Two states witness the reopening of operations by McLuck and Hello Millions.
In the world of iGaming, Alabama remains a contested market for sweepstakes casinos. Despite intense legal scrutiny and over a dozen active lawsuits, these casinos continue to operate, adapting their business models to avoid the state's gambling statutes.
Richard Janvrin, a seasoned journalist who broke into sports coverage professionally in 2015 and entered the iGaming space in 2018, has been covering this complex issue. His reporting includes the legal aspects surrounding sweepstakes casinos in Alabama.
Recent developments show that these casinos, such as Chumba Casino, Stake.us, and others, operate in a legal gray area. They are not officially licensed or explicitly banned, but they carefully structure their games to avoid falling under state gambling laws. This is achieved by offering a free-to-enter option and separating "play coins" from "prize coins."
Despite the ongoing legal battles, many major operators have continued operations, even reopening recently after pauses. The lawsuits have slowed but not stopped operations, partly because arbitration clauses in user agreements limit the legal impact on operators.
Alabama's key gambling laws relevant to sweepstakes casinos include definitions that avoid the term "risk" by offering free entry and awarding prize coins without purchase. Simple gambling offenses apply if profit is made from unlawful gambling or if free-entry options are removed. Devices mimicking slot machines with prize payouts without licenses can be deemed illegal gambling devices.
Recent entries like McLuck by B-Two Operations have also resumed operations in Alabama despite ongoing lawsuits, signalling operators' willingness to engage in this contested market. B-Two Operations, which operates McLuck, Hello Million, Spin Blitz, and Play Fame, has removed Alabama and Georgia from their excluded states list.
In summary, while Alabama’s legal environment remains uncertain and under vigorous challenge, sweepstakes casinos continue to operate by adapting their business models to avoid the state’s gambling statutes. Recent lawsuits have not resulted in permanent bans or shutdowns, and the industry's future will depend on potential regulatory actions or legislative changes beyond current litigation.
Richard Janvrin's comprehensive coverage of the iGaming industry covers not only sweepstakes casinos but also news, reviews, bonuses/promotions, and more, providing valuable insights for readers navigating this evolving landscape.
While Richard Janvrin's comprehensive coverage delves into various aspects of the iGaming industry, it specifically highlights the operation of sweepstakes casinos in Alabama. Despite the ongoing legal battles, these casinos offer welcome bonuses and engage in sports betting, even operating platforms like Chumba Casino and McLuck, which have recently resumed operations. However, their financial success remains contingent upon regulatory actions or legislative changes beyond current litigation.
