Could 2022 Be the Year For Sports Betting in Missouri?

Over the last two years, multiple attempts have been made to approve sports betting legislation in Missouri. In each and every case, attempts were shot down at the hands of lobbyists trying to protect the state's "illegal" video lottery terminal business. The biggest issue or sticking point has been the desire for lottery terminal owners to get legislation that would legalize the use of their machines.

Well, the year 2022 offers yet another year for Missouri legislators to get something done for Missouri residents who want the right to legally bet on sports. Currently, the most avid sports bettors in Missouri are being forced to drive to neighboring Iowa and Illinois to place legal bets. That represents a lot of lost tax revenue for the state of Missouri.

Heading into the new year, a couple of sports betting bills have already appeared on the horizon. While neither of them has committee assignments as of yet, one bill, in particular, has been filed by Rep. Phil Christofanelli. It's HB 1666, and here is what we know about this bill at this time.

The bill is designed to allow for retail sports betting licenses to go to the state's riverboat casinos. The same casinos would then be allowed to contract for online/mobile sports betting support from the top U.S. online bookmakers. At this time, no mention has been made of how many skins each licensed operator would be able to offer. All of this would be managed by the MO Gaming Commission, the same regulatory body that regulates the riverboat casinos. There is no indication whether or not the Missouri lottery would be involved in the state's sports betting activities.

As far as revenue sharing, HB 1666 calls for Missouri sports betting operators to pay a 6.75% tax rate on gross sports betting revenue. That would be for both retail and online sports betting. This rate is in line with what sports betting operators are paying in Iowa and Nevada, the lowest current rates in the U.S.

It's worth noting that this bill does not address the legalization of video lottery machines, something that might have to change to get the bill passed. Of course, the state's riverboat casinos have actively opposed the legalization of these machines based on fears the machines would cannibalize casino revenue.

If Missouri is to ever pass sports betting legislation, something has to give. Clearly, the lobbyists representing video lottery machine owners have their hooks into a large group of legislators. The conversation will be renewed when Christofanelli's bill hits the House floor for debate. With a state that actively supports major sports teams in the NFL, MLB, and NHL, there is little doubt what residents want. They want the right to legally bet on sports from home for the first time in their lives.

Heading into 2022, this will be a common theme as other states continue to move towards the passing of sports betting legislation. Aside from Missouri, all eyes will be on Florida to see what happens between the Seminole Tribe and open sports betting proponents.