Why Mississippi Residents Are Crossing State Lines—And Taking Tax Revenue With Them
Mississippi’s restrictive online gambling laws are forcing residents to travel to neighboring states like Louisiana, Arkansas, and Tennessee to legally place bets. Unlike these states, which allow full mobile sports betting, Mississippi only permits online sports betting on-site at licensed casinos. As a result, residents seeking the convenience of placing wagers from their mobile devices must cross state lines to do so legally.
This regulatory approach is costing Mississippi millions in potential tax revenue that could have been used to fund public services, infrastructure projects, and education. Meanwhile, states like Missouri are actively working toward full online gambling legalization to capture lost revenue and provide a more convenient experience for bettors.
Mississippi’s Online Gambling Restrictions and Their Consequences
Mississippi has long been a gambling-friendly state, but its online betting laws remain restrictive. The state only permits online sports betting within the physical premises of a licensed casino.
Unlike Tennessee, where residents can place bets from anywhere in the state using mobile sportsbooks, Mississippi’s policy forces bettors to be present at specific locations to access betting platforms. This has significantly reduced online wagering participation within the state.
Many residents find the restriction inconvenient, especially when neighboring states have adopted more flexible online gambling laws. This has led to a growing number of Mississippi bettors traveling to Arkansas, Louisiana, and Tennessee, where they can legally place wagers from their mobile devices without unnecessary limitations.
By failing to legalize online sports betting statewide, Mississippi is missing out on a lucrative revenue stream. States with legalized online sports betting generate millions in tax revenue annually, money that Mississippi continues to forgo due to its restrictive laws. This loss is evident when comparing the tax revenue figures of Mississippi’s neighbors.
The Revenue Mississippi Is Losing to Neighboring States
Mississippi’s reluctance to expand online gambling is allowing its neighbors to capture significant tax revenue that could have been kept within the state. Louisiana, Arkansas, and Tennessee all benefit from Mississippi residents crossing the border to place online wagers.
Tennessee legalized online sports betting in November 2020 and has since generated substantial tax revenue. In 2023, Tennessee reported over $450 million in gross gaming revenue, with the state collecting approximately $78 million in tax revenue from online sports betting alone. Mississippi’s outdated policies prevent it from tapping into a similar revenue stream.
Louisiana, which launched mobile sports betting in January 2022, has also seen a surge in tax collections. In 2023, the state generated $47 million in tax revenue from online sportsbooks, a figure that has continued to rise as more residents and out-of-state bettors participate in Louisiana’s legal betting market.
Arkansas legalized online sports betting in March 2022 and has witnessed a steady increase in wagering activity. In 2023, the state collected $10.2 million in tax revenue from online sports betting, a number expected to grow as more sportsbooks enter the market.
Missouri’s Push for Full Online Gambling Legalization
Missouri is currently considering full legalization of online gambling, a move that would allow residents to place mobile bets without traveling to neighboring states. With states like Kansas, Illinois, and Tennessee already benefiting from legal online betting, Missouri lawmakers see an opportunity to keep gambling tax dollars within the state.
A study by GeoComply, a leading geolocation compliance firm, revealed that from September 5 to October 21, 2024, over 11.1 million geolocation checks were blocked from Missouri residents attempting to access legal online sportsbooks in other states.
The GeoComply data further showed that 37% of these attempts were directed toward sportsbooks in Kansas, while 57% targeted Illinois. Additionally, over 3,700 sportsbook accounts originating in Missouri were later geolocated in Kansas, proving that residents were physically crossing state lines to place their bets.
How Sportsbooks Are Targeting Bettors Near State Borders
Sportsbooks are employing marketing strategies that effectively target individuals near state lines, encouraging them to cross into neighboring states where online sports betting is legal. These strategies include offering attractive bonuses and promotions to entice potential bettors.
For example, BetMGM Sportsbook provides new users with a 20% first deposit match up to $1,500 in sports bonus funds. Such promotions are designed to attract bettors, including those residing near state borders, to place bets within legal jurisdictions.
Missouri is expected to be the next state to fully legalize online gambling, following in the footsteps of its neighbors like Kansas, Illinois, and Tennessee. This long-anticipated move will allow bettors within the state to place wagers legally without the need to travel across state lines.
With the legalization of online sports betting, Missouri residents can now take advantage of a FanDuel Missouri promo code from the comfort of their own homes, eliminating the hassle of crossing into Kansas or other neighboring states just to place a bet. This change is set to keep tax revenue within Missouri while providing a more convenient and regulated experience for sports betting enthusiasts across the state.
The Case for Legalizing Online Sports Betting in Mississippi
Given the substantial tax revenue generated by online betting in neighboring states, many Mississippi lawmakers and stakeholders argue that it’s time for a change. Legalizing online sports betting statewide could keep revenue within the state rather than allowing it to flow elsewhere.
If Mississippi were to legalize online sports betting, the state could generate tens of millions in additional tax revenue annually. Based on Louisiana and Tennessee’s earnings, Mississippi could collect $50-$80 million per year in tax revenue, which could be allocated toward infrastructure improvements, public education, and healthcare.
Despite the economic benefits, Mississippi lawmakers remain divided on the issue. Some legislators argue that expanded gambling could lead to increased gambling addiction and social issues. Others contend that Mississippi is already a gambling-friendly state, and expanding online betting would only modernize the industry while keeping tax dollars at home.
The Future of Online Betting in Missouri and Mississippi
Missouri is expected to be the next state to fully legalize online gambling. If this happens, Missouri residents will no longer need to travel to Kansas or Illinois to place bets.
Legislation to legalize online sports betting in Missouri has gained momentum, with many lawmakers supporting the move to regulate and tax the industry. If passed, Missouri bettors will be able to access platforms legally within state borders.
With legalization on the horizon, Missouri residents can now take advantage of BetMGM Missouri bonus codes from the comfort of their own homes, eliminating the need to travel across state lines to place a bet. This shift will help Missouri retain tax revenue while offering a more convenient and regulated betting experience.
Final Thoughts
Mississippi’s restrictive online gambling policies are pushing residents to travel to Louisiana, Arkansas, and Tennessee, resulting in millions in lost tax revenue. Meanwhile, neighboring states continue to reap the benefits of mobile sports betting legalization. The growing trend of residents crossing state lines for legal wagers highlights the urgent need for Mississippi to modernize its gambling laws.
Missouri is already taking steps toward full legalization, recognizing the financial and economic advantages of regulating the industry. If Mississippi fails to act soon, it risks falling further behind while its neighbors continue to collect the gambling tax revenue that could have stayed within its borders.
