Mississippi Task Force Recommends Online Sports Betting

Heading into the new year, only twelve (12) states have yet to approve any form of sports betting. With about a half dozen of those states no likely to make any move in 2024, the focus will fall on the states that could move forward with some kind of sports betting legislation. It appears the state of Mississippi is set to make some noise on this front.

Current Sports Betting Rules in Mississippi

Sports betting in Mississippi is governed by a unique set of rules. Limited retail sports betting is permitted within some of the state's local casinos. Some of those casinos are allowed to offer online sports betting access as long as patrons are physically in a participating retail casino. What's not allowed is for residents throughout the state to use mobile sports betting apps if they are not on retail casino property. The rule is viewed as so ridiculous that the retail casino operators have simply chosen to steer clear of allowing online access.

Mississippi Task Force Assigned to Look Mobile Sports Betting Expansion

After several years of complaints from Mississippi residents, the state legislature decided to appoint a special task force to consider the effects of legalizing mobile sports betting access within the state's boundaries. The task force has completed much of its work, coming forward in recent weeks with some recommendations in support of legalizing said activities.

Admittedly, most of the task force's focus was placed on the generation of tax revenue for the state. It seems to be as good a reason as any for the passing of new sports betting legislation. There wasn't much focus on logistical issues because the task force felt such matters were handled adequately within the prior laws governing sports betting.

Options Presented By the Task Force

In their writing, the task force came up with two options regarding how to tax online sports betting activities.

The first recommendation was to stick with the 8% tax rate that is currently being levied on retail casinos based on their gross sports betting revenue. While the rate is lower than the rate employed in many states, the methodology is common.

The other option presented was the taxation of gross bets or what the sports betting community refers to as "handle." It's the same methodology that is currently being used in neighboring Tennessee.

The report went on to discuss actual revenue that would be earned by option. The numbers seem to fall between $5 million on the low end to as high as $27 million on the high end. The current consensus is that neither of these numbers is impressive enough to warrant consideration. There is a sense they might just stay with the status quo as it is now.

For six years now, at least one piece of online sports betting legislation has been presented each year, all failing. Without some material changes in attitude or additional pressure from residents, it's not clear if anything meaningful can get done in 2024.