Located in the Midwestern part of the United States, Missouri is a relatively late arrival on the North American gambling scene. Most forms of gambling went unregulated until the beginning of the twentieth century, when the local legislature outlawed all bookmaking operations. Legal gambling returned to the Show-Me State in the mid-1980s, with the legalization of horse racing and the launch of state-operated lotteries.
Less than a decade later, Missourians welcomed the first riverboat casinos, which operated on licensed excursion boats floating on the Mississippi and Missouri rivers. Recent legislative changes paved the way for the arrival of land-based gaming facilities in the state. Licensed riverboat casinos were allowed to move their operations onto land as long as certain regulatory conditions were met.
Missouri is presently home to thirteen commercial gaming facilities, overseen by the Missouri Gaming Commission (MGC). Over 19,000 Missourians have found employment in the local gambling industry, which contributes more than $997 million in tax revenue. The number of licensed casinos remains capped at thirteen for the time being.
Missouri lacks Indian gaming operations at the moment, although the tribal nation of Osage is currently pushing for a multimillion-dollar casino resort near Lake Ozark. Real-money online casinos are prohibited in the state, with social gaming being the only legal option available to Missourians. Things are looking up on the sports betting front, as a bill is making progress in the Missouri General Assembly.
Gambling Laws in Missouri
Despite the absence of legal online gaming operations, Missouri hosts a robust commercial gambling industry that generated more than $1.90 billion in gross revenue in 2021. All commercial casinos in the state operate under licenses issued by the Missouri Gaming Commission (MGC). Providing gambling services without a license is a criminal offense under the Revised Statutes of Missouri (RSMo).
RSMo, Chapter 572
Missouri Riverboat Gambling Proposition (Proposition A)
RSMo, Chapter 313
RSMo, Chapter 572
Chapter 572 of Missouri’s Revised Statutes outlines all activities that constitute illegal gambling, along with their accompanying penalties. As is often the case with legal texts, the wording is somewhat abstruse and difficult to digest. According to the chapter, an individual engages in gambling when they stake something of value on a chance-based outcome with the agreement that they will receive another thing of value if their prediction is correct.
All games whose results depend partially or entirely on chance are considered contests of chance under this chapter of the RSMo. Accordingly, it is illegal to offer them without prior authorization. The chapter excludes pari-mutuel betting on horse races, bingo, riverboat casinos, state lotteries, and other licensed activities from its definition of gambling.
Antique slot machines, that is, those manufactured more than thirty years ago, are also excluded, provided their owners do not use them for illegal gambling. Players who have derived 20% or more of their annual income from gambling over the last five years are considered professional gamblers.
Players who participate in unauthorized gambling recreationally commit class C misdemeanors. Professionals who engage in illegal forms of gambling are guilty of class A misdemeanors, while those who willingly gamble with minors risk penalties for class B misdemeanors.
The penalties vary based on the severity of the violation. Illegal recreational gambling is the least grave offense and, as such, carries maximum penalties of 15 days’ imprisonment and fines of up to $750. For context, the offense of illegal recreational gambling carries the same weight as littering, animal neglect, and driving in the wrong lane on a highway.
Class B is the second most severe type of misdemeanor in Missouri. Apart from gambling with minors, the category covers crimes like trespassing, reckless burning, and misusing 911. Individuals convicted of class B misdemeanors can spend up to six months in a county jail and pay fines of up to $1,000.
As the gravest category of offenses, class A misdemeanors carry the harshest penalties: up to one year of imprisonment and fines of up to $2,000. In addition to professional gambling, this category includes serious crimes such as counterfeiting, stealing, kidnapping, arson, and elder abuse.
Missouri Riverboat Gambling Proposition (Proposition A)
Missouri residents approved commercial gambling on licensed riverboats during a 1992 referendum. More than 62% of voters backed Proposition A, also known as the Missouri Riverboat Gambling Proposition, which authorized gaming on vessels operating on the Missouri and Mississippi Rivers.
The initial plan called for the State Tourism Commission to regulate the boats to generate additional revenue. The proposal also included a $500 cap on the maximum amount each patron could lose during a single excursion. The General Assembly subsequently passed legislation to regulate riverboat gambling in April of the following year.
RSMo, Chapter 313
The General Assembly adopted several legislative amendments that resulted in the establishment of the Missouri Gaming Commission, which took over regulation of the riverboat casinos. All regulatory requirements and restrictions are outlined in detail in Chapter 313 of the Missouri Revised Statutes.
Excursion gambling boats are defined as ferries, boats, and floating facilities that have obtained MGC approval to conduct casino games. The legislation was later amended to permit casino gaming in non-floating facilities, provided these venues are located no more than 1,000 ft from either river.
