The Mississippi House of Representatives is making a third consecutive effort to legalize online sports betting in 2026, following two previous failed attempts. The new proposal includes provisions aimed at winning Senate approval, addressing funding for the state pension system, and regulating mobile gambling.

Revenue to Support State Pension System
Under the latest plan, all tax revenue generated from online sports betting would be directed to the Public Employees’ Retirement System (PERS), which currently faces $26 billion in unfunded liabilities. House Gaming Committee Chair Casey Eure (R-Saucier) estimates mobile sports betting could generate up to $80 million annually, though Senate Gaming Committee Chair David Blount (D-Jackson) argues the actual revenue might be closer to $30 million, insufficient to significantly reduce the pension shortfall.

Eure also proposed creating a recurring revenue stream for PERS, potentially drawing from mobile sports betting or the state lottery, in an effort to provide long-term financial support.

Offshore and Prediction Markets Fuel Legalization Push
Mississippi residents increasingly use illegal offshore sports betting sites, diverting tens of millions in potential tax revenue. This has intensified the push to legalize and regulate online sports betting, allowing the state to protect underage bettors, enforce consumer safeguards, and provide new revenue streams for casinos.

Additionally, prediction markets—where users trade contracts on future outcomes rather than betting against a sportsbook—have expanded nationwide, including in states where online sports betting remains illegal. Blount noted that these federally regulated platforms function like gambling but are untaxed and unregulated by the state, reducing potential revenue for Mississippi.

Protecting Brick-and-Mortar Casinos
Some lawmakers representing districts with physical casinos have expressed concern that mobile sports betting could reduce casino profits. To address this, Eure proposed safeguards such as creating a fund for casinos during the first five years of legalization and restricting credit card deposits for online wagers.

As Mississippi lawmakers debate this third attempt, proponents argue that legalizing mobile sports betting could modernize the industry, generate revenue, and protect consumers, while opponents remain cautious about the financial impact and regulatory challenges.