Sweepstakes casinos could earn a reprieve in Mississippi thanks to a difference in opinion between House and Senate lawmakers on whether mobile sports betting should be legal statewide. In February, the Mississippi Senate became the first legislative chamber in the US to pass a bill banning sweepstakes casinos. House Representatives also passed the bill, but only after amending it to authorize online sportsbooks.
The Senate has rejected the new bill, leaving the sweepstakes ban in legislative limbo 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, barring action by the state regulator or the court system.
Such a deadlock would no doubt be welcomed by sweepstakes casino players in Mississippi, who lack a regulated real-money option. The sweepstakes-based social casino model of online gaming emerged due to the number of states without legal online casinos, including Mississippi. Sweepstakes casinos do not use cash for wagering. Instead, they operate with play money and offer prizes under federal sweepstakes law, which makes them legal, except where individual states have ruled otherwise.
As things stand, sports betting is legal in Mississippi, but only at casinos. Although bettors can use the BetMGM Sportsbook app, they can only place wagers while physically present on casino property. Another attempt to legalize statewide mobile betting failed last year.
The Senate wants to ban sweeps casinos
With a 44-1 vote in February, the Senate passed Sen. Joey Fillingane’s SB 2510. The legislation sought to amend the state’s gaming code to ban “any online, interactive or computerized versions of games.” That includes online race books, online sports pools, and online sweepstakes casino-style games. While the bill does not explicitly define sweepstakes casinos, it groups them alongside unlicensed gambling operations. Under the proposal, violations would be considered felonies, punishable by up to $10,000 in fines and up to 10 years in prison.
The Senate’s decision to ban online gaming isn’t surprising, as the chamber has long favored protecting the retail casino industry. Retail casinos significantly contribute to tax revenue, so many Senators fear cannibalization. That is also why previous bills to legalize online sportsbooks in Mississippi have failed.
House wants online sportsbooks, derailing Senate’s plan
While the Senate overwhelmingly passed the bill, the House threw a monkey wrench in their plans. House Gaming Committee Chairman Casey Eure amended the bill by incorporating provisions from a previously failed online sports betting bill, HB 1302. That bill had passed the House earlier this year but died in the Senate Gaming Committee. That caused frustration by Eure, who claims he incorporated provisions in HB 1302 that aligned with the Senate’s suggestions from last year, when it also rejected mobile sports betting.
The House provisions in SB 2510 include legalizing online sportsbooks and allowing individuals over 21 to place bets anywhere in the state. They also call for a 12% tax and up to two licenses per retail casino. The House passed the amended bill and returned it to the Senate. However, the upper chamber rejected the changes on March 27, leaving the bill in limbo.
The impasse is a win for sweepstakes operators like Chumba Casino, High 5 Casino, and WOW Vegas. By failing to reach a consensus, lawmakers are delaying the proposed sweepstakes casino ban. As long as SB 2510 remains stalled, Mississippi players can continue accessing these platforms without legal repercussions.
