Mississippi’s effort to ban sweepstakes casinos is now at risk after the House hijacked two crossover Senate bills by inserting online sports betting language. House Gaming Committee Chairman Casey Eure added provisions from a failed sports betting bill passed in the House but died in the Senate Gaming Committee, chaired by Sen. David Blount. Blount co-sponsored SB 2510, which aimed to ban offshore casinos, including sweepstakes sites, and SB 2381, which addresses land leasing issues benefiting the retail casino industry.
Last month, the Mississippi Senate became the first US legislative chamber to ban sweepstakes casinos. SB 2510 elevates each violation to a felony with a $100,000 fine and up to 10 years in prison. The measure does not define sweepstakes casinos but puts them in the same category as offshore real-money sites.
Unlike offshore real-money casinos, which are explicitly illegal under US law, sweepstakes casinos, or “sweeps casinos,” use play money and offer prizes under federal sweepstakes law. That makes them legal, except in individual states that have ruled otherwise.
Divided opinions on mobile sports betting
The ban on sweepstakes casinos could fall victim to the ongoing feud between the two legislative chambers on mobile sports betting. The Senate has favored protecting the retail casino industry, with lawmakers expressing fears of cannibalization. Sen. Blount has previously argued that gambling in Mississippi exists to promote tourism, create jobs, and encourage investment. He doesn’t think mobile sports betting will do that.
In contrast, the House sees mobile sports betting as an added tax revenue and a tool to curb illegal gambling. According to Eure, regulating online betting will redirect gamblers away from illegal markets and drive more traffic to retail casinos.
To gain Senate support, the House incorporated provisions in its mobile sports betting bill that aligned with the Senate’s suggestions from last year, but it was still rejected. They included allowing individuals over 21 to place mobile bets anywhere in the state, not only on the casino floor, with a 12% tax, two mobile betting platforms per retail casino, and not allowing credit cards as a payment method.
Other states considering sweeps casino bans
Whether Mississippi will pass the sweepstakes casino ban is yet to be seen. But if it does, it will not be the first state to take such action. Washington and Michigan prohibit the platforms. Meanwhile, in Idaho, users can only play for fun without the chance to redeem cash prizes.
Several states are debating the legal status of social gaming sites. In New York, iGaming champion Senator Joseph Addabbo introduced a bill to ban sweepstakes casinos. Addabbo argues that these unregulated platforms pose risks to state residents. That includes easy access for minors and a lack of responsible gambling measures.
In Connecticut, lawmakers are considering a bill to ban lottery carrier services, but the bill also includes language to ban sweepstakes casinos. Lawmakers raise concerns about the transparency of couriers like Jackpocket regarding state tax enforcement and compliance with gaming compacts. While focused on lottery couriers, the bill prohibits “real or simulated online casino gaming or sports wagering.”
Proposals to prohibit sweepstakes casinos have also surfaced in Delaware, Florida, and Maryland. As a response to the growing scrutiny, some operators have voluntarily exited select markets. Meanwhile, others, like VGW-owned Chumba Casino, LuckyLand Slots, and Global Poker, raised the minimum age to 21.
About the Author
