Missouri readies sports betting push as twin bills set for 2023 showdown

Two Missouri legislators have each pre-filed legislation in advance of the Show-Me State’s 2023 legislative session which, if passed, would legalize sports wagering.

The bills are just two of more than 300 individual pieces of legislation scheduled to be debated next year as sports betting becomes more widespread, especially in neighboring Kansas where enabling legislation opened the door to a market launch in September.

Senate Bill 1, or the “Honoring Missouri Veterans And Missouri Education Act” is authored and sponsored by Senator Denny Hoskins, and allows for the licensing of video game lottery terminals across the state as well as the legalization and regulation of sports betting.

In respect of sports betting, the act allows for wagering on sporting events, including esports, and modifies the definition of “gambling game” to include sports wagering.

Bettors must be physically located within the state, with operators only able to offer betting once they have been licensed by the Missouri Gaming Commission (MGC). Application fees for licenses in the state must not exceed $100,000.

The act also authorizes betting on an “excursion gambling boat” through as many as two individually branded betting platforms, platforms which can be operated by a third-party partner contracted to do so.

Operators are required to pay an annual administrative fee of $250,000 for the first additional interactive sports wagering platform and an annual administrative fee of $500,000 for the second.

The act establishes designated sports districts in areas surrounding stadiums where professional sports teams play their home games.

Professional sports teams may assign a designated sports district mobile licensee to conduct sports wagering via an interactive sports wagering platform within the designated sports district.

Sports wagering commercial activity, which includes any operation, promotion, signage, advertising, or other business activity relating to sports wagering, shall be prohibited within designated sports districts without the approval of the professional sports team. Teams are required to pay an annual fee of $50,000.

In addition to this annual fee, licensees are required to pay the MGC a fee of $10,000 every five years for a reinvestigation of the licensee, with all fees collected given to the MGC.

Each designated sports district mobile licensee may offer sports wagering through one interactive sports wagering platform, with each platform able to apply to the MGC on that team’s behalf.

Application fees for these licenses start at $150,000, with licensees required to pay an annual license fee of $125,000.

Operators in the state will be taxed at a rate of 10% of their adjusted gross receipts derived from sports betting, with that money deposited in a newly established Gaming Proceeds for Education Fund.

Oher notable aspects of this bill include advertising restrictions protecting minors and those deemed vulnerable to gambling-related harms as well as measures barring sports governing bodies or member teams from placing bets and the usage of official team data.

The MGC is also mandated to create a program for the treatment and prevention of problem gambling, which includes a state-wide self-exclusion register as well as appropriating at least $5m annually to fund efforts to combat problem gambling.

Senate Bill 30, authored by Senator Tony Luetkemeyer, is broadly speaking the same as its rival bill in that it authorizes sports betting in the state, however Luetkemeyer’s bill does not authorize the spread of video lottery terminals and differs in respect of problem-gambling treatment funding.

SB30 requires the Missouri General Assembly to appropriate at least $500,000 annually from the MGC’s fund to a state-wide compulsive gamblers fund.

Both bills have an effective date of August 28, 2023.

The Missouri legislative session will begin on April 10, 2023, and concludes on June 8.