by Ben Perks
Missourians may soon have access to legal sports betting after some of the state’s professional teams testified before a Senate committee earlier this week.
Sporting Organizations Speak Up
We are in competition with markets that are much larger than St. Louis, like New York, L.A., and Toronto.
At the Missouri Senate in Jefferson City, representatives from the Kansas City Royals, Chiefs, Current and St. Louis Blues, Cardinals, and City SC announced that they were in favor of legalizing sports betting on Wednesday morning.
“Our organization believes that the legalization of sports betting will further energize and engage our fan base,” chief legal officer for the Royals Adam Sachs stated.
After the Supreme Court overturned federal law against sports betting in 2018, 30 states have given sports betting the green light – including Missouri’s neighboring state Illinois.
“One of the other things that this bill helps us do is remain competitive,” executive vice president of the St. Louis Blues Steve Chapman told committee members.
“We are in competition with markets that are much larger than St. Louis, like New York, L.A., and Toronto.”
“For us to be able to compete at that level, it is important for us to continue to drive revenue so that we are able to bring that level of competition, that level of candidly joy to our fans, and then to drive revenues for the region and the city itself,” Chapman said.
Chapman also stated that the National Hockey League (NHL) and its players split the revenue 50/50.
Sports Betting in Missouri – Key Info
- The Missouri House Committee on Public Policy discussed two identical bills that would allow the state’s 13 casinos and six professional sports franchises offer sports betting options
- These new proposals would allow a total of 39 skins
- Various sports betting bills were introduced in 2021 but all of them failed to get an official vote
Sports Teams to Profit
We want this to be a regulated, legalized marketplace so people can trust and know what the limitations and things are in place, and we can make sure it doesn’t get out of control.
President of the St. Louis Cardinals Bill DeWitt III refused to give an estimate of how much a team like the Cardinals could make from sports betting but believes most of the revenue would come from marketing.
“I do hope and expect sports teams would make incremental revenue from this, mostly through the process of sponsors who want to reach our fans,” DeWitt said.
“We want this to be a regulated, legalized marketplace so people can trust and know what the limitations and things are in place, and we can make sure it doesn’t get out of control.”
If passed, HB 2502 would allow betting at casinos, online betting sites, and inside sports venues.
However, players would also have to agree – something that John Dalton, a lobbyist for the Players’ Association, says is already proving difficult.
“I wish I could say this morning that we’ve reached an agreement on the few fundamental issues that are paramount to the athletes, but we have not,” Dalton said.
The lobbyist stated that the biggest worry is protecting an athlete’s personal data.
“By establishing a regulatory process that includes the Players’ Association, along with the sports wagering operators and the leagues in those critical areas, the system will be better equipped to protect the integrity of the sport and safeguard those that are the subject of the gaming activity,” Dalton added.
US Sports Betting Facts
- Nearly 50% of adults have made a sports bet at least once
- In February, New York became the sports betting capital of the US
- Football is the most bet on sport
- More than $52.7 billion was legally wagered in 2021
$15 Million in Tax Revenue
Although the House approved sports betting – meaning that its launch should be soon – impatient Missourians are still using offshore betting sites such as Bovada or crossing state lines to wager on sports.
“They [Missourians] might cross the border and place a bet and then go back to collect, or they will hear about their friends doing it in Illinois, then sign up for an app that ends up being an illegal black-market app,” Dewitt said in an interview Wednesday.
Rep. Phil Christofanelli (R-St. Peters) estimates that sports betting could make $15 million in tax revenue for the state. According to the current proposal, 90% of this revenue would fund education – the remaining 10% would aid problem gambling charities and city budgets.
Last month, Rep. John Wiemann (R-O’Fallon) said on the House floor that in previous years, most casinos were against the idea.
Wiemann said Ameristar Casino in his district in St. Charles disagreed with how the legislation would mandate what data casinos use for sports betting.
As a result, the bill was changed this week, allowing casinos to choose what data they use, providing they have it approved by the Missouri Gaming Commission.
Current Tax Rate Worries Senator
During the hearing, Sen. Denny Hoskins (R-Warrenburgs), who sits on the Senate Appropriations Committee, questioned the tax rate for wagers, saying 8% wasn’t high enough.
His bill proposes a 21% tax which is what casinos currently have to pay for other games – this would generate around $160 million annually for education and veterans.
Andy Arnold, a lobbyist for an Illinois gambling company, agreed that the tax needs to be higher.
“If it’s written to make more money for the teams and casinos, then you’ve hit the mark,” Arnold said.
“If it’s written to provide substantial revenue for education and for the problem gambling it’s going to create, it’s sorely lacking.”
He said the House bill also could cause legal issues for the state since, in the Missouri constitution, bets must be placed within 100 feet of the Missouri or Mississippi Rivers.
“This allows betting in any corner of the state of Missouri, and I have no doubt, in fact, I think my client even said they would potentially entertain a lawsuit or a challenge to that fact,” Arnold said.
Hoskins’ bill would also allow Missourians to bet inside convenience stores that sell state lottery tickets.
A priority of Senate President Dave Schatz (R-Sullivan) is to stop unregulated, illegal slot machines that have been appearing in gas stations. He said there are around 15,000 to 20,000 of those “grey” machines in the state.
A committee has listened to the proposals outlined in Hoskins’ bill. However, it hasn’t been a topic of debate on the Senate floor yet.
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Ben is a sports journalist & part-time trader with a passion for finding +EV bets. Ben lives in Madrid, Spain where he enjoys the live poker scene, and sunshine where he covers UFC, MLB, NHL, NBA, as well as tennis betting.
