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Sports wagering bill is now heading to Missouri House floor

January 29, 2020 By Brian Hauswirth

Legislation that would legalize sports wagering and slot machines was approved by a Missouri House committee in Jefferson City on Tuesday.

State Rep. Dan Shaul, R-Imperial, speaks at the Missouri Capitol in Jefferson City on August 22, 2019 (file photo courtesy of Tim Bommel at House Communications)

The comprehensive 31-page gaming bill, which is sponsored by State Rep. Dan Shaul, R-Imperial, will now head to the House floor.

The bill is House Bill 2088.

The House Special Committee on Government Oversight also voted to approve an amendment from Shaul, to allow sports wagering and slot machines in “entertainment districts.”

“What this does is basically allows (the) Power and Light District (in Kansas City) and also Ballpark Village areas to become an entertainment district so that they could also do sports betting and VLT’s,” Shaul testifies.

VLT’s, known as video lottery terminals, are slot machines. State Rep. Peter Meredith, D-St. Louis, asked about the amendment’s language.

“Are we sure that it’s limited to those two (Power and Light and Ballpark Village), with these definitions,” Meredith asks Shaul.

“I believe before this bill is done, they’ll be some expansion of that to some other players that will want to be involved,” Shaul responds.

Missourinet checked with Shaul’s office after the hearing, to confirm specifics about the language. Shaul’s office says Ballpark Village and Power and Light are examples of entertainment districts and possible locations for the sports betting and VLT’s.

The slot machine issue has been a high-profile issue at the Missouri Capitol, dominating discussion at several House interim gaming hearings in the fall. The Missouri State Highway Patrol testified in October that the number of complaints it’s received about illegal gambling has increased from 39 in 2018 to at least 145 in 2019. Most of those complaints were about slot machines.

Shaul’s legislation would allow the Missouri Lottery Commission to implement a system of video lottery game terminals and to issue licenses to video lottery game manufacturers, distributors, operators and handlers.

Under the Shaul bill, the video lottery terminals would be connected to a centralized computer system developed by the Lottery Commission. No terminal could be placed in operation without connecting to that system, under the bill.

The Shaul bill says that truck stops and fraternal organizations could operate up to ten video lottery terminals at one location. Bars could operate up to five slot machines, at one location.

It also prohibits those under 21 from playing the slot machines.

As for the overall bill, Shaul says 18 states will have implemented sports wagering, by the end of 2020. It will be heading to the House floor.

Representative Meredith says the legislation should go to a statewide vote, noting the Missouri Lottery’s creation and other major gaming issues went to voters.

“This would be the first major expansion of gambling in our state ever to not go to a vote of the people,” Meredith says. “The vote of the people who even have to vote to change the rules on bingo.”

Meredith is referring to a statewide vote in November 2018, involving bingo. His amendment was defeated in committee.

A Major League Baseball (MLB) representative testified before Shaul’s House committee in Jefferson City in November, predicting that Missourians will wager $5.5 billion annually on sports, if it’s legalized.

Sports betting and alleged illegal slots addressed in Missouri House committee report

December 3, 2019 By Brian Hauswirth

Legislation legalizing sports wagering has the backing of a bipartisan Missouri House gaming committee.

State Rep. Dan Shaul, R-Imperial, speaks on the Missouri House floor in Jefferson City on May 17, 2019 (file photo courtesy of Tim Bommel at House Communications)

The Missouri House Special Interim Committee on Gaming held five hearings between late August and November, and completed its 15-page report on Monday. Committee Chairman State Rep. Dan Shaul, R-Imperial, tells Missourinet it’s now being circulated for signatures.

The committee report views the legalization of sports betting as a “legitimate opportunity to increase state revenues” for education and other programs. By 2020, 18 states will have implemented sports wagering. The report concludes that Missouri would likely lose revenue if it doesn’t remain competitive with other states.

The report also says the state should focus on preserving and growing both the Missouri Lottery and casino gaming, in order to increase revenue for education.

The state has 13 licensed riverboat casinos.

Chairman Shaul describes the report as a status report, to the full House.

“We want to give the General Assembly a set of facts, a set of baseline of where we’re at, and what some problems are out there,” Shaul says.

The report says age restrictions are important and should be used to prevent minors from gambling. The report also says the bulk of sports wagering revenues should be directed to fund education.

Major League Baseball (MLB) representative Jeremy Kudon traveled to Jefferson City in November to testify before the committee. He testifies that Missourians are expected to wager $5.5 billion annually on sports, if it’s legalized. Kudon predicts that casino operators would make about $376 million a year from that, and that Missouri would receive $37 million annually in taxes.

