Missouri On The Brink Of Establishing A Sports Betting Industry?
Advocates of creating a sports betting sector in Missouri have received a tangible shot in the arm this week, as the Senate progressed House Bill 2502 to the next stage of the legislative process. The proposal, which was first presented to the chamber in mid-January, would permit both online and retail sportsbook operations within the Show-Me State.
House Bill 2502 determines that all prospective operators would be subjected to a substantial $150k license application fee, which would be further supplemented by a $125k renewal charge. Taxation would be kept at a fairly conservative rate, with sports betting firms required to payback only 8% of total gross gaming revenue. Furthermore, within the first year of trading, cash generated through bonus and promotional play would be deductible from taxable funds. This tax grace would then decrease incrementally, with 25% of revenue earned through promo incentives subject to tax in year one, increasing to 50% in year two, and so on.
The proposal also provides an opportunity for the state’s riverboat casinos and native sports teams to get a piece of the action. Indeed, water-based venues may collaborate with up to three online sportsbook platforms, and the legislation reserves a slot for ‘a designated sports district mobile licensee’, which will most likely be awarded to a local professional sporting franchise.
After successfully navigating the Senate Appropriations Committee, HB 2502 now sits with the Commission on Government Accountability and Fiscal Oversight, as it awaits further deliberation.
