Nevada Cranks Up the Heat on Sweepstakes Casinos with Tougher Penalties

A Three-Pronged Crackdown

First, SB 256 demands that any online gaming app or operator caught running illegal operations cough up all profits, revenue, and benefits tied to those activities. That cash would flow straight into Nevada’s general fund, turning ill-gotten gains into public resources.

Second, it jacks up the stakes with heftier fines, up to $50,000 per violation, and reclassifies some offenses as felonies, carrying prison terms from one to ten years.

Third, it stretches Nevada’s reach beyond its borders: if an offshore site takes bets from Nevadans, it’s fair game for prosecution.

While the bill doesn’t name-drop “sweepstakes casinos,” its scope clearly covers these platforms, which often skirt traditional gambling laws by offering prizes through promotional contests.

Why Now?

With a rock-solid regulatory setup already in place, Nevada has long kept in-state illegal ops in check. But offshore sites targeting Nevadans have been a thorn in its side, siphoning revenue from legit casinos and dodging oversight.

Past efforts, like cease-and-desist letters, worked sometimes but not always. The Nevada Gaming Control Board even fired off a warning to Kalshi recently.

SB 256 takes it up a notch. The threat of losing every dime earned illegally could hit harder than a slap-on-the-wrist letter, especially for sweepstakes outfits that thrive in legal gray zones.

It’s a shift from defense to offense, backed by heavyweights like the Association of Gaming Equipment Manufacturers, Vegas Chamber, Nevada Resort Association, and the Gaming Control Board itself.