Mississippi Senate Deals a Blow to Sweepstakes Casinos
Bill Proposes Fines up to $100,000, Prison Terms up to 10 Years
Rolling the Dice on a Regulatory Overhaul
The Mississippi Senate rolled the dice on a big change on Thursday, becoming the first legislative body in the US to pass a sweepstakes casino ban, a real game changer in the world of online casino gaming. With the chips down and the stakes higher than ever, lawmakers made a move that could impact online gambling regulations across the nation.
In a unanimous 44-1 vote, the Senate passed Senate Bill 2510, which makes internet sweepstakes casinos a felony. The penalties aren’t small changes either, with fines up to $100,000 and up to 10 years behind bars.
Context matters here. Mississippi isn’t new to gambling restrictions. In fact, the state banned internet sweepstakes cafes 12 years ago.
“The decision to ban online sweepstakes casinos in Mississippi shouldn’t come as a shock to anybody. SB 2510 is simply an update of that existing law, necessitated by the fact that the sweepstakes café business model has now effectively transitioned to the World Wide Web…”, U.S. Gaming Law attorney Daniel Wallach told Next.io.
Lawmakers are calling the shots, but some industry players feel the house is against them. The Social and Promotional Games Association (SPGA) has been strongly opposed to the ban, saying it unfairly lumps a consumer-friendly, long-established form of social gaming with other forms of gambling that are frowned upon.
UPDATE: The motion to reconsider the passage of SB 2510 is no longer pending before the Senate. SB 2510 was passed again yesterday by the Senate and heads over to the House. If approved by the House and signed into law, MS becomes the 1st state to ban online sweepstakes casinos. https://t.co/8Hu0uJbqOY pic.twitter.com/QyBDUf8NNT
— Daniel Wallach (@WALLACHLEGAL) February 14, 2025
Key Provisions & Implications
Senate Bill 2510, introduced by Senator Joey Fillingane, amends the Mississippi Code of 1972, effectively banning online sweepstakes statewide. The bill makes these platforms gaming devices and sets a legal framework to criminalize them. This legislative move aims to clean the table of unlicensed operators, with lawmakers doubling down on enforcement.
The penalties are steep, with felony charges up to $100,000 per violation and up to 10 years in prison. The Mississippi Gaming Commission (MGC) will play a big role, building on its past efforts of issuing cease-and-desist letters.
If it passes the House and is signed by Governor Tate Reeves, it will go into effect on July 1, 2025, making Mississippi the first state to ban sweepstakes operators in their state.
Operators’ Voice: The SPGA’s Stand
Meanwhile, the SPGA isn’t folding without a fight. In a statement, the organization representing operators like Fliff, FSG Digital and High 5 Entertainment said:
“The SPGA is deeply disappointed by the Mississippi Senate’s decision to advance SB 2510, which unjustly targets sweepstakes and conflates a safe and legal form of entertainment with illegal operations.”
They argue that social sweepstakes are free-to-play games enjoyed by millions of players and are far removed from the high-risk ventures associated with cash casinos or unregulated bet platforms.
Instead of an outright ban, the group advocates for a comprehensive regulatory framework that promotes transparency and consumer protection.
Sweepstakes casinos usually have a model where players buy virtual currency for gameplay and get free “sweeps” as a bonus. These sweeps can then be used to play casino-style games with winnings sometimes redeemable for cash prizes.
Implications for Other States
What are gambling regulations for sweepstakes casinos like in other jurisdictions? Well, that’s where Mississippi’s decisive play at the Senate could make casino news headlines.
States like Connecticut and Maryland are already debating similar bans while New Jersey and New York are looking into how to incorporate these bans into their proposals for legit gambling sites.
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