Integrity Fees, Back In Latest MO Sports Betting Bills

• Two new bills for the legalization of sports betting in the state of Missouri have included an integrity fee to be paid to the leagues.
• No state that has legalized sports betting has done so with integrity fees written into their bills.
• Previous sports wagering bills in the MO legislature received less than favorable outcomes and these fees were part of the issue.

JEFFERSON CITY, Mo. – The newest pre-filed sports betting bills in the state of Missouri have included an integrity fee stipulation.

An integrity fee is essentially royalties paid to the leagues for each wager that is placed on any particular game. The state of Missouri’s Special Interim Committee on Gaming made it clear in October that they were against any such fees if sports betting were to become legal.

Last year, bills very much like the current two that have been filed in the Senate, were dismissed.

The Integrity Fee Equation

There is a lot to be said for the inclusion of this fee into state law. On one hand, the tax rate with an added fee payment could deter sportsbook operators from wanting to do business because the costs could end up being too high for the “potential” of seeing substantial profits.

However, consultants from Spectrum Gaming Group have said that royalties paid to the league by sports betting businesses could help boost profits due to receiving a better amount of league support.

Currently, every state that offers legalized wagering on sporting events does not have an integrity fee mandate written into their laws.

The Bills

The two bills that were pre-filed in the Missouri Senate are MO SB 567 and MO SB 754.

Denny Hoskins of the Missouri Senate is behind MO SB 567 which wants the Missouri Lottery Commission to handle legalized sports betting in the state.

It would also require a 0.25% payment or about a 5% share of their revenue for an integrity fee to be paid by all operators. This bill has a tax on sports gambling revenue of 9%, making the total amount paid by MO sportsbooks to be 14% of their profits.

Tony Luetkemeyer, also of the Missouri Senate, is backing MO SB 754. This bill would put the Missouri Gaming Commission to be in charge of the sports betting market.

Under this bill, an integrity fee of 0.75% or 6.25% of sports wagering revenue would go to the leagues. Coupled with the 15% tax rate, it totals 21.25% in taxes that sports betting operators would be obligated to pay.

What The Future Holds For Legalized Sports Betting In Missouri

The Special Interim Committee on Gaming would like to make sports betting in Missouri a legal reality. As more states continue to legalize gambling on sports, Missouri does not want to be left missing out on any revenue possibilities.

In the bills that have been filed, mobile sports betting would become legal allowing for more residents to have access to a sportsbook and wager on games.

Despite the integrity fees being written into the new bills, the committee is already looking ahead to the future and how legal sports betting would be structured in the state. There is an emphasis on mobile betting platforms.

Next year could be the year that Missouri brings the legal wagering of sporting events to its residents. Whether or not integrity fees will be included remains in question.

News tags: Denny Hoskins | Integrity fee | Missouri | Missouri Gaming Commission | Missouri House Special Interim Committee on Gaming | Missouri Lottery Commission | MO SB 567 | MO SB 754 | Spectrum Gaming Group | Tony Luetkemeyer