The Mississippi Senate took the first big legislative swing at social sweepstakes platforms this week.
The Mississippi Senate on Tuesday passed a bill, SB 2510, that would ban social sweepstakes sites in the state. Lawmakers in the upper chamber voted in favor of the bill 44-1.
While Mississippi is the first state with real legislative action on sweeps, bills in multiple other states also could impact the industry.
Social sweeps ban
Sen. Joey Fillingane’s legislation would amend the state’s gambling code to disallow “any online, interactive or computerized version of games,” defined in the amendment as a gaming device. The state outlaws online gaming devices.
The bill is written to include “online sweepstakes casino-style games” as well as race books and online sports pools. It defines them as games of chance and digital simulation.
It also includes increased criminal penalties, which the bill raises from misdemeanor to felony. Each violation is subject to a $100,000 fine and up to 10 years in jail.
SPGA reacts to passage
The Socai & Promotional Games Association expressed “disappointment” in Magnolia State’s Senate action. In a statement, it said the bill “unjustly targets sweepstakes and conflates a safe and legal form of entertainment with illegal operations.”
The organization argues the operators never require a purchase for a player to win. It also said lawmakers are prioritizing the protection of a slot machine maker over individual freedom.
“This bill not only misrepresents the nature of sweepstakes gaming—an established and consumer-friendly model—but also sets a troubling precedent by equating these operations with illicit gambling,” the statement reads. “Rather than enacting punitive measures that reduce innovation and consumer choice, we urge lawmakers to consider a regulatory approach that enshrines transparency and consumer protections while allowing Mississippi adults to continue enjoying the fun, fair, and free-to-play games offered by social sweepstakes operators.”
Online sports betting expansion
The Mississippi House last week sent forward an online sports betting expansion proposal. The state has had legal in-person sports betting since 2018.
A similar proposal also passed the House last year. The Senate struck its entire language before the bill died in a conference committee.
Rep. Casey Eure added some measures this year in an attempt to ease some of the Senate’s concerns.
States look at social sweepstakes
Connecticut lawmakers will hear a bill Friday that would ban social sweepstakes in the Constitution State.
In Maryland, lawmakers will also hold hearings on bills banning the platforms next month. A group representing the sweepstakes industry, the Social and Promotional Games Association, has issued statements opposing the bills.
“This misguided legislation threatens to criminalize a marketing tool utilized daily by thousands of American businesses to promote everything from coffee to cheeseburgers to cryptocurrency,” an SPGA statement about the Maryland effort reads. “Social casinos with sweepstakes prizes are a legal form of entertainment enjoyed by millions of American adults. SPGA members operate within the laws governing sweepstakes promotions and uphold the highest standards of compliance, transparency and consumer protection.
“This bill is another unfortunate example of anti-competitive special interests bending the legislature to their will at the expense of innovation, small businesses, and the millions of consumers who enjoy the safe and engaging mobile games offered by social casinos.”
States take other approaches
Several states, including Michigan, have sent cease-and-desist letters to operators.
A bill in New Jersey would require social sweepstakes sites to obtain gambling licenses. In New York, Sen. Joe Addabbo said the sites should be incorporated into online casino legislation, which he is pushing.
