Casino tax increase advances in MS House. Read why

Posted by author February 26, 2025 Gambling

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A bill has now advanced in the Mississippi House of Representatives that would raise taxes on casinos.

In an attempt to both trade blows with the Senate and “address” annually lost gambling revenue from illegal sports betting, the House Ways and Means Committee on Tuesday advanced a bill to increase state taxes on casinos from 8% to 12%.

The proposed tax increase, which would in reality raise gaming taxes on casinos from 12% to 16%, would likely generate more than $50 million in annual tax revenue. House Ways and Means Chairman Trey Lamar, R-Senatobia, told the committee on Tuesday that in recent years the state gaming commission has not enforced gaming laws on illegal activity, and so the state should tax casinos to make up for the loss.

“The purpose of this act is to generate revenue that will be used to replace the revenue that the state of Mississippi is losing as a result of illegal sports betting,” Lamar said. “If everybody’s being honest with themselves and the public, we should admit that illegal sports betting is rampant in the state of Mississippi. We either need to enforce the current laws or find a way to legalize it where it’s taxed appropriately.”

Lamar also filed the bill because another piece of legislation, a mobile sports betting bill that would allow for mobile online gambling on sports, is likely to die in the Senate as it has for several years. Online sports betting could produce more than $20 million in annual revenue, advocates in the House have argued.

Lamar also said this piece of legislation, House Bill 1881, could help to reveal why the online sports betting bill dies every year in the Senate. Part of that reason, as pointed out in the committee, is that a group of smaller casinos that do not have the cash on hand to build or partner up with existing mobile sports betting businesses, do not support the move.

“The goal post continues to be moved on the other end of the building (in the Senate),” Lamar said. “We’re either just going to sit here and ignore this rampant epidemic that we have, or we’re going to tax it appropriately. We’re going to fight it … There needs to be some further light shed on (illegal sports gambling).

House Minority Leader Robert Johnson, D-Natchez, whose district has a casino, during the Tuesday meeting alluded to HB 1881 potentially punishing smaller casinos for simply wanting a more equitable online mobile sports betting bill.

“The fight is not to try and stop sports revenues,” Johnson said.

In Mississippi, casinos are currently taxed at 12%. Of that, 8% goes to the state and 4% goes to local schools and government. If the tax were to pass, it would be the first successful move to increase that tax in more than a decade.

Senate Gaming Committee Chairman David Blount, D-Jackson, called out Lamar for wanting to raise taxes and for the taxes Lamar proposed raising in the House’s major tax reform package, House Bill 1, which also seeks to eliminate the state income tax.

“I don’t know why the House is so fixated on raising taxes,” Blount said. “They want to raise the sales tax on everything Mississippians buy. They want to raise the tax on every time Mississippians go to buy gas. They want to increase taxes on employers (casinos) in the state to drive a tourism economy. I don’t know why they’re so fixated on raising taxes to expand like the Mississippi. It just doesn’t make any sense.”

Blount said if the House is serious about illegal sports betting, there is a bill giving the state gaming commission more authority and enforcement capabilities that has already passed the Senate for their consideration.

“That’s a tough bill that will help give our gaming commission the authority to go after these folks,” Blount said.

HB 1881 now moves onto the House floor for a vote.

Grant McLaughlin covers the Legislature and state government for the Clarion Ledger. He can be reached at gmclaughlin@gannett.com or 972-571-2335.