Missouri heading for new sports betting debate after quartet of petition initiatives filed

A quartet of petitions aimed at bringing sports betting to Missouri have been passed to the Secretary of State’s office for review and potentially a statewide vote.

The petitions, filed by Stinson LLP lawyer Alixandra Cossette, revolve around the legalization of the vertical in the state; both at a retail and online level.

These include petitions 2024-135, 2024-136, 2024-137, and 2024-138, with all four filed with the office on September 8.

Centrally, all four state that in the best interests of the public, a “well regulated sports wagering industry” should be created, one which will provide Missouri with substantial tax revenue to support statewide educational initiatives.

This market includes both land-based and online operators, all licensed by a central commission, with a maximum of four licenses issued to sports wagering operators.

Each sports wagering operator is entitled to operate one mobile license, with that suitability determined by the production of a “demonstrable history” of generating tax revenue in at least 10 comparable jurisdictions as of November 5, 2024.

Retail sportsbook permits will cost a fee of $250,000 with a validity of five years. Upon expiry, the operator concerned will pay a $250,000 renewal fee.

Mobile licenses are available at a slightly higher fee of $500,000 with the same validity period and a renewal fee of $500,000.

Licensees would be required to pay a tax of 10% of their respective gross gambling revenue (GGR) to the state, with that money used for both educational funding and the payment of the Missouri Gaming Commission’s costs.

At present, comments are being accepted on all four petitions, with all public comments made being reviewed by the Missouri Secretary of State’s office.

Once the commenting period ends, the petition can either be rejected or approved to circulate, at which time the petition will be free to be passed for review by Missourians, who can then indicate their support.

There have been 138 petitions for 2024 filed with the office. Should the quartet reach the required number of petition signatures, the measures will be put to a statewide vote as part of the 2024 November mid-term elections.

Details of the backers of the petitions have not been revealed, however reports in the Associated Press have suggested that they are the brainchild of a coalition of Missouri-based sports teams.

This reportedly includes the St. Louis Cardinals baseball team, the Kansas City Chiefs football team, the Kansas City Royals baseball team, the Kansas City Current and St. Louis City soccer teams, and the St. Louis Blues ice hockey team.

In May, a push to legalize sports betting in Missouri failed to beat the deadline for the end of the 2023 legislative session, despite legislation successfully passing through the state’s House of Representatives.

At the time, many blamed the failure on the inclusion of Video Lottery Terminals (VLTs) within the legislation, an inclusion which was cited as the source of considerable deadlock between legislators.