Mississippi Senate passes bill to ban sweepstakes casinos, set for July 1 enforcement if signed into law

The Mississippi Senate has voted overwhelmingly in favor of banning sweepstakes casinos, becoming the first legislative chamber in the United States to take such a decisive step against the controversial gaming model.

Senate Bill 2510, introduced by Senator Joey Fillingane, passed by a 44-1 margin on Tuesday and returned to the floor the following day before advancing to the House of Representatives for further consideration. If SB 2510 passes in the House and is signed into law, Mississippi will officially outlaw sweepstakes casinos starting July 1. 

The bill seeks to amend the Mississippi Code of 1972 to prohibit sweepstakes gambling platforms statewide. While it does not explicitly define "sweepstakes casinos," it groups them with unlicensed offshore online casinos, both of which would face severe penalties if the legislation is enacted. The proposed law introduces felony charges for operators and promoters, with punishments including up to 10 years in prison or fines as high as $100,000 per violation.

Senator Fillingane emphasized that the bill is the result of collaboration between the Mississippi Gaming Commission (MGC) and representatives of licensed brick-and-mortar casinos. He pointed out that many Mississippians unknowingly engage in illegal online gaming due to the legitimate appearance of offshore websites.

"One of the major problems is that many Mississippians have no idea when they’re on their device that they’re even breaking the law because it looks completely legitimate," he stated. As a result, the bill focuses on “targeting online operators" and not the end user.

The MGC has already attempted enforcement by issuing cease-and-desist letters to offshore operators, including Bovada, MyBookie, BetUS, and BetOnline. However, Fillingane noted that none of the targeted companies have responded to the commission’s notices.

Mississippi’s move to outlaw sweepstakes casinos comes as other states also consider regulating or banning such platforms. Connecticut and Maryland have introduced similar bills aimed at prohibiting online sweepstakes gaming, while lawmakers in New Jersey and New York are exploring ways to classify and regulate these operations.

Sweepstakes-style gaming has drawn criticism for mirroring online casinos and sportsbooks while circumventing traditional gambling regulations. Users receive virtual coins to play and can purchase additional in-game currency, which can sometimes be exchanged for real money and prizes, a system that critics argue constitutes illegal gambling.

Unlike licensed sportsbooks such as FanDuel and DraftKings, sweepstakes operators are not taxed or regulated, prompting calls from the American Gaming Association and the Indian Gaming Association for stricter oversight.

Beyond the sweepstakes ban, gaming legislation remains a key focus in Mississippi’s current legislative session. Lawmakers are also pushing for the legalization of statewide online sports betting, which is currently limited to in-person wagers placed at licensed casinos.

The Mississippi House recently passed HB 1302, which would allow online sportsbooks and racebooks to partner with brick-and-mortar casinos. A similar measure stalled in the Senate last year, but proponents hope to gain enough support to clear that hurdle in 2025.