Mississippi and Louisiana Take Action Against Online Sweepstakes Casinos
The Mississippi Gaming Commission (MGC) and the Louisiana Gaming Control Board (LGCB) have initiated serious enforcement against illicit online gambling operators, imposing greater regulatory pressure throughout the southern U.S.
In Mississippi, the MGC issued 10 cease-and-desist letters to unauthorized gaming sites, nine of which were issued to offshore gambling and betting operators. The other notice was issued to Chumba Casino, a sweepstakes-based gaming site.
The commission named all 10 operators in its release, including americascardroom.eu, betonline.ag, betus.com.pa, betwhale.ag, bovada.lv, chumbacasino.com, ignitioncasino.eu, lasatlantis.com, mybookie.ag, and slotsandcasino.ag.
MGC Executive Director Jay McDaniel indicated Mississippi was committed to enforcing its gambling laws and that both in-state and offshore illegal operators would be subject to regulatory action.
Mississippi's regulatory push follows a legislative loss earlier this year to prohibit sweepstakes casinos by statute. A bill that passed the state Senate and was opposed by the Social and Promotional Games Association (SPGA) was derailed in the House when an amendment making sports betting legal was added to it, ending its progress.
Although sweepstakes casino proponents viewed the loss as a temporary setback, the MGC's recent move shows that state regulators are willing to use the power of administration to fight illicit activity if new legislation is not passed.
In Louisiana, the LGCB stated that it had served 40 cease-and-desist letters in collaboration with the Louisiana Attorney General's Office and the State Police Gaming Enforcement Division. The crackdown targeted offshore sports betting sites and internet sweepstakes establishments that were alleged to be operating in violation of Louisiana's gambling laws.
Among them was Harp Media B.V., which owns Bovada, a long-time focus of U.S. enforcement efforts. However, the LGCB did not provide a complete list of the cease-and-desist letters' recipients.
Louisiana action follows sweepstakes ban veto
The enforcement action came after Gov. Jeff Landry vetoed legislation that explicitly would have banned sweepstakes casinos in the state. Landry vetoed the legislation because he argued that existing regulatory frameworks were enough if appropriately enforced.
He also said additional cease-and-desist letters were in the pipeline, and the LGCB's actions have met that expectation.
Although Landry's veto was contentious, the swift regulatory response of state agencies demonstrates Louisiana's commitment to enforcing a prohibition on unauthorized internet gambling through existing statutory power. In contrast, New York has opted for a legislative solution, with legislative activity banning online sweepstakes casinos pending the governor's signature.
LGCB Chairman Christopher B. Hebert stated that the state's action was a strong message to unlicensed operators. He added that illegal gambling threatens the state's regulated market and compromises consumer protection.
Hebert said the board would continue to take enforcement action against operators who disregard Louisiana's gambling laws.
