A Mississippi Bill that would increase the tax rate on casino revenue is making its way to a Full House hearing. This after the Ways and Means Committee approved HB 1881 on Tuesday 25 February in the hope of raising Mississippi casino taxes from 12% to 16%.
Ways and Means Committee chairman, Trey Lamar, revealed that this move would allow Mississippi to recoup the millions of dollars lost by not legalizing online betting. As of press time, Mississippi casinos pay 12% in taxes, with 8% going to the state and 4% designated for schools and local governments.
The approval of HB 1881is likely a move towards legalizing sports betting in Mississippi. Currently, sports betting is illegal in the state which is home to some of the best American sports teams such as the Mississippi State Bulldogs and the Ole Miss Rebels.
According to Lamar, sports betting has been running rampant in Mississippi but the state is not getting any financial rewards from it with action only happening behind closed doors. During the committee meeting he stated:
“If everybody’s honest with themselves, online sports betting is already going on illegally, but the state is not generating any taxes from it,”
Lamar added that his bill, which is now headed for a Full House hearing, also aims to find out why online betting Bills that were approved by the House in recent years see an untimely end in the Senate.
In that respect, HB 1881 aims to support HB 1774, which is attempting to legalize online betting sites. Under the title of Mississippi Mobile Sports Wagering Act, HB 1774 is now in the Senate after the House passed the bill by a 97-14 vote.
The 4% tax increase for casinos is expected to net the state somewhere around $50 million per annum in taxes. Recent data from the Mississippi Department of Revenue showed that the state’s gaming industry netted more than $24 million in January 2025 alone.
While that is nowhere near the figure generated by neighbouring Tennessee, which generated $140 million during the same period, the tax increase is expected to help Mississippi maintain its current share of gambling revenue, and even increase it.
Industry experts argue that the growth of gambling revenue in Mississippi has slowed down because of the competition from legal gambling in neighboring states, although some contend that it’s partly because of illegal sports betting.
Lamar added that the state gaming commission has yet to establish a policy to prevent illegal gambling, so it is only right and just, for casinos to be taxed to make up for the loss.
Although HB 1881 is getting the full support of the Ways and Means Committee, some of the state’s political figures, particularly Senate Gaming Committee chairman David Blount, thinks that the tax increase would only do more harm than good for Mississippi.
“The House is fixated on raising sales taxes, increasing the gasoline tax and raising taxes on Mississippi businesses. I don’t support a 50% tax increase on Mississippi businesses (casinos) that are vital to our state. The House wants to raise taxes on everything Mississippians buy and every time they go to the gas station, and they want to raise taxes on one of the largest employers in our state.” Blount said.
According to Blount, the tax hike would harm the state’s gambling industry, particularly smaller casinos that may struggle to go toe-to-toe with the bigger brands if additional financial requirements are imposed. Should taxes increase, smaller businesses may suffer as a consequence according to Blount.
With the tax increase proposed, Mississippi could generate a substantial revenue stream that could enhance public services, including infrastructure, education, and healthcare. The final obstacle to overcome is the Full House hearing, which has yet to have a date assigned. All that Mississippians can do in the meantime, is to wait and see.
