Lawmakers look to ban certain online gaming platforms

• Mississippi is not the first state to try to outlaw sweepstakes casinos.

The Mississippi Senate voted unanimously last week to ban certain online gaming platforms, also known as sweepstakes casinos, following other states in banning the controversial gaming model.

SB 2510 aims to halt sweepstake casinos statewide. The measure does not define what sweepstake casinos are specifically but lumps them in with online, interactive, or computerized versions of any game of chance.

The committee substitute, which the Senate voted on, outlines stiff felony charges for operators and promoters, including fines upwards of $100,000 per violation and up to ten years in prison.

Senator Joey Fillingane (R), the bill’s author, said the Mississippi Gaming Commission and established licensed casinos favor the measure.

During floor debate, Fillingane noted that some Mississippi residents are unaware that they are engaging in illegal online gambling because many of the websites appear legal.

“One of the major problems are Mississippians have no idea when they’re on their devices that they’re even breaking the law because it looks completely legitimate,” he said, saying the bill punishes online operators, not the users.

The illegal gaming platforms bypass certain gaming regulations. On some of the online gaming sites, users are given virtual coins to play games and have opportunities to purchase more coins, which can be exchanged for real money and prizes. This is a practice legitimate gaming establishments contend is illegal gambling.

Fillingane said that in the past, the state’s gaming commission has tried to enforce these offshore companies by sending cease-and-desist letters. However, he said, none of the companies, including MyBookie, BetUS, and BetOnline, ever responded to the letters. The senator said that companies that operate online betting websites are headquartered thousands of miles from the Magnolia State, specifically mentioning Australia.

Unlike legitimate gaming sites such as FanDuel and DraftKings, sweepstakes operators are not taxed or regulated, which has led the American Gaming Association and the Indian Gaming Association to call for more oversight.

Mississippi is not the first state to try to outlaw sweepstakes casinos. Bills to regulate or ban them have been introduced in Connecticut, Maryland, New Jersey, and New York.

Earlier this legislative session, the House passed HB 1302, allowing online sports gambling books to partner with physical casinos. The Senate’s sweepstakes casinos legislation does not relate to that issue which has grown in popularity in the state. That House bill was transmitted to the Senate Gaming Committee and awaits consideration.