Mississippi is poised to become the first state to pass legislation prohibiting online sweepstakes casinos, but a legislative maneuver tying the ban to online sports betting legalization has complicated what seemed like a straightforward path to enactment.
The Mississippi House of Representatives passed its version of Senate Bill 2510 on Wednesday by an overwhelming 83-19 margin, following the Senate's near-unanimous 44-1 approval last month. The bill, introduced by State Sen. Joey Fillingane (R-Columbia), would increase penalties for operating unlicensed gaming platforms in Mississippi from a misdemeanor to a felony.
Under the legislation, operators of illegal gambling enterprises would face:
Fines up to $100,000
Prison sentences of up to 10 years
Revocation of any gaming licenses held in the state
The bill specifically targets "online sweepstakes casino-style games" along with other forms of unauthorized internet gambling. These platforms operate under a dual currency model that attempts to skirt gaming regulations by offering "free" gameplay while selling secondary virtual currency that can be used to win real money.
What started as straightforward legislation against unregulated gambling has evolved into a complex political negotiation after Rep. Casey Eure (R-Biloxi), chair of the House Gaming Committee, amended the bill to include provisions legalizing online sports betting throughout Mississippi.
"We're concerned about tidelands, but at this point, it's all about negotiating," Eure said, referring to a separate tidelands boundary bill that he has also amended to include sports betting language. "I didn't kill tidelands. I just passed tidelands."
The strategic move has effectively created a standoff between the House and Senate over two unrelated pieces of legislation, with online sports betting serving as the negotiating leverage.
Eure has championed online sports betting as a way to combat illegal gambling while generating an estimated $50 million in annual tax revenue for the state. However, the proposal has faced significant opposition from portions of the state's casino industry.
At least eight casino stakeholders signed a letter opposing online sports betting expansion, arguing that it would fundamentally change Mississippi's gaming landscape.
"A state-wide expansion of gaming, with no local referendums, putting a casino in the hands of every person in Mississippi, no matter where they are located…this is not the right vision for gaming in Mississippi," the letter stated.
Senate Gaming Chairman David Blount (D-Jackson) has aligned with smaller casino operators concerned that they cannot compete with major online sportsbooks, which would likely partner with larger Gulf Coast casinos.
Since the House modified SB 2510 before passing it, the bill must now return to the Senate for concurrence. If the Senate refuses to accept the sports betting provisions, the bill would move to a conference committee where representatives from both chambers would attempt to negotiate a compromise.
The legislative maneuvering has drawn criticism from some state officials. Secretary of State Michael Watson expressed concern that tying sports betting to the unrelated tidelands bill undermines legislative integrity.
"I don't think legislation should be something that's traded," Blount said. "If you think it's a good bill, you should pass it, and if you think it's a bad bill, certainly you have every right to oppose it, but to link bills together when the topics are not related to each other, to me, is not the way the legislature should work."
Mississippi's efforts reflect a growing national movement against online sweepstakes platforms, which critics argue are merely thinly veiled attempts to circumvent state gambling laws.
Similar legislation is active in numerous states, including:
Maryland (which just passed a sweepstakes ban by a unanimous 47-0 Senate vote)
Michigan
Nevada
New York
Connecticut
Industry group Social & Promotional Games Association has opposed these efforts, arguing that "properly operated sweepstakes are legal in almost all states" and that "SPGA members operate within well-established legal frameworks that contrast starkly with black-market offshore sportsbooks and casinos."
The group expressed "disappointment" in Mississippi's Senate action, claiming the bill "unjustly targets sweepstakes and conflates a safe and legal form of entertainment with illegal operations."
As Mississippi lawmakers approach the end of their legislative session, the fate of both the sweepstakes prohibition and potential online sports betting legalization remains uncertain, with the unusual legislative strategy potentially endangering what otherwise appeared to be broadly supported legislation.