Sweepstakes Games May Soon Be Illegal in Mississippi if Bill Passes
Senate Bill 2510 would make it illegal to operate or participate in an online sweepstakes game in Mississippi. The state is the latest to seek legislation to address sweepstakes games.
Bill 2510 would make online sweepstakes games illegal in Mississippi.
Key Facts:
- Mississippi considers sweepstakes ban amid growing national debate
- State law doesn’t expressly prohibit sweepstakes casinos currently
- New Jersey and New York are rumored to be considering action on sweepstakes games as well
A new bill in Mississippi could soon outlaw sweepstakes games, adding to the mounting pressure this industry faces across the United States. Sweepstakes games are online platforms, either via a website or mobile app, that offer casino-style games without using real money. Typically, consumers use tokens to play the games, which they can buy or earn through play in the app.
Senator Joey Fillingane’s Senate Bill 2510 aims to close loopholes in Mississippi’s existing online gaming laws by explicitly banning internet sweepstakes casinos. This move would reclassify the violation from a misdemeanor to a felony, with potential penalties of up to 10 years in prison and a $100,000 fine.
The bill also grants the Mississippi Gaming Commission (MGC) the authority to seize assets connected to illegal sweepstakes operations.
The debate around sweepstakes casinos centers on whether they constitute gambling. Operators argue their products are legitimate because they don’t involve traditional wagering. Critics, however, contend that these games closely resemble regular online casino games and operate in a legal gray area.
This has led to accusations of unfair competition from regulated online casinos and tribal gaming interests, who argue that sweepstakes casinos cannibalize their revenue without adhering to the same regulations.
The pressure from regulated, licensed casinos and sports betting operators has spurred Sen. Fillingane and his allies to take action legislatively. The lawmaker will likely need bipartisan support to pass his sweepstakes gaming bill in Jackson.
Other States Are Also Concerned
Other jurisdictions are also grappling with online sweepstakes. New Jersey is exploring regulation of such activity. A new bill in New Jersey proposes treating sweepstakes casinos similarly to licensed online casinos, marking a potential shift in the national conversation.
This approach has gained support from The Social and Promotional Games Association (SPGA), a new organization advocating for responsible sweepstakes gaming.
However, New Jersey’s stance appears to be the exception. Many states, including New York, are moving towards outright bans, though legislation has yet to be introduced.
Among states that legalize any type of online gaming, only Massachusetts has passed regulations that expressly outline penalties for sweepstakes games within their borders.
As the popularity of online gaming continues to rise, the pressure to establish clear legal frameworks for sweepstakes games will likely intensify. The year 2025 could be the year that states take a harder stance against sweepstakes casinos, whether consumers like it or not.
