Mississippi Gaming Supplier Regulatory Overview

Introduction

In 1990, the Mississippi Legislature legalized casino gambling through the Mississippi Gaming Control Act. The Mississippi Gaming Commission (“MGC”) regulates the 26 commercial dockside and land-based casinos that are currently operating in Mississippi, the first of which opened in August of 1992.¹ The Mississippi Band of Choctaw Indians Gaming Commission regulates the three tribal casinos, with MGC having limited authority to ensure compliance with compact provisions.²

Mississippi commercial casinos generated approximately $2.48 billion in gross gaming revenue in 2023, resulting in a tax impact to the state of $763.6 million.³ Mississippi’s casino industry attracted over 18 million visitors in 2023 alone.⁴

The MGC requires that manufacturers and distributors of gaming-related equipment be licensed. In addition, certain owners (5% or more), officers, directors and employees of manufacturers and distributors must be found suitable by completing individual licensing applications.

Fantasy sports were legalized in Mississippi in 2017 with the Fantasy Contest Act.⁵ Under the Act, operators may offer fantasy contests for professional sports.⁶

In August 2018, Mississippi became the fourth state in the United States – and the first state in the South – to offer sports wagering with the launch of sportsbooks at two MGM Resorts properties.⁷ Casino operators are permitted to offer a race book or sports pool after receiving approval from the MGC.⁸ Suppliers providing operational, technical, or other associated support must also obtain a Manufacturer’s or Distributor’s license.⁹

Manufacturer’s License Requirements

Persons or entities that manufacture, assemble, or modify any gaming device (and certain items of associated equipment) in the state must first obtain a Manufacturer’s License.¹⁰

Duration

Manufacturer’s Licenses may be granted by the MGC for a period of no longer than three (3) years. The MGC has the discretion to grant a Manufacturer’s License for a period of less than three (3) years.¹¹ It should be noted that the company must also post a bond conditioned on the payment of fees with the state before receiving any license.¹²

Fees

A $1,000.00 licensing fee is due at the time application materials are submitted to the MGC. Once issued, an annual $1,000.00 licensing fee is due.¹³

Application

Entities interested in a Manufacturer’s License should first submit a written request for application and fingerprint cards from the MGC.¹⁴ Individual applicants must complete the Multi-Jurisdictional Personal History Disclosure Form (“MJPHDF”), as well as the applicable forms from the Mississippi Addendum (“Addendum”). Both forms can be found on the MGC website.¹⁵ Note that the Addendum is used by all license applicants, so portions of the application will not apply to manufacturers and should be left blank. The MJPHDF requires detailed information necessary for the MGC to determine suitability.¹⁶ Information necessary for manufacturers to complete the Addendum include:

1. Basic identity information;
2. Type of ownership;
3. Professional and regulatory license history;
4. Civil, criminal, and regulatory history;
5. Identity of officers, directors, and shareholders; and
6. Total number of shares authorized, if applicable.¹⁷

In addition, the following documents must be submitted in connection with the Addendum:

1. Certificate of Good Standing from the Mississippi Secretary of State;
2. Articles of Incorporation;
3. Charter; and
4. Proof that the applicant has authority to conduct business in Mississippi.

Renewal

At the expiration of a Manufacturer’s License, the MGC may continue the license for a period of no longer than three (3) years if it is satisfied that there has been no substantial change in information provided in the application for the initial license.¹⁸ Fees and costs are still due for continuation of a license.¹⁹ The MGC may only grant two (2) continuances for each license, and each license is still subject to revocation or suspension.²⁰ The Mississippi Addendum must be completed for a renewal application.²¹

Distributor’s License Requirements

All individuals or entities that lend, lease, sell, give, or distribute any gaming device (and certain items of associated equipment) in the state, or outside the state but for use in Mississippi, must first obtain a Distributor’s License.²²

Duration

The MGC may grant a Distributor’s License for a period of no more than three (3) years. The MGC has the discretion to grant a Distributor’s License for less than three (3) years.²³ It should be noted that the company must also post a bond conditioned on the payment of fees with the state before receiving any license.²⁴

Fees

A $500.00 application fee is due at the time application materials are submitted to the MGC. Once issued, an annual $500.00 licensing fee is due.²⁵ It should be noted that the company must also post a bond conditioned on the payment of fees with the state before receiving any license.²⁶


Application

Applicants must complete the Mississippi Addendum to the Multi-Jurisdictional Gaming Application Form (“Addendum”). Note that the Addendum is used by all license applicants, so portions of the application will not apply to manufacturers and should be left blank. Information necessary for manufacturers to complete the Addendum include:

1. Basic identity information;
2. Type of ownership;
3. Professional and regulatory license history;
4. Civil, criminal, and regulatory history;
5. Identity of officers, directors, and shareholders; and
6. Total number of shares authorized, if applicable.²⁷

In addition, the following documents must be submitted in connection with the Addendum:²⁸

1. Certificate of Good Standing from the Mississippi Secretary of State;
2. Articles of Incorporation;
3. Charter; and
4. Proof that the applicant has authority to conduct business in Mississippi.

