Missouri casinos, pro teams-backed sports betting bill approved by House, heads to Senate

A bill seeking to legalize sports betting in Missouri has been approved by the state House and now heads to the Senate. The proposal, if enacted, would permit wagering on major college and professional sports and passed the House on Wednesday by a 115-33 vote.

Sponsored by Rep. Dan Houx, R-Warrensburg, the legislation is backed by casinos and major sports teams in the state, which would receive a piece of the betting pie. The proposal would permit Missouri’s casinos to offer three platforms or “skins” per venue, with each casino company capped at six total (Penn National and Caesars operate three casinos in the state each).

Additionally, Missouri's six pro sports teams would also be able to partner with one licensed online platform, such as heavyweights FanDuel or DraftKings, per franchise. Both in-person and mobile wagering would be regulated and licensed by the Missouri Gaming Commission. According to fiscal notes for the bill, gamblers would bet about $150 million in sports annually.

One of the major arguments leveraged by sports betting proposers is that legalizing the market would permit Missouri to keep revenue currently going to neighboring states, most of which have already launched their own sports operations. 

The House has third read and passed HB 2502 & 2556 (Modifies provisions related to sports wagering/gaming) with a vote of 115-33. #moleg https://t.co/npOzHTNCbD

— House Communications (@MOHOUSECOMM) March 24, 2022

“Missourians are doing it right now and we are not getting the benefit from the tax standpoint,” said House Speaker Pro Tem John Wiemann, R-O’Fallon, according to the Missouri Independent. The bill sets a tax rate of 8%, reduced from a former 10%, lower than the one proposed in Kansas.

The version which passed the House is currently being supported by five of the six licensed casino companies in the state, and all six major sports teams. It is preferred over similar bills filed in the Missouri Senate that would set the tax rate at a comparably higher 21%, the same rate casinos in the state pay on the net from other forms of gambling. 

“We’re very excited about the possibility of keeping Missourians in the state of Missouri to enjoy a product that they’re requesting,” said Mike Jerlecki, vice president and general manager for Hollywood and River City Casinos, according to Fox 2 Now. The executive said guests routinely ask when sports wagering will be coming to the state.

If approved, the bill would allow guests to bet on college and pro sports, while banning wagering on prep sports. The proposal would also require gaming platforms to use official league data for settling bets, a provision that has been publicly opposed by Boyd Gaming.

It is not a sure bet that the legislation will see approval in the Senate, but backers hope this time around there is sufficient support for the proposal. “This is the first time we got everybody to the table and got 99% of the people to the plate,” sponsor Houx told the House, according to Springfield News-Leader.

During debate, the House added provisions to address what the cited source calls expected “addictive tendencies” surrounding gambling. Rep. Ben Baker, R-Neosho, sponsored an amendment to require a self-exclusion program, a state recovery program, and annual research on the prevalence of problem gambling and the effectiveness of prevention programs.