Missouri sports betting gridlock ends 2023 legalization push
Arguments over video lottery terminal inclusion see legislation die a second time in two years
The 2023 legislative session ended in Missouri on Friday (May 12) without the passage of legislation enabling legalized sports betting in the Show Me State.
Despite impassioned pleas from advocates for the vertical over the legislative session and in its final days, together with the passage of House Bill 566 through Missouri’s House of Representatives, the legislation failed to be passed in time.
Central to this failure, or so it’s been suggested, is Senator Denny Hoskins, a passionate advocate for the tying of sports betting to the legalization of video lottery terminals (VLTs).
Hoskins introduced Senate Bill 1, the ‘Honoring Missouri Veterans And Missouri Education Act’, which allowed for the licensing of video game lottery terminals across the state as well as the legalization and regulation of sports betting.
SB 1 failed to pass through the legislative process, with a Senate Appropriations Committee hearing ending its passage in February.
Indeed, Hoskins has previously indicated his unwillingness to disassociate the two, a crucial factor in preventing the passage of HB 566 into law. The Senator made an eight-hour-long filibuster in support of this stance, even utilizing quotes from former US President Ronald Reagan in his speech.
Hoskins also levied for a heavily amended version of SB 30, a separate bill authored by Senator Tony Luetkemeyer, which originally did not include VLT legalization, but was amended to include the vertical. However, that bill also failed to pass in time.
HB 566 was one of several proposals to legalize sports betting in Missouri but was the only bill to gain widespread support during its passage in the House. The demise of the legislation mirrors that of a similar push in 2022, in which legislation failed to pass because of the VLT issue.
Under HB 566, land-based casino operators would be allowed to partner with up to three online sports betting brands, rising to a limit of six for those bricks-and-mortar firms operating multiple casinos.
Sports teams based in the state would also be allowed to partner with online sportsbooks, subject to them being in leagues including the NBA, NFL, NHL, MLB, MLS, WNBA, or NWSL.
The Missouri Gaming Commission (MGC) is required to publish a list of official data providers for sportsbook operators, who can only use firms on this list when offering sports betting.
Potential licensees would be required to pay an application fee of $100,000 with annual renewal fees of $50,000 payable. Operators would also be required to provide a responsible gambling plan with their respective application.
Suppliers would also be required to obtain licenses to operate in the state, with fees starting at $150,000 for an application and $125,000 in annual renewal fees. Like their operator counterparts, a responsible gambling plan is also required.
Those awarded licenses would be subject to a 15% tax on revenue, with exemptions for revenue generated from promotions. Operators would also be required to pay $10,000 in costs during the fourth year of their licenses in connection with the potential renewal.
Missouri’s neighbors, Kansas, Illinois, Iowa, and Tennessee have all legalized and launched sports betting, with Nebraska and Kentucky legalizing but not launching the vertical.