Mississippi Sports Betting Headed For Major Change

The legalization of Mississippi sports betting in 2018 did not include online wagering. Since then, various attempts to green light mobile sports betting in The Magnolia State have failed. Many have, in turn, wondered whether Mississippi online sports betting just isn’t in the cards.

While not unfounded, this viewpoint may prove to be incorrect.

Another piece of legislation that would legalize online sports betting in Mississippi is back on the table. The news comes shortly after The Magnolia State convened for its 2026 legislature session, which will run until the beginning of April.

Skeptics are quick to note that this is nothing new. Policymakers have debated the merits of expanding Mississippi sports betting services in the past. Those attempts have flopped. Why should this time around be any different?

Optimismists are clinging to one factor they believe could be the catalyst for broadening operations in The Magnolia State.

The Latest Mississippi Sports Betting Bill is a Throwback

Despite existing under a separate name, House Bill 519 (HB 519), the latest Mississippi sports betting pill proposed by Representative Jay McKnight shares similarities to attempts of the past. Here is Legal Sports Report’s Matthew Waters with a full overview of what it entails:

“The latest attempt, HB 519 from Rep. Jay McKnight, would give each Mississippi casino operator an online sports betting license. A bill to ban sweepstakes casinos, SB 2104 from Sen. Joey Fillingane, returns this year after failing in 2025 as well. Should either bill pass, it would be effective on July 1. Mississippi’s legislative session runs through April 5. A bill to legalize online sports betting passed the House in 2025 for the second straight year, but HB 1302 did not receive a vote in the Senate. This year’s legislation does not include the two licenses per casino like last year’s attempt, nor does it raise the taxes for online betting.”

These latter details are perhaps most important. Last time around, the number of casino licenses was a sticking point. Plenty of lawmakers thought it would create an oversaturation of access.

Meanwhile, the previous bill also sought to raise Mississippi sports betting taxes for online revenue. Casino operators were not a fan of this approach. That sounds obvious, but remember, we are not dealing with conglomerate sports betting operators here. Casinos are tribally operated. While they are no doubt making plenty of money, they are by no means working with the same bankroll as plenty of other online sportsbook operators in the United States.

Could the Proposed Tax Rates for Online Sports Betting Make All the Difference?

Under HB 519, Mississippi sports betting taxes would remain unchanged for online revenue and be assessed using the same bracket criteria in place for on-site sports betting. Here is a look at the current structure:

4 percent tax on gross revenue for sportsbooks with $50,000 or less in monthly revenue
6 percent tax on gross revenue for operators that have monthly revenue between $50,000 and $134,000
8 percent tax on gross revenue for operators with more than $134,000 in monthly revenue

This is clearly a setup for which casino operators are already on board. The support from their end will presumably be overwhelming.

The same cannot be said for The Magnolia State’s policymakers. Concern for the socioeconomic impact of Mississippi online sports betting is high. The increased access is both convenient and likely to spark upticks in problem gambling reports.

For many, this renders the legalization of Mississippi online sports betting a complete no-go. For others on the fence, they might insist on a higher tax rate for online revenue. The state, they will argue, should be promised more revenue to increase funding for problem gambling prevention and treatment programs.

This says nothing of the tax rates in place relative to the national average. According to TaxFoundation.org, the average tax for sports betting in the United States hovers just under 22.8 percent. That is nearly three times higher than Mississippi’s highest bracket.

Remaining under 10 percent, in particular, stands out. Over 90 percent of states with legal sports betting have a tax rate of at least 10 percent.

Expect The Mississippi Sports Betting Debate To Take Some Time

Elevating the Mississippi sports betting tax for online revenue seems like a middle-ground solution if the state encounters a ton of holdouts. But it’s not that easy.

Raising taxes is easier when you have flagship sports markets and are licensing sportsbooks outside the state. Mississippi is not checking either of those boxes.

The Magnolia State is not home to any professional sports teams. And while college sports betting is a crown-jewel draw, they don’t have the population to exert tons of leverage over sportsbooks.

Not that it matters. Mississippi isn’t looking to license companies like FanDuel, DraftKings, Caesars, etc. They are offering online licenses to local casinos, which compared to your mainstream sportsbooks, are essentially small businesses. Radically raising the taxes on them is harder to sell.

To that end, the tax rate could once again become a primary obstacle in Mississippi sports betting expansion talks. Optimists remain hopeful it won’t matter. Especially at a time when prediction markets are infringing upon sports betting business in states that do not have legal online sports betting.

None of which guarantees Mississippi will okay a change it has resisted before. Moreover, we may not know whether it will until the very end of legislature meetings. This topic remains that divisive—and the outcome, as a result, is incredibly difficult to predict.

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