Mississippi bettors hoping for legalized online sports wagering cheered when the state’s House passed HB 1302 on Feb. 4. The bill would legalize online sports betting and online race books in the Magnolia State. But their celebration was short lived.
Just last week, Mississippi's Senate passed SB 2510, which would not only prohibit all forms of online gaming, but increase the penalties for operating or promoting online gaming from a misdemeanor to a felony. SB 2510 would expressly prohibit mobile sports betting, currently illegal in Mississippi. But it also would ban casino-like online sweepstakes, technically not outlawed in the state.
While online sweepstakes let users play for free, they also allow customers to buy virtual currency with real money and receive real money prizes. To pour salt in the wound, the Senate unanimously passed SB 2510.
Mississippi's House specifically designed HB 1302 to address some of the Senate’s issues. Last year, the House tried to pass a bill legalizing online sports betting – but it died on its likely failure in the Senate. At the time, senators claimed they were worried brick-and-mortar casinos could lose revenue if they legalized online sports betting.
As a result, HB 1302 specifically requires mobile sports betting platforms to partner with a casino to obtain the necessary gaming license. It also would set up a fund to reimburse casinos for any lost revenue through 2030. But apparently this was not enough to appease Senate concerns.
Mississippi task force sees growth with legalized online sports betting
Mississippi legalized in-person sports betting in 2018. It, however, remains one of the U.S.' smallest markets, due to its lack of an online option. For instance, the state's sportsbooks took more than $500 million in action during 2023. Meanwhile, Kansas, which has a similar-sized population and statewide online sports betting, staked more than $1.5 billion that year.
In Dec. 2023, a report from the Mississippi Mobile-Online Sports Betting Task Force concluded “Significant growth would likely be spurred by the adoption of online sports betting, addition of retail sports betting locations near new population centers, interest/growth in new sports to place bets (e.g., e-sports), or a federal effort to stop illegal sports betting.”
The Task Force’s report apparently didn't sway Mississippi’s senators. Given the disparity between HB 1302 and SB 1210, it also appears unlikely Mississippi’s House and Senate will find common ground to legalize online sports betting – yet again – this year.
