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Sports betting in Missouri will be on the ballot this November. That’s official — despite a lawsuit that tried to challenge that (more on that soon).
With the vote being weeks away, a flood of money is being poured in to garner support AND opposition to the vote. That’s right, there’s big money on both sides. Let’s take you into what’s going on inside the Show-Me State!
New Campaign Funding Record Set
It’s official, a new record has been set for the most money donated to a ballot measure campaign. DraftKings and FanDuel have poured a combined $32 million into Winning for Missouri Education (each operator has chipped in exactly $15.75 million each). This is the pro group that’s trying to make sure Amendment 2 passes. This is the measure that would legalize sports betting in the state, becoming the 39th state to do so. The previous mark was $31 million, which a 2006 proposal around stem cell research raised.
If passed by voters, Amendment 2 would issue as many as 14 sports betting licenses — six for casinos, six for local teams, and two for online bookmakers. The sports teams and casinos could offer betting in-person on their premises, on top of online. The proposal also has a flat 10% tax on the net revenue — the money lost on wagers by Missouri bettors.
Of course, with the money being spent, you know DraftKings and FanDuel would get the two licenses for online bookmakers. In the long run, they would recoup that funding since an economic study produced by the same Winning for Missouri Education group estimated online bets would account for 98% of bets made in-state. This would be in line with other states, which see similar trends.
Where’s the campaign money going to though? Well, mostly ads. Locals in the state are being flooded with pro-betting messaging. Flooded, we say! “Legalizing sports betting will generate tens of millions of dollars every year for our classrooms, helping increase teacher pay,” says one of their ads.
Opposition Group Is Even Better Funded
On the opposite end of things is Missourians Against the Deceptive Online Gambling Amendment. They are the anti-betting group that tried and failed to sue the measure to get it off the ballot entirely. Even despite that, they’re spending bigger than the pro campaign. Get this, the anti group is up to $44 million in funding now — $12 million more than Winning for Missouri Education. Opposition is being led by Caesars and its three casinos in the area, plus other local properties like the Isle of Capri Boonville and Harrah’s North Kansas City.
Why the opposition, especially from other casinos that, in theory, stand to gain from this too? Because as we mentioned before, most of the sports betting will be done online — and not at their casinos, which employ thousands of locals might we add. Sure, Caesars has a mobile betting app of its own that’ll be licensed, but they know they won’t get the online market share that DraftKings or FanDuel will earn. This is the case in every state the three operators share licenses inside of.
“Obviously they’re not opposed to sports betting,” said Brooke Foster, spokeswoman for the group. “If it were written in a way that would actually benefit Missouri and Missourians in a more substantial way, it would be different.”
Education Is The Central Issue To Both Sides
The Deceptive Online Gambling Amendment group can’t campaign on “other companies will make more money than us.” No, no, no that won’t win them many votes. They have to get to the heart of the matter and what voters actually care about — and that’s the supposed funding that’ll go to education from the betting taxes.
According to the anti group, Amendment 2’s education contribution is being overstated. The argument being made is thanks to corporate write-offs, the state’s education fund will be left with scraps. “Teachers were told the lottery would raise a lot of money for schools, but that didn’t happen,” one ad says. On the flip side, Winning for Missouri Education estimates that more than $100 million will go to the state’s education programs during the first five years. So who’s right and who’s wrong?
You can make arguments for both sides if we’re being honest. On the pro side, they can bring up how nearly every state that legalized exceeded its original expectations. North Carolina, the most recent state to legalize, took a few months to do more betting revenue than they anticipated over the first year. Even states that have been legal already are seeing double-digit growth numbers in Year 2 and Year 3.
The anti group has strong arguments too. Before any tax money goes to the state’s education programs, operators will be allowed to deduct promotional giveaways (sign-up bonus, for example) AND federal taxes. Plus, another $5 million will have to go toward supporting help programs for problem gamblers. That’s $5 million every year — not just the first one.
The election is Tuesday, November 5. If you’re in Missouri, brace yourself for a bombardment of ads in both directions from now til then.
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