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Missouri became the second state to enact a fantasy sports regulatory bill into law in the space of a day, as Gov. Jay Nixon signed legislation on Friday.
Earlier in the day, Colorado’s governor signed a bill overseeing the daily fantasy sports industry. In addition to these two states, Indiana, Virginia, Tennessee and Mississippi have also enacted fantasy sports laws this year.
“When a new frontier of online betting is available at the touch of a screen, we have a responsibility to protect consumers and young people,” Gov. Nixon said. “I appreciate the General Assembly for answering my call to bring forward common-sense consumer protection to make sure fantasy sports gaming in Missouri is operated responsibly and with accountability.”
The legislature passed the bill on May 12. The law is set to take effect on August 28.
Here is a quick look at some of the provisions in the law:
The fee and tax structure may keep some operators other than DraftKings and FanDuel out of the state. The law creates an effective tax of 21.5 percent on small seasonlong and DFS operators, a number many of them have decried as being too high in the past.
Missouri’s statehouse took up the issue of DFS faster than a lot of states, introducing legislation at the end of 2015.
Nixon is one of the few governors in the country who had taken an active interest in DFS before a bill hit his desk.
In the winter, he said he wanted legislation to create revenue in the form of taxes, and that the industry treated more like the regulated gambling industry. While he got his wish on the former, and the MGC overseeing the industry seems to have gotten the bill closer to the latter.
Other states could get back into the mix, like in Illinois, where a legislative effort failed.