The new fantasy sports law in Mississippi has finally been signed, sealed and delivered.
Mississippi Gov. Phil Bryant officially signed House Bill 967 on Monday, making the state the first to pass such a law in 2017.
According to Legal Sports Report, Bryant signed the bill, which empowers the Mississippi Gaming Commission to regulate fantasy sports contests online or in a casino, after it was forwarded to his desk by lawmakers on March 2.
With the law in effect, state regulators may now issue licenses to daily fantasy sports (DFS) operators. Many expect DFS giants DraftKings, FanDuel, FantasyDraft, and Yahoo to immediately line-up for a license in Mississippi, which will cost an operator $5,000 over three years.
The new law also allows the state regulator to conduct a background checks and annual audits on daily fantasy sports operators. Revenues of DFS firms operating in Mississippi will also now be slapped with an eight percent tax. A ban on employee play at operators and players under 18-years-old will also take effect.
Mississippi, which is considered to be one of the many battlegrounds for DFS, now joins other states that have regulated the industry in recent years. The legislation was deemed important after Attorney General Jim Hood determined fantasy sports was a game of chance.
The cash-strapped state is hoping to reap $5 million annually in tax from DFS, although most believe that’s an overly optimistic estimate. But even $5 million, while welcome, would be a modest amount in a budget of more than $6 billion.
With the industry now officially legal in Mississippi, DFS proponents are now watching keenly the developments in a much bigger DFS battleground, Texas. Analysts expect the legislative battle over DFS legalization in the Lone Star State will happen this year.