One unusual requirement is that non-floating facilities must contain enclosed spaces or containers holding 2,000 or more gallons of water. Excursion boats must also feature non-gaming areas for dining and gift shops where patrons can purchase Missouri-themed items. Licensed facilities may accept wagers only during hours approved by the regulator and cannot take action from visibly intoxicated patrons.
Persons under 21 years of age are prohibited from gambling. The riverboat casinos may offer slots and table games, but accepting bets on sporting events is off-limits.
All gambling devices on the premises must have an average theoretical return of at least 80%, according to Section 313.805 (12). Players must exchange cash or other negotiable currency for chips or tokens, meaning they cannot gamble directly with currency under Section 313.817 (3) of the RSMo. However, they may purchase chips and tokens with credit cards, debit cards, or checks. All checks must be deposited no later than 24 hours after cashing, as required by Section 313.812 (9), which also prohibits gambling on credit.
Gambling License Types and Requirements
Three types of licenses are required to legally operate a commercial gaming business in the Show-Me State. Both floating and non-floating facilities need riverboat casino operator licenses issued by the MGC. The other two permits cover gaming equipment suppliers and casino employees.
Riverboat Casino Operator Licenses
Supplier Licenses
Occupational Licenses
Riverboat Casino Operator Licenses
Applicants must provide detailed personal information, including records of past convictions (if any). The paperwork must also state whether the applicants are currently addicted to any controlled substances.
Before issuing a license, the regulator conducts a thorough review of each applicant’s suitability and reputation. The agency may reject candidates whose licenses in other jurisdictions have been revoked or suspended. Applicants with prior felony convictions are also likely to be denied.
The application fee is either $50,000 or $15,000 for every individual under investigation, whichever amount is higher. The initial riverboat casino operator license, as well as the first renewal, is valid for one year. All subsequent licenses last four years, and renewing them costs $25,000. The number of riverboat casinos is capped at thirteen; no additional operator licenses are currently available.
Supplier Licenses
Businesses and individuals who manufacture, lease, supply, or sell gambling equipment must obtain supplier licenses. The requirement also applies to entities that repair, maintain, or test gaming equipment for randomness and fairness.
The application fee is $10,000, and it is non-refundable if the applicant is rejected. Approved suppliers must pay an annual license fee of $5,000. Supplier permits must be renewed every two years.
Occupational Licenses
All employees involved in gaming operations on riverboat casinos must apply for occupational licenses under Section 313.807 of the RSMo. Applicants undergo comprehensive background checks at both the state and federal levels, which require the submission of fingerprints. Non-refundable fees cover the cost of these checks. Occupational licensees must also pay annual license fees, the exact amounts of which are set by the MGC.
Gambling Taxes in Missouri
Commercial gambling businesses in Missouri are taxed at 21% of their gross gambling revenue. Casinos must also pay an additional $2 fee for every passenger who embarks on a riverboat, assessed per excursion. The admission fees are split evenly between the state and the communities that host the docks, with each side receiving about one dollar per admission.
Allocation of Taxes
Withholding Taxes for Players
Allocation of Taxes
The state’s share of the admission fees is deposited in the MGC fund, with the option to direct one cent of each dollar to the state compulsive gamblers fund. Taxes based on gross gaming revenue are distributed among various educational and public safety programs. Part of the proceeds supports the treatment and prevention of gambling addiction, while the remainder assists Missouri veterans.
Withholding Taxes for Players
Missouri gambling legislation treats promotional credits as regular revenue. In addition, the state imposes a withholding tax of 4% on any jackpot won on video gaming devices or table games, provided the prize exceeds $1,200.
Responsible Gambling Policies in Missouri
Section 313.842 of the RSMo created the Missouri Compulsive Gamblers Fund, which is integrated within the Department of Mental Health. As part of the efforts to combat gambling addiction in the state, $0.01 of every admission fee from riverboat casino patrons goes toward problem gambling programs.
Patrons who wish to exclude themselves from gambling can do so by joining the Missouri Disassociated Persons Program (DAP). Once added, they can request to be removed from the exclusion list after five years. If a person requests a second exclusion after being removed, they will remain on the list permanently.
Excluded individuals will not receive marketing materials from gambling operators, and all their loyalty points and other comps will be forfeited. Authorized riverboats that hold liquor licenses cannot serve free alcoholic beverages to patrons on the gaming floor.
All gambling advertisements must present operators’ products fairly and honestly; misleading marketing content is prohibited. Other than that, the operators are not obliged to place on-premises displays with responsible gambling information and treatment hotlines. People under 21 cannot access the gaming areas.
