Mississippi Pushes For Online Sports Betting This Year

Mississippi has yet to authorize online sports betting apps or sites, however, there are developments on the horizon that could change the landscape of sports betting in the Magnolia State. The 2024 regular session of the Mississippi legislature is currently underway, and lawmakers are considering the introduction of online sports betting legislation.

Mississippi is home to nearly 30 brick-and-mortar casinos, each offering physical sportsbooks and kiosks on their properties. Since the legalization of sports betting in 2018, these casinos have become popular destinations for sports bettors. However, despite the success of the retail market, there is no statewide option for mobile sports betting in Mississippi. This limitation has led to concerns about the state’s overall handle, as neighbouring states with online betting options have seen significantly higher wagering volumes.

Democratic Rep. Cedric Burnett has introduced House Bill 271, which could pave the way for online sports betting in Mississippi. The bill aims to allow wagering via “digital platforms,” which refers to online sports betting apps and websites. These platforms could be operated by licensed entities, including casinos or third-party providers like DraftKings or FanDuel. Additionally, the proposed legislation seeks to expand the scope of sports betting to include esports, amateur events, and other authorized competitions.

If House Bill 271 passes, online sports betting could become legal in Mississippi as early as July 1. The bill proposes an 8% tax rate on gross revenue over $134,000 per month, similar to the tax rate imposed on casino gaming revenue. This taxation model would ensure a fair and regulated online sports betting market in the state. However, the bill’s passage is not guaranteed, and there is a possibility of competing legislation emerging during the legislative session.

The introduction of online sports betting in Mississippi could have significant implications for the state’s sports betting market. Currently, Mississippi’s retail sports betting market is relatively mature, but the adoption of online sports betting could spur substantial growth. The convenience and accessibility of online platforms would attract a new segment of bettors and potentially increase overall wagering volumes. Additionally, the expansion of betting options to include esports and other competitions could further diversify the market and attract a broader audience.

While online sports betting presents exciting opportunities for Mississippi, there are also concerns that need to be addressed. The Mobile-Online Sports Betting Task Force, established in early 2023, conducted public hearings to study the potential impacts of online betting. Some concerns raised during these hearings included the potential for increased problem gambling and the need for robust player protection measures. It is crucial for lawmakers and regulators to address these concerns to ensure the responsible and safe implementation of online sports betting in Mississippi.

Geolocation technology plays a vital role in online sports betting, especially in ensuring that bets are placed within authorized jurisdictions. Mississippi’s Mobile-Online Sports Betting Task Force heard from GeoComply, a company that specializes in geolocation services for online sportsbooks. GeoComply provided data that indicated significant interest in online sports betting among Mississippi residents, including attempts to access legal bookmakers outside the state. The use of geolocation technology would be essential in enforcing the state’s online betting regulations and preventing unauthorized access.

If House Bill 271 or similar legislation passes during the 2024 legislative session, regulators would have a few months to prepare for the launch of online sports betting in time for the next football season. This timeline allows for the necessary regulatory framework to be established, ensuring a smooth transition to online betting. However, it is important to note that the passage of the bill is not guaranteed, and there may be challenges and competing interests that could delay or alter the implementation of online sports betting in Mississippi.