Missouri Senate Committee Approves Sports Betting Bill, Blocks Combined Sports Betting and VLT Bill

• Missouri lawmakers may be putting their foot down on combined sports betting and video lottery terminal bills
• The Missouri Senate Appropriations Committee blocked a bill to legalize sports betting and video lottery terminals
• The committee approved a standalone bill to legalize Missouri retail and online sports betting

Missouri lawmakers may finally be looking to divorce the issue of sports betting and video lottery terminals as a combined deal, as the Senate Appropriations Committee today denied an integrated sports betting and video lottery terminal bill and instead approved a piece of standalone sports betting legislation.

The appropriations committee voted against Sen. Denny Hoskins bill, SB 1, to legalize Missouri sports betting and video lottery terminals (VLTs). Instead, the committee gave the green light to Sen. Tony Luetkemeyer’s bill, SB 30, which seeks to only legalize retail and online sports betting in the state.

The inclusion of video lottery terminals in sports betting legislation has long been a point of controversy among Missouri lawmakers, but today’s decision may offer us a glimpse into how the issues will be dealt with moving forward.

Moving Past VLTs?

Yesterday, the Senate Appropriations Committee heard testimony on both SB1 and SB 30. Representatives for Missouri professionals sports teams made it very clear to the committee that they supported any piece of legislation that would legalize sports betting, but did not have any position on the legalization of VLTs.

St. Louis Cardinals President Bill DeWitt told the committee that the MLB franchise hoped sports betting and VLTs would be “bifurcated” and not discussed as a package in order to improve the chances of sports betting legalization.

The Senate Appropriations Committee seems to be in agreement with DeWitt, as it chose to give the go-ahead to Luetkemeyer’s bill. SB 30 seeks to legalize online and retail sports betting in the state, but does not include a VLT element. The bill sets the sports betting tax rate at 10% of adjusted gross gaming revenue.

Missouri casinos, under SB 30, may conduct retail sports betting with up to three individually branded interactive sports betting platforms. It may conduct online sports betting with up to one interactive sports wagering platform.

Application fees for each license will cost $100,000. An online sports betting platform can apply to the Missouri Gaming Commission to conduct sports wagering through an application fee not to exceed $150,000. Every year after licensure, the platforms can submit a renewal fee not to exceed $125,000.

Its biggest difference from Hoskins’ piece of legislation, of course, is the exclusion of VLTs. Hoskins’ bill, SB 1, allowed for VLTs “in fraternal organizations, veterans’ organizations, and truck stops, as such terms are defined in the act, and in business entities licensed to sell liquor by the drink.” VLTs would have been taxed at 36% and lottery facilities would be capped at five machines, with other entities at eight machines.

Many supporters did speak up at the committee hearing in favor of SB 1 and VLTs. Ron Leon, Executive Director of Missouri Petroleum Marketers and Convenience Store Association, lauded the potential VLT revenue stream provided by SB 1. The law will allow the maximum number of legal VLTs at the maximum number of convenience stores and gas stations across the state, he said, while other VLT legislation cuts out the small mom and pop convenience stores that would most benefit from the machines.

House So Far Agrees with Standalone Sports Betting

The Missouri House of Representatives so far seem to agree with Luetkemeyer and the idea of a standalone sports betting bill. Identical standalone sports betting bills from Rep. Dan Houx (R-54) and Rep. Phil Christofanelli (R-106) are one step away from a potential House floor vote.

The  bills, HB 556 and HB 581, both of which will legalize retail and online sports betting for state casinos and Missouri professional sports franchises, were approved by the Missouri Emerging Issues Committee by a vote of 12-0 this morning and moved to the House Rules Committee. If approved by the rules committee, the bills will head to the Missouri House Floor.

The bills have the backing of every professional sports franchise in the state and most of the state casinos.

If approved, the legislation will allow Missouri casinos to partner with up to three sports betting operators and professional sports franchises the ability to partner with up to one operator. In-person sports betting will only be available at state casinos.

The bill sets the sports betting tax rate at 10% of adjusted gross revenue.

The bills do not include a VLT component.

VLT Chances Moving Forward?

It may not be the death knell for VLTs in the state, as Sen. Karla May (D-4) introduced a standalone VLT bill (SB 192) that currently resides in the appropriations committee, but it likely will not stop Hoskins from continuing his discussions this session.

Hoskins spoke for nearly two hours this morning on VLTs and sports betting on the Senate floor after the appropriation committee’s decision. This is nothing new for Hoskins, as he filibustered a 2022 Senate hearing for nearly three hours until the meeting was concluded after an amendment was floated to strip VLTs away from a sports betting bill.

The Missouri senator has alluded this session that he will likely try to block any standalone sports betting bill. If you put any stock into his social media, it looks like Hoskins may be gearing up for a fight.

https://twitter.com/DLHoskins/status/1628835358912794624

The Missouri 2023 legislative session will conclude on Thursday, June 8.