Mississippi Passes Fantasy Sports Measure; Rejects Lottery

The Mississippi Senate is considering a bill that passed the House on its second vote. The bill would regulate daily fantasy sports operators and authorize an 8 percent tax. But a lottery bill died in the House of Representatives when it failed to be considered by a Thursday deadline.

The Mississippi House passed House Bill 967 to regulate and tax operators of daily fantasy sports contests. The originally failed but passed after a second vote the next day. The legislation incorporates input from a study group that was established last year to recommend rules after the state legalized fantasy sports contests.

The legislation would tax fantasy sports operators at 8 percent tax and authorize the Mississippi Gaming Commission to regulate fantasy sports contests online or in casinos. Operators also would have to undergo a background check, get a state license and be audited annually. In addition, operators would have to verify that bettors are at least age 21.

A state lottery amendment attached to the bill was rejected. Now it moves to the Senate for additional review.

A second lottery bill was rejected, however. House Bill 804 originally addressed whether criminal defendants are mentally competent to stand trial. The House Judiciary A Committee, at the urging of state Rep. Mark Baker, rewrote it to include creating a lottery. Because of the major changes to the original bill, the revised bill’s relevance could be questioned under House rules.

House Speaker Phil Gunn, a leader in his local Baptist church, has been a longtime opponent of expanding gambling. He would have prevented the proposal from coming up for debate.

“It’s just not the proper way to amend the bill,” Gunn said.

The bill could still be attached to a revenue bill later in the session, but that’s unlikely. No lottery bills are pending in the Senate.

During his State of the State address January, Governor Phil Bryant said Mississippi should consider a lottery since state tax collections were not meeting expectations. Mississippi is one of six states that does not have a lottery, according to the National Conference of State Legislatures.