The Mississippi Senate has made significant progress in its bid to ban sweepstakes through a 44-1 approval of a new bill in the state.
The bill would change the Mississippi Code of 1972 to implement a statewide ban on sweepstakes gambling platforms at a time when regulatory hostility towards the vertical is intensifying.
As a result of the bill’s initial approval in Mississippi, it will now progress to the House of Representatives for further consideration.
Providing his statement to the floor, Sen. Joey Fillingane emphasised that the bill comes from the efforts of the Mississippi Gaming Commission (MGC) and representatives of existing licensed brick-and-mortar casinos.
Furthermore, the bill is also aiming to intensify sanctions for unlicensed operators in the state, taking specific aim at the likes of Bovada, Chumba, Stake, MyBookie and BetUS.
Fillingane stated: “One of the major problems is that many Mississippians have no idea when they’re on their device that they’re even breaking the law because it looks completely legitimate.”
It builds on the continued efforts of the MGC to eradicate rogue operators in the state – issuing cease-and-desist letters to Bovada, MyBookie, BetUs, BetWhale and BetOnline.
Fillingane detailed that while the commission sent a second round of C&Ds in December, “none to this date have responded.”
The SPGA emphasised its disappointment at the decision, stating: “Mississippi Senate’s decision to advance SB 2510 unjustly targets sweepstakes and conflates a safe and legal form of entertainment with illegal operations. 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.
“Social sweepstakes are free-to-play games that never require a purchase for a player to win a game. They’re part of a long-established industry of social casino games enjoyed by tens of millions of adults across America.”
“We doubt voters in Mississippi appreciate their elected officials dictating what games adults can and can’t play on their phones. It’s a waste of time and a transparent and misguided attempt to pay out protectionist favours for the casino industry. Voters deserve better than lawmakers who prioritise the protection of a slot machine maker over individual freedom.
“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.”
A bill in New Jersey is seeking to bring sweepstakes under the same framework as casinos. This would mean they are forced to apply for a casino license in the state.
The bill states that sites that meet the above definition to apply for a casino service industry enterprise license. Additionally, they would need to conduct a third-party audit to verify financial standing and provide bi-annual reports to the New Jersey Division of Gaming Enforcement.
While the bill specifies sweepstakes sites need to obtain a casino service industry enterprise license, it does not go into further detail on the licensing and tax structure for these operators and whether it would mirror the $400,000 up front licensing fee and $250,000 renewal fee levied on regulated online casinos.
