SB 643
Authorizes sports wagering
Sponsor:
LR Number:
3535S.02I
Committee:
Last Action:
1/10/2022 - Second Read and Referred S Appropriations Committee
Journal Page:
S88
Title:
Calendar Position:
Effective Date:
August 28, 2022

Current Bill Summary

SB 643 - This act modifies provisions relating to gaming.

SPORTS WAGERING

This act allows the Missouri Lottery Commission to offer games based on the outcomes of sporting events. (Section 313.230)

This act authorizes wagering on sporting events, including esports, and modifies the definition of "gambling game" to include sports wagering.

Sports wagering shall only be authorized to be conducted on an excursion gambling boat, through a limited mobile gaming system, or over the internet to persons physically located in this state. Such licensed facilities shall apply to the Missouri Gaming Commission for authorization to conduct sports wagering, and shall pay an application fee of $50,000. If granted a certificate of authority, a certificate holder shall be authorized to conduct sports wagering in a licensed facility or through an interactive sports wagering platform, as defined in the act. (Section 313.1006)

Certificate holders shall designate an area within the licensed facility for conducting sports wagering. In addition to such designated area, sports wagering may be conducted through the use of a limited mobile gaming system in a gaming or other betting area of the licensed facility, or in a hotel, restaurant or other amenity operated by the certificate holder and subject to the authority of the Commission. A certificate holder or interactive sports wagering platform provider may allow patrons to establish and fund a sports wagering account electronically through an interactive sports wagering platform without having to visit a physical location. (Section 313.1008)

Certificate holders shall ensure that the certificate holder's surveillance system covers all areas in which sports wagering is conducted, allow the Commission to be present through gaming agents during the hours sports wagering is conducted, ensure that individuals under the age of 21 are not making sports wagers, provide certain information to sports wagering patrons, and post a sign indicating the minimum and maximum amounts that may be wagered. (Section 313.1004)

A certificate holder may contract with a third party to conduct sports wagering at the certificate holder's licensed facility. (Section 313.1008)

A certificate holder may contract with up to three individually branded interactive sports wagering platforms, as defined in the act, to administer sports wagering on behalf of the certificate holder. An interactive sports wagering platform may apply to the Commission for such authority. Such interactive sports wagering platform shall submit an application fee of $50,000. Each year after licensure, an interactive sports wagering platform shall submit an annual license renewal fee of $20,000. (Section 313.1010)

Sports wagering commercial activity, defined as any operation, promotion, signage, advertising, or other business activity relating to sports wagering, shall be prohibited within designated sports and entertainment districts, as defined in the act, without a written waiver from each designated sports and entertainment district entity located within such district. (Section 313.1003.3)

The Commission shall promulgate rules for a sports wagering self-exclusion program, as described in the act. The Commission shall also promulgate rules to ensure that advertisements for sports wagering do not target minors or other persons who are ineligible to place wagers, problem gamblers, or other vulnerable persons. (Section 313.1012)

The Commission shall conduct background checks on individuals seeking licenses under the act. Such background checks shall include a search for criminal history and any charges or convictions involving corruption or manipulation of sporting events.

The act prohibits the direct or indirect legal or beneficial owner of five percent or more of a sports governing body or its member teams from placing or accepting a wager on an event in which a member team participates. A violation of this provision is a Class C misdemeanor. (Section 313.1014.3(2))

A sports governing body may submit a request to the Commission to restrict, limit, or exclude a certain type, form, or category of sports wagering on sporting events sponsored by such sports governing body. The Commission shall request comments on such requests from sports wagering operators. Upon demonstration of good cause, the Commission shall grant such request, as described in the act.

A certificate holder shall not offer sports wagers on the performance or nonperformance of any individual athlete participating in a single game or match of a collegiate sporting event in which a collegiate team from this state is a participant, and shall not offer any sports wagers on high school athletic or sporting events involving in-state teams.

