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The Mississippi House plans to try to legalize online sports betting again this year. This will mark the third consecutive attempt after the House failed to pass similar legislation the past two years.
New proposal aims to win Senate support
This year’s proposal includes new provisions aimed at winning over opposing Senate lawmakers. Most notably, it would direct all state revenue generated from online sports betting to the state pension system, according to House Gaming Committee Chair Casey Eure, R-Saucier.
The Public Employees’ Retirement System (PERS) currently has unfunded liabilities of about $26 billion, and lawmakers have struggled to agree on a solution. Some lawmakers remain skeptical that tax revenue from online sports betting would be sufficient. Senate Gaming Committee Chair David Blount, D-Jackson, said directing revenue to PERS alone does not justify legalizing mobile sports betting.
Blount said, “If we legalized mobile sports betting tomorrow, it would take more than 1,000 years to pay off the unfunded liability in the retirement system. The amount of money we’re talking about is infinitesimal compared with the $26 billion unfunded liability.”
Eure estimates the mobile sports betting industry could generate up to $80 million a year in taxes, while Blount argues the revenue would likely top out around $30 million. Either way, it would be insufficient to pay off PERS’ liabilities in the near term.
House leaders have also proposed establishing a recurring revenue stream for PERS, potentially from mobile sports betting or the state lottery.
Offshore betting fuels push for legalization
Mississippi residents already use illegal offshore sports betting sites, creating a black market that diverts tens of millions in potential tax revenue. This has fueled a push by lawmakers and sports betting companies to legalize and regulate the industry.
“By legalizing mobile sports betting, we can reduce the illegal market — protect underage bettors — and provide consumer safeguards,” said House Gaming Chair Casey Eure, R-Saucier.
“It also gives casinos a new revenue stream while helping fund our public employees’ retirement system.”
Some residents also use prediction markets, where participants “purchase contract events” on future outcomes. Unlike traditional sportsbooks, users set their own odds by trading with each other rather than betting against a bookmaker. Federally regulated by the Commodity Futures Trading Commission, prediction markets have expanded even in states like Mississippi, where online sports betting is illegal.
“Prediction markets have essentially legalized nationwide mobile betting,” said Senate Gaming Chair David Blount, D-Jackson. “States cannot tax or regulate these platforms, which functionally operate as gambling, reducing the revenue once expected from legalized sports betting.”
Safeguarding casinos amid online betting debate
Lawmakers from districts with brick-and-mortar casinos are concerned that online sports betting could undercut their profits. Eure included provisions last year to address these concerns, such as creating a fund from which casinos could draw during the first five years of mobile sports betting legalization. He also proposed restricting the use of credit cards for deposits and wagers.
