The Mississippi House has passed a second mobile sports betting legislation with a significant 100-11 vote, promoting the legalization of this sector with a tax rate of 22% while lowering the casino tax from 8% to 6%. This adjustment is anticipated to save operators around $48 million.
HB 4074 imposes a 22% tax on mobile sports betting profits, which is higher than the existing 18.5% tax rate for in-person sports betting locations. Rep. Casey Eure, the bill’s sponsor, predicts that the 22% tax rate could produce as much as $100 million in annual revenue.
The provisions include allocating $50 million each year for a decade to the Public Employees’ Retirement System.
“Legalizing mobile sports betting allows us to eradicate significant portions of the illegal market,” Eure mentioned prior to the session, “This will also include protections for underage bettors and provide genuine consumer safeguards in a regulated context.”
“This new legislation will provide a fresh revenue stream for our physical casinos, ensuring their ongoing prosperity, while the state’s earnings will address funding gaps in our Public Employees’ Retirement System.”
The casino tax cut from 8% to 6% supersedes a $6 million fund in a previously enacted House bill which aimed to support smaller regional casinos affected by online betting.
Operator Restrictions and Market Access
HB 4074 restricts each of the state’s 26 casinos to collaborate with a single online sports betting operator. In contrast, a prior House bill, HB 1581, allowed up to two online partnerships for each casino.
Mississippi legalized sports betting back in 2018, confining betting activities to casino establishments. Current regulations do not permit mobile wagering.
Sources within the industry suggest that many smaller regional casinos are apprehensive regarding larger gambling entities entering the state, with those operators having opposed online sports betting efforts in previous sessions.
Legislative Overview and Senate Stance
Rep. Eure introduced HB 4074 on Tuesday. The bill successfully navigated the Ways and Means Committee before reaching the House for a vote on Wednesday.
Earlier this year, the House passed another mobile sports betting bill, HB 1581, proposed by Eure. However, that initiative has not progressed in the Senate. This marks the third consecutive year the House has approved legislation for online sports betting.
In 2024, following the Senate’s refusal to advance a House bill on online sports betting, the House appended mobile wagering language to a Senate prohibition bill against sweepstakes casinos, although that proposal ultimately failed in committee. This month, the Senate passed another sweepstakes ban.
Sen. David Blount, chairman of the Senate Gaming Commission, has historically opposed mobile sports betting measures. He believes that mobile wagering does not align with the state’s goals regarding legal gambling.
“The purpose of gaming in Mississippi is to stimulate investment, create jobs, and enhance tourism, drawing visitors to the state,” Blount remarked last year. “Mobile sports betting does not achieve this.”
Blount has also indicated that he will not entertain mobile sports betting proposals unless there is a formal request from the Mississippi Gaming Commission. He mentioned that mere revenue growth does not warrant legalization.
The bill is now set to proceed to the Senate for further evaluation.