Mississippi Committee Advances Bill to Criminalize Online Sweepstakes Casinos
Mississippi senators advanced a bill to criminalize online sweepstakes casinos.
LISTEN TO THIS ARTICLE:The Senate Judiciary Division B Committee on Wednesday amended and approved Senate Bill 2104 (SB2104), moving the measure past its initial committee review in the 2026 legislative session. The revised proposal declares online sweepstakes-style games unlawful across the state and expands criminal liability for those who operate or promote such platforms.
Key provisions added in the amendment classify any online, interactive or computerized simulation of a game of chance – including sweepstakes-style casino games, online race books and sports pools – as a gambling device. The bill explicitly states that operating an online or interactive platform offering these games within Mississippi would be illegal and subject to prosecution under state law.
SB2104 assigns severe penalties for violations: fines up to $100,000, potential prison terms as long as 10 years and civil forfeiture of assets tied to the unlawful activity. The measure also extends criminal exposure to third parties who promote an unlawful online sweepstakes operation within the state.
Lawmakers framed the amendment as both a public-safety and consumer-protection move. "This bill seeks to bring clarity to what constitutes unlawful gambling online and to protect Mississippi citizens from predatory schemes posing as social gaming", said Laura Bennett, senior counsel at Atlantic Gaming Advisors. "If enacted in its current form, SB2104 will give prosecutors a broad new toolset to pursue operators that deliberately exploit regulatory gaps."
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The committee’s amendment also introduced a narrowly tailored safe-harbor for intermediaries such as internet service providers, cable operators, video platforms and app stores. Under the new language, service providers that merely transmit third-party content, display statistical information as part of news or entertainment programming, or offer free-to-play social games without redeemable prizes would not be treated as criminally liable solely because their networks or devices were used to access illegal sweepstakes platforms.
That protection is conditional. The bill removes the shield if a provider accepts bets directly, knowingly promotes an illegal platform, or receives a share of revenue from an unlawful operator. The approach mirrors aspects of recent amendments in other states that tried to balance enforcement with avoiding overbroad liability for the internet ecosystem. Notably, the Mississippi draft does not extend the explicit safe-harbor wording to payment processors or financial institutions found in some other state proposals.
Industry reaction has been swift. Several sweepstakes operators and platform owners have already scaled back or suspended services in Mississippi after regulators signaled enforcement intent last year. In mid-2025, the state gaming regulator issued a cease-and-desist to a major social-casino operator, and by late 2025, multiple platforms – including those owned by a large Australian operator – removed sweepstakes-style coin play from Mississippi-accessible versions of their sites.
Thomas Caldwell, a gaming market analyst, said: "Operators are taking a conservative approach because uncertainty invites legal and financial risk. You can expect more exits or product changes while this bill progresses through the legislature, and likely litigation from affected companies if it becomes law."
Next steps for SB2104 include further consideration by the Senate and possible referral to the full chamber and the House. If passed by both houses, the bill would be subject to the governor’s approval and would likely face court challenges from commercial operators or industry trade groups on questions of statutory scope and enforcement. Enforcement actions already initiated by the Mississippi Gaming Commission provide a preview of how aggressively state authorities might pursue the new law.
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