Missouri Pro Sports Teams Support Sports Betting Bills

Last week, the Missouri House Committee on Public Policy held a hearing to review House bills 2502 and 2556. The bills advocate legalizing sports betting in Missouri and have the support of a coalition of sports teams, casinos, and mobile operators seeking market access.

Sponsors of the measures used the hearing to point out that most states surrounding Missouri have already legalized sports betting or are in the process of doing so. One point they stressed is sports betting already occurs in Missouri via illegal apps, leaving locals at risk without proper regulation. By legalizing sports betting, Missouri could better protect its citizens and reap the benefits from taxes on revenue.

Proponents: Regulate Sports Betting in Missouri and Protect Consumers

Representative Phil Christofanelli, a bill sponsor, spoke first during the hearing. He noted sports betting is already taking place in Missouri via unregulated mobile apps and betting websites. Christofanelli stated that over 30 US states offer legal sports betting, better protect consumers, and benefit from increased tax revenue.

Christofanelli says his state should do the same because it is an activity that residents want, and the revenues could help in critical areas such as education. According to Christofanelli, around 75 to 80 percent of Missouri residents want legal sports betting.

When asked if there were any questions on the legislation, Representative Ben Baker wanted to know more about the problem gambling aspect of sports betting. Baker asked if the rules and regulations would be similar to other gambling activities.

Christofanelli responded with information on problem gambling programs and self-exclusion options. Under the proposals, Missouri will dedicate $250,000 from tax revenue to address these issues. In addition, regulations will require advertisements to provide helpline info so viewers can access problem gambling resources.

The representative reiterated that gambling is taking place right now, and there are no protections in place for problem gambling needs.

“I think it’s better if we bring this activity into the light, provide a regulatory framework around it, and address the problem gamblers where they may arise.”

Pro Sports Team Coalition Supports the Missouri Sports Betting Effort

One of the first supporters to speak during the hearing was Cardinals President Bill DeWitt III. Mr. DeWitt spoke about the Pro Sports Team Coalition, a group consisting of six major pro sports teams in favor of sports betting legalization.

Mr. DeWitt stated that the pro sports teams, casinos, and mobile operators are on the same page regarding the legislation. Stakeholders have reached a fair compromise to get the ball rolling regarding the new industry. Teams that are part of the coalition include:

• Kansas City Chiefs (NFL)
• St. Louis Cardinals (MLB)
• Kansas City Royals (MLB)
• Kansas City Current (NWSL)
• St. Louis Blues (NHL)
• St. Louis City SC (MLS)

The teams see the legislation as a way to engage fans with their respective sports and provide a fun and exciting way for viewers to enjoy games. Mr. DeWitt also noted that illegal, unregulated betting is already widely available in Missouri. He pointed out that his 20-year-old son thought sports betting was legal and knows people who bet on sports online. Of course, he told his son that wasn’t true, but it highlights just how widespread sports betting is in Missouri.

Potential Legislation Issues

Lawmakers argued vital points during the hearing, including the proposed tax rate on adjusted gross receipts. Each bill has a tax rate of 10%. Some legislators feel this is not high enough. Representative Dottie Baily questioned why Missouri would charge 10% while the neighboring Illinois sports betting tax rate is charged at 15%. The representative also suggested an admission fee for sports betting since casinos charge $2 per person entering a venue.

Bailey suggested that the tax rate be set at 13%, the admission raised to $3 with room to increase from there to account for inflation. The bill’s supporters did not favor the idea and shot it down quickly.

The overall takeaway from the hearing was that lawmakers need more discussions before the legislation moves any further. While there is still a long way to go, it is a good sign for sports betting proponents that sports teams, casinos, and mobile operators are on the same page.