Sweepstakes casinos could continue operating in Mississippi because of a disagreement between House and Senate lawmakers on whether mobile sports betting should be legal statewide.
Mississippi Passed SB 2510 In February To Ban Sweepstakes Casinos
In February, the Mississippi Senate passed SB 2510 in efforts to ban sweepstakes casinos in the state. House Representatives also passed the bill, but only after amending it to authorize online sportsbooks.
However, the Senate has now rejected the new bill, which means it will not pass until the two chambers reach a compromise. If they fail to do so before the legislative session ends, sweeps casinos will be able to continue operating in the state.
That is, of course, assuming action isn’t taken by the state regulator or the court system itself. Putting that observation aside, a dead bill would be good news for sweepstakes casino players in the Magnolia State.
Social casinos are popular in states like Mississippi, where legal online casinos are nonexistent. Sweeps casinos allow players to engage in virtual casino-style games for free, while allowing them to purchase virtual Gold Coins that can later be redeemed for cash prizes.
Gold Coins and Sweep Coins are available for players to purchase, but neither currency holds real-world cash value. The online gaming platforms label the games “promotional sweepstakes” rather than casino gambling.
While sports betting is legal in Mississippi, it’s only allowed at brick-and-mortar casinos. Gamblers can use the BetMGM Sportsbook app, but they can only place wagers while being physically present on casino property.
Violators Would Be Subject To Fines In Upwards Of $100,000, Up To 10 Years In Prison
The Senate sought to amend the state’s gaming law to ban “any online, interactive or computerized versions of games.” That includes online sweepstakes casino-style games and online race books.
Although sweepstakes casinos are not defined in the bill, the measure still categorizes them as unlicensed operators. Under the proposal, violations would be felonies, punishable by up to $10,000 in fines and up to 10 years in prison.
“If any person shall operate an online platform that facilitates illegal wagering, such person shall be guilty of a felony. Upon each conviction, a person shall be fined in a sum not more than One Hundred Thousand Dollars ($100,000.00), or shall be imprisoned for a term of years not to exceed ten (10) years, or by both fine and imprisonment,” the bill reads.
“The assets, rights, and privileges used in connection with violations of the provisions of this section shall be liable to forfeiture, to the State of Mississippi or to the county in which a violation is committed.”
The House provisions in SB 2510 include a 12% tax and up to two licenses per retail casino. Other updates include legalizing online sportsbooks and allowing individuals over 21 to place bets anywhere in the state.
Nevertheless, the upper chamber rejected the changes on March 27.