Mississippi’s Online Sports Betting Discussions Set for 2025

As lawmakers gather in Jackson for the 2025 legislative session, discussions surrounding online sports betting in Mississippi are expected to reignite, following a fruitful preliminary effort in early February 2024.

A proposal intended to expand online sports betting gained momentum in the state House of Representatives, passing with a significant 97-14 majority. However, as House Bill 774 transitioned to the Senate, amendments diluted its original intent, leading to a 36-15 approval in the upper chamber.

Bipartisan Challenges and Concerns

A bipartisan committee comprising both House and Senate members attempted to reconcile differences but ultimately saw the push for online sportsbooks in Mississippi stall as the legislative session concluded. Disagreements primarily revolved around the licensing and taxation of online operations, with some senators worried that online platforms would detract from the revenue of physical casinos.

Currently, Mississippi limits sports betting to retail sportsbooks located within commercial and tribal casinos, resulting in many residents seeking unregulated online options in neighboring states like Louisiana, Arkansas, and Tennessee.

Support from the Casino Industry

The state is home to 26 commercial casinos, which contributed around $2.5 billion in gross gaming revenue last year, ranking Mississippi among the top 10 markets for commercial gaming. These casinos actively support the expansion of online sports betting, asserting that it would complement traditional betting rather than cannibalize it.

Casinos like MGM Resorts, Caesars Entertainment and others believe that embracing digital betting avenues could enhance overall market performance in the state.

Tax Revenue Insights

In states allowing both in-person and online sports betting, a substantial majority of wagers tend to occur remotely. For instance, in New Jersey, online sportsbooks reported handling nearly $11.6 billion in bets within the first eleven months of 2024, clearly outpacing physical betting operations.

This shift has significant tax revenue implications; in New Jersey, online sports betting generated over $130.3 million in tax revenue compared to just $2.8 million from physical sportsbooks.

Future Prospects for 2025

The year 2025 is poised to be critical for sports betting expansion, particularly after 2024 saw the slowest pace for new legalizations since the Supreme Court’s decision to overturn prohibitions against sports wagering in 2018. While only Missouri has succeeded in passing new legislation for legal sports betting, Mississippi’s discussions could shape the state’s future betting landscape.

Conclusion

As the deadline for introducing online sports betting looms, Mississippi’s legislators have an opportunity to reshape the betting environment. Balancing the interests of traditional operations with the desire to capture unregulated online betting revenue may lead to significant changes in the state’s gambling policies in 2025.