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18 Spring 2015 The Mississippi Lawyer Illegal Gaming A Mississippi Tradition gory. A sweepstakes is legal if the chance of winning is free or if it is associated with another product so long as the prod- uct sold isnt more expensive because of the associated sweepstakes entry. Also scratch-and-win cards often sold at con- venience stores are legal in Mississippi because they actually offer long distance phone time and are therefore considered sweepstakes. It is legal for Mississippians to purchase and play out-of-state lotteries but reselling those tickets in the state would be illegal. Finally the newest horizon in illegal gaming operations in the state attempts to operate somewhere between illegal slot machines and legal sweepstakes. The so- called internet sweepstakes games run off of standard desktop computers in alleged internet cafes. These machines allow patrons to buy internet time and receive sweepstakes points that may be used for play in a simulated slot machine game. The argument that the machines actually used a finite number of entries akin to a sweepstakes was invalidated in Moore v. Mississippi Gaming Comn 64 So.3d 537 Miss. Ct. App. 2011 and an update to the criminal statutes in 2013 sought to clarify the illegality of these machines. Miss. Code Ann. 97-33-8. Despite efforts across the country to reel in these operations the American Gaming Association estimates that they continue to operate in at least 12 states with annu- al revenue of almost 10 Billion.1 Legalized gaming began as a way to effectively regulate and cut down on the corruption associated with illegal gam- ing. In the future many of the forms of illegal gaming might again find their way to legal casino floors as the state and the Industry continue to monitor develop- ments in online gaming and New Jerseys attempts to challenge federal law with respect to sports betting. Mississippi law does not authorize gaming but has creat- ed exceptions to the general prohibition to allow for it. Should New Jersey be successful in its legal arguments Mississippi may only need to amend its criminal statute and create an additional exception for sports betting. This distinc- tion may prove important as discussed in the Third Circuits opinion in Natl Collegiate Athletic Assn v. Governor of New Jersey 730 F.3d 208 3d Cir. 2013. Until then it might be best if you hold off on collecting your winnings from any illegal gaming activities. I Louis Frascogna is a Special Assistant Attorney General and is Senior Counsel to the Mississippi Gaming Commission. Louis is a graduate of The John Marshall Law School in Chicago Illinois and earned his B.B.S. in International Busi- ness and his B.A. in Foreign Languages from Mississippi State University. ______ 1 David O. Stewart. Internet Sweepstakes Cafes Unregulated Storefront Gambling in the Neighbor- hood. American Gaming Association. 2012. LITIGATION MMEDIATION SSUPPORT ON RREAL EESTATE IISSUES Real Estate Appraisers Mediation Consultants 100 Years Combined Experience Joe W. Parker MAI CRE Curtis A. Gentry IV MAI Edward W. Dinan MAI CRE Elizabeth S. West MAI CRE J. Neil Parker Services Litigation Support Expert Witness Legal Strategy Mediation and Mediation Support Appraisals Acquisition Disposition Arbitration Alternative Dispute Resolution Asset Management Strategic Positioning Corporate Real Estate Eminent Domain Environmental Government State Municipal Federal Investment Strategy Investment Management Market Studies Site Location Conservation Easements Feasibility Analysis 641 Lakeland East Drive Jackson MS 39232 601-664-2422 1-800-759-1849 Fax 601-664-1605 www.appraisalresearch.net 660 Katherine Drive Jackson MS 39232 601-664-2422 1-800-759-1849 Fax 601-66401605 www.appraisalresearch.net