Renewal

At the expiration of a Distributor’s License, the MGC may continue the license for a period of no longer than three (3) years if it is satisfied that there has been no substantial change in information provided in the application for the initial license.²⁹ Fees and costs are still due for continuation of a license.³⁰ The MGC may only grant two (2) continuances for each license, and each license is still subject to revocation or suspension.³¹ The Mississippi Addendum must be completed for a renewal application.³²

Individual Licensing Requirements

Certain individuals may be required to be found suitable for licensure in the state. These individuals include officers, directors, managers, and those receiving compensation or rents based on a percentage of gaming proceeds. Employees who are hired and must be found suitable must file an application within thirty (30) days from the date of hire.³³

Any shareholder of a voting class of security may be required by the MGC to file for a finding of suitability.³⁴ Shareholders who are employed by the company and have the shares solely through a bonus, pension, or benefit plan do not have to be licensed if the plan is approved by the MGC, the employee has no voting rights, and the employee receives no dividends.³⁵

By statute, stockholders of ten percent (10%) or more of voting class securities in a publicly traded licensee must file for a finding of suitability.³⁶ but the MGC has exercised its discretion to require licensing of stockholders of five percent (5%) or more of such a class.

Duration

All individual findings of suitability may be issued for a period of up to ten (10) years.³⁷ The MGC has the discretion to issue findings of suitability for less than ten (10) years.³⁸ and typically issues such approvals for a period of nine (9) years.

Fees

There is no fee for individuals applying for a finding of suitability, although an applicant will be charged for investigative fees.

Application

All individuals who must apply for a finding of suitability in Mississippi must complete the Multi-Jurisdictional Personal History Disclosure Form and portions of the Addendum.

The Multi-Jurisdictional Personal History Disclosure Form is a lengthy application requiring detailed personal information. Information required to be disclosed includes, but is not limited to:

1. Basic identity information;
2. Citizenship and passport;
3. Residence information, past fifteen (15) years;
4. Family relationships;
5. Occupation information for family members, including spouses of family members;
6. Military service background;
7. Education;
8. Offices and positions held, including fiduciary, government, and trust relationships;
9. Offices and positions held by spouse, past one (1) year;
10. Employment history, past twenty (20) years;
11. Spouse employment history, past one (1) year;
12. Professional or regulatory licensing;
13. Gaming licenses applied for or held;
14. Business ownership information, five percent (5%) threshold;
15. Civil suit and criminal history;
16. Vehicle operation permits and licenses;
17. Financial schedules and bankruptcy history;
18. Net worth statement and schedules including assets and liabilities; and
19. Three references over 18 years-old who are not related to the applicant.³⁹
The Addendum contains forms and releases that must be signed by the applicant and notarized.⁴⁰ These allow the MGC to fully conduct the background investigation into the applicant.⁴¹ It should be noted that applicants must submit two (2) fingerprint cards in addition to signing the forms and releases contained in the Addendum.⁴²

Licensing Process

Interested applicants should complete the appropriate forms and submit all materials and fees to the MGC. After receipt, the MGC will review the materials and provide an estimate as to the cost of the investigation.⁴³ The investigation will include personal interviews, review of financial background, and a general background check.

At all times during the application process, the burden is on the applicant to establish that the applicant is suitable for licensure.⁴⁴

At any point during the application process prior to a final decision by the MGC, the applicant may make a written request for withdrawal of the application.⁴⁵ The MGC has the discretion to grant, grant with prejudice, or deny the application and will notify the applicant in writing of the final disposition.⁴⁶ If the MGC grants the request with prejudice, then the applicant must wait one (1) year before reapplying.⁴⁷

Disclosure and Reporting Requirements

Before License is Issued

All applicants must fully and honestly disclose all information requested to the MGC. Failure to do so may result in delays, denial, or perjury charges being filed against the applicant.⁴⁸

After License is Issued

Any licensed manufacturer or distributor must receive prior approval before moving any gaming devices into or out of the state.⁴⁹

