HB271 and HB635

Mississippi lawmakers renew push to legalize online sports betting with two bills introduced at the House

2024-01-26
Reading time 1:43 min

In a new attempt to expand online sports betting in Mississippi, two new bills that would legalize the market have been introduced. While sports wagering has been legal in the state since 2018, online betting is currently confined to geofenced sportsbooks on land-based casino properties.

Bill HB271, introduced by Rep. Cedric Burnett last week, and Bill HB635, filed by Rep. Jay McKnight this week, would expand online sports betting statewide by allowing bettors to wager on sports through mobile devices anywhere in Mississippi, regardless of their location.

The fresh push marks the sixth time lawmakers attempt to expand online betting. Of the four states bordering Mississippi, only Alabama has yet to legalize online sports wagering. Tennessee launched its market in 2020, while Louisiana and Arkansas both legalized the activity in 2022.

Industry stakeholders believe the Magnolia State is one of the likelier states to pass sports betting legislation this year. Supporters believe the introduction of the online modality would help Mississippi boost its sports wagering market, which saw a disappointing end to 2023 with both handle and revenue down year-on-year.

The December state handle amounted to $48.9 million, down 34.3% from December 2022 and also 21.6% lower than the money spent in November 2023. Meanwhile, revenue amounted to $4.9 million, 56.6% lower than in December 2022, although up 58.1% from November 2023.

However, not everyone is on board with the expansion plan. Of the sixteen companies that currently operate casinos in Mississippi, some of them, especially independent and smaller operators, fear the proposal could cannibalize casino revenue. Others believe that major operators would soon dominate the market, fears that some lawmakers have echoed.

My primary concern is how to make sure that we don’t do anything that jeopardizes the destination gaming product that Mississippi gaming has been built on,” Sen. Mike Thompson said during a meeting this fall.

Bill details

The two sports betting bills introduced in Mississippi would amend the Gaming Control Act to allow state gaming operators to launch their own sportsbooks or partner with an operator. Moreover, the bills also delete a prohibition of Daily Fantasy Sports (DFS) operators from offering contests based on individual collegiate athletes.

Both proposals call for a tiered tax system, based on online sports wagering revenue: 

  • 4% of revenue up to $50,000
  • 6% on revenue between $50,000 and $134,000
  • 8% on revenue greater than $134,000

The 8% rate is in line with in-person sports betting, as well as a recommendation from the Mississippi Mobile Online Sports Betting Task Force, created in 2023 to gather information and recommendations for online expansion. The task force forecasts the state could bring in up to $27.1 million in tax revenue per year.

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