In a 7-3 vote, Missouri state Rep. Cody Smith’s sports betting bill HB119 recently cleared the House General Laws Committee, where it was amended to include an integrity fee—or royalty–of 0.25 percent of handle to pro sports leagues, the National College Athletics Association and state universities. The fee only would go to leagues with a presence in the state—the National Football League, Major League Baseball and the National Hockey League, which all have franchises in St. Louis and Kansas City. Missouri would be the first state with an integrity fee if the measure would pass with the fee intact.
According to HB119’s fiscal note, Missouri would receive $1.9 million in sports betting revenue as early as fiscal year 2020 if it would pass.
The measure would allow statewide mobile wagering, with three online skins per operator. Also it would allow leagues to require operators to use official data in settling any bet unrelated to the final score of a game. Prop bets on college sports events would be banned. Application fees would be $10,000 and operators’ gross income would be taxed at 8 percent.
The measure also includes a fee of 0.6 percent to fund maintenance and upkeep of Missouri sports stadiums.
State Rep. John Carpenter pointed out, “Just so that everyone understands, the tax assessment here between the royalty fee and the stadium fee, 0.85 percent would translate to 17 percent tax rate. I’m willing to support a compromise but this compromise has a 17 percent tax rate that isn’t going to go to the state.”
Committee Chairman state Rep. Dean Plocher commented, “I don’t think the measure that we voted out here today will be the measure that actually takes hold on the floor. Essentially it takes into account some of the testimony that was offered by both the casinos and the major leagues. It does a few things that will probably annoy everybody.”
Two sports betting bills without integrity fees are under consideration in the Missouri Senate. SB44 also includes statewide mobile sports betting and a potential official data requirement. It would charge an effective tax rate of 14.5 percent on gross gaming revenue and 0.5 percent of handle fee for stadium maintenance. SB222 would allow statewide mobile wagering and tax sports betting income at 6.75 percent, like Nevada.
HB119 now will move to the House floor. Missouri’s legislative session will end May 17.
