Summary of House Bills 2502 & 2556

This blog piece was written by one of our students, Corvin. The opinions expressed herein do not reflect those of Civitas other than respect for the value of open dialogue.

This blog post is to talk about the current MO House Bills 2502 and 2556. I’ll be summarizing the bill, and explaining the changes that it’s received recently. The bill redefines “games of skill” to include sports wagering. This is because of the ability to use foresight, and the player’s reason. The bill also redefines “Adjusted gross receipts” or in other words, the money left over after payouts. The bill would also add definitions to “esports”, “interactive sports wagering platform”, and “sports wagering”. 

Also if this bill passes, the Department of Mental Health will begin using an annual research report with reports that would be sent to the Governor. The bill will allow “licensed facilities” and internet users through “interactive sports wagering platforms” for individuals located in Missouri. However, no commercial activity may occur in areas designated sports districts without each professional sports team’s approval. The Missouri Gaming Commission would get the power to adopt rules to add provisions onto the bill. Rules would be along the lines of SOP and the prevention of compulsive gambling. In facilities, negotiable currency may be used, and the operator of any location may determine a minimum and maximum amount to be wagered. Licensed applicants, who presumably run licensed facilities, would need to pay an application fee of $100,000 and gambling plan.

The “interactive sports wagering platform operator” has to apply for a license for $150,000 and renew each year for $125,000. All applications submitted to the commission (data or information that could be identifiable) will be confidential. All people attempting to get licenses must have background checks conducted, searching criminal history, and charges/convictions of corruption or manipulation of sporting events. All bettors of $10,000 or more, will be allowed to obtain personally identifiable information when in a casino.

There would also be rules instituted on the owners of establishments that allow gambling. They are: mark areas for sports wagering, maintain the integrity of wagers, operate security systems over the floor, only allow legal gamblers (21+), make rules about paying winnings, and make industry-standards regarding canceled wagers. The commission will make sure that advertisements don’t target minors or show ads meant for assisting those that compulsively gamble. Penalties for breaking said rules would be between $10,000 and $100,000. 

Tier 2 betting or betting on anything that isn’t the direct outline of events via final score or outcome (a tier 1 bet) would be legalized and regulated accordingly.  Devices for sports wagering would need to be tested before allowing an operator to use said devices. Operators must cooperate with investigations conducted by law enforcement or sports governing bodies. While cooperating, sports governing bodies must maintain the confidentiality of files, while complying with privacy laws.

There is certain information and tools to help gamblers make responsible choices (time and money limits, and information about gambling addictions and ways to find help and exclude methods of electronic payment options). Also, bets can’t be placed on any sporting event that is below the college level.

Sports governing bodies may submit a request to restrict or exclude a type or form of sports wagering on its sporting events if the body believes such wagering would affect the integrity of the sport. An 8% tax would be imposed on all winnings, and profit from the casino. Revenue from the tax will be put into the MO Treasury and credited to “Gaming proceeds for Education Fund”.