Proposed Mississippi Bill Aims to Raise Casino Taxes to 16%
A proposed bill in Mississippi seeks to raise taxes on land-based casinos in an effort to recover lost revenue attributed to illegal sports betting.
LISTEN TO THIS ARTICLE:House Bill 1881, known as the Integrity in Gaming in Support of Honest Taxpayers Act, would introduce an extra 4% tax on gross casino revenue, which would increase the state’s maximum casino tax rate from 12% to 16%. At present, Mississippi allocates 8% of casino revenues to the state and 4% to local schools and government.
The bill, sponsored by Rep. Trey Lamar, is based on estimates that Mississippi loses around $50 million annually to illegal gambling. If enacted, the additional tax revenue would be used to compensate for these losses.
HB 1881, which originated in the House Ways and Means Committee, chaired by Lamar, was approved by the committee earlier this week. It now moves to the full House for further consideration. If passed, the new tax structure would take effect on July 1.
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Illegal Sports Betting Drives Push for New Taxes
According to local press, Lamar stated during the committee session that the proposed tax increase could generate more than $50 million in additional revenue each year. He described illegal sports betting in Mississippi as “rampant” and spoke of the need to either enforce existing gambling laws or find a way to legalize and tax sports wagering properly.
Lamar also suggested that resistance from certain casinos is hindering legislative efforts to legalize sports betting.
Supporters of legal sports betting have argued that it could generate at least $20 million in annual revenue, with some estimates suggesting that legal online gambling as a whole could bring in between $26 million and $80 million per year.
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Uncertainty Around Ongoing Sports Betting Legislation
Meanwhile, a separate bill to legalize mobile sports betting, HB 1302, introduced by Rep. Casey Eure, was approved by the full House in early February and is now under review by the Senate Gaming Committee.
The proposal would allow licensed casinos to operate mobile sportsbooks by partnering with up to two online betting platforms. It also includes a Retail Sports Wagering Protection Fund, which would allocate a portion of the 12% sports betting tax revenue to support smaller casinos.
However, previous attempts to pass sports betting legislation have faced obstacles in the Senate. Another sports betting bill, HB 682, has already failed this year, and the fate of HB 1302 remains uncertain as it moves through the legislative process.
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