Missouri state Senators Denny Hoskins, Tony Luetkemeyer and Caleb Rowden recently pre-filed legislation to allow sports betting. The three bills are virtually identical except for tax rates and fees for license holders. Hoskins said, “All of these bills are starting points. I’m open to negotiations and compromise. Obviously there’s a sweet spot where taxes and fees are most reasonable and profitable, and we’re all trying to get them there.”
Hoskins’ bill, SB 18, would charge operators a $25,000 application fee and $50,000 annual licensing fee, and tax sports betting revenue at 9 percent.
The Missouri Gaming Commission also would receive $10,000 from license holders every five years.
Luetkemeyer’s measure would charge a $10,000 application fee, $5,000 annual fee and $10,000 for the gaming commission, and tax revenue at 6.25 percent. Rowden’s bill would charge a $50,000 application fee, $20,000 annual operational fee and tax revenue at 6.5 percent.
Last year Hoskins and Luetkemeyer filed gambling bills that made it as far as committee hearings before the legislature took an extended break last spring due to Covid-19.
In his continuing effort to legalize video lottery machines, Hoskins filed SB 19 which would create the Missouri Video Lottery Control Act. The measure would legalize and regulate video lottery terminals in Missouri bars and veterans’ and fraternal organizations and allow the Missouri Lottery Commission to issue VLT licenses to manufacturers, distributors, retailers and businesses. Along with standard licensing fees, the commission would charge an additional $200 annual fee per gaming terminal. Hoskins recently said sports betting could produce $37 million to $50 million in annual revenue.
Hoskins also has introduced legislation legalizing VLTs every year since 2017. He believes this year the bill may have a better chance of success. “Businesses are looking for additional revenue, especially with the pandemic affecting everything the way it is. VLTs have a high upside as far as increased revenue is concerned. Passing this would increase revenue for education and local municipalities too. I believe that both of these bills have to pass the finish line together since they complement each other so much.”
Revenue from the video lottery games would go toward education, transportation and workforce development. The commission would net 36 percent of the gross receipts and operators would get the remaining profits.
State Senator Dan Hegeman and President Pro Tem Dave Schatz also filed parallel bills allowing the Missouri Gaming Commission to enter into agreements with other agencies to investigate and prosecute illegal gambling operators.
Currently, Missouri law allows bingo, riverboat casinos and online gambling. Gaming taxes and fees provide the state’s fifth-largest source of revenue. Missouri ranks ninth in the nation for gaming revenue and in 2018 employed nearly 20,000 people who earned $884 million, according to the Missouri Gaming Association. The American Gaming Association estimated Missouri’s 13 riverboat casinos contributed more than $550 million in gaming revenue for local and state governments in 2018.
