Virtual currency gambling sites under fire from U.S. lawmakers

Minimum Deposit Casinos (MDC), a global leader in online casino reviews, has released a new report highlighting a wave of legislative actions targeting sweepstakes casinos in the United States. Lawmakers in New York, Louisiana, and Montana are pushing new bills to clamp down on grey-area gambling platforms operating under alternative digital models.

These platforms, which often use dual currencies—one redeemable for real-world prizes—have caught the attention of regulators for mimicking traditional online gambling experiences. MDC analysts warn that the landscape is changing rapidly, and both operators and users must stay informed.

New York Targets Dual-Currency Models
In New York, Senate Bill 5935, introduced by Sen. Joseph Addabbo, is advancing quickly through the legislature. The bill seeks to regulate platforms offering sweepstakes games using two digital currencies, a format commonly used by social and sweepstakes casinos.

With growing bipartisan support, the bill highlights lawmakers’ increasing concern over platforms that function like online casinos but operate outside traditional licensing frameworks.

Louisiana Passes Comprehensive Ban Bill
Louisiana has taken an aggressive approach with Senate Bill 181, introduced by Sen. Adam Bass. The bill bans all sweepstakes games that replicate casino or sports betting services and passed the Senate unanimously.

The legislation now awaits review by the House and includes provisions targeting both the operation and promotion of such platforms, signaling a full-frontal legislative approach.

Montana Moves Toward Total Prohibition
Montana may become the first state to enact a complete ban on sweepstakes gambling platforms. Senate Bill 555 has already passed both chambers and is poised for final approval.

If signed into law, the bill will outlaw unlicensed sweepstakes-style websites entirely, creating a precedent for other states considering similar actions.

Analysts Warn of Accelerating Legal Shift
“States are clearly starting to zero in on grey-area gambling models,” said a senior MDC analyst. “These bills show how quickly the legal landscape can shift, and it’s crucial that players and operators stay ahead of the curve.”

As legal momentum builds, MDC urges users to remain vigilant about the legality of the platforms they engage with and to prioritize transparency and regulation in their online gaming choices.