The Mississippi House of Representatives has passed a bill that could significantly change the state’s sports betting landscape by expanding it to mobile platforms. The Mississippi Mobile Sports Wagering Act, initiated by Representative Casey Eure, was approved with a 100-11 vote on Wednesday. This legislation, introduced rapidly through the House, includes a proposal to cut casino tax rates from 8% to 6%, aiming to gain support from local casino operators who have historically opposed online sports betting. This move is notable as Mississippi was among the pioneers in legalizing sports betting in 2018, albeit restricting it to physical casino premises.
The bill marks the third consecutive year that the House has attempted to pass online sports betting legislation. Earlier, another similar initiative, HB 1581, was passed by the House but has yet to progress in the Senate. Last year, efforts to incorporate online sports betting into a Senate bill on sweepstakes casino prohibition failed during the conference committee stage, despite passing the House. This year, the Senate revisited and passed the sweepstakes casino prohibition bill separately.
Securing the support of local casinos is crucial for the success of the current bill. Senator David Blount, chair of the Senate Gaming Commission, has been a notable opponent of mobile sports betting, arguing that it does not align with the state’s objectives of fostering investment, job creation, and tourism growth. Blount has also stated that without a formal request from the Mississippi Gaming Commission, he would not consider mobile sports betting a viable option, questioning whether the potential revenue from sports betting justifies its legalization.
Industry insiders note that smaller, regional casinos wield significant influence over state legislators and are wary of competition from larger commercial operators that could enter the state market. The proposed reduction in casino taxes is estimated to result in a $48 million cut, a move Eure suggests will help casinos remain competitive.
The legislative proposal specifies that Mississippi’s 26 casinos would be eligible to partner with a single online sportsbook operator, refining from earlier proposals which allowed partnerships with up to two operators. The bill proposes a 22% tax on mobile sports betting, increasing from the existing 18.5% tax on in-person wagering. Additionally, it allocates $50 million annually over ten years from sports betting revenues to the Public Employees Retirement System, projecting state earnings of up to $100 million per year under the proposed tax rate.
By transitioning sports betting online, Eure argues, the state can mitigate illegal betting activities and safeguard consumers, particularly younger individuals, while providing a regulated alternative. He emphasizes that this expansion will offer brick-and-mortar casinos a new revenue stream, simultaneously bolstering state funds to address shortfalls in the Public Employees’ Retirement System.
The proposal to reduce the casino tax rate replaces an earlier plan to establish a $6 million fund intended to support smaller regional casinos facing challenges due to the expansion of online betting options.
As the bill progresses, attention turns to the Senate, where previous attempts have been unsuccessful. The outcome will be closely watched by industry stakeholders and policymakers, as successful passage could significantly influence the competitive dynamics of Mississippi’s gaming sector. The legislative process will unfold over the coming months, with industry observers keenly anticipating how the Senate will respond to the House’s latest initiative on mobile sports betting.