Missouri Sports Betting Bills Come in 3s?
By
Jan 2, 2021
Since the U.S. Supreme Court struck down PASPA in 2018, Missouri has been working to pass a sports betting bill that would bring this new online sports betting industry to the state. However, nothing has been able to pass on multiple occasions in 2018, 2019,d or 2020.
Now, Missouri Sports Betting bills come in 3 for 2021 sponsored by Republican Senators Denny Hoskins, Tony Luetkemeyer, and Caleb Rowden.
With three pre-filed bills on tap, Missouri likely to OK sports betting in 2021 #moleg @calebrowden @dlhoskins @tonyformissouri https://t.co/Hd6Bf9cRm4 via @thecentersquare
— Alex T. Eaton (@alexteaton) December 16, 2020
These sports betting bills give the state options to pick and choose which regulations Missouri would want to adopt to make sports betting as good as it can get in the Show-Me State.
Here’s a breakdown of the three sports betting bills filed.
Missouri Sports Betting Senate Bill 18
This bill is sponsored by Denny Hoskins (R). Talking points for this bill include:
| How Many Online Operators will be allowed? | Bill will open up the state to more skins per operator encouraging 3rd party partnerships with existing online entities |
|---|---|
| Where Can Bettors Place Bets? | Brick and Mortar casinos plus online sports betting will be offered |
| What is The Proposed Tax Rate? | 9% |
| What Are The Fees Involved | Fees include a $25,000 application fee and a $50,000 annual administrative fee and a $10,000 renewal fee |
| Who Will The Tax Revenue Benefit? | Tax revenue will directly go to the Gaming Proceeds for Education Fund |
| Is There a Rate on League Data Fees? | No |
| Will College Prop Betting Be Allowed? | Yes |
The bill will allow a high amount of competition in Missouri with potentially 39 operators allowed in the state, and the Missouri Gaming Commission would oversee the industry.
Hoskins bill would have in-person and mobile sports betting available, and the 13 casinos would be allowed three skins per location. College prop betting would also be available.
SB18 tax rate sits at 9% adjusted gross revenue. Hoskins proposes a $25,000 application fee, a $50,000 annual administration fee, and an annual $10,000 renewal fee.
There is not a rate on league data fees, but leagues can request compensation for the data. Royalty fees would be a thing in SB18 with .25% of gross money wagered given to pro leagues, and .25% given to NCAA Division I universities.
Missouri Sports Betting Senate Bill 217
This bill is sponsored by Tony Luetkemeyer (R). Talking points for this bill include:
| How Many Online Operators will be allowed? | Bill will limit one online betting skin per operator |
|---|---|
| Where Can Bettors Place Bets? | Brick and Mortar plus online sports betting will be offered |
| What is The Proposed Tax Rate? | 6.25% |
| What Are The Fees Involved | Fees include a $10,000 application fee and a $5,000 annual administrative fee and a $10,000 renewal fee every 5 years. |
| Who Will The Tax Revenue Benefit? | Tax revenue will directly go to the Gaming Proceeds for Education Fund |
| Is There a Rate on League Data Fees? | No |
| Will College Prop Betting Be Allowed? | No |
Senate Bill 217 is a lot different from SB18. Proposed by Tony Luetkemeyer, SB217 will also allow for online and in-person betting. However, Luetkemeyer is only proposing to have 13 skins in the state: one for each casino.
The Missouri Gaming Commission would also regulate the betting industry, and no college prop betting would be available. The tax rate would also be a lot lower at 6.25% o adjusted gross revenue.
There would be a $10,000 application fee, $5,000 administration fee annually, and a $10,000 license renewal fee every five years. Leagues may request compensation for data usage at an undetermined rate, but there would be no royalty fees.
Missouri Sports Betting Senate Bill 256
This bill is sponsored by Caleb Rowden (R). Talking points for this bill include:
| How Many Online Operators will be allowed? | Bill will open up the state to more skins per operator encouraging 3rd party partnerships with existing online entities |
|---|---|
| Where Can Bettors Place Bets? | Brick and Mortar plus online sports betting will be offered |
| What is The Proposed Tax Rate? | 6.75% |
| What Are The Fees Involved | Fees include a $50,000 application fee and a $20,000 annual administrative fee and a $10,000 renewal fee every 5 years. |
| Who Will The Tax Revenue Benefit? | Tax revenue will directly go to the Gaming Proceeds for Education Fund |
| Is There a Rate on League Data Fees? | No |
| Will College Prop Betting Be Allowed? | Yes |
The final of the three bills is led by Caleb Rowden. Rowden proposes that in-person and mobile betting should be legal in the Show-Me State. Similar to SB18, SB256 will allow up to 39 skins in Missouri, which would be three for each casino. The Missouri Gaming Commission would also be in charge of sports betting.
College player prop betting would be available in Missouri under SB256, and the tax rate would sit at 6.75% of adjusted gross receipts. The other two bills would be taxed based on adjusted gross revenue.
There would be a $50,000 application, the highest of any bill. SB256 also proposes a $20,000 administrative fee annually, and a $10,000 license renewal every five years.
Will Missouri Pass a Sports Betting Bill in 2021?
The sports betting bills proposed will be discussed as soon as lawmakers are back in session for 2021. Bills like SB18 and SB256 would make for a more competitive market, where a bill like SB217 would be more tax-friendly for the operators.
If SB217 is passed, it will be the lowest tax rate in the U.S. ahead of Nevada, which sits at 6.75%. SB256 and SB217 are at 9% or lower.
Proposing three bills at once could also give Missouri a huge advantage in attempting to get a bill passed through the state. Lawmakers can discuss the pros and cons of each bill and decide what should be used in an official bill.
A 2019 study showed that Missouri could generate close to $95 million in annual revenue if sports betting is legalized. Missouri law states that casino revenue must be used for educational programs and that will also apply to sports betting.
Arkansas, Illinois, Iowa, and Tennessee all border Missouri and have legalized sports betting. With neighboring Tennessee reporting strong first-month sports betting tax revenue numbers, it creates a sense of urgency for Missouri lawmakers to get this bill passed and start generating revenue for educational programs.
2021 could be the best opportunity to get sports betting passed in Missouri. The state faced a $500+ budget deficit this year due to the coronavirus pandemic, and lawmakers are looking for ways to stop the bleeding and get more tax dollars to the state.
With lawmakers back in session in early 2021 and the focus being the state’s budget deficit, there is a greater chance of one of these bills being passed. Sportsbook operators are ready to offer Missouri bettors the chance to bet on their favorite teams this upcoming season.