Mississippi House approves online sports betting bill, Senate outlook uncertain

The Mississippi House passed an online sports betting bill for the third consecutive year, sending it to the Senate, where its prospects remain uncertain. This latest proposal includes a provision earmarking revenue for the state’s underfunded pension system, a move supporters believe could shift the bill’s fate this session.

Mississippi House lawmakers revived debate on online sports betting as data shows residents have attempted about 10 million mobile wagers routed through neighboring states, leaving Mississippi with no tax revenue, oversight, or consumer safeguards.

Members of the Mississippi House of Representatives voted 85-31 on Wednesday to approve House Bill 1581, returning the proposal to the Senate for a third consecutive year. The measure, titled the Mississippi Mobile Sports Wagering Act, was introduced in January by Rep. Casey Eure and amended before final passage.

Mississippi legalized sports betting in 2018, limited to in-person wagering at casinos. Online wagering remains prohibited despite repeated House approval.

During the House floor debate, Eure said residents are already placing bets through online platforms in nearby states. He cited data indicating that Mississippians have attempted about 10 million online wagers since the start of the NFL season.

“These are Mississippi residents crossing into other states, and the outcome of that is that Mississippi receives zero tax revenue, there’s zero oversight, zero consumer protection against these people placing bets, and problem gambling goes undetected and unmanaged,” Eure said. Eure estimated that legal online sports betting could produce up to $80 million annually in tax revenue.

HB 1581 would permit online sports wagering through partnerships between licensed operators and existing retail casinos. Each casino could partner with up to two online sportsbooks.

Online sports betting would be taxed under the state’s gaming tax scale. Operators would pay 4% on the first $50,000 in monthly revenue, 6% once revenue reaches $84,000, and 8% on additional monthly revenue.

To address concerns about revenue shifts from in-person casinos, the bill establishes a $6 million annual fund for retail casinos for the first five years of legal online wagering. Casinos could access the fund if revenues decline, with replenishment continuing through 2030.

“We put this in as a safeguard to some of the casinos that are against mobile sports betting,” Eure said. “Just to show our good faith that if they lose money, they can draw down over the $6 million.”

An amendment adopted before passage directs remaining online sports betting tax revenue to the Mississippi Public Employees’ Retirement System. The bill also includes a one-time $600 million transfer from the Mississippi Capital Expense Fund to the pension system.

“Last year, we were sending the money to roads and bridges. This year we’re going to put it to [Mississippi’s pension program],” Eure said. The pension provision was added to garner support from both chambers.

The bill now heads to the Mississippi Senate, where similar proposals stalled in 2024 and 2025. Concerns previously cited included gambling addiction and potential effects on land-based casino revenue.

Sen. David Blount, chair of the Senate Gaming Committee, has said he would not consider an online sports betting proposal unless requested by the Mississippi Gaming Commission. The Senate has until March 11 to take original floor action on House-originated bills.