Missouri Legislators to introduce Sports Betting Bills, this time with a cut for Professional Leagues

Casino Watch Focus has reported on the ongoing growth of sports betting after the Supreme Court’s ruling to allow states to legalize sports gambling.  Many states have done just that, with Florida being the most recently reported state to consider its legalization. Nothing has passed in Florida and Missouri attempted last year to introduce legislation, but it lacked any fees to pro sports organizations.  Now it would appear that with the pre filing of two new sports legalization bills, Missouri is going to reattempt legalization, but this time with the addition of integrity fees.  An online source reports:

Lawmakers in Missouri have pre-filed legislation to legalize and regulate sports betting, following the issue of a favorable special committee report. The new proposals are similar to bills introduced earlier this year, which failed to pass before the end of the 2019 legislative session.

However, sponsors of new bills have called for the inclusion of integrity fees to be paid to professional sports leagues, and as much as 0.75% of handle.

Here’s what’s included in the bills: SB 567 from Sen. Denny Hoskins calls for the Missouri Lottery Commission to oversee sports betting with 0.25% of handle paid to the leagues. SB 754 from Sen. Tony Luetkemeyer seeks 0.75% of handle to be paid to the leagues. The bill would put the Missouri Gaming Commission in charge of regulation.

The decision to include an integrity fee might not actually help the legislation get passed this year considering the issue has been vehemently opposed in other states.  The online source continues:

The issue of integrity fees is a thorny one and is bitterly opposed by operators, who argue that they would eat into their slim profits from sports wagering. Operators usually only keep around 5% of the total handle and, should this be compromised, the additional costs would then have to be passed onto players in the form of un-competitive lines and less enticing promotions.

Integrity fees have been advocated most notably by the National Basketball Association (NBA) and Major League Baseball (MLB), as a way of profiting from the proliferation of sports betting in the U.S. However, none of the states to launch legal sports betting so far have approved such a fee, with New Jersey  going so far as calling the idea “insulting”.

Whether or not such gambling efforts violate the Missouri constitution that limits gambling to the Missouri and Mississippi rivers remains to be seen.  However, the possible inclusion of mobile operators would sure seem to make that question more discernible, which could make the passage harder than typical legislation.  The new legislation is vague, but does seem to want to set up such a system. The source concludes: 

The committee report, which was presented to the state House on Dec. 5, does at least include a potential sweetener for the operators:statewide online/mobile wagering. While vague on the subject, the report stated it is interested in mobile wagering and “creating a level playing field insofar as that is possible”“.Whether that means the market will be opened up to several mobile operators or ensuring retail sportsbooks aren’t dominated by single operators is unclear.”

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