A proposal to lower taxes on fantasy sports companies is drawing fire from some lawmakers who say the decision to push for a tax cut for the operators looks bad at a time when the state is having budget problems.
A year after the General Assembly approved first-ever regulations for fantasy sports companies offering games in the state, members of the House voted 102-52 to slash the tax rate that businesses like FanDuel and DraftKings pay.
The sponsor, Rep. Scott Fitzpatrick, R-Shell Knob, said the changes make the business more competitive for smaller vendors, who serve dozens or hundreds of players, not the millions that the national companies oversee.
The measure reduces the annual operation fee from 11.5 percent of the operator’s net revenue from the previous calendar year to 6 percent, significantly less than the 21 percent tax rate former Gov. Jay Nixon, a Democrat, had sought when the original legislation was moving through the Legislature last year.
The change will result in an estimated $342,000 reduction in tax revenue for the state.
Rep. Rory Rowland, D-Independence, called the legislation an example of insider dealing that will help the large fantasy sports providers at the expense of Missourians who will face reduced services because of the state’s budget woes.
Read more: St. Louis Post-Dispatch