Debate intensifies as Missouri weighs $335 million sports betting proposal

Garance Limouzy September 25, 2024

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Debate intensifies as Missouri weighs $335 million sports betting proposal

Missouri voters are soon to decide on whether to legalise sports betting through Amendment 2, a measure that could make Missouri the 39th state to open a regulated sports wagering market. Proponents, led by the group Winning for Missouri Education, are championing the potential financial benefits for public education, while opponents remain sceptical?of the true impact.

$335 million GGR in the first year

A newly released economic study by an independent research firm estimates that the state could see gross gaming revenues of $335 million in the first year, rising to $560 million by year five. The study also projects that tax revenues could start at $4.7 million in year one and reach nearly $39 million by the fifth year. Importantly, the study suggests that up to $105 million could be directed to Missouri schools over the first five years of legalised sports betting.

Funds dedicated to education

Jack Cardetti, a spokesperson for Winning for Missouri Education, explained?that legalising sports betting could bring financial support to local schools. “Right now, our current policies are inadvertently sending money across state lines to benefit schools in neighbouring states like Illinois and Kansas,” said Cardetti. The proposed amendment includes a 10 percent tax on sports wagering revenues, with promotional credits capped at 25 percent, ensuring that a portion of the funds is dedicated to education.

Opposition

However, the opposition, represented by the Missourians Against the Deceptive Online Gambling Amendment (MADOGA), has raised concerns about the accuracy of these projections. Critics like Brooke Foster argue that there is no guarantee the funds will be used for education as promised, citing an analysis by the Missouri State Auditor that claims the money could be diverted. The Missouri Department of Revenue also raised doubts, stating it lacks explicit authority to collect or allocate these funds under the proposed amendment.

Operators pushing for legalisation

Despite the opposition, support for Amendment 2 continues to grow. FanDuel and DraftKings, two major players in the online betting industry, have contributed a combined $20 million to the Winning for Missouri Education campaign. In contrast, Caesars Entertainment, which supports the opposition, has donated $4 million to MADOGA but has remained silent on the specifics of its involvement.

Polls suggest sports betting will be legalised

If voters approve Amendment 2, Missouri will join a growing list of states with legalised sports betting. The Missouri Gaming Commission would oversee both online and retail sports betting operations. Currently, the state only allows gambling licenses for facilities located along the Missouri and Mississippi rivers, but voters will also decide on a proposal to add a new casino near Lake of the Ozarks.

With the vote set for November, polls suggest that public opinion is leaning slightly in favour of the amendment, with 52 percent of respondents indicating support. However, critics remain wary of the fine print, ensuring that the debate will continue until election day.