In a significant move towards modernizing gambling in the state, the Mississippi House of Representatives has passed a bill that could transform the landscape of sports betting by introducing mobile and online options. This development marks a pivotal moment in Mississippi’s gambling history, aiming to curb illegal betting activities and generate substantial revenue for state infrastructure projects.
Mississippi Takes a Leap Towards Mobile Sports Betting
The Mississippi House recently approved legislation to legalize mobile sports betting, a decision that could significantly reduce the volume of illegal bets placed in the state. The bill, which passed the GOP-controlled House with a resounding 97-14 vote, is now on its way to a Senate committee for further consideration. This move comes in response to the estimated $64 billion wagered on illegal sports bets across the U.S. last year, with Mississippi’s share amounting to around $3 billion.
The proposed legislation allows bettors to register for sports betting remotely within Mississippi, linking online sportsbooks with the state’s physical casinos. This initiative aims to address concerns about smaller casinos struggling to secure deals with platforms due to larger casinos’ leverage. A 12% tax on sports betting revenue is suggested, with proceeds earmarked for repairing roads and bridges owned by counties and municipalities throughout Mississippi.
Addressing Concerns and Ensuring Fair Play
The bill’s author made adjustments to the tax structure to alleviate concerns from lawmakers representing areas without casinos. It’s estimated that the mobile sports betting program could generate between $25 million to $35 million in revenue during its first year if enacted. The House measure is expected to proceed to the Senate Gaming Committee for consideration, with active discussions about the legislation ongoing.
Concerns have been raised by lawmakers from rural districts with smaller casinos about how the bill mandates operation with online sportsbooks like FanDuel and DraftKings. The requirement for these betting programs to contract with one of Mississippi’s 26 brick-and-mortar casinos has sparked fears of market monopolization and the potential disadvantage to smaller casinos. However, the bill’s author insists that all casinos will have a fair playing field, projecting significant revenue for roads and bridges if the law is signed.
Expanding Betting Options and Combating Illegal Betting
The Mississippi House passed House Bill 774, which would legalize mobile sports betting in the state, marking a departure from the current situation where sports wagering is legal but online betting is not. Rep. Casey Eure, the author of the bill, highlighted the challenges Mississippians face, either being rejected when trying to place a sports bet or having to drive across state lines to do so. The bill mandates that bettors use online services from existing casinos within the state, with online sportsbooks like DraftKings or FanDuel needing to partner with these casinos for customer participation.
Each casino is limited to contracting with one sportsbook, aiming to protect smaller casinos from being overshadowed by larger entities and preventing monopolies by outside companies. Despite concerns that this could harm smaller casinos as people might opt to bet from home instead of visiting the casinos, Rep. Eure assured that the bill protects smaller casinos by allowing only one platform or “skin” per casino.
Looking Ahead: The Road to Legalization
The bill now moves to the Senate for consideration. If amended, it will return to the House for approval. With the potential to generate between $25 million and $35 million in revenue during its first year if enacted, the proceeds are intended for the roads and bridges fund. This legislative effort represents a significant step towards legalizing mobile sports betting in Mississippi, aiming to keep the state competitive with neighboring regions moving forward with their own sports betting legislation.
As the bill progresses through the Senate, it remains to be seen how amendments and discussions will shape the final outcome. However, the strong support in the House indicates a growing recognition of the benefits of regulated online sports betting, not only as a revenue source but also as a means to combat the black market that attracts billions in wagers annually. With careful consideration and collaboration, Mississippi stands on the brink of embracing a new era in sports betting, promising enhanced options for bettors and increased funding for critical state infrastructure projects.
