The Mississippi House approved an online sports betting bill on Wednesday in an 85-31 vote. This marked the third straight year the legislative body has approved legislation to legalize mobile sports betting in the state.
Previous efforts have died in the Senate – and obstacles still remain in that legislative body.
Backers of online sports betting argue that legalization could bring in tens of millions of dollars to the state each year.
State Rep. Casey Eure (R) introduced HB1581 and believes mobile betting offers a way to shore up the Public Employees’ Retirement System (PERS), which faces a $26 billion shortfall. The bill sets the tax rate at 4% on the first $50,000 of a sportsbook’s monthly revenue, with the next $84,000 at 6%, and the remainder above that taxed at 8%.
Keeping Revenue In State
As part of the bill, an amendment requires the state to make a $600 million transfer from the Capital Expense Fund to PERS. In debate on the issue, Eure told lawmakers that residents had attempted to make 10 million online bets in the state since September and 81,000 went to other states to wager.
Eure said the state was missing out on as much as $80 million as bettors visit neighboring states or make use of unregulated sites, Mississippi Today reported.
“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.
Prediction Markets Could Be A Factor
Mississippi legalized sports betting at casinos in 2018. Eure’s plan requires online operators to partner with land-based casinos. Those properties could link up with up to two mobile betting companies.
Some legislators expressed concern about betting operators only partnering with larger casinos and increased gambling addiction.
Others were doubtful about revenue estimates and whether the $600 million transfer should be made. Senate Gaming Chairman David Blount (D) has expressed reservations about legalization, and so far, no bill has been introduced in the Senate.
Blount has noted that the growth of prediction markets could water down potential revenue for the state. However, that industry faces increased opposition from state regulators and has also seen federal legislators seek to block the platforms from offering event contracts on sports.
Meanwhile, PERS has become a major issue, with legislators disagreeing on how to deal with the shortfall.
