Missouri's Secretary of State Denny Hoskins, who has long been a vocal opponent of legalizing sports betting in the state, has rejected the rules submitted for sports betting in Missouri last week. The Gaming Commission was hoping to have the rules approved so sports betting could launch in June - but the Secretary of State had other plans.

The road to legalized sports betting in Missouri has hit yet another speed bump. Secretary of State Denny Hoskins has rejected the rules proposed for sports betting in Missouri last week, delaying the anticipated launch of sportsbooks in the Show-Me State.

Emergency rules rejected

The Missouri Gaming Commission submitted emergency regulations to Governor Mike Kehoe in the past month, with hopes of launching sports betting operations by June. However, Hoskins, a longtime opponent of previous sports betting efforts, blocked the emergency rules last week, arguing that the circumstances did not warrant expedited rulemaking.

Missouri law permits emergency rulemaking only if there is an "immediate danger to public health, safety, or welfare" as well as a "compelling governmental interest that requires an early effective date." Hoskins determined that sports betting did not meet these criteria, meaning the normal regulatory process will continue.

The non-emergency rules, also filed by the MGC this past month, will take effect on August 30 following a mandatory public comment period of 30 days. This decision could push back the timeline for launching sportsbooks in the state.

A long road to legalization

Secretary of State Denny Hoskins' rejection marks the latest chapter in Missouri's tumultuous journey toward the legalization of sports betting. As a state senator, Hoskins played a key role in blocking multiple legislative efforts to legalize sportsbooks, advocating instead for the inclusion of video lottery terminals in the legislation - a move that served to stall negotiations.

Frustrated with the legislative deadlock, Missouri's professional sports teams bypassed lawmakers and put the issue directly to voters through a ballot initiative. The measure narrowly passed in November of 2023 with 50.05% of the vote and was certified in December. Under the approved framework, the state had until the 1st of December, 2024, to launch sports betting.

Industry frustration grows

Sports betting advocates and professional teams in Missouri have expressed frustration with the repeated roadblocks.

"We don't think Denny is serious," said Bill DeWitt III, St. Louis Cardinals President, in 2023, prior to launching the ballot initiative. He continued, "The definition of insanity, this situation is in the dictionary. The door for negotiation is always open. But when you insist on doing the business of Illinois gray-machine companies, it makes it tough."

While opposition to the ballot initiative initially surfaced, it diminished ahead of the election, allowing the measure to pass.

What's next for sports betting in Missouri?

Despite the latest setback, Missouri's sports betting framework remains intact. Under the MGC's interpretation of the law, the rules for sports betting are as follows:

  • Each of the state's six professional sports teams are allowed to partner with a sportsbook provider or platform.
  • 13 riverboat casinos can also secure sportsbook partnerships.
  • The MGC has the authority to award two sportsbook licenses (untethered).
  • Sports betting revenue will be taxed at precisely 10%.

However, the rejection of the emergency rules raises questions about the commission's interpretation and could lead to further delays.

As the December 1 deadline for launching sports betting approaches, Missouri stakeholders remain hopeful that the process will move forward smoothly. Still, with past legislative obstacles and new regulatory hurdles, the path to legalized sports betting in Missouri continues to be anything but straightforward.