iGaming Weekly Recap (March 17–23, 2025): Nationwide Sweepstakes Crackdown
This week, the industry once again delivered a flurry of developments. Maryland doubled down on targeting sweepstakes, while a proposed sports betting tax hike was softened. Missouri set a start date for accepting license applications, and Nevada granted Kalshi extra time to respond to its cease-and-desist letter. These are just a few of the standout moments from the past week. Dive into what else unfolded in the industry with our Weekly Recap.
Caesars Entertainment has expanded its board by adding two new independent directors tied to Icahn Enterprises. This move amplifies the influence of investor Carl Icahn, who has publicly expressed interest in exploring strategic options for what he sees as Caesars’ undervalued digital business.
Speculation points to potential sale, spin-off, or partnership for its online sports betting and internet casino segment. Both Icahn and Caesars’ CEO appear open to deals aimed at boosting shareholder value.
Bills to legalize online casinos in Illinois have stalled in the legislative committee. Proposed by Representative Gonzalez and Senator Castro, these mark the state’s third attempt to introduce iGaming in three years.
Supporters argue it would generate substantial tax revenue and protect consumers, given the existing unregulated market. However, traditional brick-and-mortar casino operators and VGT terminal owners fear revenue losses, alongside concerns about the state’s regulatory capacity and addiction risks.
The New York State Senate passed bill S5935, aiming to ban casinos offering games of chance. Sponsored by Senator Joseph Addabbo, this initiative targets online platforms using a “dual currency” model, seeking to curb profits from the unregulated gambling market.
The bill imposes steep financial penalties on operators and supporting entities. Similar efforts are underway in other states, though a parallel bill in the New York State Assembly faces delays. The goal is to protect consumers and ensure fair competition for licensed casinos.
Maryland has taken action against VGW, a company offering online sweepstakes games. The Maryland Lottery and Gaming Control Agency issued a cease-and-desist order, asserting that VGW lacks proper licenses to provide online gambling beyond sports betting and fantasy contests.
VGW must prove its operations are legal by March 27 or halt them within 10 days. Meanwhile, Maryland is advancing bills SB 860 and HB 1140, aiming to fully ban sweepstakes-based online casinos, part of a broader regulatory push in the state.
Missouri has set May 15, 2025, as the start date for accepting sports betting license applications. The Missouri Gaming Commission (MGC) released a timeline, allowing submissions through August 30, with temporary licenses to follow.
Legalization came after voters approved a constitutional amendment in November 2024. Despite prior delays in crafting regulations, the MGC aims to fully launch sports betting by late fall 2025.
Ohio Governor Mike DeWine recently proposed doubling the sports betting tax from 20% to 40%. The goal is to fund sports projects, possibly including a new Cleveland Browns stadium.
However, Republican lawmakers strongly oppose it, arguing it clashes with their push to lower taxes statewide. Given the Republican-controlled legislature’s resistance, the odds of this tax hike passing appear slim.
The deadline for the Kalshi platform to respond to a cease-and-desist order in Nevada has been extended. The Nevada Gaming Control Board (NGCB) issued the order, arguing that Kalshi’s event-based contracts, tied to wagering on outcomes, resemble sports betting and require a license the company lacks.
At the request of Kalshi’s lawyers, the original deadline was pushed back, giving the firm time to address the allegations, negotiate, or potentially pursue legal action against the regulator’s decision. The NGCB warns of consequences for continued illegal activity and highlights prior violations.
A new Congressional bill, the PROTECT Act (H.R. 1552), aims to ban bets on individual college athletes’ performances. Introduced by Congressman Michael Baumgartner, it seeks to shield young players from gambling pressure and prevent manipulation in college sports.
The Federal Trade Commission (FTC) would help enforce the rules. The article also notes the broader SAFE Bet Act, which pushes for a complete ban on prop bets in both professional and amateur sports, while addressing wider issues like advertising and consumer protection.
Maryland’s sports betting tax bill has seen revisions. Originally, Governor Moore proposed doubling the tax rate to 30% to patch a budget gap. However, the House of Representatives ultimately passed a bill setting it at 20%. This lower rate was welcomed by operators like DraftKings, FanDuel, and smaller local firms, who feared a steeper tax would hurt their bottom line.
The reduced rate is also expected to benefit players, enabling operators to keep competitive offers intact. In the end, this compromise aims to foster Maryland’s sports betting market growth without overburdening the industry.
Robinhood is fully stepping into the predictive betting arena, launching a new platform within its app. It initially offers contracts tied to the men’s and women’s March Madness basketball tournaments and forecasts for the Federal Reserve’s funds rate.
The company partners with KalshiEX LLC, a regulated exchange, to ensure compliance after prior regulatory hiccups. Access requires an active Robinhood investing account with margin trading or options enabled, and the contracts are available across all 50 states.
bet365, a popular online sports betting operator, launched its operations in Tennessee on March 16, 2025, perfectly timed for the start of March Madness. This move makes Tennessee the thirteenth U.S. state where bet365 is available, joining others with online betting markets.
Tennessee stands out as the first state with an exclusively online sports betting system, aligning with bet365’s business model. The company rolled out special welcome promotions and boosted odds for University of Tennessee games, and its market entry could boost the state’s tax revenue.
Bonus: “We Didn’t Forget You!”
Just when prediction markets seemed to steal the spotlight and regulators’ focus, sweepstakes are back in the crosshairs. A full ban on this format nears approval in Mississippi, Maryland is making a similar push while proactively issuing cease-and-desist letters to operators, and New York has shifted its stance, too.
Initial plans to regulate this space in one of the U.S.’s most lucrative markets proved overly ambitious, so the Big Apple state opted for a simpler fix: if sweepstakes can’t be tamed, ban them. Whether this approach gains lasting traction remains to be seen.
New Jersey followed a similar arc, evolving from regulation to restriction. Nevada, Arkansas, and Connecticut have also taken early steps toward banning sweepstakes. In short: the heat is on.
The Social and Promotional Games Association (SPGA) maintains a firm yet open stance, consistently criticizing lawmakers’ efforts to outlaw sweepstakes. Their voice is undeniably vital in this debate, but time will tell if it strikes the right chord to shape the legislative landscape.
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