Certificate holders may use any data source to determine the results of tier one sports wagers. Certificate holders shall use official league data to determine the results of tier two wagers, unless the certificate holder can demonstrate to the Commission that the sports governing body or its designee cannot provide a feed of official league data to the certificate holder on commercially reasonable terms. Certificate holders shall not purchase or utilize any personal biometric data of an athlete, as defined in the act, without express written permission from the athlete's exclusive bargaining representative.

The Commission and certificate holders shall cooperate with investigations conducted by law enforcement agencies. (Section 313.1014)

A certificate holder shall maintain records of all bets and wagers placed through an interactive sports wagering platform, and all bets and wagers placed in person that exceed $10,000 in a 24-hour period, including personally identifiable information of the bettor, the amount and type of bet, the time the bet was placed, the location of the bet, the outcome of the bet, and records of abnormal betting activity for at least three years after the sporting event occurs. (Section 313.1016)

Any person who knowingly violates any procedure implemented under this act shall be liable for a civil penalty of not more than $5,000 for each violation, not to exceed $50,000 for violations arising out of the same transaction or occurrence. Such person shall also be subject to actions and penalties provided under current law, provided that any such financial penalties shall not exceed those provided for in the act.

Any person who places, or causes to be placed, a bet or wager on the basis of material nonpublic information relating to that bet or wager, or who knowingly engages in, facilitates, or conceals conduct that intends to improperly influence a betting outcome of a sporting event for purposes of financial gain in connection with betting or wagering on a sporting event shall be guilty of a Class E felony. The term "material nonpublic information" shall include personal biometric data. (Section 313.1018)

A tax is imposed at a rate of 21.0% on the adjusted gross receipts received from sports wagering conducted by a certificate holder. Such tax shall be remitted by the last business day of each month. Revenues received from the tax shall be deposited in the Gaming Proceeds for Education Fund.

A certificate holder shall also pay to the Commission an annual administrative fee of $50,000. In addition to such administrative fee, a certificate holder shall pay to the Commission a fee of $10,000 every five years for a reinvestigation of the certificate holder. Such fees shall be deposited in the Gaming Commission Fund. (Section 313.1021)

All sports wagers placed under this act shall be deemed to be initiated, received, and otherwise made on the property of an excursion gambling boat in this state. The intermediate routing of electronic data shall not determine the location or locations in which such wager is initiated, received, or otherwise made. (Section 313.1022)

The Commission shall establish a hotline or other method of communication that allows any person to confidentially report information about any conduct that the person believes is a violation of the provisions of this act. The Commission shall investigate all reasonable allegations and shall refer allegations that it deems credible to the appropriate law enforcement agency.

Sports wagering operators, sports governing bodies, professional sports franchises, and higher education institutions shall not discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee because of any lawful act performed by the employee to provide information, cause information to be provided, or otherwise assist in an investigation regarding any conduct which the employee reasonably believes constitutes a violation of the provisions of this act. An employee may bring an action at law or equity for relief from a violation of this provision, as described in the act. Such action shall be commenced not later than one hundred eighty days from the later of the date on which the violation occurs or the date on which the employee became aware of the violation. (Section 313.1024)

These provisions are substantially similar to SB 18 (2021), SB 217 (2021), SB 256 (2021), SB 567 (2020), SB 754 (2020), HB 2318 (2020), HB 2691 (2020), HB 119 (2019), SB 1009 (2018), HB 2406 (2018), and to provisions contained in SCS/SB 98 (2021), SB 643 (2020), HCS/HB 2088 (2020), HCS/HB 2284 (2020), SS#3/SCS/SB 44 (2019), and SB 187 (2019), and are similar to HB 2320 (2018) and to a provision contained in SB 195 (2019).

RAFFLES

This act provides that, for constitutionally authorized raffles, such raffles shall use tickets, a device, or a machine where a person or persons buy one or more changes from a finite number of draws for a prize. Such machine shall be certified as provided in the act. (Section 572.015)

JOSH NORBERG

Amendments

No Amendments Found.