Sports betting amendment passes in Missouri by wafer-thin margin

The long battle to bring sports betting to Missouri is finally over after voters narrowly approved an amendment by a wafer-thin margin. Last night during the US Election, voters supported the measures to give sports betting the green light in the state. However, the desire to give sports betting (Amendment 2) the go-ahead was decided by just half a percentage point, which equates to a 14,000-vote margin. Previously, the legislature had failed in its mission in more than five sessions.

The road to legal sports betting has been arduous and has run for nearly six years since the US Supreme Court struck down a federal law against wagering on sports events in 2018. But new constitutional amendments are enacted in law 30 days after the election, so the first legal bets could be placed in Missouri as early as December 5. Six of the seven states that border Missouri have some form of legal sports betting, but Oklahoma has yet to legalize it.

Key players and financial stakes:

• FanDuel and DraftKings spent over $40 million supporting the campaign.

• Caesars funded a $14 million “no” campaign against the measure.

• Amendment 2 will allow 20 digital betting platforms to operate in Missouri.

The amendment allows each of the 13 casinos and 5 professional sports teams to be eligible for licenses, with 2 standalone mobile licenses also available. Meanwhile, the election didn’t go well for the other gambling measure on the ballot (Amendment 5), which would have paved the way for a new casino near the Lake of the Ozarks. It is only the third time since 1980 that Missouri rejected the opportunity to expand gambling in the state.

Financial outlook and projections:

• Profits from sports betting will be taxed at 10%.

• An economic study estimates over $21 billion will be wagered in Missouri during the first 5 years.

• More than 98% of bets are expected to be placed online, with revenue projected at $38.7 million by year 5.

The potential for sports betting to take off in Missouri is extraordinary, with operations potentially fully up and running by the time the NFL playoffs begin in January. Of course, there is still a vetting process to be conducted by the Missouri Gaming Commission (MGC) on applicants, but this is an exciting time for Missouri sports betting fanatics.