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Mississippi Senate Passes Bill to Ban Sweepstakes Casinos

Dice and playing cards lying on a laptop keyboard, locked with a chain.On 11 February, the Mississippi Senate became the first legislative body to agree on banning sweepstakes casinos in the US. The state passed SB 2510 with 44-1 in favor, and now it’s up to the House of Representatives and the Governor to decide. The bill states that online sweepstakes casinos are illegal, and anyone who operates them risks a fine of up to $100,000 and up to 10 years of imprisonment.

SB 2510 Extends Restrictions on Existing Brick-and-Mortar Sweepstakes Ban

Senator Joey Fillingane filed the bill in January, adding online sweepstakes casinos to the state’s ban on brick-and-mortar sweeps cafes. These platforms usually operate with a dual currency system, which allows players to access casino-style games. They use gold coins, which have no monetary value, and sweeps coins that can be redeemed and offer the chance to win cash prizes.

Gaming attorney Daniel Wallach reminds us that Mississippi already has legislation banning internet sweepstakes cafes, so adding online sweeps casinos to the list shouldn’t shock the public. According to him, SB 2510 is simply an update of the existing law, considering that the sweepstakes cafe business model has transitioned to the internet.

The Mississippi Senate’s decision confirms the trend of state governments banning sweepstakes casinos. For example, New Jersey, New York, Maryland, and Connecticut have already filed such bills, and this might change the industry nationwide. Sweepstakes are not only a target of lawmakers, but tribes and commercial operators have also united to express their concern about the lack of regulation.

The SPGA’s Response to the Bill

The Senate passing the bill is only the first legislative stage, and it needs the approval of the House of Representatives and Governor’s Mansion. Of course, the vote provoked a response from the Social and Promotional Gaming Association (SPGA), an organization of social and sweepstakes operators, such as High 5 Entertainment, FSG Digital, Blazesoft, and Fliff.

The SPGA expressed its disappointment with the Mississippi Senate’s decision to proceed with SB 2510, which unfairly targets sweepstakes. From their point of view, the state misinterprets the nature of sweeps casinos and wrongly equates them with illegal gambling sites.

According to the association, Mississippi voters wouldn’t support their elected officials deciding what games adults are allowed to play. A “misguided attempt to pay out protectionist favors for the casino industry” is how the SPGA describes SB 2510.

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