Mississippi Revisits Legalization of Mobile Sports Betting with Focus on Pension Funding
Renewed Push for Mobile Sports Betting in Mississippi
For the third consecutive year, Mississippi legislators are making another effort to legalize mobile sports betting. This move is primarily aimed at supporting the Public Employees’ Retirement System (PERS) and controlling illegal betting activities within the state.
Key Features of This Year’s Proposal
The current proposal introduces a notable change by directing all revenue generated from online sports betting towards the state’s pension fund. The House and Senate remain divided on how best to address the challenges facing PERS, which struggles with about $26 billion in unfunded liabilities. To gain broader support, the bill includes several compromises to address lawmakers’ previous concerns.
Previously, the Senate approved a bill allocating $500 million from Mississippi’s budget surplus to PERS, along with $50 million in annual contributions over the next ten years. Meanwhile, House leaders have suggested finding sustainable revenue sources for the pension system, either through expanding the state lottery or permitting mobile sports betting.
Lawmakers supporting legalization cite the thriving black market as a key reason to act. According to Casey Eure, a Republican representative from Saucier and chair of the House Gaming Committee, legalizing mobile sports betting would help curb illegal gambling and protect minors from placing bets. Additionally, it could generate new income for physical casinos while funneling state-collected taxes toward easing PERS’s funding shortfall.
Opposition and Concerns About Effectiveness
Despite support, opposition remains strong among certain legislators. Senate Gaming Chairman David Blount, a Democrat from Jackson, argues that simply directing tax revenue to PERS does not justify legalizing mobile sports betting.
Blount highlights that even if mobile sports betting started immediately, it would take centuries—over a millennium—to eliminate PERS’s enormous unfunded liabilities. He stresses that the anticipated income represents only a fraction of the $26 billion needed.
While some estimates suggest online betting could generate up to $80 million annually in tax revenue, Blount notes more conservative figures peak around $30 million. Either way, these amounts fall far short of resolving the pension fund’s financial gap anytime soon.
Blount also points out the rise of prediction markets, which have gained regulatory leniency in recent years. Enabled by relaxed oversight from the Commodity Futures Trading Commission during the previous administration, these markets have expanded nationwide, including in states where mobile sports betting is not yet legal, such as Mississippi.
He explains that prediction markets effectively allow mobile betting to occur across the country without state taxation or regulation, reducing the potential tax revenues from newly legalized sports betting.
Looking Ahead to Future Legislation
Despite the challenges and opposition, proponents are presenting mobile sports betting legalization as a pension reform measure rather than simply a gambling expansion. This approach might increase the likelihood of the law passing during the 2026 legislative session, as lawmakers consider alternative solutions to stabilize the state’s pension system.
