Mississippi Legislators Gearing Up For Another Online Sports Betting Run

Oct 8, 2022; Nashville, Tennessee, USA; Mississippi Rebels running back Quinshon Judkins (4) celebrates with quarterback Jaxson Dart (2) after scoring against the Vanderbilt Commodores during the second half at FirstBank Stadium. Mandatory Credit: Christopher Hanewinckel-USA TODAY SportsThe Mississippi mobile-sports betting task force met for the first time this afternoonThe task force heard from a number of presenters on the pros and cons of legalizing online sports bettingOne legislator said he will be introducing a new online sports betting bill when the session begins

The Mississippi mobile-sports betting task force met today and one of its chairman took a big leap at its conclusion.

In a nearly two-hour meeting, the 11 member task force listened to several stakeholders on the pros and cons of potential Mississippi online sports betting legalization in the 2024 session.

However, Rep. Casey Eure (R) revealed at the conclusion of the meeting that he will be introducing a new online sports betting bill when the state’s session begins on Jan. 2, 2024. Eure introduced an online sports betting bill last year, HB 606, which was amended and passed to simply create the Mississippi mobile-sports betting task force to investigate the impact of online sports betting on the state.

“I will have a bill that I will introduce. I can’t sit here and tell you that this will pass the House, that I will be able to send it to the Senate. I wanted everyone to  understand where I stood from day one,” he said.

11 Member Task Force Meets For First Time

Eure’s original bill, HB 606, attempted to legalize online sports betting in the state. Mississippi currently has retail sports betting, legalizing the practice in August 2018, but has struggled over the last several years to pass an online sports betting bill.

While online sports betting is technically legal in Mississippi, customers can only make bets from their phones when located on licensed casino property.

HB 606 failed to legalize online sports betting, but was amended by the legislature and passed to create the task force to investigate the impact of online sports betting on Mississippi.

The task force today identified several key statutory considerations an online sports betting bill would have to address:

Sports betting tax rateUse of tax proceedsLicensing structure and feesWhether to offer a local referendum option for counties that may opt outIn-state customer and technical support requirementsAdvertising restrictionsIncreased criminal penalties for illegal operators

Sen. David Blunt (D-29) asked each member of the task force to look at other states laws and bills that would fit well in Mississippi if a bill should be passed. It’s an advantage, he said, to be able to take what works well in other states that have legalized online sports betting and implement them in a Mississippi bill.

The task force, Blunt said, agreed on the following aspects for any potential bills that may be introduced:

Potential online sports betting operators needs to have a relationship with an existing Mississippi casinoNo iGaming will be included in the bill

Current Interest in Mississippi Sports Betting

John A. Pappas, SVP of Government & Public Affairs for GeoComply, revealed today that company identified over 1.72 million geolocation checks from Mississippians accessing legal sportsbooks in other states. They were blocked from betting, he noted, but they came from over 64,000 individual sports wagering accounts in the state.

Pappas said 67.9% of these checks were from customers accessing Tennessee sportsbook and 27.7% were of customers accessing Louisiana sportsbooks.

“In many cases, we see them traveling across state lines. We’ve seen multiple thousands of attempts where people try to travel into Tennessee and Louisiana to place a bet because they’re unable to within Mississippi,” he said.

From NFL kickoff in 2022 to NFL kickoff in 2023, Pappas said there has been a 37% year-over-year increase in new sports betting accounts created from devices in Mississippi.

Shawn Fluharty (D), a current West Virginia state delegate and president of the National Council of Legislators from Gaming States (NCLGS), said Mississippi could realistically expect similar handle ps as Louisiana.

“Mobile makes up 85% of Louisiana’s GGR for sports betting, that’s gross gaming revenue,” he said of the state’s sports betting market.

However, not all were in favor of online sports betting legislation. Susan Varnes, the CEO of Treasure Bay Casino and Resort, said she has concerns with creating legislation that has unintended consequences.

Since sports betting was approved in Mississippi, Varnes said her casino’s revenue has grown from the ancillary gaming and spend of the sports bettors and guests they bring to the properties. The casinos experienced a 6% increase in gaming revenue for the next 12 months, which was independent of sportsbook alone.

The ancillary play of people who visited the casinos, and their guests, drove revenue in the properties.

“If mobile sports betting is approved, I’m not suggesting that there won’t be an increase in sportsbook revenue. There probably will be. But, at what cost to the ancillary gaming revenue, as well as the food and beverage outlets, the hotel, and other amenities we offer in our casinos.”