In a groundbreaking decision, Missouri voters have narrowly approved Amendment 2, allowing sports betting throughout the state. As excitement builds for the upcoming NFL playoffs in January, Missourians are eager to explore their new betting options. However, questions linger about whether players will use platforms licensed within Missouri or rely on out-of-state services.
The Election Outcome
The results of the election were closely contested, with the final tally revealing a mere 14,000-vote margin among the nearly 2.9 million voters. An unexpected outcome arose from Greene County, where 55% voted against the amendment, ultimately impacting the statewide results. This narrow victory stands in stark contrast to the anticipated support, which had shown a much larger margin in pre-election polls.
While Amendment 2 gained approval, another significant gambling measure, Amendment 5, was rejected by voters. This initiative proposed establishing a new casino near Lake of the Ozarks, marking only the third time since 1980 that Missouri voters have turned down a proposal to expand gambling options. The vote against Amendment 5 reflected a growing skepticism about expanded gambling’s benefits, a sentiment amplified by the opposition campaign.
The Financial Stakes
The campaign supporting Amendment 2, titled Winning for Missouri Education, saw substantial financial contributions from major online sportsbooks like FanDuel and DraftKings, amounting to nearly $41 million. Their investment helped overcome the $14 million opposition campaign led by Caesars Entertainment, which unexpectedly ceased its advertising three weeks prior to the election.
Despite the pre-election forecasts that showed support for Amendment 2 leading by as much as 20 percentage points, the final results underscored how effective the opposition was in swaying public perception. Currently, Amendment 2 is on track to become law 30 days after the election, which signifies that legal sports betting could commence as early as December 5.
The Implications of Amendment 2
With the passage of Amendment 2, Missouri will join the ranks of over 35 states that have legalized some form of sports betting since the U.S. Supreme Court’s 2018 decision to overturn federal prohibitions. The regulatory framework established under the amendment allows each of Missouri’s six major professional sports teams to create retail betting locations near their respective stadiums. Moreover, the teams can launch branded online betting platforms, enhancing accessibility for fans.
Additionally, the state’s six licensed casino operators will have the opportunity to offer retail sportsbooks and online betting solutions. Importantly, the amendment includes provisions for two licenses, enabling online betting companies to operate independently without a direct connection to Missouri casinos or sports franchises.
Economic Projections
Economic analysts anticipate that the first five years following legalization could see up to $21.8 billion wagered, with more than 98% of bets expected to be placed online. The state’s take from gambling profits will be taxed at 10%, although promotional offers and federal taxes can be deducted before revenue calculations. Net revenue projections for Missouri over the designated period could reach approximately $134 million, with an estimated $38.7 million in the fifth year alone.
The Fallout of Amendment 5
In contrast to the success of Amendment 2, the failure of Amendment 5 highlights the challenges faced by proponents of expanded gambling in Missouri. The measure aimed to establish a licensed casino on the banks of Lake of the Ozarks but fell short, with nearly all precincts reporting the vote at a disappointing 52% against. The defeat means that the Osage Nation’s project for a casino and convention center in Miller County—pending federal approval—will not encounter immediate competition from a state-sanctioned facility.
Under U.S. law, tribes can engage in gambling activities, reflecting state offerings if the state permits. However, without a state-licensed facility nearby, the realm of gaming at Lake of the Ozarks becomes limited.
Conclusion: A Path Forward for Missouri Gamblers
As Missouri embraces sports betting, it becomes a pivotal moment for gamblers while establishing the state as a competitive player in the gaming industry. With significant tax revenue potential and the prospect of a vibrant online betting platform, Missourians can look forward to a new world of wagering opportunities. The outcome of this amendment illustrates not only the shifting landscape of gambling in the state but also the common challenges that advocacy campaigns face in navigating the complex political terrain surrounding gaming.
In the coming months, as regulatory frameworks come into play and platforms are established, Missouri’s gambling scene is poised for a thrilling transformation. Whether fans are betting on their favorite teams or exploring new games, the Show-Me State is set to shine in the world of sports betting.
