The Mississippi House has once again voted to legalize online sports betting, advancing legislation supporters say would recapture lost tax revenue while directing funds to the state’s underfunded pension system. House Bill 1581 passed Wednesday by an 85–31 vote, marking the third straight year the chamber has approved similar legislation.
The bill now heads to the Senate, where prior efforts to authorize mobile sports wagering have stalled. While largely similar to last year’s proposal, lawmakers adopted a key amendment tying sports betting revenue to pension funding shortly before the vote.
HB 1581 would permit online sports betting platforms to operate statewide through partnerships with existing brick-and-mortar casinos. Each casino could partner with up to two platforms, and operators would be required to use geofencing technology to ensure bets are placed only within Mississippi.
Gaming Committee Chairman Rep. Casey Eure, a Republican from Saucier, told House members that residents have attempted about 10 million online sports wagers since September 2025. He said more than 81,000 bettors traveled to other states to place wagers, costing Mississippi between $40 million and $80 million annually in potential tax revenue.
“These are Mississippi residents crossing into other states, and the outcome of that is that Mississippi receives zero tax revenue, there’s zero oversight, zero consumer protection against these people placing bets, and problem gambling goes undetected and unmanaged,” Eure said.
Pension Funding Added To Bill
An amendment authored by Rep. Hank Zuber of Ocean Springs links mobile sports betting to the Public Employees’ Retirement System. Under the proposal, Mississippi would make a one-time $600 million transfer from the Capital Expense Fund into PERS once the system’s assumed investment return rate meets or exceeds its January 1, 2020 level.
Tax revenue from mobile betting would flow to PERS while that benchmark holds. If the rate falls below it, the revenue stream would stop until the benchmark is restored. The Capital Expense Fund currently supports infrastructure projects, equipment purchases, and emergency repairs.
Democratic lawmakers raised concerns about the transfer amid budget pressures. “When we talk about taking 600 million out of (the Capital Expense Fund) is this an appropriate fast-paced use of these funds?” Rep. Robert Johnson of Natchez said.
Additional Provisions And Senate Outlook
The bill creates a $6 million annual support fund, financed by sports betting taxes through 2030, to assist casinos that lose revenue due to mobile wagering. Any unused funds would be redirected to PERS, which faces roughly $26 billion in unfunded liabilities.
Eure said the legislation includes safeguards such as age verification and data collection to identify problem gambling. It would also allow the state to withhold gambling winnings from individuals who owe child support.
Despite House passage, opposition remains in the Senate, where leaders have questioned revenue projections and pointed to the growth of prediction markets. HB 1581 now awaits Senate consideration.
Source:
“House votes to legalize online sports betting and divert $600M to pension system”, mississippitoday.org, February 4, 2026
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