Mississippi Casinos Threatened With Higher Taxes for Online Sports Betting Opposition

Posted on: February 26, 2025, 10:40h. 

Last updated on: February 26, 2025, 10:55h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.
  • Mississippi casino taxes could be going up
  • House lawmakers want online sports betting
  • The Senate has refused to expand betting to the internet

Mississippi casinos could see their state taxes on gross gaming revenue (GGR) increase should lawmakers in the Senate refuse to get on board with the House’s online sports betting measure.

Mississippi casinos online sports betting
A statue of Elvis Presley in his hometown of Tupelo, Miss. Mississippi casinos could see their gaming revenue taxes increase unless the state Senate agrees to legalize the House’s online sports betting measure. (Image: Shutterstock)

On Tuesday, the Mississippi House Ways and Means Committee passed House Bill 1881. Called the “Integrity in Gaming in Support of Honest Taxpayers Act,” the statute seeks to recoup tax money Mississippi is missing out on by not allowing online sports bets despite legal sports gambling occurring at most of the state’s 26 commercial casinos and three tribal properties.

Sponsored by state Rep. John “Trey” Lamar (R-Senatobia), HB 1881 would elevate the state’s effective tax rate on commercial casino revenue from 12% to 16%. The increase, Lamar estimates, would deliver the state around $50 million annually in additional gaming funds.

Lamar’s bill is the first time in more than a decade that a chamber of the legislature will consider a bill to raise casino taxes.

Mississippi Online Sports Betting 

Mississippi is one of the 39 states that have legal betting on professional and college sports. However, regulated sportsbooks can only be accessed by visiting a physical casino.

The bulk of the bets in states where in-person and online sportsbooks operate are facilitated via the internet. Lamar has supported efforts to expand sports betting in Mississippi to the internet.

Mississippi online sports betting bills, including House Bill 1302 introduced this month, have cleared the state House. They’ve faced robust opposition in the Senate, with some lawmakers believing online sportsbooks would reduce foot traffic at the casinos. That would lead to not only reduced gaming and tax revenue, but possibly, lower food and beverage sales.

Smaller casinos have also expressed worries about being able to compete in an online sports betting environment, as market leaders like FanDuel, DraftKings, and BetMGM would presumably partner with the marquee casinos along the Gulf, namely Beau Rivage, Island View, Hard Rock, and Golden Nugget.  

Lamar says if the Senate wants to keep sports bets confined to casinos, those properties must pay more tax to cover the financial loss from the limited sports betting regulations. Rep. Casey Eure (R-Harrison), who is co-sponsoring the online sports betting bill, is supportive of Lamar’s legislation.

People are doing mobile sports betting through offshore companies,” Eure said.

Eure said his 2025 online sports betting bill was designed to address previous concerns raised in the Senate.

“I’ve done everything I can to satisfy the Senate,” Eure continued. “In my 15 years up here [in the State Capitol], I’ve gotten more calls on mobile sports betting than I had on anything. A poll shows more than 60% of Mississippians want mobile sports betting.”

Religious Opponents 

A third element to the Mississippi online sports betting discussion is the state’s influential religious interests. The Mississippi Baptist Convention has called on all Baptists “to contact their representatives and senators” to express their opposition to online sports betting.

“Any type of gambling violates the tenth commandment — ‘thou shalt not covet.’ Any type of gambling violates the golden rule — ‘do unto others as you would have them do unto you.’ The only way anyone wins at gambling is for someone else to lose,” the Convention wrote in late January.