Mississippi House Advances Mobile Sports Betting Bill with New Casino Tax Structure

Key Points

• The Mississippi House passed a mobile sports betting bill with a 22% tax on mobile wagering revenues.
• The legislation reduces the casino tax rate from 8% to 6%, potentially saving operators $48 million.
• The bill represents an expansion from current regulations, which allow only in-person sports betting taxed at 18.5%.

What This Means

If enacted, this legislation would mark a significant shift in Mississippi’s gambling landscape by allowing legal mobile sports betting statewide. The proposed 22% tax on mobile sportsbook revenue is notably higher than the current 18.5% levied on physical sportsbooks. This increase could yield substantial tax revenue for the state, potentially offsetting some of the fiscal impact from reducing the casino tax.

For casino operators, the reduction in their state tax rate from 8% to 6% is a noteworthy change, with an estimated total value of $48 million in tax relief. This move could make operating land-based casinos more attractive and competitive, possibly fostering further investment in the state’s gaming sector. At the same time, the higher tax on mobile bets reflects a regulatory intention to balance new digital offerings with traditional gaming venues.

Background

Mississippi legalized in-person sports betting in 2018, following the Supreme Court decision that allowed states to regulate sports wagering individually. However, mobile sports betting has remained restricted to on-premise activity within casino property lines. As other states have launched statewide mobile markets, pressure has grown to expand Mississippi’s approach.

House Bill 4074, introduced by Rep. Casey Eure, was designed to authorize and regulate mobile sports betting while also revisiting the tax framework for casinos. The legislation’s overwhelming 100-11 vote in the House underscores bipartisan support to modernize Mississippi’s gambling industry and align with national trends.

What Happens Next

The bill now advances to the Mississippi Senate for further consideration. Should the Senate approve the measure and the governor sign it into law, the state could see mobile sports betting platforms launch under this new tax regime. Stakeholders and industry observers will monitor the Senate’s actions closely, as their approval is essential for the bill to become law.

Sources

• Yogonet - Legislation

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