Mississippi Inches Closer to Banning Sweepstakes

The American sweepstakes industry has continued to grow but that doesn’t mean that everyone is on board. On the contrary, many states have continued to push back against the industry’s advance, taking measures to prevent it from cannibalizing the regulated gaming industry’s revenues.

Mississippi is the latest state to advance a bill seeking to ban sweepstakes for good.

Mississippi Seeks to Snuff Out Sweepstakes

The Mississippi House of Representatives just advanced Senate Bill 2510, which envisions amendments to the Mississippi Code of 1972. The measure, sponsored by Senator Joey Fillingane, hopes to outlaw online social casinos and introduce significant penalties for violators. For context, sweepstakes operators would risk fines of up to $100,000, as well as up to 10 years in prison.

Mississippi already prohibits retail sweepstakes cafes and is seeking to put an end to online sweepstakes too. The measure passed the House of Representatives with overwhelming support, highlighting a strong opposition to the vertical.

Previous amendments to the bill also included language that could lead to the legalization of online sports betting in Mississippi. Lawmakers in the state, however, have so far remained largely opposed to iGaming, which may complicate the passing of the bill’s revised version.

The Senate will once again analyze the measure and decide its future by March 21.

Maryland Advanced a Similar Measure

In the meantime, Maryland is likewise looking to crack down on the sweepstakes sector. Two days ago, the Maryland Senate passed Senate Bill 860 with overwhelming support. SB 860 and its companion bill, HB 1140, continued to gain traction in the Free State. The former passed the Senate with unanimous support, while the latter has yet to pass the House Ways and Means Committee.

If these bills are passed, Maryland will also ban sweepstakes, adding to the growing pressure against the vertical. The measure will also ban other online gambling games, with the exception of games that do not offer real-money rewards or cash-equivalents.

Similarly to Mississippi, Maryland is looking to introduce a maximum fine of $100,000 for violators. However, the maximum prison sentence in the Free State would be only 3 years.

Sweepstakes Face Growing Pressures

Meanwhile, the Social and Promotional Games Association (SPGA), an industry body that champions the interests of sweepstakes operators, has remained firmly opposed to these bans, which it previously labeled a “dangerous overreach.”

Instead, the SPGA has continued to promote sensible regulation and taxation, saying that its sweepstakes operator members would not mind following the rules if there is a regulatory framework regulating them.

However, New Jersey is so far the only state to propose regulating sweepstakes instead of banning them. A separate proposal in the same state, however, is likewise seeking a ban.