On Monday, the Missouri House gave its initial approval to a bill that would legalize sports betting in the state.
Sports teams and casinos would each be allowed to launch three sports betting skins
HB556 will allow major league sports teams and casinos to partner with mobile sports betting operators to launch three sports betting skins each. Land-based casino operators will be limited to six skins overall.
Republicans aligned with local casino operators managed to defeat amendments proposed by Democrats that aimed to raise taxes and impose restrictions on promotional expenses. The bill is awaiting a formal roll-call vote, which is expected to take place later this week before it can advance to the Missouri Senate.
The legislation sets the legal minimum age for sports betting at 21 while net winnings from sports betting would be taxed at a rate of 10%. This would be calculated after promotional costs are taken into account.
Efforts made by Democrats to increase the tax rate and restrict or eliminate the deduction for promotional costs were unsuccessful. Casinos currently pay a tax rate of 21% on their earnings from all other forms of gambling, and they do not receive any deduction for providing free wagers to customers.
Representative Dan Houx, a Republican from Warrensburg and sponsor of the bill, opposed any changes to the proposed legislation. He emphasized the need for the House to demonstrate unity, as the bill is already facing significant opposition in the Senate.
The main challenge to the legalization of sports betting in the Senate is the proposal to permit video lottery games in bars, restaurants, and truck stops. Senator Denny Hoskins insists that both measures must be included in the same bill. However, supporters of sports betting prefer their bill to pass independently without any additional provisions.
Supporters of the bill estimate that legal sports betting in Missouri would bring in an additional $29 million in taxes.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.