Mississippi Sweeps Away Sweepstakes, Mobile Betting Delays Enactment
Mississippi is likely to be the first state to ban online sweeps
- Sweeps are controversial gaming platforms
- Many other states are also considering sweeps bans
Mississippi has become the first state in the country to pass legislation to prohibit sweepstakes platforms that critics say are nothing more than cleverly designed online casinos tailored to sidestep gaming laws. The bill, however, has a final hurdle to clear before reaching Gov. Tate Reeves’ (R) desk.
chambers of the Mississippi Legislature agree that online sweepstakes platforms that offer gambling games should be outlawed. But a House amendment to authorize online sports betting is stalling the bill from reaching the governor’s desk. This week, the Mississippi House of Representatives passed Senate Bill 2510. Introduced by Sen. Joey Fillingane (R-Columbia), the statute would increase the criminal violation for operating an unlicensed gaming platform in Mississippi from a misdemeanor to a felony.
A person found guilty of running an illegal internet betting business would face a fine of up to $100K and 10 years in prison. SB2510 says “any online, interactive, or computerized version” of “race books, online sports pools, and online sweepstakes casino-style games” would qualify as an unregulated, illegal gambling enterprise.
The SB2510 provisions go on to say that “internet sweepstakes cafes” and “online sweepstakes casinos” constitute illegal gambling.
House Amendment
The Mississippi Senate passed Fillingane’s bill with unanimous 51-0-0 support (yea, nay, absent/not voting). The House also fielded strong support with an 83-19-18 vote.
Some opponents in the House took issue with Rep. Casey Eure (R-Harrison) amending the bill to include mobile wagering. Sports betting in the Magnolia State remains limited to in-person at the state’s casinos.
Eure wants to allow casinos to partner with online sportsbooks to appease consumer demand, rid the state of local bookies and offshore sportsbooks, and generate more tax revenue. His online wagering bill, however, died in the Senate Gaming Committee after passing the House in early February with 89-11-20 support.
Senate Gaming Committee Chair David Blount (D-Jackson) has sided with the smaller casinos in the state that argue they won’t be able to compete online with DraftKings, FanDuel, and BetMGM, which will likely partner with larger casinos along the Gulf Coast. They contend online sports betting will lead to reduced foot traffic at their properties.
Since SB2510 was amended in the House before gaining a vote in support, the legislation returns for concurrence in the Senate.
Sweeping Out Sweeps
Perhaps no issue is more detrimental to the highly regulated gaming industry than the emergence of online sweeps. The unregulated websites have popped up across the country and target players by billing their businesses as social, free-to-play sites.
Once a player’s free allotment of coins runs dry, customers can purchase a secondary currency, commonly called “sweeps tokens,” that can be gambled with to win real money. Along with Mississippi, legislation to outlaw online sweepstakes that offer slots, table games, and other forms of traditional gambling is active in numerous states, including Florida, Maryland, Michigan, New Jersey, Nevada, and New York.
Sweeps companies argue that their operations are not unlike many other businesses’ sweepstakes promotions. For instance, McDonald’s famed Monopoly promotion.
Millions of American adults enjoy the safe and engaging games provided by social sweeps sites. These players love that no purchase is necessary to play or win prizes,” the Social & Promotional Games Association said.
“Properly operated sweepstakes are legal in almost all states. SPGA members operate within well-established legal frameworks that contrast starkly with black-market offshore sportsbooks and casinos,” the SPGA added.
https://www.casino.org/news/mississippi-lawmakers-sweep-away-sweepstakes/