Mississippi Gaming Commission Faces Hurdles in Regulating Offshore Operators

During a recent at the National Council of Legislators from Gaming (NCLGS) Winter Meeting, Jay McDaniel, the Executive Director of the Mississippi Gaming Commission (MGC), provided insights into the state’s ongoing battle against black market gambling operators. McDaniel acknowledged that despite efforts to drive illegal sportsbooks out of Mississippi, these operators remain entrenched.

In July, McDaniel sent cease-and-desist letters to Bovada, MyBookie, BetUS, BetWhale, and BetOnline, demanding they exit the Mississippi market. Unfortunately, none of these operators responded, nor did they cease operations within the state. In response, the MGC issued a second round of letters this month, setting a December 17 deadline for compliance.

McDaniel highlighted the stark contrast between Mississippi’s challenges and the success seen in neighboring Louisiana. While almost 20 states have effectively pushed Bovada out of their markets, Mississippi has yet to see similar results. McDaniel attributed this disparity to Bovada’s dominant position in Mississippi’s illegal gambling market.

“I believe the reason is, is they are the leader in our market,” he explained. “In Louisiana, they’re competing with a legal gaming market. And so I really think it’s a blatant, ‘we are making so much money in Mississippi, we’re not leaving.’”

Although McDaniel initially aimed to resolve this issue cooperatively, he hinted at a more aggressive approach moving forward. “We were trying to do this easy. We can do it hard,” he said.

Mississippi’s efforts extend beyond Bovada, as McDaniel’s team investigated and identified the top offshore operators in the market. His strategy includes targeting five key players: Bovada, MyBookie, BetUS, BetWhale, and BetOnline.

In addition to addressing illegal sportsbooks, McDaniel acknowledged the complexities surrounding sweepstakes sites, a growing concern in the gaming industry. He believes these sites violate Mississippi state laws but emphasized the need to focus on offshore operators before tackling sweepstakes.

“Chris [Hebert] and I’ve been talking about sweepstakes, and there’s just a lot there to get your hands around,” McDaniel noted. “You don’t want to start attacking it until you have a plan. But it is something we are working on, because I do believe it violates our laws. But I’ve been busy working on offshore sportsbooks.”

Chris Hebert, chairman of the Louisiana Gaming Control Board, also participated in the , highlighting the broader challenges facing regulators. He described sweepstakes as an existential threat to Louisiana’s gaming industry and identified other pressing concerns, such as potential gambling legalization in Texas and the rise of private poker clubs in Houston.

The combined insights from McDaniel and Hebert underscore the evolving challenges in regulating gaming markets, particularly when faced with entrenched illegal operators and emerging threats. While Mississippi continues its efforts to combat offshore sportsbooks, the broader gaming landscape remains dynamic and fraught with complexities.

Source:

”Mississippi regulators struggling to get offshores to respond to C&D letters”, sbcamericas.com, December 13, 2024.