Two Missouri Bills Would Give Pro Leagues ‘Royalty’

Two bills filed December 1 would make Missouri the first state to pay professional sports leagues and the National Collegiate Athletic Association a royalty on sports betting handle. A bill sponsored by state Senator Tony Leutkemeyer (l.) would reward the leagues and the NCAA with a .75 percent fee on gross wagers.

Two Missouri Bills Would Give Pro Leagues ‘Royalty’

Missouri could be the first state in the U.S. to pay professional sports leagues and the National Collegiate Athletic Association a royalty—formerly called an integrity fee—on sports betting handle.

Two bills filed December 1 also would make Missouri the third state to mandate the use of official league data for in-play bets; Tennessee and Illinois already allow the mandate.

Under state Senator Denny Hoskins’ SB 567, sportsbook operators would pay leagues a royalty of 0.25 percent, and tax sports betting revenue at 9 percent. Remote registration for mobile betting would be allowed. The sports betting license application fee would be $25,000 with an administrative fee of $50,000 the first year and $10,000 every five years. The mobile application fee would be $25,000 with a $50,000 annual renewal fee. The Missouri Lottery Commission would regulate sports betting.

Under state Senator Tony Leutkemeyer’s SB 754, operators would pay leagues a 0.75 percent royalty, with sports betting revenue taxed at 6.25 percent. Remote registration would be allowed. The license application fee would be $10,000 with an annual administrative fee of $5,000 and a $10,000 fee every five years. The mobile application fee would be $10,000 with a $5,000 renewal. The Missouri Gaming Commission would regulate sports wagering.

In the Missouri House, state Rep. Dan Shaul intends to file a sports betting bill. He chairs an interim committee that researched sports betting and recently issued a report. It’s not clear if his bill would include a royalty to professional leagues.

The Missouri General Assembly’s pre-filing period began December 1 and the 2020 session will begin January 8.

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