Newest Mississippi Sports Betting Bill Aimed at Placating Retail Sportsbooks

Bringing mobile sports betting to Mississippi has not been easy, but the latest bill addresses one of the biggest hurdles, assuaging the fears of cannibalization from retail sportsbooks, which could turn the tide in favor of statewide digital sports wagering.

House Support Not Enough

Land-based casinos in Mississippi are allowed to operate retail sportsbooks and are expressly designed to allow customers who enjoy betting on sports an opportunity to do so with the allure of the more profitable slot machines always within close proximity. Revenue from the sportsbooks provides ancillary revenue but they generally pale in comparison to profits made on the casino floor.

Nevertheless, mobile sports betting has been viewed as a threat to retail sports betting as casino owners believe there will be less of an incentive to visit a retail establishment once a bet can be made on a mobile device from anywhere in the state. It is a big reason why Mississippi lawmakers have been reticent about passing mobile sports betting legislation and why the last bill ultimately died despite gaining overwhelming support in the House.

Highlights of the 2024 sports betting legislation are as follows:

• Allow only for online sports betting anywhere in the state but not for anyone outside of Mississippi.
• Any sports betting platform would have to partner with an actual brick-and-mortar casino.
• In theory, the bill would have provided an additional $25 million per year in tax revenue that would have gone to roads, highways, bridges, and other infrastructure.

The House passed H.B. 774 by a convincing margin of 94-14 before it reached the Senate, whose members added an amendment that struck all the bill’s language and effect. It ultimately died in a conference committee shortly thereafter.

Shortfall Fund Could Prove Successful

This year, Republican Representative Casey Eure and Democratic Representative Jeffrey Hulum III have decided to take another swing at mobile sports betting legislation. Their bill, H.B. 1302, also known as the “Mississippi Mobile Sports Wagering Act,” was recently altered to create the “Retail Sports Wagering Protection Fund.”

That is essentially a shortfall fund that would recompense retail sportsbooks that do not enter into an agreement with a third-party mobile sports betting provider. However, they must experience a loss in sportsbook revenue compared to what they generated in 2024.

“The [Mississippi Gaming Commission] shall allocate funds in the Retail Sports Wagering Protection Fund proportionately among eligible applicants, but in no case shall a licensed gaming establishment without a platform receive more funds than the amount of the difference between its current year retail sports wagering revenue and 2024 sports wagering revenue,” the bill states.

Funding and Timeline

The bill reportedly allocates $6 million per year from the tax revenue collected from mobile sports betting from 2025 through 2030. This shortfall fund has been created to placate those sportsbook operators who do not partner with an online sports betting provider, ala Caesars, DraftKings, or FanDuel, and are apprehensive about loss of sports betting revenue.

If the bill is passed, the launch date can be no later than December 8, 2025.

“I would like to start by saying I’m committed to the bricks-and-mortar casinos, and this bill mandates that all sports betting is tethered to bricks-and-mortar casinos,” Representative Eure said this past week.