Three bills that would legalize sports betting in Missouri recently passed out of committees. Senate Bill 30, along with House Bills 556 and 581, were given the nod to proceed by lawmakers. SB1, a combination sports betting and VLT bill, failed to make it out of committee.
All three pieces of legislation that made it out of committee are similar. They would each allow for in-person and online betting, and each calls for 10% tax on operator revenue.
SB 30 has taxes going to education and problem gambling fund
After Kansas made sports betting legal last year, Missouri lawmakers are under pressure to do the same in The Show Me State. This year, Missouri sports betting has a better chance at legalization than ever before.
If SB 30 became law, it would dedicate tax money toward education and problem gambling. This bill authorizes sports wagering either on an “excursion gambling boat or over the internet.” Users must be located within the state and be at least 21 years of age.
It also specifies that any business-related activities regarding sports wagering must be done within designated sports districts. This is defined as being in an area surrounding stadiums where professional sports teams play their home games.
The tax on revenue would be 10%, with most of the money going to the Education Fund. Additionally, $500,000 from that fund would go toward the Compulsive Gamblers Fund.
Sen. Denny Hoskins’ filibuster in last year’s General Assembly doomed sports betting legislation. Hoskins once again wants the legalization of video lottery terminals, or VLTs, to be part of the sports betting legislation. It was his SB 1 bill that failed to make it out of committee.
He has threatened to once again filibuster any sports betting measure that does not include legalizing VLTs. Most lawmakers want the issues to be separate. The casinos in Missouri are strongly against legalizing VLTs.
Tax revenue from Kansas sports betting has been underwhelming so far
After Kansas made sports betting legal, tax revenue going to the state has been below estimates. Some of that is due to the low tax revenue rate of 10%, the same proposed in Missouri.
Additionally, Kansas allows gambling operators to deduct promotional wagers from revenue. Missouri lawmakers will have to consider how they will address that in the final legislation.
The tax rate of 10% is low compared to some of the rates across the US. Here is a look at some of the lowest and highest tax rates by state in the US:
- Iowa: 6.75%
- Nevada: 6.75%
- Michigan: 8.4%
- Indiana: 9.5%
- Pennsylvania: 36%
- Delaware: 50%
- New York: 51% (online betting)
- New Hampshire: 51%
- Rhode Island: 51%