The 32nd-largest state in America, admitted to the United States in 1817 (seceded in 1861 and returned to the Union in 1870), is located in the southern region bordering Tennessee to the north, Alabama to the east, Gulf of Mexico to the south, Louisiana to the south-west, the Mississippi River to the west, and Arkansas to the north-west.
Well-known for the cotton agriculture in the past, Mississippi’s economy nowadays consists of automotive factories, retail and wholesale trade, transportation and utility industry, leisure and hospitality sectors, health and social services, production of broiler chickens, and land-based gambling, while the state still relies on the federal subsidies and funding.
A state gross product of $114.10 billion in 2018 amounts to 0.6% of the U.S. overall GDP.
Since 1990, brick-and-mortar casinos and riverboats are legal along the Mississippi River and the Gulf Coast. Before Hurricane Katrina, the state was the second-largest market in the United States, trailing only Nevada.
As of July 2018, the new sports betting regulations allows for physical and interactive wagering.
Interactive gambling is not expressly prohibited but also neither allowed for by the state law although offshore operators cannot target residents.
Legal Framework
The Gaming Control Act legalized gambling riverboat gambling in 1990. Two years later, boats were allowed to remain docked during working hours. In 1992, Native Indian Tribes were also granted permission to operate slots and table games.
In 2015, The Mississippi Lawful Internet Gaming Act failed to gain traction for the fourth consecutive year.
However…
…in 2018, coming off the heels of the SCOTUS decision, the Gaming Commission — principal regulatory body in Mississippi — introduced new sports betting regulations and approved wagering at casino premises, including interactive betting.
By the end of the year, 21 out of 28 casinos have launched sportsbooks.
The gambling age limits vary between 18 (for bingo and lottery) and 21 years of age (for any casino activity, slots, and interactive gambling).
All gambling winnings are subject to a 3% non-refundable income tax. Operators are taxed at a progressive rate of 8% while local governments can impose an additional tax up to 4%.
Licensing
The Mississippi Gaming Commission issues three types of permits:
- Gaming license, for casinos ($5,000 fee)
- Manufacturer and distributor license, for devices operators ($1,000 and $500 fee, respectively)
- Associated gaming equipment license, for products and items that may affect the outcome of a gambling game (cards, dices, wheels, data systems, dealing shoes, chips, and such).
All interested parties go through more or less the same vetting process which includes a full overview of corporate and personal data, background checks, other state agencies’ consent, property inspection and site development plan (for casinos), a comprehensive description of technical details relating to fair device operations (for manufacturers), and detailed explanation of the games' rules.
Upon submission of application and extensive evaluations — focused on efficient, safe, and enjoyable operations compliant with applicable local, state, and federal laws — the Gambling Commission can either issue a license to casinos or not, and approves or disapproves gaming device.
Considering the economic impact of gambling on the economy — deemed as the “Mississippi Miracle” with the potential to transform state revenues — the investigative process can be rather lengthy.
Licenses, considered as a revocable privilege, are granted for a maximum period of three years.
Upon expiry, void of substantial changes or violations, each license may be extended for an additional three years. No more than two continuances may be granted; afterward, the submission is subject to the Commission’s review as an initial license.
Players’ Protection
Mississippi and the Gaming Commission hold the protection of the public health, safety, morals, good order, and welfare of residents in high regard.
To that end, the state operates The Mississippi Council on Problem and Compulsive Gambling, The National Center for Responsible Gaming, The National Council on Problem Gambling, Gamblers Anonymous, plus two research centers.
Additionally…
…The Enforcement Division of the Gaming Commission is responsible for conducting investigations into patrons’ disputes and complaints. The official resolution timeline is 30 days. All the necessary forms and documents are available online.
Players’ self-exclusion is also available. Application forms are available at any casino cage or security offices though they have to be personally submitted to the offices of the Gaming Commission. Third-party requests are not allowed. The self-exclusion period may last for five or ten years, including a lifetime.
Final Notes
Mississippi has one of the oldest traditions of gambling in the United States. At the River Boat Gambling zenith, back in the 1800s, no less than 100 boats operated on the river.
In terms of legalized and well-regulated land-based market, the state has been at the forefront of gambling for the last thirty years.
Considering economic challenges, in no small due to the devastating effects of Hurricane Katrina, it is a positive sign to see legalized sports betting entering the scene which already includes daily fantasy sports. Hopefully, in time, the complete regulatory framework for online gambling will be set by legislators as well.
One way or the other, whether in Mississippi or any other place for that matter, players should always — regardless of proclivities and preferred games — strive to be prudent and responsible, while staying well within the limits of their budget.
And, if that happens to be somewhere close to the Mississippi River or the Gulf Coast, we wish you good luck!
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