Letter From America 39

Across this vast nation the regulated online and retail gambling industry is under fire, as this week’s Letter From America, featuring sweepstake casino blow-backs and tax hikes, highlights.

We start with the good ol’ boys in Deep South Louisiana, where the state’s senate approved SB 181, outlawing sweepstakes casinos, on June 4.

Swept Away

The Pelican State, Louisiana, is just a signature away from becoming the second U.S. state–after Montana–to ban sweepstakes casinos.

SB 181–which was sent back to the Senate on Monday (June 2) with minor amendments from the House–sailed through its final vote with zero opposition, meaning it now heads to Governor Jeff Landry’s (R) desk.

The bill, which includes penalties of up to five-years in prison, and fines of up to US$100,000 (£78,000) for violators, packs a punch targeting not only operators but also prohibiting suppliers, affiliates, and other third-party service providers from working with sweepstakes and illicit market sites.

Governor Landry has yet to publicly express an opinion about the bill. But given the full and unanimous backing of the Louisiana legislature, it’s likely he will sign on the dotted line.

And Connecticut Follows Suit

Following closely behind Louisiana is Connecticut, which also greenlit a sweepstakes ban–SB 1235–this week.

The bill allows sweepstakes in their original form–those “related to the bona fide sale of goods, services or property”–but outlaws those which are tied to simulated gambling, online casinos or sports betting.

The penalties? Violations will be codified as a Class A misdemeanour, resulting in up to 365-days of jail time and a fine of up to US$2,000 (£1,473).

But here’s where things get interesting: SB 1235 isn’t just about prohibition; it also enables Connecticut to enter into multi-state agreements for peer-to-peer games, meaning the “Constitution State” could be next to join the Multi-State Internet Gaming Agreement, which allows shared poker games and prizes between Delaware, Nevada, New Jersey, Michigan, West Virginia, and Pennsylvania.

The decision now rests with Governor Ned Lamont (D). He has just under two-weeks left to either sign or veto the bill.

Illinois Hikes Taxes. Again

Just before the strike of midnight on June 1, instead of turning into pumpkins, which arguably might’ve been preferable from a gambling industry perspective, Illinois lawmakers conjured up a new set of tax hikes – which they hope will be a silver bullet for fixing the deficit of their 2026 budget.

And guess what? Once again they’re targeting the state’s fledgling sports betting industry.

Under the plans (which Governor JB Pritzker (D) has publicly said he supports), operators will pay a levy of 25-cents per wager on the first 20 million bets, doubling to 50 cents per bet thereafter.

The hike comes on top of last year’s levy, which increased operator tax rates from 15 percent to as high as 40 percent, depending on revenue.

The Sports Betting Alliance (SBA) has strongly criticised the move, accusing the Illinois legislature of using the sports betting industry to balance its budget without considering the “devastating impact”.

Others have been quick to point out that this not only ignores the current climate but also disincentivises smaller, recreational betting (AKA safer betting), as, they claim, higher taxes will push punters to the illegal market.

Explaining his stance, Gov. Pritzker told iGF: “The Trump slump is affecting every state. And the chaos and uncertainty of the Republicans’ proposed cuts to health care and education and jobs have made budgeting harder than ever before.”

Arizona Rising

The Grand Canyon state has now joined the pile-on against controversial prediction markets, with Arizona Department of Gaming (ADG) director Jackie Johnson urging the federal regulatory Commodity Futures Trading Commission (CFTC) to reel-in Kalshi, Robinhood and Crypto.com, et al.

So-called “contracts” on sporting outcomes violate Arizona’s 2020 Gaming Act, argues Johnson.

Writing to the CFTC this week, Johnson said only licenced operators should be allowed to do business in the state.

Ontario Revenue Rockets

Ending on a high note and moving north of the border, gambling revenue in Ontario, Canada’s dominant betting province, jumped by 25.3 percent year-on-year in April, reaching CA$313.2 million (£168.9m), but just falling short of beating the province’s record of CA$327.9 million (£176.8m) set in January this year.

Casino gaming generated the lion’s share–78 percent of the total–at CA$242.8 million (£130.9m), up 35.6 percent, y-o-y, while sports betting remained level, accounting for CA$64.5 million (£34.8m).

Following the continued success of iGaming in Ontario, we’re wondering which Canadian province––along with oil-rich Alberta, which is set to launch in late 2025 or early 2026–will be the next to open its doors to the regulated online market.

Quebec seems most likely.

Watch this space!

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