What Has to Happen Before the First Sports Wager in Mississippi?

While many media outlets have reported that Mississippi is one of a handful of states on the forefront of preparing for legal sports betting after the Supreme Court declared the Professional and Amateur Sports Protection Act (PASPA) unconstitutional, there is a great deal that must happen before a Mississippi casino may accept legal sports wagers.

First, the Mississippi Gaming Commission must adopt implementing regulations. On May 17, 2018, the Commission approved draft regulations to be published for receipt of public comment.  If no public comments are received, the Commission could give final approval as early as June 21, 2018. The final regulations will become effective 30 days after adoption.

The draft regulations provide that sports betting service providers must be licensed as manufacturers and distributors under the Mississippi Gaming Control Act. Would-be sports betting service providers are already filing license applications with the Commission in anticipation of the draft regulations being finalized or being substantially similar to the current draft. Furthermore, while the company applicant must be investigated for licensing, company officers and directors must be investigated and found suitable, a process which can be time-consuming.

Any equipment used by prospective sports betting service providers must be tested and approved by an independent testing lab with testing reports to be submitted to the Mississippi Gaming Lab for final approval. Even large casino operators that plan to operate their own sports books will likely have equipment that must undergo this testing and approval protocol.

Casinos must also amend their internal controls to provide for sports betting and then submit those amendments to the Commission for approval.

Any casino employees working in the sports books or employed by the sports betting service providers must file applications for and receive work permits from the Commission.

Finally, while not dependent on any approval by the Commission, casino operators must make the physical changes to their respective properties required for their sports betting operation. For a smaller, standalone casino, this could be as simple as designating an area for installing several kiosks on which to place bets. For a larger casino which plans to have full sports book operations, this may necessitate significant construction on its gaming floor or elsewhere on the property.

While much work remains to be done before legal sports wagering in Mississippi may take place, we anticipate that the first bets will be taken by the kickoff of the college football season. We also continue to believe that those who act quickly to take advantage of this opportunity will reap significant rewards over a multi-year period.

Supreme Court Decision on PASPA Could Lead to Mississippi Sports Betting by June

Following the United States Supreme Court’s ruling declaring the Professional and Amateur Sports Protection Act unconstitutional, the Mississippi Gaming Commission’s Executive Director has stated a goal of having legal sports betting in Mississippi casinos by the end of June.

Draft regulations have circulated for weeks, and it is only a matter of time before final regulations are published, approved and implemented. If the MGC goal is correct, draft regulations could be published for public comment this Thursday and final regulations promulgated in June.

What does this mean for licensed casinos? Mississippi casinos affiliated with Las Vegas casinos that have sports books could find themselves with a short term advantage over those casinos in Mississippi without such affiliations. The latter group will have to wait a while longer for sports betting suppliers to be licensed and approved for gaming in Mississippi while the former may transfer their experienced race and sports book employees to their sister Mississippi properties right away.

But even those licensees with sports books affiliates in Las Vegas will require some lead time to amend internal controls and obtain work permits for race and sports book employees, among other regulatory approvals that will appear in the final regulations.

Regardless of the time by which most casinos in the Magnolia State will have legal sports betting on their properties, Mississippi most likely will gain a significant head start on its surrounding states. This may yield an increase in tourism to the state and a resulting increase in gaming and other revenues.