Mississippi House Adds Betting and Sweepstakes Ban

ACKSON, MS — Mississippi’s legislative landscape is shifting as two key Senate bills, initially focused on other issues, were recently amended by the Mississippi House of Representatives to include provisions for legalizing digital sports betting. The amended bills have now returned to the Senate for further consideration as the state grapples with a recent revenue dip and a continued debate on gambling expansion.

Digital Sports Betting Provisions Added to Existing Bills

On Tuesday, March 11, the Mississippi House passed two Senate bills after adding language that could pave the way for mobile sports betting in the state. These amendments, spearheaded by bill sponsor Rep. Casey Eure, mark a significant shift in the legislative focus. Both bills had originally addressed unrelated matters: one was concerned with tidelands and the other with penalties for platforms operating illegally in the state.

The tidelands bill, which focuses on regulations for casino boats on the Mississippi Gulf Coast, was amended to incorporate provisions from a dead digital sports wagering bill. The move allows the state to revisit the issue of online sports betting, which has been a point of contention since retail betting was legalized in Mississippi’s casinos in 2018. Attempts to expand the gambling framework to include mobile betting have faced resistance in past years, but this new amendment could change that dynamic.

“It’s a possibility” that the tidelands issue may not be addressed this year if the Senate fails to take up mobile sports betting, Eure told the Clarion-Ledger. However, he emphasized that the House is committed to negotiating the inclusion of digital betting in the final version of the legislation.

Retail vs. Digital Betting

Retail sports betting has been legal in Mississippi since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018, but mobile or digital sports betting has not yet been legalized in the state. According to Eure, the House’s stance is clear: mobile sports betting is a priority. However, he also acknowledged that negotiations could influence the outcome, as the Senate has yet to address digital betting this session.

One of the key aspects of the amendment is the allocation of “digital skins” to existing casinos. SB 2381, as amended, would allow casinos to apply for up to two digital skins, enabling them to offer online sportsbooks and racebooks. The proposal would also include provisions for a wide range of betting options, such as in-play and proposition bets, with a legal betting age set at 21. However, the bill does not yet specify a tax rate for the digital betting operations.

Despite these potential benefits, local casinos have raised concerns. Many regional companies, including prominent operators like Churchill Downs Inc. and Penn Entertainment, have lobbied against the expansion of online gaming. They argue that the introduction of digital sports betting could cannibalize their retail operations, undermining the in-person experience that has been central to the state’s gaming industry.

In a letter to lawmakers, eight Mississippi-based casino companies opposed the legislation, warning that an expansion of gaming without local referendums would allow casinos to be accessible to anyone, anywhere in the state, including homes, schools, and churches. “This is not the right vision for gaming in Mississippi,” the letter stated.

The Wider Debate on Sweepstakes Games

Alongside the mobile sports betting amendments, the House has also passed provisions to address illegal online sweepstakes casinos. SB 2510, which cleared the Senate on February 13, includes provisions to ban these unregulated online platforms, imposing heavy fines and prison sentences for those found guilty of operating such businesses. Companies that violate these rules could face fines of up to $100,000 and up to 10 years in prison, with their licenses revoked.

The debate over sweepstakes casinos is not unique to Mississippi. Similar legislation is being considered across the United States, with lawmakers in Florida, Maryland, and other states discussing potential bans on the controversial online games. In Maryland, for example, a bill to address sweepstakes casinos had a hearing on March 11, though no decision has been made.

Sweepstakes casinos have raised significant concerns for regulators, as they operate in a gray legal area that has led to increased scrutiny in several states. As the gambling landscape continues to evolve, lawmakers are facing growing pressure to address these unregulated platforms, which critics say undermine consumer protections and contribute to unregulated gambling activity.

 

It’s a possibility that the tidelands issue may not be addressed this year if the Senate fails to take up mobile sports betting, but at this point, it’s all about negotiating

Legislative Timeline and Outlook

The Mississippi legislature is scheduled to adjourn on April 6, leaving little time for further negotiation on these bills. While the House has made its position clear on mobile sports betting, it remains to be seen whether the Senate will follow suit, particularly as the Senate Gaming Committee has not yet considered digital sports betting this year. The outcome of this legislative session could have lasting implications for Mississippi’s gaming industry and its ability to keep up with neighboring states that have already embraced online gambling.

As Mississippi’s lawmakers navigate these contentious issues, the balance between preserving the state’s retail casino industry and expanding mobile sports betting will be a key point of negotiation in the coming weeks. The final decisions could set a precedent for other states considering similar gambling expansions in the future.