In Missouri, the House Special Committee on Public Policy recently debated the sports betting bills HB 2502 and HB 2556.
The state’s professional sports organizations came out on behalf of the bills, with representatives in attendance from the St. Louis Cardinals, Kansas City Royals, St. Louis Blues, Kansas City Chiefs, St. Louis City Soccer Club and Kansas City Current. A representative of Barstool Sportsbook, owned by Penn National Gaming, owners of three Missouri casinos, also supported the bills.
St. Louis Cardinals President Bill DeWitt III said, “First and foremost, all the pro sports teams in Missouri support sports wagering as a way to increase engagement with our fans and provide a fun and exciting new way to enjoy sports and root for our teams, which are such ingrained members of our communities. We also know that sports wagering will generate a significant new source of tax revenue for Missouri.”
A recent legislative estimate indicated Missouri could receive $15 million in annual tax revenue from legal sports wagering, with $7.8 million to $15.3 million directed toward education.
Supporters noted Missourians already are betting on sports, without the benefits of a legalized, regulated market. Besides traveling across state lines to place sports wagers, GeoComply found nearly 70,000 sports wagering attempts were blocked in Missouri over Super Bowl LVI weekend, meaning users tried to place mobile bets in neighboring states where sports wagering is legal.
Taxation of sports betting revenue also was a hot topic at the hearing. The bills under discussion propose a tax rate of 10 percent, drawing comment from state Rep. Dottie Bailey, the committee vice chairman. Bailey asked why Missouri’s tax rate would be lower than Illinois’, which is 15 percent.
State Rep. Scott Cupps, committee chairman, expressed concern over the potential surge in advertising that could follow legalized sports betting. He said, “I was driving through Indiana with some friends of mine a couple weeks ago, and we were bombarded so much by sportsbook billboards and sign. Everywhere we went and everything we did, all there was, was sportsbook ads and so I can’t help but think that’s a discussion that we need to have when we’re working through this. Because I know there’s a lot of people who maybe don’t want their entire existence to be bombarded by sportsbook advertisement and promotion.”
Supporters of the bills said the initial marketing influx eventually would slow down as operators gained market share.
Another issue was providing funds for problem gambling services. The bills both provide $250,000 for that purpose but some committee members said that amount was too low.
Since 2019, Missouri lawmakers have filed more than 20 bills including some form of sports betting but none have passed the legislature.
