Betting
Online Gambling in the News - Hard Rock Bet's Big Mistake + AZ, CA, NJ & AL Sweeps Casino Updates
It's been another big week in online gambling. Hard Rock Bet steps in it big time, but then does right by players. Sweeps casino legislative, judicial, and regulatory activity heats up in a handful of states. We have all the news you need to know this week.
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Hard Rock Bet Accidentally Gave Players $5,000...and Let Them Keep It!
This story is going to blow your mind.
We are used to hearing about online casinos and sportsbooks making mistakes in promotions, but usually the news comes from disgruntled players that feel like they got shortchanged by a casino or sports betting site reneging on the deal after the fact.
Not this time.
Last Wednesday, some Hard Rock Bet players in New Jersey that took part in a free online trivia game were accidentally awarded $5,000 each. Hard Rock Bet Casino later discovered the error and you won't believe what happened next.
They let the players keep the money.
Normally, Hard Rock Bet offers an online trivia game on Wednesdays and if players answer seven or more of the ten questions correctly, they are awarded a share of the $5,000 total prize pool. Once the pool is divided among all winning participants, players usually receive just a couple of bucks each.
However, Hard Rock Bet made a mistake when coding the promo. Instead of splitting the $5,000 prize pool last Wednesday, each winning player was awarded the entire $5,000 prize.
According to Hard Rock, "hundreds" of players received the $5,000 payout (by accident.) All were allowed to keep their prizes.
Good job, Hard Rock! We are proud of you. Big congrats to the hundreds of folks that cashed in big time.
Arizona Strikes Out at Alleged Gambling Sites
The Arizona Department of Gaming has been sending out cease and desist letters to online sweeps casinos and other alleged gambling sites. In all, seven different companies were sent letters. They are:
- Stake.us (sweeps casino)
- Rebet (sweeps sportsbook)
- Novig (peer-to-peer betting)
- Dallas Safari Club (raffles)
- High Five (sweeps casino)
- Bettor Edge (social sportsbook)
Arizona Department of Gaming Director Jackie Johnson said in a news release, "Illegal gambling, regardless of the platform of format, has no place in Arizona. Whether it's online casino-style games, sweepstakes models, or unauthorized sports betting, any operation that falls outside Arizona's legal and regulatory framework will face enforcement action."
The Arizona Department of Gaming ordered all sites to cease all online gambling operations immediately.
We'll see how that goes.
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Alabama Residents Sue Stake.us
The legal woes continue to mount for Stake.us
On the heels of the Cease & Desist Letter they received from Arizona regulators, they now find themselves in potentially hot water in the state of Alabama.
The popular sweeps casino is now looking at a lawsuit that alleges that it misled users into believing it was a legal gambling platform in the state.
The plaintiffs are asking for Stake.us to be banned from doing business in Alabama and to be ordered to refund losses that they have had.
The lawsuit compares the sweepstakes casino model employed by Stake to internet cafes which existed in Alabama roughly twenty years ago.
Of course, there are some significant differences between an internet cafe and a sweepstakes casino like Stake:
- Internet cafes required a purchase to participate. Points, or entries, were only awarded after a consumer bought internet usage time. Their product was not a "sweepstakes," but instead it was "gambling."
- Sweepstakes casinos have a truly "no purchase necessary" model, offering players the opportunity to participate in the sweepstakes games without spending any money whatsoever. This is accomplished through a myriad of freebies, including free coins on registration, free daily login bonuses, and the opportunity to request free sweepstakes coins via US mail.
In case you haven't been counting, this is already the third lawsuit that has been leveled at Stake.us this year. There are pending suits in both California and Illinois.
New Jersey Bill Banning Sweeps Casinos Passes
Without debate, the New Jersey legislature passed a bill that would outlaw sweepstakes casinos in the state.
The New Jersey Assembly passed the ban, A5547, by a 69-10-1 vote. Later that day, the New Jersey Senate voted in favor of the measure in a 34-5 vote.
In a rare show of bipartisanship, legislators of both parties agreed that they don't like people making money in their state if they don't get their cut.
The bill now heads to Gov. Phil Murphy. With his signature it will become law in the State.
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California Sweeps Casino Legislation Draws New Support and Opposition
California Assembly Bill 831, introduced in February of this year by Democratic Assemblymember Avelino Valencia was amended this past week to go after sweepstakes casinos.
Valencia's bill would prohibit any person or entity from "facilitating, processing or promoting" sweepstakes style gambling in California if they use virtual currency purchased with cash. Their bill would also even go so far to restrict celebrity endorsers.
A few tribal groups have lined up in support of the legislation. That's no surprise, as they have their own interests to protect. The California Nations Indian Gaming Association (CNIGA) and the Yuhaaviatam of San Manuel Nation are co-sponsoring the measure.
The Social and Promotional Games Association (SPGA) has lined up on the other side of the bill. The Social Gaming Leadership Alliance is also opposing the measure.
Of course, those are not surprises. Let's see...indian casino operators don't like sweeps casinos and organizations backed by sweeps casino operators do.
We'll keep you updated on what comes next.
Steve Lapinski specializes in just about everything related to slot machines and casino games, both online and in land-based casinos in the USA. With over 25 years experience in the online gaming industry and nearly 40 years as a recreational gambler, the breadth of his knowledge on these topics is matched by few. Steve is passionate about casinos, and he takes great pride in sharing his knowledge of the subject with his readers.
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