Mississippi has emerged as the first state in the nation to enact laws that ban sweepstakes platforms, which opponents argue are merely cleverly engineered online casinos aimed at evading gaming regulations. The legislation still must overcome one last obstacle before arriving at Gov. Tate Reeves' (R) desk.
This week, Senate Bill 2510 was approved by the Mississippi House of Representatives. Sponsored by Sen. Joey Fillingane (R-Columbia), the law would elevate the offense for running an unlicensed gaming platform in Mississippi from a misdemeanor to a felony.
An individual convicted of operating an unlawful online gambling operation could be subjected to a penalty of as much as $100,000 and a decade in jail. SB2510 states that “any online, interactive, or computerized form” of “race books, online sports pools, and online sweepstakes casino-style games” would be considered an unregulated, unlawful gambling operation.
The SB2510 provisions further state that "internet sweepstakes cafes" and "online sweepstakes casinos" are considered illegal gambling.
The Senate of Mississippi approved Fillingane’s bill with unanimous backing of 51-0-0 (in favor, against, absent/not voting). The House garnered significant backing with a vote of 83-19-18.
Certain opponents in the House criticized Rep. Casey Eure (R-Harrison) for modifying the bill to incorporate mobile wagering. In the Magnolia State, sports betting is still restricted to in-person wagers at the state's casinos.
Eure aims to permit casinos to collaborate with online sportsbooks to satisfy consumer demand, eliminate local bookies and offshore sportsbooks, and increase tax revenue. His online betting legislation, however, failed in the Senate Gaming Committee after it was approved by the House in early February with a vote of 89-11-20.
Senate Gaming Committee Chair David Blount (D-Jackson) has supported the smaller casinos in the state, claiming they cannot compete online with DraftKings, FanDuel, and BetMGM, which are expected to collaborate with larger casinos along the Gulf Coast. They argue that online sports wagering will result in decreased visitor numbers at their locations.
Because SB2510 was revised in the House prior to receiving a supportive vote, the bill is sent back to the Senate for concurrence.
Arguably, no concern is more harmful to the heavily regulated gaming sector than the rise of online sweeps. Unauthorized websites have emerged nationwide, enticing players by promoting their operations as social, free-to-play platforms.
After a player exhausts their free supply of coins, they can buy an alternative currency, often referred to as “sweeps tokens,” which can be used for wagering to earn actual cash. In addition to Mississippi, several states, such as Florida, Maryland, Michigan, New Jersey, Nevada, and New York, are considering legislation to ban online sweepstakes that provide slots, table games, and various types of conventional gambling.
Sweepstakes companies contend that their activities are comparable to those of numerous other businesses’ promotional sweepstakes. As an example, the well-known Monopoly promotion by McDonald’s.
"Millions of American adults enjoy the safe and engaging games provided by social sweeps sites. These players love that no purchase is necessary to play or win prizes,” the Social & Promotional Games Association said.
“Properly operated sweepstakes are legal in almost all states. SPGA members operate within well-established legal frameworks that contrast starkly with black-market offshore sportsbooks and casinos,” the SPGA added.
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