Mississippi House Proposes Casino Tax Increase Amid Sports Betting Holdout

Photo by Rawpixel, CC0 by 1.0
Key Takeaways
- The bill was presented as it appears as if another mobile sports betting bill will die in the Senate
- Mississippi’s House and Senate have been on opposite sides of the sports betting coin
- The lack of sports betting market cost the state an estimated $50 million in annual revenue
The Mississippi House Ways and Means Committee on Tuesday approved a tax increase on local casinos.
The bill, known as House Bill 1881, calls for a one-third increase on the 12 percent tax rate, meaning all facilities are now liable to a 16 percent surcharge on their revenue. The decision came in response to state legislators failing to agree on a legal sports betting package.
The bill’s next stop will be in front of the full House. If approved, it will then progress to the Senate.
Firing back
House Ways and Means Chairman Trey Lamar (R-Senatobia) said that the Mississippi Gaming Commission’s inability to curtail illegal gaming necessitated the creation of his bill since the state was missing out on tax revenue it should’ve been entitled to.
“The purpose of this act is to generate revenue that will be used to replace the revenue that the state of Mississippi is losing as a result of illegal sports betting," Lamar said. "If everybody's being honest with themselves and the public, we should admit that illegal sports betting is rampant in the state of Mississippi. We either need to enforce the current laws or find a way to legalize it where it's taxed appropriately.”
Lamar also filed the bill in response to the stagnation of an online sports betting bill in the Senate.
The Mississippi House sent several sports betting-focused bills to the Senate in recent years, only for them to expire.
Proponents of sports betting in the House suggested that legalization could stir up another $20 million in annual tax funding for the state.
Lamar also said he estimated that an online sports betting market could generate $50 million in annual revenue and noted that Mississippi’s neighbor, Tennessee, makes roughly $140 million in annual sports betting tax revenue.
Sports betting’s failure to blame
Lamar’s bill isn’t focused entirely on raising casino tax rates. It also aims to reveal the reasons why recent sports betting bills faced an early demise in the Senate.
“The goalpost continues to be moved on the other end of the building (the Senate),” Lamar told committee members. "We're either just going to sit here and ignore this rampant epidemic that we have, or we're going to tax it appropriately. We're going to fight it … There needs to be some further light shed on (illegal sports gambling).
One of the reasons proposed by other house members is that small casinos are fearful of losing customers to a legalized market and to the costs associated with building a wagering platform or contracting an established company to handle wagers.
House Minority Leader Robert Johnson (D-Natchez), whose jurisdiction houses a casino, said that smaller casinos would be harshly impacted.
Senate Gaming Committee Chairman David Blount (D-Jackson) also said that a bill to grant additional authority to the state gaming commission already passed the Senate and is pending approval in the House.
Of Mississippi’s current 12 percent tax rate on casino revenue, eight percent goes to the state, and four percent goes to local schools and governments.
Mississippi casinos generated $848.8 million in revenue in 2024, leading to $289.1 million in taxes for the state.
Grant is an industry news expert who covers legislative news, financial updates, and general industry trends. As a veteran of the gambling industry, Grant has experience in the world of casinos, sports betting, and iGaming. As a former long-distance runner, he knows a thing or two about persistence and consistently holding himself to a high standard.
Related News
.jpg)
Court of Appeal refuses TNLC challenge over National Lottery licence
The Court of Appeal has refused TNLC permission to challenge April’s judgment over the fourth National Lottery licence awarded to Allwyn.

More than £110,000 seized in South Yorkshire illegal gambling raids
Police seized more than £110,000, gold and 16 betting terminals during raids targeting suspected illegal gambling in Sheffield and Doncaster.

CFTC Committee Raises Prediction Market Manipulation Concerns
Prediction market manipulation was a major focus of the CFTC's first Innovation Advisory Committee meeting amid several high-profile incidents.

Australia Passes Tough New Gambling Advertising Restrictions
Australia has passed major gambling reforms that will significantly restrict how betting companies advertise to consumers. The new rules target wagering promotions during live sport, celebrity endorsements, television and radio advertising, and online marketing.

Kalshi-Catalist Sports Partnership Announcement Disappears Hours After Reveal
A multi-year partnership between Kalshi and Catalist Sports was announced Tuesday morning, but the announcement disappeared from Catalist's website just hours later.

Premier League betting shirt ban begins but other gambling deals remain
Premier League clubs have removed betting brands from shirt fronts, but 16 of the 20 sides retain gambling partnerships in other forms today.

QuinnBet agrees £609,104 settlement over AML and safer gambling failures
The Gambling Commission found source-of-funds, deposit-limit and harm-detection failures during its review of QuinnBet’s remote licence.

‘Aim to permit’ repeal could trigger wider Gambling Act reform
Experts warn the planned repeal of ‘aim to permit’ could require primary legislation and invite calls for broader Gambling Act reform.

Holland Park Leisure fined £150,000 over self-exclusion failures
Holland Park Leisure has been fined £150,000 after failing to join a scheme protecting self-excluded customers at local land-based venues.

Bally’s shares fall 26% as doubts grow over US casino projects
Bally’s share price fell by more than a quarter as its debt position fuelled concern about casino developments across three major US cities.

