MOScout Daily Update: No New $$$ From Sports Betting? - Malek Challenges Lawmakers - Guns and Pot Collide and more...

1 Big Thing: Sports Betting Might Bring in $0?

According to the fiscal note of the sports betting initiative petitions, legalizing wagering might not bring any additional revenue into the state coffers.

Because the proposal allows for deductions against sports gaming revenues, [state governmental entities] estimate unknown tax revenue ranging from $0 to $28.9 million annually. Local governments estimate unknown revenue.

There has been some debate about whether to allow the deduction of promotional costs.  The bill that the House passed last session included the deductions.  Proponents argue that it’s a necessary expense. 

However, it’s unknown how big that expense would be.  An Action Network article (it’s a year old so may be outdated in this fast-moving industry) shows wide variations of the promotional costs in different states.  Colorado’s promotional costs as a percent of total sports betting revenue was 61%; Tennessee’s was 12%. 

My guess would be that promotional costs start high to lure new users and then decline as the companies try to make more money.

·       The possibility that sports betting would bring in no new revenue undermines one of the biggest arguments for legalization.

And

Someone is in the field (internet field at least) polling the topic with what looks like a very thorough set of questions aimed at both positives and negatives…

Malek Challenges Legislators on China Investments

In his recent op/ed in the Southeast Missourian, State Treasurer Vivek Malek challenges lawmakers to take up the issue which the MOSERS board declined to address – investments in China…

I do not believe the Board should wait to act because of China's ongoing aggressive moves posing multiple risks to investment stability. Nor do I believe the Board should defer to the 2024 Legislature on identifying risks and threats from China that anyone may see for themselves today. But if lawmakers feel they must weigh in, when pre-filing of 2024 legislation opens Dec. 1, I urge those representatives and senators who recognize reality to submit legislation calling on MOSERS to get our state workers' pension funds out of China.

And

Another “foreign investment” issue to watch as pre-filing begins: University of Kansas take over of Liberty Hospital.  One lobbyist jokes about the Chiefs possibly moving to KS, “Not only is Kansas coming for our sports teams but they are coming after our hospitals as well.”

New Pro-Keathley PAC

Earlier this week, Rex Sinquefield made a $10,000 contribution to Freedom Is Bold PAC.  I didn’t have that political action committee listed in my ongoing attempt to keep track of various PACs.

It is a relatively new PAC established to support State Rep. Ben Keathley, as well as “identify regional candidates and other legislators who support tax reform legislation.”

Gun and Pot Policies Collide

The New York Times has a story about the federal prohibition on gun ownership for marijuana users.  Read it here.

·       There are relatively few limitations at the federal level on who is eligible to purchase or possess firearms and ammunition. The national background check system looks for issues like a criminal conviction, mental health problems, a dishonorable military discharge, unlawful immigration status or a domestic violence restraining order.

·       But even as a growing number of states have legalized marijuana, either for recreational or medical use, participating in a state’s medical marijuana system remains a barrier to gun ownership.

·       The issue is shaping up to be one of the next legal frontiers in the national debate over gun policy, as courts around the country are asked to determine whether the longstanding federal restriction on marijuana users conflicts with Second Amendment gun rights.

·       There have not been many prosecutions for lying about marijuana on a gun form or for being caught possessing both, but the penalties can be stiff. Knowingly making a false statement on the document, for instance, is a felony punishable by up to 10 years in prison and fines. The Bureau of Alcohol, Tobacco, Firearms and Explosives has continued to issue warnings that possessing a gun as a marijuana user, either for medical or recreational purposes, is a serious crime.

·       Hunter Biden, the president’s son, was targeted under the law in September when he was indicted for lying about his crack cocaine addiction when he bought a gun in 2018.

DHSS addresses the issue on its FAQ page.

Does being a qualifying patient or consumer affect my ability to own or purchase a firearm?

Article XIV of the Missouri Constitution does not reference or prohibit the possession or purchase of firearms. However, federal law still may prohibit the possession or purchase of a firearm by individuals who use marijuana, regardless of whether a state has legalized marijuana for medical use or adult-use.

Untargeted Incentives = Higher Prices?

From Hechinger Report comes a cautionary tale of unintended consequences….

·       Last year, Arizona became the first state in the nation to offer universal school choice for all families. State leaders promised families roughly $7,000 a year to spend on private schools and other nonpublic education options, dangling the opportunity for parents to pull their kids out of what some conservatives called “failing government schools.”

·       But now, some private schools across the state are hiking their tuition by thousands of dollars. That risks pricing the students that lawmakers said they intended to serve out of private schools, in some cases limiting those options to wealthier families and those who already attended private institutions.

·       A Hechinger Report analysis of dozens of private school websites revealed that, among 55 that posted their tuition rates, nearly all raised their prices since 2022. Some schools made modest increases, often in line with or below the overall inflation rate last year of around 6 percent. But at nearly half of the schools, tuition increased in at least some grades by 10 percent or more. In five of those cases, schools hiked tuition by more than 20 percent – much higher than even the steep inflation that hit the Phoenix metro area and well beyond what an ESA could cover.

eMailbag on Ain’t

My guess is that Mike Hafner’s use of the phrase “ain’t no fortunate son” is a nod to the Credence Clearwater Revival song (Fortunate Son) rather than country grammar.

$5K+ Contributions

PT-PAC OF MISSOURI - $10,000 from Phillip Smith.

Citizens for Sam Turner - $20,000 from Sam Turner.

Birthdays

Happy birthdays to Alison Gee, and Lara Granich.