A new sports bill proposal in Missouri in the US is planning to give royalty fees to the National Collegiate Athletics Association (NCAA) and the US professional sports leagues. House Bill 119, which is due to a discussion in the 2019 legislative session by Republic Cody Smith, proposes that a certain percentage of the total amount wagered on sporting events should be given to the sporting leagues.
This bill will amend the Revised Statutes of Missouri and permit sports betting in land-based venues. It will also allow on-premises interactive wagering in the state. Betting operators will pay a $10,000 fee for securing the interactive license. The same amount will be payable for a bricks-and-mortar certificate as well. The bill also seeks to restrict sports betting only to individuals over the age of 21.
The royalty fee proposed by the new bill will be split between the NCAA and the professional sports leagues. All licensed operators in the state will pay 0.75 percent of the total sports wagers they handle for events organized by the sporting leagues. This fee will be payable to the Missouri Gaming Commission which, in turn, will be distributing the money to the leagues.
The operators will pay another 0.25% on NCAA football and Division 1 basketball competition. This amount too will be payable to the Missouri Gaming Commission. It will b distributed to the public universities that sponsor the Division 1 basketball teams and the NCAA football teams.
But this is not where the division of wager totals end for Missouri operators. The bill also seeks to provision the operators to use only official league data on “commercially reasonable terms.” This would mean an additional 6.25% tax on the gross gaming revenue of the operators which will go to the Gaming Proceeds for Education Fund- a new way of providing for the educational programs of the state.
Licensees will also have to pay a $5,000 administrative fee to the Gaming Commission another $10,000 at the end of the license period (5 years) to cover the costs associated with the licensing renewal process. Both the fees will be given to the Missouri State Wagering Fund which will be created via new legislation.
The money not required for administration will be invested by the Fund. Any remaining amount at the end of a calendar year will be transferred to the General Revenue Fund.
Smith’s bill is the second in the state to be pre-filed for a 2019 legislative session discussion. The first bill was filed by Senator Denny Hoskins which permits online and mobile betting throughout the state but allows in-person sports betting on riverboat gambling vessels only. The tax rate in the bill is 12% on the gross revenue with an extra 2% administrative fee to be paid to the Gaming Commission.
The bill also seeks a 0.5% fee on sports betting to the newly-created Entertainment Facilities Infrastructure Fund. The fund will be used for the maintenance of convention centers, sports and entertainment venues, trade and exhibition facilities and other cultural establishments. It could also be used for parking facilities and playing fields.
Both the bills will be under discussion when the new legislative session begins on January 9, 2019.