The Battle Over Sports Wagering in Missouri: Amendment 2 on the Ballot
KANSAS CITY, Mo. — As the clock ticks down to November 5, Missouri voters are gearing up to make a pivotal decision regarding sports wagering in the state. Currently illegal, sports betting could see a significant shift with the introduction of Amendment 2 on the ballot. This proposed amendment aims to legalize both online and in-person sports gambling, including at professional sports districts, by December 1, 2025.
The Push for Amendment 2
The campaign supporting Amendment 2 is heavily backed by major sports-betting platforms like FanDuel and DraftKings. These companies have invested millions into a campaign that frames the amendment as a boon for education funding in Missouri. According to Jack Cardetti, spokesperson for Winning for Missouri, the passage of Amendment 2 could generate approximately $105 million for education over the next five years.
“Missouri education will receive about $105 million over the next five years, if Amendment 2 passes,” Cardetti stated, highlighting the pressing need for increased funding in a state where teachers rank 47th in the nation for average pay. The promise of additional resources for public schools is a compelling argument aimed at persuading voters who may be on the fence about the amendment.
The Opposition: Casinos Take a Stand
Ironically, the opposition to Amendment 2 is being spearheaded by the very casinos that could be affected by the legalization of sports betting. Caesars Entertainment, a major player in the casino industry, has funded the campaign against the amendment. Brooke Foster, spokesperson for Missourians Against the Deceptive Online Gambling Amendment, argues that while they are not against sports gambling per se, they take issue with how the amendment is structured and marketed.
“We’re not opposed to sports gambling, but what we’re opposed to is the way that this measure is written and now, subsequently, the way that it’s being advertised,” Foster explained. She cautions voters about the promises being made regarding funding for schools, suggesting that they may not materialize as expected.
The Financial Landscape of Sports Gambling
Critics of Amendment 2 point out that a 10% tax on sports-gambling revenue is unlikely to provide the substantial funding that proponents claim. However, supporters like Rob Olson, a state senator from Olathe, argue that the potential benefits for Missouri outweigh the risks. “I think this will be a win for Missouri,” Olson said, noting that neighboring states have already reaped the financial rewards of legalized sports betting.
Indeed, seven of Missouri’s eight neighboring states have legalized sports gambling, leading many residents to place bets across state lines or through illegal offshore sites. Since Kansas launched its sports betting program in September 2022, over $4.37 billion has been wagered, generating significant tax revenue for the state.
The Potential for Increased Revenue in Missouri
While Kansas has seen impressive revenue figures, Missouri has the potential to do even better. With a population nearly double that of Kansas, the Show-Me State could capitalize on a larger market. Additionally, Amendment 2 imposes a cap on deductions for promotional credits at 25%, a restriction not present in Kansas, which could lead to higher taxable revenue.
Moreover, Missouri’s approach includes directing $5 million annually into a Compulsive Gambling Fund before any funds are allocated to education. This raises questions about how much of the revenue will actually reach schools, especially given the historical precedent of lottery funds being redirected by the state legislature.
Concerns Over Education Funding
Foster raises a critical point regarding the allocation of funds generated from sports betting. “Education is the very last stop — even then, it’s not guaranteed to go to education, because there’s not any sort of mechanism in place that would keep it from just being supplanted by money from the general fund,” she cautioned. This skepticism reflects a broader concern that the promise of increased funding for education may be more of a marketing strategy than a guaranteed outcome.
The Role of Prop Bets and Campaign Funding
Another contentious aspect of Amendment 2 is its prohibition on prop bets for college and university players in Missouri. This restriction has drawn criticism from those who argue it limits the excitement and engagement that sports betting can bring to college sports.
The financial stakes in this debate are high. The Winning for Missouri Education committee has raised over $21.5 million, with significant contributions from DraftKings and FanDuel. In contrast, the opposition campaign has garnered nearly $4.2 million from Caesars Entertainment and its affiliated casinos.
As Missouri voters prepare to cast their ballots, the outcome of Amendment 2 could reshape the landscape of sports gambling in the state, with implications for education funding, the casino industry, and the broader economy. The stakes are high, and the conversation around sports wagering in Missouri is just beginning.