Interactive Gambling in Missouri
Interactive casinos have yet to gain legal status in the Show-Me State. However, residents can legally participate in social casino gaming and play slots or table games via social casino websites or social platforms like Facebook. Players use virtual credits rather than real money to wager. Unlike at full-scale online casinos, they cannot withdraw winnings from their social counterparts.
Some overseas online casinos readily accept real-money wagers from Missourians without holding the required operator and supplier licenses from the MGC. Missouri authorities have no history of prosecuting recreational players for engaging in online gambling activities on such offshore sites.
Nonetheless, playing on these sites involves risk, as there is always the possibility of falling prey to a rogue operator. Little to no consumer protection is available at some offshore casinos, and deceived players cannot seek legal recourse because these operators are outside Missouri jurisdiction.
Daily fantasy contests are legal in the Show-Me State and have been regulated since 2016 under the Missouri Fantasy Sports Consumer Protection Act. The Missouri Gaming Commission grants licenses to approved DFS operators, examines the applications of prospective licensees, and imposes sanctions on those who violate the above legislation.
The regulatory body also collects the license and operation fees from DFS operators authorized in the state. Daily fantasy sports are excluded from the definition of gambling according to Section 313.910. Section 313.920 (4) stipulates that only persons aged 18 or older may legally participate in such contests.
Sports Betting in Missouri
Commercial gaming facilities cannot currently accept sports wagers, but that may soon change. A proposal to legalize sports betting passed the Missouri House of Representatives by an overwhelming 115–33 margin in late March 2022.
Sponsored by Rep. Dan Houx (R), HB 2502 would repeal Section 313.800 of the RSMo and add new provisions for the regulation of sports wagering if enacted. The bill has received strong support from local casino operators and professional sports teams. It advanced to the Senate floor in April 2022 and was approved 8–1 by the Committee on Appropriations.
Proposed Tax Rates
39 Skins for Mobile Betting
Allocation of Mobile Betting Skins
Proposed Tax Rates
Legislators, however, insisted that the bill be amended before it returned to the Senate for further debate. House members must also approve the proposed changes, most of which affect the taxes for authorized sports wagering businesses.
The final tax rates will likely range from 10% to 21%. Revenue collected from licensed sportsbooks will go to the state treasury, with $250,000 earmarked for compulsive gambling programs. Some Senators have requested additional provisions addressing problem gambling.
39 Skins for Mobile Betting
HB 2502 would authorize in-person wagering at the thirteen riverboat casinos and legalize remote betting via licensed websites and mobile applications. The bill proposes 39 interactive skins in total: the six commercial casino operators would receive 33 skins, while local professional sports teams would get the remaining six.
Allocation of Mobile Betting Skins
The bill states that operators owning two or more gaming properties in Missouri may receive no more than six skins each. Of the six operators, Bally’s Corporation is the only company that runs a single gaming facility in the Show-Me State. Missouri hosts six professional sports franchises, and each one would receive a single skin. The allocation would be as follows:
- 6 skins for Boyd Gaming (Ameristar Casino St. Charles, Ameristar Casino Kansas City)
- 6 skins for Affinity Gaming (St. Jo Frontier Casino, Mark Twain Casino)
- 6 skins for Penn National Gaming (Hollywood Casino & Hotel, River City Casino & Hotel)
- 6 skins for Century Casinos (Century Casino Caruthersville, Century Casino Cape Girardeau)
- 6 skins for Caesars Entertainment (Harrah’s Kansas City Hotel & Casino, Isle of Capri Casino Hotel, Lumiere Place Casino Hotel)
- 3 skins for Bally’s Corporation (Bally’s Kansas City)
- 6 skins for Missouri’s professional sports franchises – Kansas City Chiefs (NFL), Kansas City Royals (MLB), Saint Louis Blues (NHL), Sporting Kansas City (MLS), Saint Louis City SC (MLS), and Saint Louis Cardinals (MLB)
Residents and visitors of Missouri would be able to place wagers on a wide range of regular sports events. The bill would also authorize wagering on esports contests. Straight bets, teasers, parlays, props, over-under, exchange, and in-play betting would be available.
Conclusion
With 13 commercial casinos operating within state lines, Missouri already has a mature gaming industry that generates nearly $1 billion in annual tax revenue for education and various social programs. Online daily fantasy sports are the only legal form of interactive gaming at the moment, but this is expected to change with the anticipated passage of the sports betting bill discussed earlier. There was also a recent push for the legalization of video lottery terminals, which, if approved, will enable Missouri to capture additional tax revenue and further expand its industry.
