Missouri House Revives Sports Betting Legislation Amidst Public Vote Initiative

This latest effort coincides with Missouri’s professional sports teams and mobile gaming operators rallying to present the issue directly to voters.

House Bill Proposes 10% Tax on Bets

Spearheaded by Rep. Dan Houx, the proposed House bill, debated by the Special Committee on Public Policy, suggests a 10% tax on sports bets, potentially generating an estimated $35 million for education. The bill aims to authorize sports teams, mobile operators, and casinos to open betting parlors.

Bill DeWitt III, President of the St. Louis Cardinals, emphasized the tax revenue losses Missouri faces without legal sports betting. He highlighted the benefits of the plan, including funds for problem gaming, state revenue, and regulated marketplaces.

“Winning for Missouri Education” Campaign

FanDuel and DraftKings recently contributed $2 million to support the signature collection for a public vote initiative led by “Winning for Missouri Education.” The coalition includes major state sports teams and aims to gather over 170,000 signatures to place the issue on the November ballot.

The coalition’s proposal sets a 10% sports betting tax rate and allows teams and the state’s 13 casinos to operate both retail and online sports betting. DeWitt expressed willingness to suspend the public vote initiative if the legislative bill is approved.

Industry Experts Highlight Potential Revenue Losses

Sean Ostrow from FanDuels and DraftKings indicated that many Missourians are already attempting to place bets on mobile devices, suggesting significant revenue loss for the state. Similarly, Salvatore Panettiere from the Kansas City Royals voiced support for legalization.

Bob Priddy, a former Statehouse reporter turned lobbyist, expressed opposition, citing the proposed tax rate as too low compared to the 21% tax rate for casinos.

Despite two similar bills introduced in the Senate, their prospects remain uncertain due to disagreements over unregulated slot machines in the state.

The committee is expected to vote on sending the measure to the full House as early as next week.

Our Comment on the Article

The renewed legislative efforts in Missouri to legalize sports betting underscore a growing trend in states recognizing the potential for substantial revenue generation and regulated gambling markets. The involvement of major sports teams and operators like FanDuel and DraftKings reflects a broader industry push towards legalized sports wagering.

The initiative to take the issue directly to voters demonstrates the increasing role of public opinion in shaping gaming laws. However, the ongoing debate over tax rates and the comparison to existing casino taxes highlight the complexities of establishing a balanced and fair gaming ecosystem. As the Missouri House moves forward with this legislation, it represents not just a potential change in sports betting laws but also a pivotal moment in state policy making, balancing economic benefits with responsible gaming practices.