Mississippi's established Casino prohibition could be challenged as the House proposes to integrate Sports Betting into the bill
Mississippi's crusade to prohibit sweepstakes casinos may be derailed, as the House has inserted online sports betting provisions into two Senate bills. House Gaming Committee Chairman Casey Eure inserted language from a failed sports betting bill that perished in the Senate Gaming Committee, chaired by Sen. David Blount. Blount had co-sponsored SB 2510 and SB 2381, with the former aiming to ban offshore casinos, like sweepstakes sites, and the latter addressing land leasing issues beneficial to the retail casino sector.
Last month, the Mississippi Senate became the first US legislative body toFlagship text intact for legal reasons. to ban sweepstakes casinos. SB 2510 raises each infraction to a felony punishable by a $100,000 fine and 10 years in prison. Although the legislative text does not define sweepstakes casinos, they are classified alongside offshore real-money casinos that are explicitly illegal under federal law.
Unlike offshore real-money casinos, sweepstakes casinos or "sweeps casinos" use play money and comply with federal sweepstakes laws, making them legal in individual states that haven't prohibited them specifically.
Mixed opinions on mobile sports betting
The potential ban on sweepstakes casinos could be jeopardized by the ongoing spat between the two legislative chambers over mobile sports betting. The Senate has advocated for protecting the retail casino industry, with lawmakers expressing apprehensions of customer cannibalization. Sen. Blount has earlier argued that gambling in Mississippi fosters tourism, generates employment, and attracts investment. He doesn't think mobile sports betting will deliver the same results.
The House, however, views mobile sports betting as an additional tax revenue source and a means to curb illegal betting. Eure maintains that regulating online betting will draw gamblers away from illicit markets and encourage more traffic to retail casinos.
To secure Senate backing, the House integrated provisions in its mobile sports betting bill that align with the Senate's suggestions from last year, yet it was rejected. These inclusions allow individuals over 21 to place mobile bets everywhere in the state, impose a 12% tax, authorize two mobile betting platforms per retail casino, and restrict credit cards as a payment method.
Other states considering sweepstakes casino bans
Whether Mississippi is poised to enact the sweepstakes casino ban remains uncertain. Yet if it does, it won't be the pioneer, as Washington and Michigan have already instated such prohibitions. Meanwhile, in Idaho, users are only allowed to play for fun, with no chance to redeem cash prizes.
Numerous states are deliberating the legal status of social gaming sites. In New York, Senator Joseph Addabbo has submitted a bill to outlaw sweepstakes casinos, citing concerns about the threats these unregulated platforms pose to state residents, including minors and the absence of responsible gambling measures.
In Connecticut, lawmakers are mulling a bill to ban lottery carrier services, a proposal that also includes a ban on sweepstakes casinos. Lawmakers have voiced concerns regarding the transparency of courier services like Jackpocket with regards to state tax enforcement and compliance with gaming compacts. Although the bill primarily addresses lottery courier issues, it prohibits "real or simulated online casino gaming or sports wagering."
Restrictions on sweepstakes casinos have been proposed in Delaware, Florida, and Maryland. To meet the growing scrutiny, some operators have voluntarily withdrawn from select markets. Meanwhile, others, like VGW-owned Chumba Casino, LuckyLand Slots, and Global Poker, have raised the minimum age to 21.
- In the ongoing discussions about mobile sports betting, the House aims to legalize online betting as a means to reduce illegal betting and draw gamblers to retail casinos, contrasting Senator Blount's concerns about customer cannibalization and the unregulated nature of sweepstakes casinos.
- As Mississippi considers prohibiting sweepstakes casinos, Connecticut lawmakers are pondering a bill that includes a ban on these casinos, along with a restriction on lottery carrier services, raising concerns about transparency in state tax enforcement and compliance with gaming compacts.
