- The legislation is directed at the Senate as well as trade associations that have opposed online sports gaming.
The House Ways and Means Committee is betting that raising taxes on casinos could raise major revenue for the state.
On Tuesday, members passed a bill on to the floor that would increase taxes on casinos from 12 percent to 16 percent, raising approximately $50 million annually, committee chair State Rep. Trey Lamar (R) said.
The legislation is directed at the Senate as well as trade associations that have opposed online gaming. Many smaller casinos in the state have opposed online betting bills. Lamar said Mississippians are already gambling online, and the state is losing millions in revenue.
If people are “honest with themselves, online sports betting is already going on” illegally in Mississippi, Lamar said.
HB 1881, which was on the House calendar Wednesday, is a response to online sports betting legislation failing in the Senate over the past few sessions.
“The goalpost continues to be moved on the other end of the building,” Lamar said, referring to the Senate. “We’re going to tax it appropriately. There needs to be some further light shed on this topic.”
Lamar added that it was his understanding “that a small handful of casinos are standing in the way of that legislation.”
Gambling revenue has largely plateaued in recent years, with casinos arguing that neighboring states that allow online gambling are hurting their business.
For more than a decade, there have been toothless talks about raising casino taxes. The 12 percent tax rate is divided into 8 percent going to the state and 4 percent going to local governments.
Online sports betting was largely aimed at capturing those dollars missed by the state. As with sports betting in a brick-and-mortar casino, the House bill on online sports betting would impose a 12 percent tax, which was to be evenly distributed between all 82 counties for roads and bridges.
READ MORE: Mississippi House again sends mobile sports betting legislation to Senate
As previously reported, of the 38 states in the nation with sports betting, 31 allow online sports betting. State Rep. Casey Eure has noted that neighboring states such as Tennessee saw $97 million in tax revenue, while Kentucky brought in $35 million, and Louisiana collected $64 million. North Carolina, which started allowing online sports betting in 2024, collected $96 million from March through December.
Eure told the House earlier this session that information collected by Google shows Mississippi leads the nation in illegal online sports betting. Other states had similar problems with illegal online sports betting until it was legalized.
Daniel Tyson