All corporate licensees must keep a current stock ledger available for inspection upon request of the MGC.⁵⁰

Publicly traded companies must report the following items:

1. Any change of directors, officers, or employees involved in gaming-related activities, in writing;
2. Profit and loss statements, annually within 120 days after the close of the fiscal year;
3. Federal tax returns, within thirty (30) days after the return is filed with the federal government;
4. Any statement of a stockholder or stockholder group pursuant to Section 13(d) of the Securities and Exchange Act of 1934, within ten (10) days of receipt;
5. If a single or group of stockholders acquires ten percent (10%) or more in equity class securities, then the company must promptly notify the MGC. These stockholders must file for a finding of suitability with the MGC; and
6. Any public documents filed with the Securities and Exchange Commission (“SEC”) or other exchanges, upon request of the MGC.⁵¹
It should be noted that publicly traded companies formed in foreign countries must report any foreign equivalent items contained in the above list.

If any person or single group acquires between five percent (5%) and 10 percent (10%) of the voting class securities in a publicly traded licensee, then the company must send the appropriate SEC documents to the Commission within ten (10) days of submission to the SEC.⁵²

Individuals who must be found suitable must file an annual “Investigations Division Annual Report” that describes any changes in position that may relate to a finding of suitability.⁵³

Gaming Technology Standards

All new gaming devices must be approved for play by the Commission or through a field test of the device.⁵⁴ The Commission may request two models of each new device to be sent to the gaming lab for testing or for submission to an independent testing lab.⁵⁵

Gaming devices must have a payout percentage of at least eighty percent (80%). Devices that utilize player skill must meet this percentage using the method of play that will provide the greatest return to the player.⁵⁶

When submitting a gaming device to the gaming lab, the manufacturer must submit copies of all executable software, source code, and graphical images for review.⁵⁷

All gaming devices must have clear identification plates that contain the name of the manufacturer, the serial number, and the model number.⁵⁸

In addition to other technical requirements, gaming devices must be compatible with on-line monitoring systems and must be able to communicate with a state-controlled central computer system.⁵⁹

Gaming devices must not contain themes that would run counter to the public policy of the state.⁶⁰

Exemptions

The Commission has the authority to waive licensing provisions for corporations if the Commission states in writing the reasons why the waiver is consistent with state policy.⁶¹

The Commission may exempt publicly traded companies from complying with licensing standards requiring all shareholders to be licensed and the transfer of shares. The Commission may also exempt publicly traded companies from licensing requirements if the companies are sufficiently regulated by another government agency.⁶²

The Commission may waive the licensing and suitability requirements for institutional investors if the investor has acquired securities for a purpose other than exercising control over the applicant. The Commission will consider the investor’s affiliates, past actions regarding the securities held, and regulatory actions, among other items that may reveal an intent to control the licensee.⁶³

Sports Wagering

Suppliers of sports wagering operations must also be licensed by the MGC. These entities should be licensed as either a manufacturer or distributor, and should follow the same application and licensing procedures as those entities supplying to casinos.⁶⁴

