The proposed legalization of sports betting in the Show-Me State is gaining ground in one chamber of the Missouri legislature. Unfortunately, that has happened before, and Missouri remains one of a shrinking number of states without legal event wagering.
House Bill 2331 was approved by the Missouri House of Representatives Special Committee on Public Policy on Wednesday by a 5-2 vote in favor. The legislation now awaits further action but was not yet on a House calendar as of Friday morning.
H.B. 2331, sponsored by longstanding sports betting supporter Rep. Dan Houx, would authorize event wagering at the state’s casinos and over the internet via apps and sites under the watchful eye of the Missouri Gaming Commission. Bettors would have to be 21 or older. Wagering on college player props in a game involving a Missouri school would be forbidden.
If at first you don't succeed ...
Casinos would be entitled to offer in-person wagering and three mobile betting skins apiece, which could be operated by entities such as DraftKings or FanDuel. The state’s professional sports teams could have one mobile skin as well.
Sports betting revenue would be taxed at a 10% rate, with the funds earmarked for education. That said, the entire cost of bonus bets and free play provided to customers in year one could be deducted from taxable revenue, with that deduction limit dropping by 25% a year until it hits zero for year five.
“Supporters say that legalizing sports wagering in Missouri would generate revenue for the State while keeping residents from seeking betting opportunities in neighboring states,” a committee report said. “Thousands of Missouri residents currently maintain betting accounts elsewhere, resulting in lost revenue for local businesses and the State government. This bill not only secures the interests of players but also ensures player protection through various safeguards.”
... try asking the voters?
But the bill will not secure anything if it doesn’t pass, and no legal sports wagering measure has yet become law in Missouri. That is almost entirely because of a roadblock in the Senate over the issue of video lottery machines.
The stalemate in the legislature prompted Missouri’s professional sports teams to launch a campaign to place a sports betting-related measure on this November’s election ballot. Signature-gathering has begun for the proposed initiative, and DraftKings and FanDuel have already chipped in hundreds of thousands of dollars to help fund the effort.
The initiative’s proposed framework for legal sports betting is similar to the one pitched by Houx, albeit with a few standalone licenses for mobile sportsbook operators. The teams have also indicated they would drop the ballot-measure campaign if the legislature were to act first.
Again, though, history suggests H.B. 2331 may not make it far when it crosses over to the other chamber. There was also some pushback voiced in committee that could resurface during additional discussion of the bill.
“The opponents criticize the potential financial gains for casinos while public benefits remain unclear,” the committee report stated. “The proposed 10% tax rate for sports betting contrasts sharply with the existing 21% rate for other forms of gambling, suggesting a significant loss for the State in potential revenue.”
