Mississippi Approves Bill to Ban Online Sweepstakes Casinos

In a decisive 44-1 vote, the Mississippi Senate has approved SB 2510, a bill designed to ban online sweepstakes casinos and strengthen penalties against offshore gambling operators. The legislation, introduced by Senator Joey Fillingane, proposes amendments to Mississippi’s gambling laws, categorizing interactive, online, and computerized gambling platforms as illegal.

Following its passage in the Senate, the bill was briefly reconsidered before being batch-approved, allowing it to proceed to the Mississippi House of Representatives for further debate.

Stronger Restrictions and Legal Penalties

SB 2510 updates Mississippi’s gambling code to ensure that any online sweepstakes-style gambling falls under the definition of a gaming device, effectively banning these operations. The bill elevates penalties for violations, classifying them as felonies instead of misdemeanors. Those found guilty of operating or promoting illegal online casinos could face up to 10 years in prison and $100,000 fines per violation. The law also enables the state to seize assets, licenses, and privileges from violators.

Unlike previous gambling laws, this bill does not target individual users but focuses on operators and promoters. Fillingane highlighted the issue of offshore casinos such as Bovada, Chumba, Stake, MyBookie, and BetUS, which offer gambling services to Mississippians without state authorization. Many residents, he noted, are unaware that these platforms operate illegally.

Mississippi’s Ongoing Battle Against Illegal Online Gambling

Mississippi remains a land-based sports betting jurisdiction, having legalized in-person sports wagering in 2018. However, online sports betting remains prohibited, with previous expansion attempts failing to gain Senate approval. A new proposal for online sports betting is currently under review.

The Mississippi Gaming Commission (MGC) has also taken direct action against illegal online operators, issuing cease-and-desist letters to Bovada, MyBookie, BetUS, BetWhale, and BetOnline. Despite a second round of warnings in December, none of the companies have responded.

Other States Considering Sweepstakes Regulations

While Mississippi is the first state to pass a legislative ban, several others are exploring similar regulatory measures:

• Connecticut lawmakers are preparing to discuss a sweepstakes gambling ban.
• Maryland has scheduled hearings on potential restrictions against sweepstakes platforms.
• New Jersey is considering licensing requirements for social sweepstakes operators.
• New York legislators are debating whether sweepstakes casinos should be incorporated into existing online gambling laws.

Opposition from the Sweepstakes Industry

The Social and Promotional Games Association (SPGA), a group representing sweepstakes platforms, has condemned these legislative efforts. The organization argues that sweepstakes casinos serve as a legitimate marketing tool used by various businesses and that the industry operates legally under existing laws.

SPGA representatives claim that proposed bans cater to special interests in the gambling industry, ultimately harming small businesses and consumers who enjoy these games.

Next Steps for SB 2510

The bill now moves to the Mississippi House of Representatives, where lawmakers will determine its final fate. If enacted, SB 2510 would officially go into effect on July 1, 2025.

Sources: Mississippi Senate Approves Sweeps Ban, Real Money Action, February 13, 2025.