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Mississippi lawmakers have again taken steps toward legalizing statewide mobile sports betting. The Mississippi House approved a bill that would authorize online wagering and change casino tax rules, sending the legislation to the Senate for further consideration.
Good to Know
The bill, HB 4074, passed the House with strong support and now advances to the Senate. Lawmakers approved the measure shortly after it cleared the Ways and Means Committee, continuing a multi year effort to bring online sports wagering to Mississippi.
If approved, the bill would introduce a 22 percent tax rate on mobile sports betting revenue, which sits above the 18.5 percent rate currently applied to in person sportsbooks. Rep. Casey Eure, who introduced the bill, said the higher tax rate could produce up to $100 million annually for the state.
A large portion of that money would support retirement funding for public workers. The bill directs $50 million each year for ten years to the Public Employees Retirement System.
Eure said the bill also addresses concerns tied to illegal betting markets:
“By legalising mobile sports betting, we can eliminate much of the illegal market – including protecting underage bettors – and provide real consumer safeguards in a regulated environment.
“This legislation will also give our brick-and-mortar casinos a new revenue stream to ensure their continued success, while the state revenue generated will help close the gap in funding for our Public Employees’ Retirement System.”
The bill would allow each of the 26 casinos in Mississippi to partner with one online sportsbook operator. That structure differs from a previous bill passed by the House earlier this year, which allowed up to two online partners per casino.
Mississippi legalized sports betting in 2018, although wagering remains restricted to casino properties under current law. Mobile wagering through statewide apps is not currently permitted.
Another element of the bill adjusts taxes on casino gaming. The legislation would reduce the casino tax rate from 8 percent to 6 percent, a change valued at about $48 million for operators. Lawmakers included that adjustment to replace a $6 million support fund previously created to assist smaller regional casinos facing potential competition from online wagering.
Some regional casino operators have expressed concern about online betting entering the state market. Industry discussions in past legislative sessions included debate over whether large national gaming companies could dominate the sector.
The House has now approved mobile sports betting legislation for the third consecutive year, yet the proposal has repeatedly stalled in the Senate.
Earlier in the session, lawmakers passed HB 1581, another sports betting bill introduced by Eure. That legislation has not moved forward in the Senate.
During the previous legislative cycle, the House attempted another strategy after the Senate declined to act. Lawmakers amended a Senate bill addressing sweepstakes casino activity to include sports betting language. The measure ultimately failed during conference committee negotiations.
Opposition in the Senate has come largely from Sen. David Blount, chairman of the Senate Gaming Commission. Blount has argued that online sports betting does not align with the goals behind legalized gaming in Mississippi. Blount said last year:
“The reason we have gaming in Mississippi is to encourage investment, to create jobs, and to grow tourism to bring other people from other places to Mississippi. Mobile sports betting doesn’t do that.”
He has also said the Senate would not consider mobile wagering unless the Mississippi Gaming Commission formally requested the change.
With the House approval complete, the bill now heads to the Senate where lawmakers will decide whether the state should expand sports betting beyond casino properties.
The bill would legalize statewide mobile sports wagering and set a 22 percent tax on revenue.
The House approved the bill 100 to 11.
Each of the 26 casinos could partner with one mobile sportsbook operator.
The bill directs $50 million annually for ten years to the Public Employees Retirement System.
The legislation now moves to the Mississippi Senate for consideration.