Mississippi Close to Banning Online Sweepstakes: Mobile Sports Betting Still Banned

Following in the footsteps of Michigan, the Mississippi Senate voted this past week unanimously to ban sweepstakes casinos.

It's not a done deal yet, but we are certainly getting close to an all out ban in Mississippi.

Whereas real money online casinos typically require a deposit - sometimes as low as $5 - sweepstakes casinos allow individuals to gamble for free.  Then, once they are hooked, these same customers are encouraged to make various purchases.

While not defining sweepstakes casinos per se, SB 2510 lumps these sites in with online, interactive, or computerized versions of any game of chance.

The committee substitute, which the Senate voted on, outlines stiff felony charges for operators and promoters, including fines upwards of $100,000 per violation and up to ten years in prison.

Senator Joey Fillingane (R), the bill’s author, said the Mississippi Gaming Commission and established licensed casinos favor the measure.

The law would punish the operator, many of whom advertise heavily on the Mississippi airwaves.  Users would not be punished in any way.

“One of the major problems are Mississippians have no idea when they’re on their devices that they’re even breaking the law because it looks completely legitimate,” Fillingane said.

The illegal gaming platforms bypass certain gaming regulations via loopholes.

Sweepstakes operators are not taxed or regulated with Fillingane saying many of these companies are based out of Australia.

Bills to regulate or ban sweepstakes casinos have recently been introduced in Connecticut, Maryland, New Jersey, and New York.

Earlier this legislative session, the House passed HB 1302, allowing online sports gambling books to partner with physical casinos.  That House bill was transmitted to the Senate Gaming Committee and awaits consideration.

Covers.com does not see the House and Senate meeting on common ground.

In Dec. 2023, a report from the Mississippi Mobile-Online Sports Betting Task Force concluded “Significant growth would likely be spurred by the adoption of online sports betting, addition of retail sports betting locations near new population centers, interest/growth in new sports to place bets (e.g., e-sports), or a federal effort to stop illegal sports betting.”

The Task Force’s report apparently didn't sway Mississippi’s senators. Given the disparity between HB 1302 and SB 1210, it also appears unlikely Mississippi’s House and Senate will find common ground to legalize online sports betting – yet again – this year.