Launch of Missouri sports betting delayed until fall after emergency rules were rejected

JEFFERSON CITY, Mo. — A dispute over whether the Missouri Gaming Commission can issue emergency rules to implement sports wagering will delay the licensing of casinos and online operators until fall, the executive director of the Missouri Gaming Commission said Monday.

Last week, Missouri Secretary of State Denny Hoskins rejected the gaming commission emergency rules intended to allow it to accept license applications. The notice to the gaming commission did not specify why the rule was rejected.

“The only answer we were given is that it didn’t meet the requirements under the statute,” Executive Director Mike Leara said.

In an email to The Independent, a spokeswoman for Hoskins wrote that the “emergency rules have been rejected due to lack of emergency.”

Hoskins further clarified his position in a Monday afternoon statement, saying the constitutional deadline for the start of sports betting, Dec. 1, can be achieved without emergency rules.

“The standard rulemaking process is more than capable of achieving the desired outcome within the necessary time frame,” Hoskins said. “In fact, under the proper procedure, the proposed rules could be effective by Sept. 30, 2025—well ahead of the December 1 deadline. This confirms that there is no legitimate justification for bypassing the standard rulemaking process, which is designed to give the public the chance to weigh in on decisions that affect them.”

Amendment 2, narrowly approved by voters in November, legalizes betting on sporting events through online platforms, at the state’s 13 casinos and in special districts near major pro sports stadiums.

Following Hoskins action, Leara said the deadline will be met, but it will be difficult.

“We’re going to make it one way or another, but we will make it,” Leara said.

Missouri agencies write rules to implement state laws and submit them to the Secretary of State’s office for publication in the Missouri Register. Emergency rules take effect immediately upon publication, while other rules must go through a comment and revision process.

Under the law allowing emergency rules, the new regulation must address something that is an “immediate danger to the public health, safety or welfare requires emergency action” or that it “is necessary to preserve a compelling governmental interest that requires an early effective date.”

The Secretary of State’s office told the gaming commission that the proposed rules “do not meet the requirements” of the statute.

Soon after the election, Leara said emergency rules would make it possible for companies to start offering sports betting by summer. The emergency is the “compelling governmental interest” of making the Dec. 1 deadline, he said.

“My primary motivation was that we would have these rules in place so that we could start the vetting process and not be rushed into making a decision,” Leara said.

Under the rules being proposed, every casino operating company, the six major league sports franchises and two internet-only companies could offer online wagering. Each of the 13 individual casinos and the major league franchises could have a retail location for in-person betting.

The interpretation of how many online licenses would be available has been changing. During the campaign, Caesars Entertainment spent $15 million on an opposition campaign because it would be allowed only one online platform to cover its three casinos in the state.

About a month before the election, Leara said, the attorney general’s office said Amendment 2 allowed an online platform linked to each casino. Now, the interpretation has changed again, he said.

“It is now their opinion that each parent company gets a mobile license,” Leara said.

The licensing process will be complex because the online bookmakers, the casino companies and the major sports franchises all have to undergo licensing investigations, Leara said. So do all the vendors that supply the bookmakers and all the employees who work at the retail sports wager sites.

“Some of these licenses will be easy, because the casinos will all have the opportunity for one and they’re already licensed,” Leara said. “But some of the other operators, for the mobile platforms, will not be. They may have been licensed with us on your fantasy sports, but this is a different animal to consider.”

The proposed rules will be published March 18 in the Missouri Register, opening a 30-day comment period.  A public hearing on the rules is scheduled for 10 a.m. April 17 in the Missouri Gaming Commission’s hearing room in Jefferson City.

After the comment period closes, the proposed rules and the public’s statements are forwarded to the legislature’s Joint Committee on Administrative Rules, which has 30 days to request changes or hold a hearing. The rules become effective when that process is completed and they are published.

That process is important to protect the public from burdensome rules, Hoskins said.

“The public deserves to have its voice heard, and it’s crucial that we ensure that this rulemaking process is transparent, thorough, and open,” he said. “By following the standard rulemaking process, Missouri can ensure that the decisions being made are not only legally sound but also informed by the people who will be impacted the most. We cannot afford to rush through this process for the sake of a deadline that can easily be met through standard procedures.”

This article was updated at 5:30 p.m. Monday with comments from Secretary of State Denny Hoskins.

Missouri Independent is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Missouri Independent maintains editorial independence. Contact Editor Jason Hancock for questions: info@missouriindependent.com.