Efforts to Expand Mississippi’s Legal Sports Betting Gaining Steam

Mississippi lawmakers are reviving their attempts to expand their legal sports betting platform past a retail and very-limited mobile industry that has been available in the state since August 2018.

Online betting curiously is already happening in the state - just not outside of the physical properties of 28 licensed casinos in Mississippi. Expansion would make the platform legal anywhere in the state, not just casino lands.

Two expanded Mississippi sports betting bills have been introduced in the last week by lawmakers hoping to make wagering from your couch a reality in the state and judging by the overall support for expansion of the platform, they might not be the last.

On Wednesday, Rep. Jay McKnight introduced his iteration of what a mobile sports betting industry should look like in the Magnolia State. His plan basically mirrored a bill introduced by lRep. Cedric Burnett last week.

Mississippi Sports Betting Task Force connection

Both Mississippi sports betting bills that have been introduced in the Mississippi legislature the last week are from members of the state's Mississippi Sports Betting Task Force. It is a 13-member panel that was created last year to investigate and report on the benefits and downfalls of such a legal sports betting expansion.

The panel did extensive investigative work on the subject and met with all stakeholders in a potential mobile sports wagering platform. That includes Mississippi casino owners, sports betting operators, and legislators on both sides of the somewhat contentious issue.

The committee produced a 95-page report with most “for” the idea of expanding sports betting to include mobile operators. Some were not.

But one conclusion we can draw from Rep. Jay McKnight's and Rep. Burnett's plans, is that they are well-informed and have the interests of all Mississippi stakeholders in mind. Each of the lawmakers are among the 13 best informed Mississippians on the impacts of such a platform for their state.

HB 365 and HB 271

As mentioned, the two bills that have come forward in the last week to legalize/expand mobile sports betting in Mississippi are mirror images of each other.

Each would allow current Mississippi casinos to launch their own mobile platform or partner with one of the best sports betting apps such as DraftKings, FanDuel, or any one of the dozens of licensed providers operating in the bustling American market.

Both would see a widespread mobile sport wagering platform launch July 1, in time to work out the kinks and be in place for next year's kickoff to the NFL season.

A sliding scale tax model would be adopted with lesser providers paying less tax. 4% of gross revenue not surpassing $50,000 per month, 6% of gross revenue that surpasses $50,000, but does not surpass $134,000 per month, and 8% of gross revenue that surpasses $134,000 per month would be taxed under both proposals.

What Mississippi expansion would mean

It isn't news that the adoption of a mobile platform would dramatically increase the sports betting handle, sportsbook revenues and ultimately tax contributions for the best sportsbooks in the Mississippi scene.

The Mississippi Sports Betting Task Force, the Committee that authored both new sports wagering initiatives identified up to $27.1 million in tax revenue being generated by a comprehensive state legal sports betting industry. That is a dramatic increase for betting sites from what is resulting now. 

Burnett's bill alone is expected to generate $5.1 million in taxes for FY 2025, and $12.6 million in FY 2029.