Missouri Advances Sports Betting Bill with House Committee Approval

This legislation, championed by Rep. Dan Houx, a known advocate for sports betting, proposes to legalize event wagering in casinos and through online platforms.

Key Provisions of House Bill 2331

Under the proposed bill, Missouri’s casinos would be permitted to offer in-person betting and up to three mobile betting skins, potentially partnering with leading operators like DraftKings or FanDuel. Additionally, the state’s professional sports teams could acquire one mobile betting license each, expanding the scope of sports betting within Missouri.

The bill outlines a structured fee system for sports betting licenses, with casinos facing an application fee capped at $100,000 and an annual renewal fee of no more than $50,000. Online sports betting operators are subject to a higher fee structure, with application fees not exceeding $150,000 and annual renewal fees capped at $325,000.

Taxation and Revenue Allocation

Sports betting revenue would be subject to a 10% tax rate under H.B. 2331, with proceeds earmarked for educational funding—a move that aligns with the broader trend of utilizing gambling revenue to support public services. The bill also includes provisions for bonus bets and free play, allowing operators to deduct these costs from taxable revenue in the first year, with a gradual reduction in this deduction over the subsequent four years.

To ensure responsible gambling practices, H.B. 2331 mandates that bettors must be at least 21 years old. It also imposes restrictions on wagering on college player props in games involving Missouri schools, reflecting a cautious approach to collegiate sports betting.

Our Comment on the Article

The progression of House Bill 2331 through the Missouri House’s rules committee marks a significant milestone in the state’s journey towards legalizing sports betting. By setting clear guidelines for licensing, taxation, and responsible gambling, the bill lays the groundwork for a regulated sports betting environment that benefits both the gaming industry and public education.

As Missouri continues to navigate the legislative process, the potential for sports betting to contribute to the state’s economic and social fabric becomes increasingly apparent. The collaborative effort between lawmakers, regulatory bodies, and industry stakeholders underscores a commitment to developing a sports betting framework that is both sustainable and beneficial for all parties involved.