House Committee Postpones Decision on Sports Wagering Legislation in Missouri
Missouri's Select Committee on Public Policy failed to discuss or vote on two sports betting bills on Monday, leaving the future of these proposals uncertain. The laws, HB 2502 and HB 2556, were intended for discussion and potential vote, but Committee Chairman Scott Cupps announced that the committee would not engage in discussions regarding these bills.
The bills, crafted with substantial involvement from major stakeholders, have been up for consideration since they were listed on the committee's agenda. The absence of discussions and votes has led to speculation about the future of these bills.
During a three-hour hearing last week, Rep. Dottie Bailey proposed extending the admission fee Missouri currently has in place for brick-and-mortar casinos to the virtual world. This idea, which Bailey initially presented as a jest, appeared to intrigue Cupps. He noted that should such a fee be implemented, the revenue would go to the county where the wager was placed, rather than the county where the casino is located.
Another critical issue raised by problem gambling advocate Brianne Doura-Schawohl is the need for increased funding for problem and responsible gambling programs. Doura-Schawohl suggested a percentage of revenue be earmarked for these programs, with a minimum contribution of more than $250,000 set aside annually. Currently, she says, Missouri sets aside 4 cents per person for problem and responsible gambling, while 40 other states set aside an average of 37 cents per person.
Doura-Schawohl also highlighted the lack of a self-exclusion piece in one of the bills and proposed strengthening advertising guidelines. If Missouri were to legalize sports betting, it would mark the first state in the nation to charge an up-front fee for digital wagers.
The proposed sports betting bills, if passed, could generate more than $15 million in tax revenue for Missouri, according to a legislative analysis. Missouri has been attempting to move a sports betting bill for four years while neighboring states, including Arkansas, Illinois, Iowa, Nebraska, and Tennessee, have legalized wagering. Illinois, Iowa, and Tennessee all allow for statewide mobile wagering, and Missouri lawmakers have acknowledged that residents often cross the border to bet.
The current versions of the bills also allow for operators to write off all promotions, a concern for both industry and regulatory bodies. In states like Colorado's sportsbooks and Virginia, tax revenue or money for problem gambling has been significantly lower than expected after massive promotional write-offs in both states.
If passed, HB 2502 and HB 2556 would grant up to 14 licenses: 6 to casino operators, 6 to professional sports teams, and 2 untethered licenses for other entities. To bet, individuals must be 21 or older, and there is no residency requirement, only a physical presence in Missouri. The Missouri Gaming Commission will oversee sports betting, as well as riverboat casinos, charitable bingo, and daily fantasy sports contests.
As Missouri continues to debate sports betting legislation, attention is turning to responsible gambling, fair taxation, and operator incentives. The evolution of these proposals indicates a growing awareness of these issues as Missouri prepares to launch legal sports betting.
The delay in discussions and votes on HB 2502 and HB 2556, the proposed sports betting bills, has sparked speculation about their future in Missouri. If passed, these bills could potentially generate over $15 million in tax revenue and grant up to 14 licenses for sports betting operations. However, concerns remain about the current versions, such as the substantial promotional write-offs allowed, which have impacted tax revenue and problem gambling funding in other states. The Missouri Gaming Commission, if given oversight, would also be responsible for regulating sports betting, riverboat casinos, charitable bingo, and daily fantasy sports contests. As Missouri advances in its sports-betting legislative process, there's a growing focus on responsible gambling practices, fair taxation, and operator incentives.
