A Mississippi Bill to legalize online sports betting took a major step forward last week, as HB 4074 was passed by the House Ways and Means Committee by a 100-11 vote.
Introduced by Rep. Casey Eure, HB 4074 seeks to allow for online sports wagering, racebooks and enforce revised tax regulations for operators in what could represent a pivotal motion for the State. Importantly, it would maintain Mississippi's longstanding ban on online casino gaming.
The proposal now departs the House for the Senate, where it will meet Rep. Eure's previous – and now stalled – sports gambling bill, HB 1581.
Bill proposes land-based partnerships for sportsbooks
Key to Eure's sports betting bill is that sportsbook operators entering the state must partner with one of Mississippi's 26 land-based casinos before taking players' wagers.
This is an increasingly common framework, with Michigan, Pennsylvania, Virginia and West Virginia, among others, also requiring retail accords.
HB 4074 stipulates that sports betting operators will not obtain a standalone license. Rather, platforms would earn a manufacturer's and distributor's license from the Mississippi Gaming Commission - a separate permit designed to limit operator's controls.
But there is a critical flaw within the motion.
Despite the opening descriptive summary for HB 4074 outlining that retail casinos may only partner with one online sportsbook, Section 4 of the proposal currently states that land-based operators can agree simultaneous deals with two sports betting platforms:
"Each licensed establishment may enter into contracts with no more than two (2) platforms to operate an online sports pool and no more than two (2) online race book platforms to operate an online racebook."
Meanwhile, Section 10 outlines that casinos are eligible for one sports betting license, and that license will not be owned by the sportsbook operator.
"A gaming license may not be issued to any person if the issuance would result in more than one (1) licensed operation at a single establishment, unless authorized by this act whether or not the profits or revenue from gaming are shared between the licensed operations. This shall in no way be interpreted to mean that a platform is the holder of a gaming license."
It is anticipated that HB 4074 will permit just one partnership per retail venue, and this phrasing will likely be updated to reflect the bill summary upon reaching the Senate. As things stand, the summary and legal sections contain a crucial mismatch with regard to the total number of allowable partnerships.
Proposed tax regulations for online operators
In addition to regulations for retail partnerships, HB 4074 sets out strict tax provisions for both online sports betting operators as well as land-based casinos.
According to the Bill, online sports platforms would pay a 22% duty on all revenue, collecting an estimated $100m in extra funds for the state in what has been titled the 'Mobile Sports Wagering Tax Fund'.
A significant portion of that tax revenue would be deposited into the Mississippi Public Employees' Retirement System (PERS); a state-led pension fund supporting Government workers.
Over a 10-year period, Rep. Eure's motion forecasts $50m in annual PERS funding as a direct result of online sports wagering legalization.
This tax structure differs from the state's existing retail sports betting setup; land-based sportsbooks are subject to an effective 18.5% tax rate in the Magnolia State. However, HB 4074 endeavors to alter that duty…
Major retail tax changes and investment
Right now, brick-and-mortar Mississippi casinos must pay up to 8% in state taxes and 4% in local levies. Under HB 4074, the 8% top bracket rate would be reduced to 6% for all gross casino revenue – including slots and table games – which Eure expects to save around $48m for casino operators per year.
Retail sports betting would be taxed at 3.5%, down from the current effective 18.5% charge.
Any State tax losses are expected to be offset by the new mobile sports betting industry. In effect, the legalization of online sportsbooks would herald something of a tax break for land-based operators.
It is a maneuver that has proven popular among House voters, and separates HB 4074 from HB 1581 – that proposal presented a standalone plan to distribute $6m from online sportsbooks to retail operators each year for the first five years after being confirmed as law.
Contrary to reports stating that the proposed tax rate deduction will replace the $6m annual cash injection, HB 4074 ensures that land-based casinos will benefit from $6m in yearly cashflow and fresh tax cuts:
Section 6 of HB 4074 reads: "Until June 30, 2030, the first Six Million Dollars ($6,000,000.00) deposited to the Mobile Sports Wagering Tax Fund each year shall be transferred into the Retail Sports Wagering Protection Fund."
And Section 20 states:
"Eight percent (8%) of all the gross revenue of the licensee which exceeds One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar month through June 30, 2026, and six percent (6%) per calendar month thereafter. However, from and after July 1, 2026, for the portion of such gross revenue that is derived from sportspool or racebook other than online sportspool or online racebook, the rate of the fee shall be three and one-half percent (3.5%)."
HB 4074 faces uphill battle through Senate
Senate Gaming Commission Chairman, Sen. David Blount, is staunchly opposed to online sports betting legislation.
In 2025, Sen. Blount made his position clear: "The reason we have gaming in Mississippi is to encourage investment, to create jobs, and to grow tourism to bring other people from other places to Mississippi. Mobile sports betting doesn't do that."
While Blount's fervent resistance does not guarantee that HB 4074 will join HB 1581 and stall in the Senate, it does pose a real threat to its sustainability hereafter.
He has previously vocalized that increased revenue alone is not enough to change his stance – so certain amendments may need to be made to satisfy the Chairman's preferences.
Attention now turns to the Mississippi Senate, where debates and voting on HB 4074 are expected to take place before the legislative session adjourns on April 5, 2026.