The report also addresses alleged illegal slot machines, which dominated discussion for hours at most of the five hearings.

The report presents facts and recaps testimony about the slot machines, and does not make a formal recommendation. Chairman Shaul told Missourinet after the final hearing in November that the issue is a concern, adding that people want to play these machines.

“So what do we do going forward, how do we thread the needle of good legislation that, one, protects Missouri businesses, protects Missouri consumers and allows people to do what they want at the same time,” Shaul said in November.

The report describes the alleged illegal slot machines as “grey machines”, noting Missouri likely has more than 14,000 of them.

Alleged illegal slots can be found in locations like bars, restaurants, gas stations and convenience stores. There is one pending criminal case in western Missouri’s Platte County, in the Kansas City area. The report says any judicial resolution “is unlikely prior to late 2021.”

Shaul has predicted at several hearings that the Platte County case will likely end up at the Missouri Supreme Court.

While there is no formal recommendation, the committee’s final report says “it may be desirable to act to regulate such machines immediately to resolve uncertainty and prevent further loss of revenue that could be used for educational purposes.” The report also says the problem of illegal gambling is not likely to resolve itself.

The report says the Missouri Lottery and the Missouri Gaming Commission have offered to provide assistance with regulation, enforcement and drafting of legislation to address the issue.

The report will go to House Speaker Elijah Haahr, R-Springfield, and the full House. Missouri lawmakers return to Jefferson City for the 2020 session on January 8.

MLB: Missourians expected to wager $5.5 billion on sports, if it’s legalized

November 7, 2019 By Brian Hauswirth

A representative from Major League Baseball (MLB) predicts Missourians will spend billions of dollars annually to bet on sports, if it’s legalized.

Missouri House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, speaks during a hearing on August 22, 2019 (file photo courtesy of Tim Bommel at House Communications)

Jeremy Kudon traveled to Jefferson City to testify Thursday before the Missouri House Special Interim Committee on Gaming.

“According to the AGA’s Oxford report, Missouri bettors are expected to wager over $5.5 billion on sports, that’s about where New Jersey is right now,” Kudon testifies.

The AGA is the American Gaming Association. Kudon predicts casino operators would make about $376 million a year from that, and that Missouri would receive approximately $37 million annually in taxes.

Kudon also expresses some concerns, noting that MLB opposes allowing betting on spring training games.

“Where the Cardinals may have a plan for (pitcher) Adam Wainwright to throw curve balls the entire first inning, that’s a real-life thing,” Kudon tells lawmakers.

Kudon says he wants to see a bill that creates the best possible legal sports betting framework for Missouri. Kudon also represents the National Basketball Association (NBA) and the PGA Golf Tour.

The “St. Louis Post-Dispatch” has reported that at least 18 other states and the District of Columbia allow residents 21 and older to bet on collegiate and professional sports.

State Reps. Robert Ross, R-Yukon, and Cody Smith, R-Carthage, filed sports wagering bills in 2019, but the bills died because of a lack of consensus in the Legislature. Ross, who serves on the interim committee, tells Missourinet he plans to file a similar but improved bill for 2020.

The National Football League (NFL) Players Association and the National Hockey League (NHL) Players Association also testified before the committee on Thursday.

The NFL Players Association is calling on Missouri to establish a hotline for players to call, if the state legalizes sports wagering. Players Association counsel Joe Briggs expressed some security concerns for players, during his testimony.

“So if I’m sitting at home and someone tries to drop a bag of cash on my doorstep to try to make sure that I play a certain way or not next week, who do I pick up the phone and call.” Briggs testified.

Briggs tells state lawmakers the hotline could be run by Attorney General Eric Schmitt’s office, the Missouri State Highway Patrol or the Gaming Commission.

While the bulk of Thursday’s hearing involved sports wagering, the committee also heard some testimony about alleged illegal slot machines. That’s been a major issue at previous hearings.

Committee Chairman Dan Shaul, R-Imperial, tells Missourinet the committee plans to submit a report to House Speaker Elijah Haahr, R-Springfield, by December 1.

Major League Baseball to testify Thursday at Missouri Capitol (AUDIO)

November 6, 2019 By Brian Hauswirth

A representative from Major League Baseball will testify Thursday before a Missouri House gaming committee in Jefferson City about sports wagering legislation.

