming operators now confirms that those subpoenas have been served.

There is little information available beyond that, however, as the attorney general is not permitted to publish the subpoenas and, by West Virginia law, cannot comment on them until receives a response from one of the operators.

In a statement sent to Casino Reports last week, McCuskey all but confirmed that the subpoenas were indeed coming:

“We have serious concerns about West Virginia consumers, specifically our children, being targeted by illegal gambling operations,” McCuskey stated on Jan. 29. “From day one, my priority has been to protect consumers and ensure our children are not being exposed to these operations or their advertising — while at the same time supporting those which are licensed and operating within the confines of the law. At this time, we cannot comment on specific cases or provide any further details.” 

It remains unknown which operators, or how many, received subpoenas from McCuskey, who has been in office as AG in West Virginia since Jan. 13.

SPGA response

The Social and Promotional Games Association (SPGA), a trade organization representing numerous prominent social and sweepstakes gaming operators, did not confirm that any of its members had received subpoenas. But it did issue a statement to Casino Reports on Friday morning in response to what it termed McCuskey’s “proposal to subpoena sweepstakes operators”:

“West Virginia Attorney General JB McCuskey is mistakenly conflating social casino sweepstakes games — a free-to-play form of entertainment enjoyed safely and legally by millions of adult Americans — with illegal real-money gambling operations,” the SPGA statement read. “Research has found no meaningful overlap between social sweepstakes and real-money gambling. Consumers see them as different products that they engage with for different reasons.   

“McCuskey’s actions do a disservice to West Virginians by ignoring the reality: Social sweepstakes are a legally compliant form of entertainment that gives players more choice, and as regards SPGA members, enables digital entrepreneurs, and creates high-skilled American jobs. Protecting consumers means embracing innovation, not stifling competition under the guise of concern.”

The legality of sweepstakes gaming remains a contentious issue throughout the industry, with various state regulators, tribal gaming leaders, and regulated operators and game providers publicly opposing their present operations.

West Virginia is one of seven states that authorizes fully regulated online casino play. The others are New Jersey, Pennsylvania, Michigan, Delaware, Connecticut, and Rhode Island. At present, New Jersey is the only state that has introduced legislation to regulate sweeps operators.