Mississippi Senate Passes Bill to Ban Sweepstakes Casinos

Are sweepstakes casinos facing an industry-wide shutdown in the U.S.? Mississippi has taken a bold step forward, becoming the first state legislature to pass a bill banning these controversial gaming platforms. The Mississippi Senate approved Senate Bill 2510 (SB 2510) by a landslide 44-1 vote, criminalizing online sweepstakes casinos with penalties of up to 10 years in prison and a $100,000 fine. As other states consider similar legislation, could this be the beginning of a nationwide crackdown on sweepstakes gaming?

Mississippi Senate Moves to Ban Sweepstakes Casinos as National Crackdown Grows

Key Points:

1. Mississippi Senate Approves Landmark Sweepstakes Casino Ban

   • SB 2510 passed with a 44-1 vote, making Mississippi the first state to legislate against online sweepstakes casinos.
   • Violators could face felony charges, a $100,000 fine, and up to 10 years in prison.

2. Sweepstakes Trade Group Condemns the Decision

   • The Social and Promotional Gaming Association (SPGA) called the bill unjust and protectionist.
   • SPGA argues sweepstakes gaming is a safe, legal model being unfairly grouped with illegal gambling operations.

3. Growing National Movement Against Sweepstakes Casinos

   • New Jersey, New York, Maryland, and Connecticut have introduced similar legislation to outlaw these platforms.
   • Legal experts predict more states will follow Mississippi’s lead in banning sweepstakes gaming.

Mississippi Takes the Lead in Cracking Down on Sweepstakes Casinos

The Mississippi Senate has approved SB 2510, marking a major escalation in the fight against online sweepstakes casinos. The bill, introduced by Sen. Joey Fillingane, expands Mississippi’s existing ban on sweepstakes cafes to include internet-based sweepstakes gaming platforms.

What Does SB 2510 Do?

• Criminalizes online sweepstakes casinos, making violations a felony offense.
• Imposes harsh penalties, including up to 10 years in prison and a $100,000 fine.
• Expands the state’s long-standing prohibition on unregulated gambling operations.

While the bill easily passed the Senate, it must still clear the House of Representatives and receive the governor’s signature before becoming law. If enacted, Mississippi will be the first state to impose criminal penalties on sweepstakes casino operators.

Industry Backlash: SPGA Calls the Bill “Unjust”

The Social and Promotional Gaming Association (SPGA), a key trade body for sweepstakes gaming, strongly condemned the legislation.

“The SPGA is deeply disappointed by the Mississippi Senate’s decision to advance SB 2510, which unjustly targets sweepstakes and conflates a safe and legal form of entertainment with illegal operations.”

SPGA argues that sweepstakes gaming follows a legal, consumer-friendly model and should not be grouped with unregulated gambling. The organization also accused Mississippi lawmakers of protecting traditional casino interests rather than allowing consumers to choose how they play online games.

“Voters deserve better than lawmakers who prioritize the protection of a slot machine maker over individual freedom.”

Despite the opposition, Mississippi remains firm on its stance against unregulated gambling operations.

Legal Experts See a Growing Nationwide Trend

Gaming attorney and sweepstakes casino critic Daniel Wallach believes Mississippi’s move is part of a larger nationwide crackdown.

“The decision to ban online sweepstakes casinos in Mississippi shouldn’t come as a shock. The state already has legislation banning internet sweepstakes cafes. SB 2510 is simply an update of that existing law.”

Wallach predicts other states will follow Mississippi’s example. Recent enforcement actions, including cease-and-desist orders from Connecticut, Delaware, and Michigan, suggest a coordinated effort to regulate or eliminate sweepstakes casinos.

“More states will introduce (and pass) bills to ban online sweepstakes casinos—certainly, Connecticut and Maryland appear to be trending in that direction. This may have a cascading effect nationwide.”

Why Are States Targeting Sweepstakes Casinos?

Sweepstakes casinos operate using a “dual currency” system, where players purchase virtual currency for gameplay and receive an additional token that can be redeemed for cash prizes. Critics argue this mirrors traditional gambling but circumvents state gambling laws by framing cash payouts as sweepstakes prizes.

The lack of regulatory oversight has led to concerns about fraud, consumer protections, and financial risks. States like Mississippi argue that legalizing and regulating traditional online casinos is a better alternative than allowing unregulated sweepstakes gaming to operate unchecked.

More States Expected to Introduce Bans

With Mississippi leading the way, several other states are likely to introduce similar bans in 2025, including:

• New Jersey
• New York
• Maryland
• Connecticut

If these bills pass, sweepstakes casinos could face regulatory extinction across multiple jurisdictions.

What’s Next for Mississippi and Sweepstakes Casinos?

With SB 2510 advancing, the Mississippi House of Representatives will now review the bill. If approved and signed into law:

1. Mississippi will become the first U.S. state to impose felony charges for sweepstakes casinos.
2. Other states may accelerate their own legislative bans.
3. Operators may be forced to shut down or pivot to legally compliant gaming models.

The Beginning of the End for Sweepstakes Casinos?

The Mississippi Senate’s overwhelming 44-1 approval of SB 2510 sets a precedent for other states considering similar legislation. Lawmakers argue that these platforms exploit legal loopholes, while industry defenders maintain that sweepstakes gaming is a legal and established model.

With more states ramping up enforcement efforts, the future of sweepstakes casinos in the U.S. looks increasingly uncertain. As new bills emerge, the industry must prepare for greater scrutiny, tighter regulations, or outright bans.

The question remains: Will sweepstakes casinos survive the growing legislative assault, or are they facing their final days?