HCSHBs556&581--SPORTSWAGERING
SPONSOR: Houx
COMMITTEEACTION:Voted"DoPasswithHCS"bytheStanding
CommitteeonEmergingIssuesbyavoteof12to0.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
556.
Thisbillenactsnewprovisionsrelatingtosportswagering.
Thisbillamendsthedefinitionof"gamesofskill"toinclude
sportswageringinSection313.800,RSMo.
Thisbilldefines"adjustedgrossreceipts"specificallyforthe
provisionsofthisbillrelatingtosportswageringoperations.
Thebillalsoprovidesnewdefinitionsfor"esports","interactive
sportswageringplatform","prohibitedconduct",and"sports
wagering",amongotherdefinitionsspecifictotheprovisionsof
thisbill.
ThebilladdssportswageringtotheVoluntaryExclusionProgram
administeredbytheMissouriGamingCommissionandspecifiesthat
anypersonwhohasself-excludedandhasbeenfoundtoplacea
sportswagermustforfeitanywinnings. Forfeitedwinningswillbe
creditedtotheCompulsiveGamblersFund.Theprogramspaidforby
thefundsintheCompulsiveGamblersFundareexpandedtoinclude
recoveryservices.
TheCommission,incooperationwiththeDepartmentofMental
Health,mustdevelopatriennialresearchreportasspecifiedin
thebill.Theinitialreport,associatedstudies,and
recommendations mustbesubmittedtotheGovernor,PresidentPro
TemoftheSenate,andtheSpeakeroftheHouseofRepresentatives
nolaterthanDecember31,2024,andthennolaterthanDecember31
ofeverythirdyearthereafter.
Thisbillallowscertificateholderstooffersportswageringat
licensedfacilitiesthatareexcursiongamblingboatsandoverthe
Internetthroughinteractivesportswageringplatformstopersons
physicallylocatedwithinthestate.Exceptasprovidedunderthis
bill,nosportswageringcommercialactivitymayoccurwithinany
designatedsportsdistrictwithouttheapprovalofeach
professionalsportsteamentity,providednosuchapprovalis
necessaryforthesoleactivityofofferingsportswageringover
theInternetviaaninteractivesportswageringplatform. TheMissouriGamingCommissionshallhavefulljurisdictionto
superviseallgamblingoperatorsandadoptrulestoimplementthe
provisionsofthisbill.Theserulesshallinclude,butnotbe
limitedto,standardsandproceduresgoverningtheconductof
sportswagering,standardsgoverninghowasportswageringoperator
offerswageringovertheInternet,themannerinwhichsports
wageringoperator'sbooksandrecordsaremaintainedandaudited,
andstandardsconcerningdetectionandpreventionofcompulsive
gambling.
Certificateholdersmustmakecommerciallyreasonableeffortsto:
(1)Designateareaswithinthelicensedfacilitytobeoperatedby
thesportswageringoperator;
(2)Ensurethesecurityandintegrityofsportswagers;
(3)Ensurethatthesportswageringoperator'ssurveillancesystem
coversallareasofsportswageringactivity;
(4)AllowtheCommissiontobepresentthroughtheCommission's
gamingagentswhensportswageringisconducted;
(5)Ensurethatwagerresultsaredeterminedonlyfromdatathat
isprovidedbytheapplicablesportsgoverningbodyorthelicensed
sportswageringsuppliers;
(6)Ensurepersonsunder21yearsofagedonotmakesports
wagers;
(7)Establishhouserulesrelatingtopaidwinningwagersamounts;
and
(8)Establishindustry-standardproceduresregardingthevoiding
orcancelingofwagers.
AsportsgoverningbodymaynotifytheCommissionthatofficial
leaguedataforsettlingtier2betsisavailableforsports
wageringoperators. TheCommissionwillthennotifysports
wageringoperatorsoftheavailabilityofsuchleaguedata.Each
sportswageringoperatorshalluseonlyofficialleaguedatato
settletier2betsonathleticeventssanctionedbytheapplicable
sportsgoverningbody,withcertainexceptionsaslistedinthe
bill.TheCommissionshallpublishalistofofficialleaguedata
providersonitswebsite.
TheCommissionmayenterintomulti-jurisdictional agreementsto
facilitate,administer,andregulatemulti-jurisdictional sports
bettingtotheextentthatenteringintotheagreementis consistentwithstateandfederallawsandisconductedonlyinthe
UnitedStates.
Alicensedapplicant,asdefinedinthebill,mayapplytothe
Commissionforeachlicensedfacilityinwhichthelicensed
applicantwishestoconductsportswagering. Theapplicantshall
payaninitialapplicationfeeofupto$100,000andsubmita
responsiblegamblingplanasrequiredinthebill.
TheCommissionshallensurethatnewsportswageringdevicesand
forms,variations,orcompositesofsportswageringaretested
priortoauthorizingasportswageringoperatortooffersuchnew
devices,forms,variations,orcomposites.
