The Three Bills Aim to Legalize Online and Onsite Sports Betting in Missouri

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

A die-hard fan of the Patriots, Matt Speakman is an expert on everything related to sports betting and DFS sites. Over the years, he has proven a valuable asset for our team at online-gambling.com. You can find Speakman's professional tips and tricks in any of his many articles on the website.

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Last updated: February 27, 2023

A few days ago, there was progress in the Missouri legislature regarding sports betting bills as they advanced out of their committees in Jefferson City. On Thursday, House Bill 581, Senate Bill 30, and House Bill 556 received favorable responses from their committees.

The House Emerging Issues Committee gave unanimous approval to both HB556 and HB581, while SB30 received adequate support in the Senate Appropriations Committee with a vote of 11-1. Only State Sen. Sandy Crawford (R-Benton) opposed the bill. HB556 and HB581 have similar language and are anticipated to be merged into one bill in the House Rules Committee before being considered for a full floor vote.

Each of the three proposed bills related to sports betting in Missouri aims to legalize both online and onsite sports betting. They all suggest a 10% tax on the total income generated by sportsbooks, which is similar to the tax rate set in Kansas for sports betting. If the bills pass, the 13 riverboat casinos in Missouri would be eligible to offer retail sports betting as well as an online sports betting platform. The final decision on whether other retail establishments will be allowed to offer in-person sports betting will be made after discussions in the Senate and the House, with the state’s professional sports stadiums lobbying for inclusion.

Missouri’s Gaming Tax to Support Public Education

Missouri’s primary use of gaming tax revenue is to support public education, with the state Education Fund receiving $358.5 million from the 13 boats in 2021. However, supporters of sports gambling, including Gov. Mike Parson (R), argue that the state must make it legal it to prevent financial losses. According to Parson, without legalized sports betting, Missouri is losing out on educational funding that is going to neighboring states such as Kansas and Illinois. The money that should be going towards K-12 schools in Missouri is instead being used to support schools in those states.

The Committee on Legislative Research in Missouri has estimated that once the sports betting market matures, the state could generate almost $30 million annually from legal sports gambling, with market maturity predicted around 2027. As the sports betting bills progressed a few days ago, a separate legislative effort to legalize certain types of gaming machines, including video lottery terminals (VLTs) and “skill gaming” machines, did not succeed.

What Senator Denny Hoskins Said?

Last year, State Senator Denny Hoskins (R-Warrensburg) was accused of obstructing the sports betting legislation by filibustering it. Hoskins insisted that any development of gaming should include the permission of tavern gaming, which refers to the use of VLTs and skill gaming machines in bars and restaurants. Recently, Hoskins once again presented his tavern gaming bill, but he did not resort to filibustering his colleagues during the session. However, the bill was ultimately defeated.

“This year we tried to not be an obstructionist. But last year, I got more done when I was an obstructionist. If that’s what I need to do to further bills I think will help the State of Missouri and my constituents, then I’ll return to that form and be an obstructionist until I get my way,” – stated Hoskins.

In the past few years, there has been a proliferation of unregulated and untaxed skill gaming machines in the state, commonly referred to as grey gaming terminals. The revenue generated from these machines is shared between the gaming producer, the route distributor, and the business where the machines are located. Those who object to the use of video lottery terminals (VLTs) and skill gaming machines argue that allowing gambling in small businesses could lead to regulatory issues and an increase the number of minors involved in gambling.