There’s always a but
Indiana iCasino progress, but with an OSB tax kicker
iCasino passes a key committee stage but with an OSB tax increase amendment.
In +More: Nevada to consider lottery.
Sweeps watchers eye Florida case as crucial test of legality.
CFTC hits reset on events markets approach.
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Good news, bad news
Indiana wants me: A bill that would bring legal lottery and iCasino games to Indiana has cleared the first hurdle, as the state’s House Public Policy Committee went 9-2 in favor of House Bill 1432.
But I can’t go back there: If successful, licensees would be taxed at 26% until July 2026 when graduated rates up to 30% enter force. They would also have to kick in up to $2m.
But an amendment added to the bill would also raise OSB taxes to 20% from the current level of 9.5%. B&M taxes would remain at 9.5%.
Only casinos and horse tracks would be able to apply at first, with the market opening on September 1, 2025, the proposals state.
Howdy partner: The accompanying HB 1433 addresses charity gaming schemes, electronic pull-tab games specifically, and will be debated alongside the iGaming legislation.
Previous attempts have died from a lack of political support in some cases and straight up corruption tainting the agenda.
Philosopher king: “What is the future of gaming policy in Indiana?” Rep. Ethan Manning asked, while introducing his legislation.
“How can we leverage the assets we already have, take advantage of new opportunities, benefit the most people and also, at the same time, protect some of our most vulnerable?”
The Committee also heard from John Pappas, representing the iDevelopment and Economic Association, who said illegal operators are advertising their wares as legal and even using the state of Indiana’s seal on advertisements.
Meanwhile, Brandt Iden, VP of government affairs at Fanatics, said illegal casinos have “no oversight, no consumer protections” and produce zero revenue for the state.
“Today, you have the opportunity to correct that.”
However… Answering the question as to why the sector can never have nice things, an amendment has been proposed that would raise the tax on OSB to 20%, with retail wagers remaining at 9.5%.
There was also pushback to the iCasino plans during the committee meeting. Stephanie Anderson, COO for Mental Health America of Indiana, warned of the damage that gambling disorder can cause.
Indiana Casino Association leader Matt Bell said the legislation could bring “tremendous” benefits to casinos and the state.
But, he and other casino representatives wanted lawmakers to expand the pool of businesses paying into the gambling addiction fund, and sought a flat tax rate.
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Nevada: A constitutional amendment proposing the creation of a state lottery in Nevada will be considered by the legislature during its upcoming session, according to The Nevada Independent.
The amendment, AJR5, was originally introduced in 2023 and passed both the House and Senate.
To be introduced as a ballot referendum, AJR5 must receive a second approval from the legislature.
It is expected to be sent for review by the Legislative Operations and Elections Committee when the session begins on February 3.
DraftKings has resolved its dispute with the National Football League Players Association over allegedly failing to pay for using NFL player likenesses, according to a joint filing on Monday in a New York federal court.
The NFLPA and DraftKings told the court they had settled the case in principle.
Mississippi: State Senator Joey Fillingane has introduced a bill to prohibit sweepstakes gaming within the state. SB 2510 would implement up to a $100k fine or 10-year prison sentence for those found operating sweepstakes in Mississippi.
The bill, which was referred to the Senate Judiciary Committee, also proposes bans for online sports pools and racebooks.
NICE and easy: Guidelines published by the National Institute for Health and Care Excellence, or NICE, have called on healthcare and social service workers to ask individuals about gambling habits.
The institute said problem gambling should be included with questions around drugs, smoking and alcohol usage during check-ups or appointments.
Brazil: Operators licensed under Rio de Janeiro’s state lottery, Loterj, have been restricted to the state in which they are licensed via geolocation services as of yesterday, January 29. The Federal Supreme Court rejected another appeal from Loterj regarding its decision to prohibit state-licensed operators from offering online gaming nationwide on Friday.
It said that operators have five days to comply or face suspension.
Loterj previously claimed its licensed operators should be allowed to operate nationally under Brazil’s new Bets market. However, the court determined the appeal had no legal standing.
Turkey claims to have blocked 233,000 illegal gaming websites since 2023, and the country’s finance minister has told prosecutors he wants to see more action taken against rogue operators in light of the figures by Turkey’s National Lottery Administration (MPI).
