Mississippi Approves Online Sports Betting, Cuts Casino Taxes

The Mississippi House of Representatives has approved a new bill that would authorize mobile sports betting across the state, pairing the expansion with a reduction in casino taxes. House Bill 4074, the Mississippi Mobile Sports Wagering Act, passed on Wednesday with a vote of 100-11 after clearing the Ways and Means Committee the previous day.

The legislation would allow the state’s 26 casinos to partner with one online sportsbook operator each and bring sports wagering online for the first time in Mississippi, which has previously limited betting to on-property venues. The bill reduces the in-person casino tax rate from 8% to 6%, an estimated $48 million savings aimed at helping local casinos remain competitive.

Representative Casey Eure, who introduced the bill, emphasized the regulatory and consumer protection aspects of the measure. Eure also noted the legislation would generate revenue for the Public Employees’ Retirement System, with $50 million per year allocated for 10 years.

Licensing and Operational Safeguards

HB 4074 defines online sports pools and online race books, establishing licensing conditions for digital wagering platforms. Platforms must obtain manufacturers’ and distributors’ licences from the Mississippi Gaming Commission and can operate only through agreements with licensed casinos. Each casino may partner with up to two online sports pool platforms and two online race book platforms.

To ensure compliance, the bill mandates that platforms implement geofencing to restrict wagering to individuals physically located in Mississippi and requires age verification measures. Participation by anyone under the age of 21 is prohibited. Operators must also implement responsible betting programmes, including automated monitoring of player behaviour, structured intervention protocols, and access to responsible gaming professionals.

The commission is tasked with setting a uniform launch date for online wagering outside casino premises no later than 8 December 2026.

Tax Structure Designed to Protect Casinos

The legislation introduces a two-tiered tax system distinguishing online and in-person betting. Online wagers are subject to a combined 26.5% tax, consisting of the standard 8% licence fee plus an additional 18.5% online-specific tax. In contrast, in-person wagers will face a 3.5% tax rate starting in July, shielding brick-and-mortar casinos from excessive digital competition. Revenue will flow into a Mobile Sports Wagering Tax Fund, supporting the Public Employees’ Retirement System and a temporary Retail Sports Wagering Protection Fund through 2030.

Separate Sweepstake Gambling Ban

Alongside HB 4074, the Mississippi Senate passed Senate Bill 2104 by a 52-0 vote, expanding criminal prohibitions on online gambling and sweepstakes. The measure classifies online interactive gambling as a felony offence, with penalties including fines of up to $100,000 and up to 10 years in prison.

The bill also authorises asset forfeiture for violations and provides legal protections for telecommunications and technology providers that transmit content without directly handling wagers. Both bills are expected to take effect on 1 July, pending final approvals and signatures.

The House’s approval marks the third consecutive year that online sports betting legislation has passed the lower chamber, though the measure will face scrutiny in the Senate, where prior proposals have been blocked due to concerns about protecting regional casinos from competition.

Source:

“Mississippi House passes mobile sports betting bill with casino tax cut sweetener”, igamingbusiness.com, February 26, 2026