The Missouri House Committee on Public Policy is scheduled to hear testimony on two online sports betting measures, House Bills 2502 and 2556, both sponsored by state Reps. Phil Christofanelli and Dan Houx, on March 7.
Earlier, committee Chairman Scott Cupps said committee members would like to see changes to the bills regarding problem gambling, “off-site wagering fees” and promos.
A recent legislative analysis indicated legalized sports betting could generate more than $15 million in tax revenue for the state. The six professional sports teams, including Major League Baseball’s Kansas City Royals and St. Louis Cardinals, along with casino operators have united to support the proposed legislation. It would allow the state’s 13 licensed casinos to have three skins; owners of multiple casino properties would be capped at six skins; and pro teams would have one skin each.
Missouri lawmakers who support sports wagering noted residents place bets using illegal websites or crossing into neighboring states where sports betting is legal. GeoComply released figures showing during Super Bowl weekend, it blocked 69,372 attempts by Missourians to place bets in Illinois.
It appears that lawmakers are considering state Rep. Dottie Bailey’s suggestion to extend the casino admission fee to online sports betting; later she said she was joking. But Cupps explained, “The money would go to the county where the wager was placed,” instead of to the county where a casino is located. Missouri would be the first state in the U.S. to charge a “virtual admission fee,” with bettors paying an up-front fee in order to be able to place a digital wager.
Another related issue concerns spending on problem gambling services. Problem gambling advocate Brianne Doura-Schawohl told lawmakers, “The proposed sports wagering bills in their current iterations have significant deficits as it pertains to problem gambling funding and infrastructure. As Missouri is already working from a deficit, the suggested $250,000 additional funding will not even begin to skim the surface to address the state’s needs around the research, prevention, awareness, treatment and recovery services for problem gambling.”
Doura-Schawohl suggested a percentage of revenue should be earmarked for problem and responsible gambling programs with a minimum annual contribution of more than $250,000. Currently Missouri sets aside 4 cents per person for problem and responsible gambling, compared to 40 other states that set aside an average of 37 cents per person.
She noted, “There are an estimated 92,000 or 2.2 percent of the adult population in Missouri currently struggling with gambling problems. In addition, according to the 2016 Survey of Problem Gambling Services in the United States, Missouri ranked 33rd out of 50 U.S. states in terms of per capita public funds dedicated to problem gambling services.”
Doura-Schawohl also pointed out one of the bills doesn’t include self-exclusion. She also said advertising guidelines should be reviewed.
Additionally, Cupps said the proposed bills would allow operators to write off all promotions, right off the top. Instead, he said lawmakers would prefer a cap on promotional write-offs. He cited Colorado and Virginia, where tax revenue or funds for problem gambling services have decreased due to large promotional write-offs.
Cupps said the committee will continue to talk with stakeholders and potentially propose amendments to the bills before moving them forward.
