Mississippi House Committee Approves Casino Tax Increase, Pressures Senate on Online Gambling

The Mississippi House Ways and Means Committee has moved forward with a bill that would significantly raise casino taxes, a move seen as a direct challenge to the Senate and elements of the casino industry resisting online gambling legalization.

Proposal to Increase Casino Taxes

On Tuesday, the House Ways and Means Committee approved a measure that would raise taxes on Mississippi’s casinos from the current 12% to 16%. Chairman Trey Lamar, who sponsored the bill, justified the increase by pointing to the substantial tax revenue the state is forfeiting due to the absence of legalized online gambling.

Lamar emphasized that Mississippi is failing to capitalize on a lucrative revenue stream. “If everybody’s honest with themselves, online sports betting is already going on” unlawfully, Lamar stated.

The proposed legislation now advances to the full House for consideration. Lamar also indicated that the bill aims to expose the underlying reasons why previous House-approved online gambling measures have repeatedly failed to progress in the Senate.

The proposal has drawn criticism, particularly from smaller casino operators concerned about the potential financial strain of expanding into the online market. These establishments may struggle to establish online betting platforms or negotiate contracts with third-party providers.

Lamar pointed to ongoing resistance from a select number of casinos, suggesting that their influence is obstructing legislative progress. “The goal post continues to be moved on the other end of the building (the Senate),” he said. “We’re going to tax it appropriately. There needs to be some further light shed on this topic … (Illegal online gambling) has reached pandemic level … It’s my understanding that a small handful of casinos are standing in the way of that legislation.”

Estimates regarding potential revenue from legalized online gambling vary, with projections ranging from $26 million to $80 million annually. Lamar believes the state could conservatively generate around $50 million per year from regulated online betting, citing Tennessee’s online gambling revenue of approximately $140 million annually as an example of what Mississippi is missing.

Opposition from Senate Leaders

Not all lawmakers Lamar’s proposal. Senate Gaming Committee Chairman David Blount criticized the bill, along with the House’s broader tax restructuring plan, which includes eliminating income tax while raising sales and fuel taxes.

“The House is fixated on raising sales taxes, increasing the gasoline tax and raising taxes on Mississippi businesses,” Blount remarked. “I don’t 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.”

Impact on the Casino Industry

Mississippi’s casino tax rate has remained unchanged for over a decade, with its stability being credited for the growth of the industry. Currently, casinos pay a 12% tax, with 8% allocated to the state and 4% going to local governments and schools. Under Lamar’s proposal, the state’s share would rise to 12%, potentially adding $50 million in annual revenue.

However, some industry stakeholders argue that casino revenue has stagnated in recent years due to competition from online gambling in neighboring states and unregulated online platforms operating within Mississippi.

With the bill advancing to the House, the debate over casino taxation and online gambling legalization is expected to continue, with growing tensions between House lawmakers, the Senate, and the state’s gambling industry.

Source:

‘’House approves casino tax increase, a shot over bow on blockage of online sports betting’’, mississippitoday.org, February 25, 2025.