The Mississippi Senate has become the first U.S. legislative chamber to approve a ban on sweepstakes casinos.
A substituted version of Sen. Joey Fillingane’s SB 2510, which would prohibit online sweeps and increase punishments for offshore online casinos operating in the state passed by a 44-1 vote on the Senate floor on Tuesday.
A motion to reconsider brought it back to the floor on Wednesday when the chamber reconvened. It was one of multiple bills batch-approved without comment. It will now head to the House of Representatives for consideration.
The bill would amend the Mississippi Code of 1972 to enforce an statewide ban on sweepstakes gambling platforms, although it does not settle on an iron-clad definition for the term.
It also establishes significant penalties for any person or entity found guilty of violating state rules by offering an illegal online casino or equivalent. The substitute bill clarifies that penalties shall be per incidence. The felony penalties, which would include a prison term of up to 10 years or a fine of up to $100,000, apply to both operators and promoters.
Senator bundles together offshores and sweeps
Speaking to the floor on Tuesday, Fillingane noted that the bill is a collaboration between the Mississippi Gaming Commission (MGC) and representatives of existing licensed brick-and-mortar casinos.
The senator appeared to group together unlicensed offshore online casinos and sweepstakes offerings in his address, namechecking the likes of Bovada, Chumba, Stake, MyBookie, BetUS and several others.
“One of the major problems is that many Mississippians have no idea when they’re on their device that they’re even breaking the law because it looks completely legitimate,” he noted.
As a result, said Fillingane, the bill focuses on “targeting online operators, the people who put the platforms up, not the end user.”
The MGC has tried its own enforcement action by sending cease-and-desist letters to Bovada, MyBookie, BetUs, BetWhale and BetOnline. Fillingane noted that while the commission sent a second round of C&Ds in December, “none to this date have responded.”
Sweeps association “deeply disappointed”
The Senate’s decision drew a response from the Social and Promotional Gaming Association (SPGA), a coalition of numerous operators including Fliff, FSG Digital and High 5 Entertainment, who said that social sweepstakes games are “part of a long-established industry of social casino games.”
“The SPGA is deeply disappointed by the Mississippi Senate’s decision to advance SB 2510, which unjustly targets sweepstakes and conflates a safe and legal form of entertainment with illegal operations,” said the association. “This bill not only misrepresents the nature of sweepstakes gaming — an established and consumer-friendly model — but also sets a troubling precedent by equating these operations with illicit gambling…
“We doubt voters in Mississippi appreciate their elected officials dictating what games adults can and can’t play on their phones. It’s a waste of time and a transparent and misguided attempt to pay out protectionist favors for the casino industry. Voters deserve better than lawmakers who prioritize the protection of a slot machine maker over individual freedom.
“Rather than enacting punitive measures that reduce innovation and consumer choice, we urge lawmakers to consider a regulatory approach that enshrines transparency and consumer protections while allowing Mississippi adults to continue enjoying the fun, fair, and free-to-play games offered by social sweepstakes operators.”
Sweeps on the agenda in other states
While Mississippi is the first to take such a definitive step towards a ban, it is one of several states considering legislation regarding sweeps this year.
Connecticut and Maryland have also introduced bills that would prohibited online sweepstakes-style offerings, steps which also drew the ire of the SPGA.
Meanwhile, a piece of New Jersey legislation proposes defining and designating sweepstakes as regulated entities.
