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

Oklahoma Gov. Surprisingly Vetoes Proposed Sweepstakes Casino Ban
Anyone found guilty of conducting or facilitating operations would have been punishable with Class 2 felony offense charges, including fines and up to 30 days in jail.

Isle of Man gambling legislation amendments clear final parliamentary hurdle
The Isle of Man has approved sweeping gambling law reforms introducing civil penalties and tougher operator checks.

Woman Found Unresponsive in PA Casino Parking Lot is Dead, Confirmed Natural Causes
An anonymous 78-year-old is said to have died of natural causes after she was found in a vehicle at Happy Valley Casino early Thursday morning.

NorthStar Gaming Faces OSC Cease Trade Order
The OSC has issued a cease trade order against NorthStar Gaming after audit failures stalled its mandatory financial filings.

Prize draws move from fringe gambling to mainstream growth engine
UK prize draws are attracting major operators as lower regulation and social-led growth reshape the market.

GamScore app aims to reduce friction around UK gambling compliance
GamScore plans to launch a UK gambling wellbeing app focused on behavioural insights, compliance tracking and reducing player friction.

Entain pushes football regulator over unlicensed gambling sponsors
Entain has called on the Independent Football Regulator to block English football clubs from partnering with unlicensed gambling operators.

Casino Guru CRC returns $5.3m to players in Q1 2026
Casino Guru’s Complaint Resolution Center handled almost 4,000 complaints in Q1, with delayed payments remaining the biggest issue.

Simon Bazalgette appointed chair of CourseTrack board expansion
CourseTrack has restructured its board with Simon Bazalgette appointed chair alongside two new non-executive directors.

South Africa Gambling Regulator Warns Over Fraud Impersonation Scam
South Africa’s National Gambling Board has issued a warning after reports of fraudsters impersonating officials and attempting to extract payments from gambling operators.

UKGC announces tougher measures on gaming machines and illegal gambling
The UK Gambling Commission plans stricter gaming machine enforcement and renewed action against illegal land-based gambling.

Why Bally’s is interested in Evoke despite mounting risks
Bally’s sees opportunity in Evoke’s scale and European reach, even as debt, tax rises and regulation scare off private equity buyers.

Hotel Attached to Portsmouth Casino Hits Construction Milestone
The ceremony included the placing of the final steel support structure for the towering hotel and a State of the City speech by Mayor Shannon Glover (I).

Dunkin', Buffalo Wild Wings Owner, Inspire Brands, Files for IPO
Inspire Brands confidentially filed for an initial public offering.

Auckland-fraud-case-raises-questions-over-gambling-harm
A former Auckland Rugby League employee has been sentenced after stealing more than $133,000 while struggling with a gambling addiction.

African Casinos and Sportsbooks Seek Smarter Payment Solutions
Payment infrastructure is becoming a major focus for African gaming operators as casinos and sportsbooks expand across multiple regulated markets.

OnlyFans Valued At $3.15 Billion Following Recent Minority Stake Sale
OnlyFans sells 16% stake for $535 million to Architect Capital

All the details of the UK’s gambling financial risk assessment reform
The UK’s proposed gambling financial risk assessments could reshape online betting and casino play. Here’s what the reforms mean.

Betfred Owner’s Jersey Move Highlights Offshore Pressures
Fred Done’s Jersey restructuring has intensified scrutiny on how rising UK gambling taxes may push operators toward offshore models.

Seminole Hard Rock Casino Secures Official World Cup Host City Supporter Title
As an Official Supporter, the Hard Rock casino will host a variety of engagements and events for soccer fans during the World Cup.

Eswatini Illegal Gambling Crackdown Creates Court Backlog
Authorities in Eswatini are dealing with growing legal pressure after a large-scale crackdown on illegal online gambling and fraud operations involving foreign nationals.

Ladbrokes and Neds Found in Breach of Australian Self-Exclusion Rules
Entain’s Ladbrokes and Neds brands will review compliance systems after hundreds of BetStop self-exclusion breaches were identified.

ITV Win to Shut Down After UK Tax Changes Bite
ITV Win will cease operations just months after launch as its operator struggles with rising costs linked to UK gambling tax changes.

UK iGaming Conference Season Set to Begin in London
London will host several major iGaming conferences this summer as the UK gambling industry continues its rapid growth.

US Government Reveals Airlines Spent 56.4% More on Jet Fuel in March
According to US government data, airlines spent 56.4% more on jet fuel costs in March than in February.

Alberta's iGaming Market Opens July 13 with 28 Operators Ready
Alberta's regulated iGaming market opens July 13, projected to generate CA$100M in annual tax revenue, with operators, suppliers, and ad rules already in place.

Novibet expands Greece casino portfolio with DEGEN Studios
Novibet has expanded its Greek casino offering by integrating DEGEN Studios’ full game catalogue onto its iGaming platform.

Wazdan earns triple nomination at AffPapa iGaming Awards 2026
Wazdan has been shortlisted in three categories at the AffPapa iGaming Awards 2026, alongside further recognition from EGR and SlotsCalendar.

AMC Movie Theaters To Begin Hosting Live Concerts After Arena One Partnership
AMC will begin hosting live concerts in theaters after partnering with Arena One.

Former Yankee and Hall of Fame Pitcher Believes MLB Should Have a Salary Cap
Former Yankees closer Mariano Rivera supports a salary cap in MLB.

Final Primm Casino By Nevada-California Border Closing in July
The decision to shut the property down was revealed after employees received letters asking them to vacate their housing by July 6, per KLAS.

GameStop Submits $56 Billion Proposal to Buy eBay
GameStop submits bid to buy eBay as CEO Ryan Cohen has an awkward CNBC interview.

Greentube to acquire Kingsbet CZ in Czech market move
Greentube plans to acquire Kingsbet CZ, marking its entry into the Czech Republic’s regulated iGaming market.