Alicensedexcursiongamblingboatmayoffersportswagering
throughuptothreeindividuallybrandedinteractivesports
wageringplatforms. Adesignatedsportsdistrictmobilelicensee,
asdefinedinthebillandlicensedbytheCommissionasan
interactivesportswageringplatformoperator,mayoffersports
wageringwithinthestatethroughoneinteractivesportswagering
platform. Nosportswageringoperatormayoffersportswageringin
personorthroughanysportswageringkioskexceptwithina
licensedfacilitythatisanexcursiongamblingboat.
Sportswageringmaybeconductedwithnegotiablecurrency. The
sportswageringoperatorshalldetermineaminimumandmaximum
wageramount.Asportswageringdevice,point-of-contactdevice,
orkioskmustbeapprovedbytheCommissionandacquiredbyan
operatorfromalicensedsupplier.
Asportswageringoperatormaylayoffoneormoresportswagers
subjecttorulespromulgatedbytheCommission.
Asportswageringoperatormustincludecertaininformationand
toolstoassistplayersinmakingresponsibledecisions,including
toolstosettimeandmoneylimits,informationregarding
compulsivegamblingandwaystoseektreatment,andtheabilityto
excludecertainelectronicpaymentmethods.
Aninteractivesportswageringplatformoperatormustapplyfora
licensewiththeCommissiontooffersportswageringonbehalfofa
licensedfacility. Theprovidershallpayaninitialapplication
feeofupto$150,000andarenewalfeeannuallyofupto$125,000
andsubmitaresponsiblegamblingplanasrequiredinthebill.
AnyapplicationsubmittedtotheCommissionandalldocuments,
reports,anddatacontainingproprietaryinformation,trade
secrets,financialinformation,orpersonallyidentifiable
informationaboutanypersonshallbeconfidential. TheCommissionmayissueasupplier'slicensetoasportswagering
suppliertoprovideitsservicestolicenseesunderafixed-feeor
revenue-sharingagreement. Attherequestofanapplicant,the
Commissionmayissueaprovisionallicenseifthatapplicanthas
submittedacompletedapplication,includingtherequiredfee.The
billspecifiesrequirementsthatanapplicantforasupplier's
licensemustmeetinordertoreceivealicense. Arenewalfee
mustbesubmittedbienniallyasdeterminedbytheCommission.
Asportswageringoperatormustverifythatthepersonplacinga
wagerisatleastthelegalminimumageforplacingthewager.The
Commissionshalladoptrulesandregulationsincorporatingasports
wageringself-exclusionprogram.
TheCommissionshalladoptrulestoensurethatadvertisements for
sportswageringdonotknowinglytargetminors,disclosethe
identityofthesportswageringoperator,arenotincludedonsites
orpagesdedicatedtocompulsivegambling,providegambling
addictionresourceinformation,andarenotfalseormisleading.
TheCommissionmustestablishpenaltiesofbetween$10,000and
$100,000foranysportswageringoperatorwhoviolatesthe
restrictionsonadvertisingtovulnerablepersons.
TheCommissionshallestablishahotlineorothermethodof
communicationallowinganindividualtoconfidentially report
informationaboutprohibitedconducttotheCommission. The
Commissionshallinvestigatereasonableallegationsandrefer
credibleallegationstotheappropriatelawenforcemententity.
TheCommissionshalladoptrulesgoverninginvestigations of
prohibitedconductandreferrals.
TheCommissionshallconductbackgroundchecksonallindividuals
seekinglicensesundertheprovisionsofthisbill.This
backgroundcheckshallincludeasearchforcriminalhistoryand
anychargesorconvictionsinvolvingcorruptionormanipulationof
asportingevent.
Asportswageringoperatorshallemploycommerciallyreasonable
methodstoprohibitunfairbettingpractices. Anypersonwhose
participationmayunderminetheintegrityofthebettingorsports
eventoranypersonprohibitedforgoodcauseasprovidedforin
thebillmaynotengageinsportswagering.
Nosportswageringoperatormayofferwagersonanyelementaryor
secondaryschoolathleticeventinwhichaschoolteamfromthis
stateisaparticipant,norshallanysportswagersbeplacedon
theindividualperformanceofanycollegiateathleteona
collegiateteamfromthisstate. Anoperatormustadoptprocedurestoobtainpersonallyidentifiable
informationfromanyindividualplacingasinglewagerof$10,000
ormorewhilephysicallypresentatacasino.
TheCommissionandsportswageringoperatorsshallallcooperate
withinvestigations conductedbylawenforcementagenciesorsports
governingbodies.Incooperatingwithinvestigations, thesports
governingbodyshallmaintaintheconfidentiality ofinformation
andfiles,complywithallapplicableprivacylaws,andusethe
informationsolelyinconnectionwiththesportsgoverningbody's
investigation.
AnoperatorshallimmediatelyreporttotheCommissioninformation
relatingtocriminalordisciplinaryproceedingscommencedagainst
theoperatorinconnectionwiththesportswageringoperation,bets
madethatviolatelaw,abnormalorsuspiciouswageringactivityand
anyotherconductthatcorruptsthewageringoutcomeofasporting
event.
