Mississippi House Again Approves Online Betting With Pension Plan

The Mississippi House of Representatives has again voted to legalize online sports betting, approving House Bill 1581 on Wednesday by an 85–31 margin. The measure now heads to the Senate, where similar proposals have stalled in recent years. This year’s version includes a new provision connecting mobile betting revenue to funding for the state’s struggling pension system.

Supporters say the bill would capture tax revenue currently flowing to unregulated platforms and neighboring states. Critics argue that mobile wagering could increase gambling addiction and harm existing casinos. The Senate has previously rejected such legislation amid those concerns.

Pension Funding Added To The Proposal

A floor amendment added before final passage requires a one-time $600 million transfer from the Capital Expense Fund to the Public Employees’ Retirement System (PERS). The amendment, authored by Rep. Hank Zuber of Ocean Springs, links future betting tax revenue to pension funding based on investment performance.

Under the amendment, tax revenue from online sports betting would continue flowing to PERS as long as the system’s assumed investment return rate remains at or above its January 1, 2020 level. If the rate falls below that benchmark, the revenue stream would stop. Once the benchmark is met, the state must complete the $600 million transfer.

The Capital Expense Fund covers equipment purchases and infrastructure projects, prompting concerns from some lawmakers about redirecting money during a tight budget cycle.

“When we talk about taking 600 million out of (the Capital Expense Fund) is this an appropriate fast-paced use of these funds?” said Rep. Robert Johnson, a Democrat from Natchez.

Arguments Over Revenue And Oversight

Rep. Casey Eure, a Republican from Saucier and chair of the House Gaming Committee, sponsored HB 1581 and defended the bill as a response to widespread unregulated betting. He told lawmakers that Mississippi residents have attempted around 10 million online sports wagers since September 2025, with 81,000 traveling out of state to place bets.

“These are Mississippi residents crossing into other states, and the outcome of that is that Mississippi receives zero tax revenue, there’s zero oversight, zero consumer protection against these people placing bets, and problem gambling goes undetected and unmanaged,”Eure said.

Eure estimated the state is losing between $40 million and $80 million each year. He also said the bill would require platforms to collect player data to identify problem gambling and enforce age verification.

Key Provisions And Senate Outlook

The bill would require online sportsbooks to partner with brick-and-mortar casinos, with each casino allowed up to two partnerships. Operators would also have to use geofencing technology to restrict wagers to Mississippi.

HB 1581 establishes a $6 million annual fund, financed by betting taxes through 2030, to support casinos that lose revenue due to mobile wagering. Any remaining funds would go to PERS, which carries about $26 billion in unfunded liabilities. The bill also allows child support agencies to intercept gambling winnings from delinquent parents.

Senate Gaming Committee Chair David Blount has remained skeptical, citing limited revenue potential and the growth of prediction markets. HB 1581 now returns to the Senate, where its fate remains uncertain.

Source:

“House votes to legalize online sports betting and divert $600M to pension system” , mississippitoday.org, February 4, 2026