In anticipation of the 2020 legislative session, the Missouri House Special Interim Committee on Gambling invited representatives from Major League Baseball, the National Basketball Association, National Football League and National Hockey League Professional Golf Association to discuss sports betting.
The committee is hearing testimony on several gambling issues from a variety of stakeholders. Committee Chairman Dan Shaul said the committee plans to submit a report to House Speaker Elijah Haahr by December 1. Several committee members said they plan to file sports betting legislation when the session begins in January.
MLB, NBA and PGA lobbyist Jeremy Kudon told legislators an American Gaming Association report indicated Missourians would bet more than $5.5 billion on sports, including $376 annually for casino operators and $37 million in tax revenue for the state. He said the professional leagues want Missouri to mandate sportsbooks to use data provided exclusively by the leagues. Illinois and Tennessee passed similar mandates.
In addition, Kudon said pro leagues want to ban wagering on certain sports like MLB spring training and the home run derby games. The leagues also want 0.25 percent of sports betting handle, which seems unlikely to be included in legislation.
Casino operators widely oppose many of the sports leagues’ proposals, but Kudon told lawmakers leagues deserve a portion of legalized sports betting revenue. “You can’t have sports betting without our sports, but you certainly can have sports betting without a casino,” he said.
NFL Players Association Counselor Joe Briggs told legislators if sports betting is legalized, new criminal and privacy laws should be enacted to protect players. He said players would have no legal recourse if they’re pressured to throw games or face angry fans who lost money on a play. Briggs added legalized sports betting could create a market for pro players’ private, physical data, so any legislation should include ways to protect athletes’ personal information.
The committee also has heard from gambling industry officials who said mobile sports wagering must be allowed in order to eliminate black market betting.
Lawmakers also took testimony about alleged illegal slot machines that have been proliferating around Missouri. Recently, the St. Louis license collector gave amusement company Torch Electronics permission to install more than 50 of the games in the St. Louis area. The Missouri Gaming Commission has declared the Torch machines to be “gambling devices” which are prohibited outside of licensed casinos. Torch spokesman Gregg Keller said the machines “fall outside the definition of a ‘gambling device’ under Missouri law and are entirely legal. Torch Electronics’ machines follow the letter and spirit of Missouri law.”
Not surprisingly, at the same time the machines began show up, Torch and other video gaming companies began contributing to the campaigns of Missouri politicians considering legalizing the games in bars, restaurants and gas stations, as well as hiring lobbyists.
Last month the Missouri Lottery issued an alarm stating its concern that the machines are siphoning money from the lottery and therefore from public education. The statement read, “Similar devices have been installed across that state at an increasingly rapid pace. After an examination of the issues, the commission believes that many of these devices may be ‘gambling devices’ under Missouri law.” The Missouri Gaming Association, representing the state’s 13 casinos, also said the machines could be taking players—and revenue–from their establishments.
Platte County Prosecuting Attorney Eric Zahnd recently filed a lawsuit against a gaming terminal supplier. That case could determine whether the games can be declared illegal gambling devices and removed statewide.
Meanwhile, Keller continues to insist, “Our games are fair to those who play them and contribute to the viability of the family owned small businesses who operate them. Restricting or prohibiting the use of these machines strips these small business owners of necessary revenue to keep their doors open. Banning these machines will force layoffs and cause many stores to shutter. Efforts by Jefferson City bureaucrats to increase taxes, fees and red tape on middle class Missourians only hurt our state’s mom-and-pop stores.”