State Rep. Robert Ross, R-Yukon, speaks during an August 22, 2019 hearing of the Missouri House Special Interim Committee on Gaming (file photo courtesy of Tim Bommel at House Communications)

Jeremy Kudon of Major League Baseball is traveling from New York to Jefferson City to testify before the House Special Interim Committee on Gaming. Committee Chairman Dan Shaul, R-Imperial, tells Missourinet that he expects an informative presentation.

“MLB will be here (the Missouri Capitol) on November 7th and they’ll talk about their role in sports betting, and what they’d like to see and what they’ve done in other states,” Shaul says.

Gaming executive Chris Krafcik of San Francisco-based Eilers and Krejcik Gaming testified before the committee in October that legalizing sports betting at Missouri casinos and via mobile devices would generate about $289 million annually in revenue.

Multiple gaming executives testified in October that they want to make sure that legalized sports betting in Missouri is easy to use, secure and is fair for the consumer.

State Reps. Robert Ross, R-Yukon, and Cody Smith, R-Carthage, filed sports wagering bills in 2019, but the bills died because of a lack of consensus in the Legislature. Representative Ross, who serves on the interim committee, tells Missourinet he plans to file a similar but improved bill for 2020.

The “St. Louis Post-Dispatch” has reported that at least 18 other states and the District of Columbia allow residents 21 and older to bet on collegiate and professional sports.

Las Vegas-based Boyd Gaming, which operates the Ameristar Kansas City and St. Charles casinos, testified last month for legislation to legalize sports betting in Missouri. Boyd Gaming’s Ryan Soultz tells lawmakers Missouri is losing tax revenue to other states, citing customers in the Kansas City area.

“We’ve heard from some customers that are making the drive up to Iowa for football Saturdays and football Sundays because we don’t have a sports book here,” Soultz testifies.

The House Special Interim Committee on Gaming meets Thursday at noon. This is the committee’s final hearing. They plan to submit a report to the full House by December 1.

Click here to listen to the full interview between Missourinet’s Brian Hauswirth and House Special Interim Committee on Gaming Chairman Dan Shaul, R-Imperial, which was recorded on October 24, 2019 at the Statehouse in Jefferson City:

Gaming industry predicts sports betting will generate millions of dollars in Missouri

October 24, 2019 By Brian Hauswirth

Gaming executives from across the nation traveled to Jefferson City to testify Thursday afternoon before a Missouri House committee about sports wagering.

Missouri House Special Interim Committee on Gaming Chairman Rep. Dan Shaul, R-Imperial, speaks during an August 22, 2019 hearing in Jefferson City (file photo courtesy of Tim Bommel at House Communications)

Executive Chris Krafcik of San Francisco-based Eilers and Krejcik Gaming tells the House Special Interim Committee on Gaming that if Missouri allows sports betting only at land-based facilities like casinos, it would generate about $95 million annually in revenue.

“The second assumes that Missouri allows sports betting at both land-based facilities and via mobile devices from anywhere within the state’s borders,” Krafcik testifies. “And in this scenario, Missouri’s legal sports betting industry would generate approximately $289 million in revenue.”

Executives from Las Vegas-based Boyd Gaming also testified on Thursday, for legislation to legalize sports betting in Missouri. Boyd employs about 2,500 Missourians at its Ameristar Kansas City and St. Charles casinos, combined.

Boyd Gaming’s Ryan Soultz tells lawmakers that legalizing sports betting in other states has boosted foot traffic in casinos and has produced additional jobs.

“Now you have a new crowd coming in that wants to watch football, and they want to bet on football and hang out in the sports book all day,” says Soultz. “And while they’re there, they are buying food and beverage.”

Fantasy sports provider “Fan Duel” also testified, saying they’re excited about the possibility of legalized sports betting in Missouri. An executive from Boston-based fantasy sports provider DraftKings also testified.

The House Special Interim Committee on Gaming heard about three hours of testimony, primarily from gaming executives. Committee Chairman Dan Shaul, R-Imperial, tells Missourinet the executives were “in lockstep” in what they want in legalized sports betting here.

“They want to make sure that it’s easy to use, secure, fair for the consumer,” Shaul says.

The “St. Louis Post-Dispatch” has reported that at least 18 other states and the District of Columbia allow residents 21 and older to bet on collegiate and professional sports.

Major League Baseball executives will travel to Jefferson City to testify before the committee on November 7, about sports wagering. The committee will submit its report to the full House by December, ahead of the 2020 session.

Thursday was the committee’s fourth hearing.

State Reps. Robert Ross, R-Yukon, and Cody Smith, R-Carthage, filed sports wagering bills in 2019, but they died because of a lack of consensus in the Legislature. Representative Ross tells Missourinet he plans to file a similar but improved bill for 2020.