Missouri sports betting remains embroiled in a contentious atmosphere as Senator Denny Hoskins, who has been the primary obstacle in getting online sports betting approved in the Show Me State, suggested that additional opposition will emerge once his term limits prevent him from seeking reelection next year.
Show Me Gridlock
We have seen political gridlock in many forms but the most recent is the uncompromising stance of Missouri State Senator Denny Hoskins in regards to the passage of an online sports betting bill. Hoskins has a pet project that has been repeatedly voted down and it concerns the grey-market video lottery terminals that dot the Missouri landscape.
The VLTs, as they are known, can be found in truck stops, convenience stores, and barrooms throughout the Midwest and although they are unregulated their legality has been a murky topic. Hoskins wants VLTs to be regulated, taxed, and under the control of a government authority, like the state lottery, and only then will he relent and approve sports betting.
Hoskins recently attended the National Council of Legislators for Gaming States meeting in Denver, Colorado, and articulated his position as to why he believes the VLT issue needs to be paired with sports betting approval and insisted he has colleagues who share his opinion.
“Am I the only one standing in the way of sportsbook passing? No, I am not. Do I get all the blame? Yes, I do. And that’s fine. It doesn’t bother me. But there are a lot of people who feel the same way I do.”
Why VLT Regulation Is Important
Missouri casinos pay a share of their revenues to the state and when those revenues diminish so too does the state’s cut of the profits. A percentage of the casino admission revenue goes to a fund near and dear to Hoskins’ heart that supports veterans’ homes and cemeteries.
However, casino traffic and revenues are dwindling in Missouri and Hoskins believes it is because those who would drive to a casino are now taking their discretionary gambling dollars to the local store to gamble via the VLTs that are slot-like machines paying out on winners.
Casino operators agree with his assessment but want the VLTs banned while Hoskins wants them regulated and taxed, with a portion of those funds directed to the veteran homes and cemeteries within the state.
Balancing Act
Hoskins has stated he is more than willing to support and give the casino operators access to the retail and online sports betting market but he wants the VLTs regulated. It’s a quid pro quo arrangement but neither side has been willing to budge.
“I think we supplemented our veterans’ homes and cemeteries about $50 million this year because the casino admission fees have dropped,” Hoskins said. “So that’s something for which I’ve been looking to find a dedicated funding source. The video lottery terminals would provide about $15-to-20 million of that dedicated funding source. However, sports betting would not provide any.”
The issue for the casino operators is that they don’t believe the revenues generated by sports betting will offset the losses they will experience at their table games and slots if a regulated VLT market comes to pass. Yet, the legality of the VLTs remains an open question and one that Hoskins believes the courts should adjudicate.
“I think it would have a huge impact on gathering support for regulating them if the court comes back and says that the gray machines out there are legal,” Hoskins said. “I think there would be tremendous momentum to enforce some regional regulations as well as tax structure.”
*Bookmakers Review will continue to monitor this story and update our readers as events unfold.
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