Mississippi has taken another step on the road to legalizing online sports betting, but it's not easy. The state House passed the bill for the third time this week, with a vote of 84 in favor and 31 against, a clear majority. Unlike previous years, this year's bill includes a "sweetener" — planning to allocate $60 million from the state's general fund to the severely underfunded state pension system. The bill's sponsors hope this money can serve as a "door-knocker" to persuade the Senate, as similar bills have stalled in the Senate for the past two years. Supporters estimate that residents of the state may lose up to $80 million in tax revenue annually due to cross-border betting, and legalization could bring regulation and consumer protection.
Legislative deadlock and attempts to break it
This is the third consecutive year that the Mississippi House has sent an online sports betting bill to the Senate. In the previous two years, the bills died because senators were concerned about the impact on the revenue of physical casinos and the exacerbation of gambling addiction. To break the deadlock, this year's HB
1581 bill included a key amendment before the vote: transferring $60 million from the general fund to the pension system. The initiators believe that this additional pension fund may be enough to push the bill "across the finish line." However, the chairman of the Senate Gaming Committee, Senator David Blunt, who has always been skeptical about online sports betting, still doubts this year, believing that the potential income is not sufficient to justify legalization and refuses to consider related proposals in his committee.
Bill details: taxes, licenses, and compensation
This year's proposal contains some specific designs aimed at resolving past disputes:
•Taxes and leakage: The bill's sponsors cite data that since September 2025, Mississippi residents have attempted 10 million online bets, many of which were interstate. He estimates that the state government could lose up to $80 million in tax revenue each year as a result.
•License model: The bill would allow the state's existing physical casinos to partner with up to two online sports betting platforms. This is to protect the interests of existing land casinos while introducing online operations.
•Compensation fund: To alleviate concerns about the "erosion" of revenue for small regional casinos, the proposal establishes a $6 million compensation fund, to help potentially affected casinos. This fund will be replenished annually from sports betting tax revenue until 2030.
Core resistance: The cautious attitude of the Senate
Despite the high passage in the House and the addition of financial incentives, the bill's prospects in the Senate are still unclear. The core resistance still comes from Senator David Blunt. He insists that the potential revenue scale (although supporters estimate $80 million) is not sufficient to justify legalization. He even stated that unless the Mississippi Gaming Commission actively requests it, he will not consider any online sports betting proposals. This cautious attitude reflects the deep concerns of some legislators about the impact of new online formats on the traditional casino economy and the potential exacerbation of gambling problems. Industry insiders point out that the state's independent casinos have considerable influence in the legislature, and they worry that large gaming companies may use this to penetrate the local market. Therefore, even though the bill has made progress in the House for three consecutive years, overcoming significant resistance in the Senate to successfully "break through" remains challenging. This case clearly demonstrates the complex interplay between economic interests, existing industry protection, and regulatory concerns in state-level legislation in the United States. For the latest updates and in-depth analysis of gambling legislation in various states, please continue to follow the PASA official website.
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