Australia: Gambling ads will be banned from public transport in New South Wales over the next year, the government has confirmed. Betting ads will also be stripped from bus and train stations and terminals.
The UK Gambling Commission has released an industry consultation for new proposed rules surrounding land-based slots. The rules include changing machine licensing, allowing time and bet limit settings for machines while also displaying a player’s net gains or losses.
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Florida sweeps case
Keys to it all: A lawsuit working its way through the Florida courts could have a major say on the future of sweepstakes in the US, legal experts have said, as the inclusion of payment processors in litigation could throttle the ability of operators to function.
Knapp v VGW Holdings, filed in the US District Court for the Middle District of Florida, challenges the legality of sweepstakes casinos under the Sunshine State’s strict anti-gambling laws.
Due for trial in October (unless sweepstakes operator VGW pays enough to make the matter go away), the case concerns games that allow users to purchase virtual currency for a chance to win real money prizes.
Real ones know: The plaintiff, Eric Knapp, claims that VGW’s online sweepstakes casinos Luckyland Slots and Chumba Casino should be regulated as gambling operations as players are required to pay real money for a chance to win real prizes.
VGW argues its freemium business model, where players purchase virtual coins to play, does not constitute gambling, as no direct wagers are made for cash prizes.
The outcome of this case could set a legal precedent for other states grappling with the rise of sweeps, said James Meggesto and Samir Patel, gambling lawyers at Holland & Knight, on the Indian Gaming Association’s New Normal podcast.
You make it happen: The naming of WorldPay as a defendant, and the subsequent refusal of a lower court to allow the payment processor to wriggle off the hook, may also “serve as a warning to other payment processors working with sweepstakes casinos,” said Meggesto.
If the courts decide sweepstakes violate state laws, payment processors could face liability, potentially reshaping how the entire industry operates.
Although the trial is pencilled for October, Patel said he felt VGW would try to buy their way out of a corner.
“For transparency reasons, VGW will not want to go to trial,” he said, adding that he believes sweepstakes operators would want to settle rather than have business aired in open court.
Don’t fool around: Rather, opposition should lobby states to update laws explicitly banning sweeps, Meggesto and Patel said, as this would “be the most effective, foolproof route.”
Recent model laws by the National Council of Legislators from Gaming States included a ban on sweepstakes and, while panelists talked up the proposals, there has been little mention of the draft among states taking another run at online gambling in 2025.
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Pham-ily affair
What a turn of events: The US derivatives regulator will develop policy of digital assets and prediction markets following a series of public meetings, it has announced.
Acting chair of the Commodity Futures Trading Commission (CFTC) Caroline Pham will hold a series of roundtables with “industry leaders, market participants [and] other market structure experts” with a view to updating rules to suit a rapidly evolving financial landscape.
In what some industry watchers interpreted as an olive branch (or a dig at the previous regime), Pham said her stance had always been that the agency should embrace the future and factor it into present rulemaking.
“The CFTC will get back to basics by hosting staff roundtables that will develop a robust administrative record with studies, data, expert reports and public input,” Pham said.
The culmination will be “clear rules of the road and safeguards that will promote US economic growth and American competitiveness.”
I hear the train a-comin’: Prior to standing down this month, former CFTC chair Rostin Behnam urged the agency to continue investigating what he saw as dangers lurking within prediction markets.
Prediction and event markets rose to prominence during the last election season, where Donald Trump swept to power embracing all things crypto.
The two big beasts of the sector, Kalshi and Polymarket, have both tangoed with the regulator, which is concerned the offerings are a little too close to gambling for comfort.
The President’s son, Don Jr, has been appointed as an advisor at prediction markets and digital finance exchange Kalshi, while offshore rival Polymarket, which allows punters to bet on pretty much anything, is tapping Trump’s campaign team for lobbyists.
It is hiring David Urban, an advisor on the presidential campaigns in 2016 and 2020, to help lawmakers “understand the value of prediction markets,” a spokesperson for the company told Politico.
Trump is yet to appoint Behnam’s successor.
Events calendar
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Mar 10-13: Regulating the Game, Sydney
Mar 12-13: Next: NYC 25, RG Hub, New York
May 8-9: Leaders in Compliance Conference, Frankfurt
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