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Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioMississippi lawmakers in both chambers made significant moves to reshape the state’s gambling landscape on Wednesday. The House approved a bill to legalize online sports betting, while the Senate passed legislation to ban sweepstakes casinos.
The House passed HB1581 by a margin of 85-31, but it is the Senate where opposition has blocked progress in the past.
Meanwhile, the Senate approved Sen. Joey Fillingane’s SB2104, which would ban sweepstakes casinos in the state. Last year, the House added an amendment to legalize online sports betting to Filingane’s proposal, which the Senate rejected.
With the legislation separated this year, it could give the sweepstakes ban a better chance of being approved in the House.
Senate Vote on Online Sports Betting Bill
The Senate will now have a chance to focus solely on legalizing online sports betting through Rep. Casey Eure’s bill. Eure believes the legislation could move forward this time, as it directs much-needed funds to the state’s pension system.
Last year, the revenue generated from online sportsbooks would have gone to roads and bridges. Instead, money will be used to reduce the pension fund’s shortfall, which requires an additional $26 to $27 billion.
The tax rate will be the same as the state’s current tax on retail gambling, which starts at 4% on the first $50,000, rising to 6% on the next $84,000, and 8% on the remainder. While land-based casinos with retail sportsbooks must also pay 3 to 4% in local taxes, online platforms are not subject to any additional levy.
This would make Mississippi one of the lowest taxing states in the country. Iowa and Nevada have the lowest tax rates at 6.75%, while New York, New Hampshire, and Rhode Island take 51% of revenue from sportsbooks.
The bill proposes allowing licensed gambling companies to operate digital platforms. Major companies, including DraftKings, FanDuel, BetMGM, and Caesars, all run retail sportsbooks in Mississippi. It also proposes expanding fantasy sports to include college events, which are currently prohibited.
Can Sweepstakes Ban Stand Alone?
As last year, the Senate unanimously approved the ban on sweepstakes casinos, 51-0. The proposal is highly similar to last year’s, before the House added an amendment to legalize online sports betting.
It specifically mentions sweepstakes this time, with a section added “to clarify that the operation of ‘internet sweepstakes cafes’ and ‘online sweepstakes casinos’ are illegal gambling activities under state law.”
Operating an online sweepstakes casino would be classified as a felony, and convictions could result in fines of up to $100,000, up to 10 years in prison, or both.
The bills will now move to the opposite chambers, which have until March 11 to act on the legislation.
