The increase comes as the Senate refuses to consider online gambling legislation
A Mississippi House committee has approved a bill that would raise taxes on casinos in an effort to offset the state’s loss of potential revenue from online gambling. The proposal, led by House Ways and Means Chairman Trey Lamar, seeks to increase the casino tax rate from 12% to 16%.
Lamar argued that the Magnolia State is losing out on millions of dollars each year by not legalizing online sports betting, while illegal gambling continues to thrive without contributing to state funds. He estimates that Mississippi could generate around $50 million annually from regulated online betting, citing neighboring Tennessee’s success, where online gambling brings in approximately $140 million per year.
The bill now moves to the full House for consideration, but it has already sparked debate. Some casinos, particularly smaller ones, have resisted the push for online betting due to concerns over infrastructure and operations. Lamar suggested that a small group of casino operators may be preventing online betting legislation from advancing in the Senate. By increasing taxes on brick-and-mortar casinos, he hopes to highlight the financial impact of not legalizing online gambling.
Currently, casinos in Mississippi pay 12% in taxes, with 8% going to the state and 4% benefiting local governments and schools. Under Lamar’s proposal, the state’s share would rise to 12%, generating an estimated additional $50 million annually.
Senate Gaming Committee Chairman David Blount criticized the bill, calling it an unnecessary tax hike on a key industry in the state. He also took issue with broader House tax proposals, including plans to eliminate income taxes while raising sales and gasoline taxes.
This is the first time in over a decade that a serious discussion about raising casino taxes has taken place. While Mississippi’s low tax rate has supported industry growth, some argue that the rise of online gambling—both illegal and in neighboring states—has slowed revenue gains.
