Despite the Mississippi Senate becoming the first legislative chamber to approve a ban on sweepstakes casinos, the bill’s hopes have died in spite of initial success.
SB 2510 failed to exit out of conference in the Senate before the deadline for reporting bills out of conference committee passed on Monday (31 March).
The proposal, sponsored by Sen. Joey Fillingane, sought to explicitly ban digital sweepstakes casinos and charge operators and those that promote the vertical with a felony.
However, after initially being passed by the Senate, the bill was returned from the House with sports betting caveats added by Rep. Casey Eure.
The amended bill would have allowed retail casinos to partner with online sportsbooks or racebooks and offer sports betting taxed at 12%, however, the Senate said no to the idea of adopting the heavily amended bill, instead inviting conference with House representatives.
A small victory amid continued scrutiny
Mississippi’s failure to approve a ban on sweepstakes is just a small victory for a sector facing intense scrutiny from lawmakers across the US.
Numerous states, including Maryland, Florida, Nevada and New Jersey, are considering legislation to prohibit sweepstakes casinos.
Most notably for operators, the New York Senate has introduced SB 5935 which seeks to ban sweepstakes and also targets the suppliers of sweepstakes casinos.
This would strike a significant blow to the sector given the volume of players that are available within the state.
In 2024, no US state took more money in sports bets or reaped more in wagering tax revenue. A total of $22.6bn was wagered in The Empire State and gross gaming revenue topped out at just over $2bn.
Alongside the legislation, last week sweepstakes casinos across New York informed customers that they will no longer be operating in the state.
In a statement, the Social and Promotional Gaming Association (SPGA) took aim at the legislation, arguing that sweepstakes sites are currently acting within the rule of law if a bill to specifically prohibit sweeps is needed.
The organisation also remained defiant despite the numerous exits, reiterating that sweepstakes operators are working with the New York Gaming Commission to “adjust their approach” in the state.
