A proposed gambling expansion in Missouri seeking to approve video lottery has led to controversy between parties with an interest in the state’s gaming industry. VLT promoters argue an approval would report revenue of $1.1 billion in the first five years, stating it would prove a more profitable decision than legalizing sports gaming.
According to a new report from Morowitz Gaming Advisors LLC and Global Gaming & Hospitality Capital Advisors LLC, commissioned by game vendors, approval would produce more than 10 times the state revenue of sports wagering and drive cash-prize video games of debated legality out of the Show Me State, reports Missouri Independent.
Contrastingly, VLT supporters argued during a hearing of the House Special Committee on Public Policy that sports betting would generate between $10 to $15 million annually, less than $100 million over five years, based on a report commissioned by the MO Coalition for Video Lottery.
Last year, Missouri legislators sought to expand gambling through sports betting and video lottery by often tying both verticals in the same bills. This strategy, now deemed by many as not the appropriate approach, is leading to separate efforts this year, as well as stakeholders positioning themselves in opposing camps.
While the sports betting bills got the first hearing in late February, a vote scheduled for last Monday has now been put off over issues committee members raised against certain provisions that favor casinos and pro sports teams backing the proposal. The committee declined to discuss bills HB 2502 and HB 2556, which are seen as crafted with heavy input from major stakeholders.
Committee members are asking for additional funding to help problem gamblers and a cap on promotional write-offs. They are also considering an off-site wagering fee on transactions with money going to the county where the wager was placed, instead of to the county where a casino is located. Should it be instituted, Missouri would be the first state to charge bettors a virtual admission fee for placing digital wagers.
A sports betting legalization has been described as gaining momentum for this year, now supported by a coalition of both casinos and pro sports teams, as stakeholders agreed in January to lobby together.
The proposal no longer being tied to video lottery is also seen as a positive development by sports gaming backers, and was essential for casinos to show their support: they protested a VLT expansion as they see it as a potential threat to their business. However, the separation of both proposals might not be without its issues.
Sports gaming supporters claim VLT backers are attempting to kill their legislation while seeking to convince lawmakers that they would be the best choice in terms of producing the most money for state education programs. Video lottery bills set aside 32% of net revenue for state education and 4% for local governments.
Additionally, video lottery operators argue legalization would drive controversial “pre-reveal” gaming machines out of business. A similar argument is being leveraged by sports gaming supporters, who claim passage of a bill would help Missouri keep revenue currently going to the black market or other states.
The issue of “pre-reveal” gaming machines has been a long-standing one. Last month, officials for Missouri’s 13 cities that have casinos called for a crackdown on these machines, which operate in a gray area, in an unregulated and untaxed manner. Pre-reveal games companies argue players can find out if they will win the next game before putting any money, thus not making them “games of chance.”
Original article: https://www.yogonet.com/international/news/2022/03/02/61603-missouri-gaming-expansion-proposals-lead-to-controversy-between-sports-betting-and-vlt-supporters
