West Virginia Poised To Go On Offensive Against ‘Sweepstakes’ Operators
Attorney General of regulated iGaming state acknowledges ‘serious concerns’ about ‘illegal gambling operations’
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Add West Virginia to the growing list of states making moves to prevent social gaming operators using sweepstakes prizing — commonly referred to as “sweepstakes casinos” — from doing business within their borders.
A source with knowledge informed Casino Reports this week that West Virginia Attorney General JB McCuskey is preparing to either subpoena or send cease-and-desist letters to sweepstakes operators accessing customers in the state.
McCuskey did not confirm the information, but in a statement sent to Casino Reports Wednesday morning, he strongly implied that his mindset aligns with the office’s intention.
“We have serious concerns about West Virginia consumers, specifically our children, being targeted by illegal gambling operations,” McCuskey stated. “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.”
McCuskey was elected AG in November 2024 and took office on Jan. 13.
West Virginia is one of seven states with legal, regulated house-banked online casino play — the others are New Jersey, Pennsylvania, Michigan, Delaware, Connecticut, and Rhode Island. West Virginia ranks fourth among those states in terms of its number of licensed operators, with seven iCasinos regulated by the West Virginia Lottery Commission. DraftKings, BetMGM, BetRivers, Caesars, FanDuel, Golden Nugget, and Fanatics all launched online casino sites in the state between 2020 and 2023.
Sweepstakes in the crosshairs
Sweepstakes sites appear similar to regulated online casinos, offering many of the same games, such as blackjack, roulette, slots, and live-dealer tables. They are not regulated in any states at present, however. Supporters believe they are fully legal because they use a dual-currency model, wherein there are both free-to-play games that use virtual coins and a separate group of games using “sweeps coins” that are not purchased directly and can be redeemed for cash.
Several states have already taken action against sweepstakes operators.
The Maryland Lottery and Gaming Control Agency revealed two weeks ago that it sent cease-and-desist letters to 11 operators, while also targeting payment processors.
The Michigan Gaming Control Board, which has sent C&Ds to many offshore operators not using the sweepstakes-prizing model, has also turned its attention to some sweepstakes sites.
Mississippi’s state Senate just introduced a bill to ban sweepstakes sites, which, if passed, would go into effect by July 1.
The iCasino legislation introduced last week in New York by Sen. Joseph Addabbo includes a passage designed to prevent sweeps, social, or crypto operators from obtaining an online casino license.
The sweepstakes industry has also been under heavy fire the last few months from prominent Native American gaming voices that believe sweeps sites are operating illegally.
The outlier to this point is New Jersey, where Assemblyman Clinton Calabrese presented a bill this month to regulate and tax sweepstakes casinos. The Social and Promotional Games Association (SPGA) issued a statement saying it “welcomes Assemblyman Calabrese’s bill.”
