A bill that would legalize online sports betting in Mississippi is on the move. It has received approval from the final Senate committee, setting it up for a possible floor vote.
Let’s see how much potential this bill holds and how it may impact the top-rated sportsbooks industry.
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The Senate Gaming Committee approved Mississippi’s sports betting proposal (HB 774), beating the deadline for committee votes. The version they approved contains minor deviations from the one the House passed in February, which might need reconciliation for the full Senate to approve it.
While the initial provisions for online sports betting (in the bill) have been removed, there’s hope for a possible agreement. Negotiations are said to be in progress and are expected to resolve differences and enable online betting statewide.
The Senate must hold a floor vote on the bill by April 11.
“There are a lot of issues that we need to consider from the perspective of the industry and the perspective of the consumer that we will do if we get to the point where we might be able to get something done this year,” Senate Gaming Committee Chairman David Blount said in committee. “But in the meantime, we certainly don’t want to stop people from listening to each other and working.”
The Senate committee has added minor regulations for fantasy sports to the bill. These primarily address conflicts of interest in contests and the requirement of age verification software. The bill also limits the number of entries each player can make and is expected to set the tax rate at 12%.
Sports Betting Allowed Anywhere, Online Sports Betting Is Not
In August 2018, Mississippi became the third state to introduce sports betting, following the U.S. Supreme Court’s decision to overturn PASPA.
Select venues allow access to sports betting apps, but online wagering is still restricted to on-site locations.
The Mississippi Mobile Sports Wagering Act aims to legalize mobile sports betting. This would mandate partnerships between gambling companies and physical casinos. Online betting has been prohibited due to concerns over potential financial impacts on local casinos.
As Mississippi grapples with a downturn in commercial gaming revenue, concerns are mounting. Data from the American Gaming Association reveals a worrying trend: In January 2024, the state’s total commercial gaming revenue stood at roughly $180 million, marking a year-over-year decline of nearly 11%.
The Senate-blessed bill could pave the way for 26 betting apps, mirroring the successes of nearby states, namely Arkansas, Louisiana and Tennessee.
What’s Next for the Minnesota Online Sports Betting Bill
More apps would mean more money for the state.
Should the bill be enacted, it’s projected to generate $25 million to $35 million in its first year. A report by an online sports betting task force estimated that if online sports betting was approved, Mississippi could generate upwards of $27 million in tax revenue by fiscal year 2029.
However, several legislative hurdles remain. Having cleared the Senate committee, it now awaits a full Senate vote. Any amendments by the Senate would require House approval. If all goes well, the bill will then proceed to the governor for final approval.
The negotiations will continue and we’ll be there when the vote happens.
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