Mississippi Senate Passes Sweepstakes Casino Ban

^{State Sen. Joey Fillingane is leading the charge to keep online sweepstakes casinos out of Mississippi. (Image: Rogelio V. Solis / AP)}

The Mississippi Senate passed a bill that would prohibit online sweepstakes casinos from operating in the state on Tuesday, becoming the first legislative chamber in the United States to vote in favor of such a ban. 

The bill, SB 2510, will now be sent to the Mississippi House of Representatives to potentially receive another vote.

SPGA Blasts ‘Favors for the Casino Industry’

The vote on the bill, which also increases punishments for offshore online casino operators, passed by an overwhelming 44-1 vote on the full Senate floor. 

The Mississippi bill is one of many around the country that seek to restrict, outlaw, or regulate sweepstakes casinos. States including New York and New Jersey have each seen bills proposed that would regulate the sites on some level, while others, such as Connecticut and Maryland have considered legislation to outlaw the casinos.

The Mississippi legislation was introduced by State Sen. Joey Fillingane (R-Columbia). 

After the Senate vote, the Social and Promotional Gaming Association (SPGA) – the trade group that represents many of the biggest names in the sweepstakes casino industry – released a statement blasting the legislation.

“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,” the statement reads. “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.”

The SPGA also appealed to voters in the state while categorizing Fillingane’s bill as “protectionist favors for the casino industry.”

“Voters deserve better than lawmakers who prioritize the protection of a slot machine maker over individual freedom,” the SPGA said. “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.”

Sweepstakes Model Faces Increasing Scrutiny in the US

Others have pointed out that the law is essentially an extension of policy which already exists in Mississippi. 

“The state already has legislation on the books banning internet sweepstakes cafes. That law was passed 12 years ago,” gaming attorney Daniel Wallach told NEXT.io. “SB 2510 is simply an update of that existing law, necessitated by the fact that the sweepstakes café business model has now effectively transitioned to the world wide web. The resounding 44-1 vote speaks volumes here.”

Sweepstakes casinos operate under a dual-currency model that allows them to fall outside the purview of gaming regulations in most states. Players never are gambling with real money; instead, these sites offer up both “gold coins” for free money play, and “sweeps coins” that can be redeemed for cash, gift cards, or other prizes. Players can never directly buy sweeps coins, but can get them through a variety of promotions – or as a “bonus” for purchasing gold coins.