Allwyn UK CEO Andria Vidler Steps Down as Phil Walker Takes Over
Andria Vidler is stepping down after leading Allwyn’s National Lottery transition, with Phil Walker appointed interim CEO from 7 September.

Man Arrested for Stabbing 5 Thunder Valley Casino Workers
Joseph Naugle, 22, was placed in Placer County Jail after he supposedly went on a spree of attacks against workers at Thunder Valley Casino Resort.

Stake, Entain and Dabble Join Race for New Zealand Online Casino Licences
Some of the biggest names in international gambling are reportedly lining up for New Zealand’s new regulated online casino market. Stake, Entain and Dabble are among the operators reported to have submitted expressions of interest, as competition builds for the country’s limited number of online casino licences.

National Lottery Heritage Fund Extends Terms of Two Board Trustees
Mukesh Sharma and James Twining will remain on the National Lottery Heritage Fund Board after receiving four- and six-month term extensions.

Midnite Launches TrueLayer Pay by Bank Deposits and Withdrawals
Midnite’s UK customers can now make instant bank-account deposits and withdrawals through TrueLayer’s mobile-first Pay by Bank service.

Polymarket Preparing to Launch Parlays for US Traders
Polymarket is preparing to roll out parlay-style combination contracts in the US, with the product currently undergoing beta testing.

Florida Attorney General Files Lawsuit Against Sweepstakes Casinos
“If it looks like a casino, takes real money like a casino, and pays out like a casino, it is a casino—and it is illegal under Florida law."

Bally’s Financial Issues Put NY Casino Project in Jeopardy
In a Form 10-Q filing with the Securities and Exchange Commission, Bally’s said there was “substantial doubt” about its ability to continue operating in its current format.

Fake Crown and Star Casino Apps Target Australian Gamblers
Australian gamblers are being targeted by illegal offshore casinos using fake versions of some of the country's best-known gambling brands. A recently uncovered operation has used names including Crown Melbourne, The Star Sydney and The Lott to make unregulated gambling sites appear legitimate, with players directed to fake app-store pages through social media advertising.

PENN Moving New Orleans Riverboat Casino On-Shore for $195 Million
Current plans for a new property call for 140,000 square feet of development and a wide array of gaming and entertainment options.

South Africa Launches New Gambling Task Force as Crackdown Begins in Limpopo
South Africa's newly established Illegal Gambling Task Team has carried out its first enforcement operations, arresting 13 people and inspecting five suspected illegal gambling sites in Limpopo. The coordinated action signals a tougher national approach to illegal gambling, with similar operations expected to be rolled out across all nine provinces.

Trump Media Scraps Truth Predict Launch, Opts for Crypto.com Marketing Deal
Trump Media is no longer launching Truth Predict on Truth Social, instead opting for a marketing agreement that directs users to Crypto.com.

Yggdrasil Expands South African Reach with Two New Casino Deals
Casino games supplier Yggdrasil has expanded its presence in South Africa after launching its content with Lucky Fish and Bet Set Win. The two new partnerships take Yggdrasil's reach to more than 30 operators in the country as the supplier continues to target growth in the South African regulated gambling market.
.jpg)
Burnham to scrap ‘aim to permit’ rule for betting shops amid closures
Councils will gain greater control over new betting shops and adult gaming centres as part of reforms aimed at revitalising high streets.

Vicky Foxcroft appointed gambling minister following DCMS reshuffle
The Labour MP has previously supported restrictions on gambling advertising, credit card betting and the expansion of high-street venues.

Gambling Commission Warns Poor ID Checks Undermined FRA Pilot
Inaccurate names and addresses prevented some high-spending customers from receiving frictionless financial risk assessments.

Only 20% Of UK Prize Draw Operators Have Signed Voluntary Code
A new Rokker white paper reveals limited uptake of the prize draw voluntary code amid VAT uncertainty and increasing consolidation.

The Greenbrier to Shut Down Casino, Cut Jobs Amid Refinancing Deal
The $500 million framework would wipe out substantial debt obligations owed by The Greenbrier and contribute to future improvements made to the facility.

Alberta Directs iGaming Revenue to Gambling Addiction Help
Alberta is using iGaming revenue to fund new gambling addiction supports, adding to existing programs as the online betting market grows.

Winvia and Aston Villa launch club-branded Villa Win prize draws
Winvia will use its BOTB technology to operate Villa Win, giving Aston Villa supporters access to regular club-themed prize draws and experiences.

Manchester United secures record £20m Betway training kit partnership
Betway will sponsor Manchester United’s men’s and women’s training kits under a multi-year deal reportedly worth around £20m a year from 2026/27.

DraftKings Predictions Preparing to Add Parlay-Style 'Combos'
DraftKings is preparing to introduce "combos," a parlay-style product that would allow prediction market traders to combine multiple outcomes.
.jpg)
LeoVegas Launches In-House Tiger Sportsbook Across Three UK Brands
LeoVegas has introduced its proprietary Tiger sportsbook to the UK through BetMGM, LeoVegas and BetUK following a two-year development programme.