AsportsgoverningbodymaysubmittotheCommissionarequestto
restrictorexcludeatypeorformofsportswageringonits
sportingeventsifthebodybelievessuchwageringwouldaffectthe
integrityofthesport.TheCommissionmaygranttherequestupon
ashowingofgoodcausebytheapplicablesportsgoverningbody.
Sportswageringoperatorsshallbenotifiedofanysuch
restrictionsorexclusions.
Asportswageringoperatorforwagersplacedinperson,anda
licensedfacility,interactivesportswageringplatformoperator,
orsportswagering,whereapplicable,forallinteractivewagers
placed,inexcessof$10,000,shallmaintainpersonally
identifiableinformationandotherinformationrelatingtothe
wagerasdescribedinthebillforatleastthreeyears.Such
informationshallbemadeavailableforinspectionupontherequest
oftheCommissionorasrequiredbycourtorder.
Awageringtaxof10%isimposedontheadjustedgrossreceipts,as
definedinthebill,receivedfromsportswageringconductedbya
sportswageringoperator. Acertificateholderorinteractive
sportswageringplatformoperatorshallremitthistaxmonthlyto
theDepartmentofRevenue. Inamonthwhentheadjustedgross
receiptsarenegative,thecertificateholderoroperatormaycarry
overthenegativeamountforaperiodof12months.Thepaymentof
thetaxunderthissectionshallbebyanelectronicfundstransfer
byanautomatedclearinghouse. RevenuesreceivedfromthistaxshallbedepositedintotheState
Treasuryandcreditedtothe"GamingProceedsforEducationFund",
tobedistributedpursuanttoprovisionsofthebill.
Alicensedfacilitythatisanexcursiongamblingboatshallpayan
annuallicenserenewalfeenottoexceed$50,000. Additionally,a
certificateholdershallpayafeeof$10,000tocoverthecostof
afullreinvestigation ofthecertificateholdereveryfouryears,
tobedepositedintotheGamingCommissionFund.Annually,at
least$500,000shallbeappropriatedfromtheGamingCommission
FundandcreditedtotheCompulsiveGamblersFund.The
appropriationamountmustconsideranyrecommendations madeinthe
annualresearchreport.
Allsportswagersplacedundertheprovisionsofthisbillshallbe
deemedinitiated,received,andotherwisemadeonthepropertyof
anexcursiongamblingboatwithinthisstate.Totheextent
requiredbyfederallaw,allserversnecessaryforplacingor
resolvingofwagers,otherthanbackupservers,shallbephysically
locatedwithinanexcursiongamblingboat.Totheextentrequired
byfederallaw,theintermediateroutingofelectronicdatashall
notdeterminethelocationorlocationsinwhichsuchwagersare
initiated,received,orotherwisemade.
ThisbillissimilartoHB2502&2556(2022)andHB581(2023).
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: Supporterssaythatthisislegislationthathashad
broadsupportinthepast.Sportswageringactivityisalready
occurringinthestate,anditiseasyforindividualsto
participateinsportswageringalready. Thirty-sixotherstates
andtheDistrictofColumbiahavealreadyenactedsportswagering
legislation. Thisbillensuresproperregulatoryoversightofsuch
sportswageringactivity,ensuringsafeguardsagainstcompulsive
gamblingproblems,andgeneratingrevenueforthestatethrough
feesandtaxes.Missouriiscurrentlycompetingagainst
neighboringjurisdictionsandillegalmarkets. Thisbillisa
cleansportswageringregulatoryscheme,reflectingbestpractices
ofotherjurisdictions. Further,legalizedsportswageringcan
introduceawholenewsetoffanstosportsandwillleadtolocal
sportsandbusinessgrowth.
TestifyinginpersonforthebillwereRepresentative Houx;Ford
Galvin,KansasCityCurrent;St.LouisSc;CaraHoover,KansasCity
Royals;HomeDockCitiesAssociation;CityofKansasCity;Mo
ChamberofCommerce;PennEntertainment, Inc;SportsBetting Alliance;MikeWhittle,St.LouisCardinals;MoGaming
Association;Sportradar;St.LouisBlues;MarkHanna,Realtime
FantasySports,Inc;andtheKansasCityChiefsFootballClub.
OPPONENTS: Thosewhoopposethebillsaythatthebillas
introducedraisesparticularconcernsontheimpactonplayersand
athletes. Someoftheseconcernsincludeplayersafety,reporting
requirements,andtheownershipandrightstopersonalbiometric
dataofplayers. Otherswhoopposethebillsaythisbillis
tailoredtopromotetheinterestsofcasinos,notMissouriasa
whole.Underthisbill,Missouriwillexperiencemuchlessprofits
bytaxingsportswageringat10%thanifsportswageringwastaxed
atthesamerateasothergamblingactivitiesinthestateof21%.
TestifyinginpersonagainstthebillwereTimothyFaber,Missouri
BaptistConvention;NationalSteamboatMuseum;StevenFehr,
NationalHockeyLeaguePlayersAssociation;andtheMLB,NHL,MLS
andNBAPlayersAssociation.
ThisbillissimilartoHB2502&2556(2022).
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.