Casino Ban in Online Sweepstakes Passes Mississippi Senate
In a move aimed at cracking down on online gambling, the Mississippi Senate passed a bill in early 2025 to ban online sweepstakes casinos. However, the ban did not become law due to a legislative deadlock.
The bill, known as SB 2510, sought to classify operating or promoting sweepstakes casinos as a felony with severe penalties. This strong legislative intent was in response to consumer reports of financial harm while playing on popular sites such as Chumba, High 5, and Stake.
Despite the lack of a final ban, state regulators such as the Mississippi Gaming Commission consider sweepstakes casinos illegal under existing laws and have issued cease-and-desist letters to operators, resulting in some exiting the market.
The legislative failure reflects a divide between the Mississippi Senate, which favors tough restrictions on sweepstakes casinos, and the House, which combined the ban with online sports betting language, causing a political impasse. Senators expressed concerns that online betting could cannibalize the land-based casino industry.
The Social & Promotional Games Association (SPGA) views the Mississippi Senate's actions as a waste of time and a transparent attempt to pay out protectionist favors for the casino industry. The SPGA argues that social sweepstakes are free-to-play games that never require a purchase for a player to win a game.
The controversy is not limited to Mississippi. Bills have been filed in Connecticut, Maryland, New Jersey, and New York to ban online sweepstakes. Similar crackdowns are occurring regionally, as seen in Louisiana, where the attorney general declared sweepstakes casinos illegal and regulators sent cease-and-desist letters to about 40 online sites.
Critics claim online sweeps are illegal gambling platforms. However, the sweeps industry operates using a "freemium" model, offering initial gaming tokens for free, and later allowing purchases of "sweeps coins" for gambling purposes.
A federal jury ordered High 5 to pay $25 million in damages to players who lost money on the site. If SB 2501 is passed, the charges for operating an illegal gambling website would be elevated from a misdemeanor to a felony, punishable with a fine of up to $100K and a prison sentence of 10 years.
Mississippi Sen. Sollie Norwood is the lone dissenter, advocating for authorization, regulation, and taxation of online gaming platforms. He believes this approach would protect consumers and generate revenue for the state.
It's important to note that online slot machines and table games are legal in only seven states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
Many Mississippians may be unaware they are breaking the law when using online sweepstakes websites due to their legitimate appearance. The rise of online gambling alternatives presents a complex issue for lawmakers, as they strive to balance protection of traditional casino revenue with the needs and desires of the digital age.
- The Mississippi Senate passed SB 2510 in early 2025, aiming to ban online sweepstakes casinos, yet the ban was not enforced due to a legislative deadlock.
- SB 2510 sought to classify operating or promoting sweepstakes casinos as a felony, with severe penalties, in response to consumer reports of financial harm on sites like Chumba, High 5, and Stake.
- Despite the lack of a final ban, the Mississippi Gaming Commission considers sweepstakes casinos illegal under existing laws and has issued cease-and-desist letters to operators.
- The legislative failure reflects a divide between the Mississippi Senate, favoring tough restrictions on sweepstakes casinos, and the House, combining the ban with online sports betting language, causing a political impasse.
- The Social & Promotional Games Association (SPGA) views the Mississippi Senate's actions as a waste of time, claiming that social sweepstakes are free-to-play games, never requiring a purchase for a player to win.
- Bills have been filed in Connecticut, Maryland, New Jersey, and New York to ban online sweepstakes, and similar crackdowns are occurring regionally, as seen in Louisiana.
- Critics claim online sweeps are illegal gambling platforms, but the sweeps industry operates using a "freemium" model, offering initial gaming tokens for free, and later allowing purchases of "sweeps coins" for gambling purposes.
