Missouri proposes Sports Betting Royalty Fee

Missouri plans to include the proposal for a sport betting royalty fee – a fee that the betting operators must pay to sporting bodies – in its draft bill to legalise sports betting in the state.

The topic of sports betting royalty fee has been a hotly debated matter for quite a long time. Understandably sporting organisations would welcome the royalty fees, while the gambling operators may not entertain the idea. Missouri’s proposed draft for House Bill 119, prepared by GOP Rep Cody Smith, contains a provision that a percentage of all wagers placed should be directed to sports governing bodies.

Apart from that, according to the draft bill, operators will be charged a $10,000 fee each for interactive licenses and bricks-and-mortar license. The bill will suggest to allow gambling to all citizens who have attained the legal eligible age of 21.

The break-up of revenue allocation, according to Bill 119, is as follows: 0.75 per cent of the total sports betting handle will be allocated directly to a special fund that will be used by the Missouri Gaming Commission (MGC).

Another 0.25 per cent from all wagers on NCAA football and Division 1 basketball events will be paid back to the collegiate body. The MGC will seek to endorse colleges that field teams in both competitions.

The bill will also have operators only base their wagers on official data provided by the main sporting body. A number of organisations, including the National Basketball Association (NBA) have signed data deals to do just that – provide accurate and genuine information about the odds of events.

Anyone who holds a license will also have to pay $5,000 integrity fee back to the MCG. For each time a license is renewed, additional $10,000 will have to be submitted as payment of costs associated with the process.