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The Magnolia State moved one step closer to making mobile sports betting a reality this week, only to see the effort stall. A bill that cleared the House failed to pass a procedural hurdle and died in the Senate.
On Wednesday, the House voted 100-11 to approve HB 4074, the Mississippi Mobile Sports Wagering Act. While the bill successfully moved out of the House, it was not reported out of the Senate Gaming Committee by the March 3 deadline, effectively ending its chances for the 2026 legislative session.
A second attempt at online betting legalization
This was the Legislature’s second attempt to pass online sports betting legislation this year. HB 1581 cleared the House in February but was abandoned after failing to advance through a Senate committee.
HB 4074 largely revived the previous bill’s language while adding new provisions intended to win over skeptical senators. State Rep. Casey Eure, R-Saucier, said the most significant change involved gaming revenue allocation. The bill would have directed tax income to the Public Employees’ Retirement System (PERS).
Had HB 4074 reached Gov. Tate Reeves’ desk and been signed into law, PERS would have been positioned for a $100 million annual windfall. According to a news report by the Magnolia Tribune, PERS currently faces a $26 billion shortfall due to budget constraints. Eure hoped that tying the bill to PERS would assuage committee members hesitant to advance the legislation, but the strategy proved unsuccessful.
Balancing mobile betting and retail casinos
Since Mississippi already allows legal sports betting at physical casinos, a primary obstacle to mobile expansion has been the fear of cannibalizing brick-and-mortar business.
HB 4074 attempted to balance these interests through several key provisions:
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Tax Adjustments: The bill would have raised the tax on mobile sports betting to 22% (up from 18.5%) while lowering the state gaming tax for physical casinos from 8% to 6%.
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Tethering: Mobile platforms would have been required to “tether” to an existing physical casino in the state.
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Geofencing: Users would have to be physically located within the state lines to place a wager.
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Safety Net: The bill included a $6 million set-aside to compensate casinos if mobile wagering negatively impacted their bottom line.
Lost tax revenue to neighboring states
During the floor debate, Eure highlighted the volume of residents leaving the state to gamble. Data showed more than 81,000 Mississippians traveled to neighboring states to place mobile wagers, with the majority crossing into Tennessee and Louisiana.
Proponents argued this represents a significant loss of tax revenue and a missed opportunity to bolster the state’s retirement coffers.
With the failure of HB 4074, it remains unclear if the House will attempt a third draft before the session concludes. The 2026 legislative session, which began Jan. 6, is scheduled to run for 90 days and will adjourn Sunday, April 5.
