With neighboring Louisiana already implementing online gambling, the Mobile-Online Sports Betting Task Force in Mississippi met recently to explore the potential benefits and drawbacks of legalizing online sports betting in the state.
In early 2023, Governor Tate Reeves signed a law to establish the task force. Composed of state legislators, business leaders and government representatives, the task force was given the responsibility of producing a report on the possibility of expanding online sports betting in Mississippi by December 15th.
Currently, Mississippi allows sports betting within the premises of commercial and tribal casinos. However, once bettors leave these establishments, online betting becomes illegal. The task force was created to evaluate the feasibility of expanding online sports betting to the entire state.
One of the key topics of discussion during the task force’s recent hearing was the possibility of letting voters decide on the expansion of online sports betting. This approach mirrors Louisiana’s strategy, where voters in different parishes decided whether to allow regulated sports betting. Considering Mississippi’s history of allowing local sovereignty over vice laws, a county-by-county voter referendum could determine the fate of online sports betting in Mississippi.
The task force’s first hearing saw comprehensive discussions on various aspects of online sports betting. Taxation and revenue utilization were among the topics covered, with the task force aiming to gather insights from industry experts, government officials, and casino executives.
Representatives from DraftKings highlighted the positive impact of regulated systems on consumer protection and responsible gambling programs. They cited examples from other states, such as New Jersey, Pennsylvania, Colorado, Indiana and Iowa, where online sports betting contributed to increased slot and table game revenue.
Concerns were raised, however, about the potential cannibalization of retail casino revenues. Some casino executives expressed apprehension that online sports betting could divert foot traffic from their properties. Jason Tosches from Penn Entertainment argued that online sports betting would enhance overall profits and not adversely affect land-based casinos.
The task force’s first meeting also focused on evaluating the potential market for online sports betting in Mississippi. Witnesses presented data on the geolocation checks and account activity related to sports betting in neighboring states.
John Pappas, the senior vice president of government and public affairs at GeoComply, shared data that indicated significant interest from Mississippi residents in betting on sports in Louisiana and Tennessee. The data revealed a substantial increase in online accounts created in Mississippi after the start of the 2023 NFL season.
Experts and industry representatives emphasized the importance of a competitive market with multiple brands and operators. They argued that offering more choices to consumers would create a balanced and robust online sports betting industry in Mississippi.
While the task force focuses on online sports betting, the discussions regarding online casinos are different. There is apprehension regarding the legalization of online casinos.
One of the primary concerns voiced by casino representatives is the fear of cannibalization of the retail sports wagering business. Although there is no concrete evidence to suggest that mobile betting significantly impacts retail betting, these concerns persist. Similar to sports betting, data from other states indicates that the legalization of online casinos does not diminish the revenue generated by brick-and-mortar facilities.
Legalizing online gambling would result in additional tax revenue for the state, proponents argued. With the increasing popularity of online betting, Mississippi could tap into this market and generate funds to support various public initiatives, such as education and infrastructure development.
However, the task force and industry representatives unanimously agreed that legislation regarding online casinos should be put on hold for the time being.
Despite the progress made, there are still potential roadblocks to the expansion of online sports betting in Mississippi. Some legislators have raised concerns about the impact on Mississippi’s “destination gaming product” and questioned whether a county-by-county voter referendum would be required.
House Representative Casey Eure, a proponent of online sports betting legislation, plans to introduce a bill in the future. However, the passage of the bill is uncertain, and its content is expected to be discussed in upcoming task force meetings.