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¹American Gaming Association, State of Play: Mississippi, available at www.americangaming.org/state/mississippi/
²American Gaming Association, State of Play: Mississippi, available at www.americangaming.org/state/mississippi/
³American Gaming Association, State of Play: Mississippi, available at www.americangaming.org/state/mississippi/
⁴ Mississippi Gaming and Hospitality Association, 2023 Annual Report, available at www.redstardigital.net/lib/mgha/annual_report_2024/
⁵ Miss. Code Ann. § 97-33-301 et seq.
⁶ Miss. Adm. Code Title 13 Part 15 Chapter 3, Rule 3.1(f).
⁷ Adam Candee, New Day for Ole Miss as Mississippi Sports Betting Launches, Legal Sports Report (Aug. 1, 2018), available at www.legalsportsreport.com/22474/mississippi-sports-betting-launches/
⁸Miss. Adm. Code Title 13 Part 9 Chapter 2, Rule 2.1(b).
⁹Miss. Adm. Code Title 13 Part 9 Chapter 2, Rule 2.1(c).
¹⁰Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(b).
¹¹Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(b).
¹²Miss. Code § 75-76-85 (1)(b).
¹³Mississippi Gaming Commission, Procedural Fact Sheet for Manufacturer and Distributor License, available at www.msgamingcommission.com/images/uploads/c_p_md_procedural_fact_sheet.pdf
¹⁴Mississippi Gaming Commission, Procedural Fact Sheet for Manufacturer and Distributor License, available at www.msgamingcommission.com/images/uploads/c_p_md_procedural_fact_sheet.pdf
¹⁵ Mississippi Gaming Commission, Casino Gaming, available at www.msgamingcommission.com/forms_procedures/casino_gaming
¹⁶Multi-Jurisdictional Personal History Disclosure Form
¹⁷Mississippi Gaming Commission, Mississippi Addendum to the Multi-Jurisdictional Gaming Application Form, available at www.msgamingcommission.com/images/uploads/c_app_ms_addendum.pdf
¹⁸Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(b).
¹⁹Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(b).
²⁰ Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(b).
²¹Mississippi Gaming Commission, Mississippi Addendum to the Multi-Jurisdictional Gaming Application Form, available at www.msgamingcommission.com/images/uploads/c_app_ms_addendum.pdf
²²Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(c).
²³Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(c).
²⁴Miss. Code § 75-76-85 (1)(b).
²⁵Mississippi Gaming Commission, Procedural Fact Sheet for Manufacturer and Distributor License, available at www.msgamingcommission.com/images/uploads/c_p_md_procedural_fact_sheet.pdf
²⁶ Miss. Code § 75-76-85 (1)b.
²⁷Mississippi Gaming Commission, Mississippi Addendum to the Multi-Jurisdictional Gaming Application Form, available at www.msgamingcommission.com/images/uploads/c_app_ms_addendum.pdf
²⁸ Mississippi Gaming Commission, Mississippi Addendum to the Multi-Jurisdictional Gaming Application Form, available at www.msgamingcommission.com/images/uploads/c_app_ms_addendum.pdf
²⁹Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(b).
³⁰Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(b).
³¹Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(b).
³²Mississippi Gaming Commission, Mississippi Addendum to the Multi-Jurisdictional Gaming Application Form, available at www.msgamingcommission.com/images/uploads/c_app_ms_addendum.pdf
³³ Miss. Code § 75-76-61 (3).
³⁴ Miss. Code § 75-76-263(1).
³⁵Miss. Adm. Code Title 13 Part 2 Chapter 5, Rule 5.2(b).
³⁶ Miss. Code § 75-76-263(3).
³⁷ 13-2.1 Miss. Code R. § 1.3(e).
³⁸Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(e).
³⁹ Multi-Jurisdictional Personal History Disclosure Form
⁴⁰ Mississippi Gaming Commission, Mississippi Addendum to the Multi-Jurisdictional Gaming Application Form, available at www.msgamingcommission.com/images/uploads/c_app_ms_addendum.pdf
⁴¹Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.8(a).
⁴²Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.8(a); Mississippi Gaming Commission, Mississippi Addendum to the Multi-Jurisdictional Gaming Application Form, available at www.msgamingcommission.com/images/uploads/c_app_ms_addendum.pdf
⁴³Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.11(b).
⁴⁴ Miss. Code § 75-76-79(1)(d).
⁴⁵Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.13(a).
⁴⁶Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.13(b).
⁴⁷Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.13(c).
⁴⁸ Miss. Code § 75-76-27(5).
⁴⁹Miss. Adm. Code Title 13 Part 3 Chapter 12, Rule 12.16(a).
⁵⁰ Miss. Code § 75-76-203(d).
⁵¹ Miss. Code § 75-76-259.
⁵² Miss. Code § 75-76-263(2).
⁵³Miss. Adm. Code Title 13 Part 2 Chapter 1, Rule 1.3(e)(7).
⁵⁴Miss. Adm. Code Title 13 Part 3 Chapter 12, Rule 12.4(a).
⁵⁵Miss. Adm. Code Title 13 Part 3 Chapter 12, Rule 12.9.
⁵⁶Miss. Adm. Code Title 13 Part 3 Chapter 12, Rule 12.5(b).
⁵⁷Miss. Adm. Code Title 13 Part 3 Chapter 12, Rule 12.4(c)(3).
⁵⁸Miss. Adm. Code Title 13 Part 3 Chapter 12, Rule 12.5(h).
⁵⁹Miss. Adm. Code Title 13 Part 3 Chapter 12, Rule 12.5(i).
⁶⁰Miss. Adm. Code Title 13 Part 3 Chapter 12, Rule 12.3
⁶¹ Miss. Code § 75-76-201(2).
⁶² Miss. Code § 75-76-253.
⁶³Miss. Adm. Code Title 13 Part 2 Chapter 8, Rule 8.23.
⁶⁴Miss. Adm. Code Title 13 Part 9 Chapter 2, Rule 2.1(c).