Is Mississippi the Next State to Expand and Adopt Comprehensive Mobile Sports Betting?

Our best sports betting sites may finally be coming to Mississippi to add to a brick-and-mortar industry that has existed in the state for years. 

Mississippi was the third state in America to legalize sports betting after the 2018 Supreme Court decision to overturn its blanket ban. However, the state has yet to legalize online wagering except when physically present at one of its casinos, which legislators hope to change in 2024.

On Tuesday, members of the state's Senate Gaming Committee passed a House Bill that had been voted on, passed, and sent to the Senate back in February. House Bill 774 had been sitting stagnant for the Senate to consider for a month before the Senate Committee revived its chances to be heard and possibly passed by the end of the current legislative session.

It keeps the possibility of Mississippi sports betting legalizing online and mobile platforms in 2024 alive, a positive step for the Magnolia State to catch up with other states in their region. The Senate now has until April 11 to vote on the Bill.

Expansion of an existing platform

House Bill 774 was popular among Mississippi House members. In February, it passed overwhelmingly by a 97-14 vote. It essentially expanded the current legal sports betting platform in the state to include Mississippi sports betting apps, which are currently available in the Magnolia State but cannot be used outside the physical grounds of a licensed brick-and-mortar facility.

Bill 774 would ensure that the public could access such Mississippi sports betting sites anywhere in the state, including from the comfort of their homes.

Under the Bill, each of the 26 retail casinos in Mississippi would be expected to partner with an online sports betting provider. Each online sportsbook would be taxed at 12% on adjusted gross revenue.

Expansion would generate an estimated $35 million in revenue annually, which would help repair state roads and highways.

Something had to be done

Mississippi sports betting numbers have been consistently dropping, to the chagrin of regulators and tax programs that rely on the revenue.

The American Gaming Association reported a 10.7% year-over-year drop in sports betting activity in the state. In 2023, Mississippi casinos experienced a 15.8% drop in sports betting revenue year-over-year. Tax revenue dropped $1.1 million from 2022 to 2023.

Through the first two months of 2024, the state's handle is down 21.7% year-over-year to $76 million.

Mississippi is losing bettors, possibly due to a lack of mobile options compared to three bordering states, Tennessee sports betting, Louisiana sports betting, and Arkansas sports betting. All have thriving mobile platforms and are examples of what a Mississippi platform could look like.

According to the AGA, Louisiana alone was responsible for a 7.7% decline in handle for Mississippi sportsbooks.

Is there any pushback expected? 

As it stands, brick-and-mortar casinos present the only revenue stream for sports betting in Mississippi. There are concerns that an expanded mobile platform will decrease the popularity of retail facilities.

But any pushback could be short-lived, with reports from state task forces releasing potential revenue projections for an expanded mobile sports betting platform, which identified a potential doubling of the current sports betting handle by 2029. The report expects 20% year-over-year growth every year until 2029.