Mississippi Mulls Over Sweepstakes Ban

Lawmakers in Mississippi are considering a ban on sweepstakes games amid a broader pushback against the sector across America. Per a new measure, the state would ban multiple unlicensed online gaming products and penalize violators.

SB 2510 Would End Sweepstakes in Mississippi

Senator Joey Fillingane’s Senate Bill 2510 seeks to ban unregulated online gaming in Mississippi, protecting citizens from harmful practices. The ban would introduce changes to the Mississippi Code of 1972 and strengthen The Magnolia State’s measures against unlicensed online gaming platforms.

Under SB 2510, Mississippi, which already prohibits online gaming, would also ban internet sweepstakes casinos, and increase the criminal violation from a misdemeanor to a felony. As a result, violators may have to pay fines as high as $100,000 and would risk up to ten years in prison.

In addition to that, Fillingane’s bill also outlines provisions for the forfeiture of assets, rights, and privileges related to the illegal activity. The forfeiture process would be managed by the Mississippi Gaming Commission (MGC).

The measure is currently being reviewed by the Senate Judiciary. If passed, it would come into effect on July 1.

The Bill Would Outlaw

Sweepstakes casinos have remained a point of contention in the US. Operators argue that their products do not constitute gambling and are therefore legitimate. However, many have argued that sweepstakes casinos are way too similar to regular iGaming sites. As a result, sweepstakes have largely been operating in a gray market.

However, the recent rise of social casinos has prompted regulatory pushback against the sector. Industry stakeholders have accused the gray area sector of cannibalizing their revenues without complying with the same strict regulatory framework. Tribal gaming companies have likewise rejected sweepstakes casinos, demanding increased oversight.

Mississippi’s Senate Bill 2510 would therefore make it clear that online sweepstakes sites are illegal even if their owners claim otherwise.

Sweepstakes Remain Controversial

While Mississippi, among other states, is considering firmly rejecting sweepstakes, New Jersey lawmakers are eyeing another approach – regulation. Under a new bill, New Jersey would regulate the sweepstakes sector, aligning it with the state’s online gambling industry. This marked the first time a lawmaker has proposed accepting social casinos instead of fighting them.

The proposal was welcomed by The Social and Promotional Games Association (SPGA), a newly founded body that seeks to champion the interests of the sweepstakes gaming sector and promote responsible sweepstakes products.

Even if New Jersey is willing to experiment, most states remain reluctant to recognize the sector. In New York, Senator Joseph Addabbo Jr., a prominent supporter of the gambling industry, announced that he is working on a new bill that would prohibit sweepstakes in The Empire State.  In the meantime, Addabbo launched yet another iGaming bill, which is in line with his ambition to grow NY gaming.