Tennessee, Mississippi Make Moves To Ban Sweepstakes Casinos
In Tennessee, HB1885 would designate sweeps casinos as a violation of the state’s Consumer Protection Act and strengthens the authority of the sports wagering council to investigate illegal gambling.
The bill also expands the authority of the attorney general to investigate unlawful gaming. Attorney General Jonathan Skrmetti sent cease-and-desist letters to 40 operators in December.
“The only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” Skrmetti said. “They work hard to make these sweepstakes casinos look legitimate, but at the end of the day, they are not. They avoid any oversight that could ensure honesty or fairness.”
Violations of the Consumer Protection Act could include fines of more than $15,000 for each infraction.
Measure Includes Possible Asset Forfeiture
In Mississippi, the state Senate unanimously approved a bill this week banning sweeps operators. The issue now heads to the House to consider.
SB2104 bans sweeps and classifies the platforms as illegal gambling. The bill would also include possible asset forfeiture for those violating the law.
As currently written, it would not apply to internet service providers and other third parties.
This effort follows a failed attempt at prohibiting sweeps operators in 2025. That bill sought to legalize online sports betting as well.
Another Swing At Mobile Sports Betting
The Legislature is also now considering legalizing online sports betting as part of a separate bill. Rep. Casey Eure (R) introduced HB1581 and believes mobile betting offers a way to shore up the Public Employees’ Retirement System (PERS), which faces a $26 billion shortfall.
“These are Mississippi residents crossing into other states, and the outcome of that is that Mississippi receives zero tax revenue, there’s zero oversight, zero consumer protection against these people placing bets, and problem gambling goes undetected and unmanaged,” Eure said.
The bill sets the tax rate at 4% on the first $50,000 of a sportsbook’s monthly revenue, with the next $84,000 at 6%, and the remainder above that taxed at 8%. Members of the House passed the bill last week, but the proposal may face opposition in the Senate.
The move to ban sweeps operators in Tennessee and Mississippi comes as the Illinois Gaming Board sent 60 cease-and-desist letters to operators this week.
In related news, Alabama Sen. Merika Coleman (D) recently announced plans to file a bill allowing a statewide vote on a ballot initiative to add a lottery and expand legal gambling options.
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