Missouri lawmakers pass DFS bill
Critics claim high tax rates exclude small operators in favor of âbig twoâ    Â
Missouri lawmakers have passed a daily fantasy sports (DFS) bill, making the Midwestern state the sixth to license and regulate the activity.
The House passed the Missouri Fantasy Sports Consumer Protection Act by 130 votes to 13 on Thursday, joining the Senate in its approval.
The bill will now be sent to Governor Jay Nixon who is expected to sign it into law, having called for DFS regulation in his State of the State address.
While the regulation of another state is good news for DFS operators, they will likely be taken aback at the level of taxation. Companies will have to pay an annual licensing fee â the lesser of $10,000 or 10% of the applicantâs net revenue in the state â as well as an 11.5% tax on net revenue.
The Small Businesses of Fantasy Sports Trade Association (FSBTSA) said the fees would force all operators out of the state except for DraftKings and FanDuel.
The group tweeted: âUnreal. Missouri is gone for almost everyone except the FD/DK Duopoly due to terrible legislationâ.
As part of the bill, DFS is put under the purview of the Missouri Gaming Commission and must complete an annual audit with a third party.
The bill also stipulates consumer protections such as a minimum player age of 18, the segregation of player funds from operational funds and identification of highly skilled players.
The state-by-state approach to DFS regulation appears to be the short-term future for the industry, after a Congressional hearing on Wednesday made little progress on a federal level.
Colorado, Kansas, Virginia, Tennessee and Indiana are the other states where DFS is now a regulated activity