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Missouri Approves Sports Betting with Slim Margin, Legalization by 2025

Missouri-voters-narrowly-approve-sports-betting-amendment-reject-casino-at-Lake-of-the-OzarksIn a historic decision, Missouri voters have approved Amendment 2, making sports betting legal across the state. The measure, passed by just 0.256%, represents Missouri’s entry as the 39th state in the U.S. to legalize this form of gambling. The Secretary of State’s office reported a tight margin, with only 7,486 votes out of nearly 2.9 million cast separating approval from rejection. Although the amendment passed narrowly, the opposition group Missourians Against the Deceptive Online Gambling Amendment has confirmed they will not seek a recount, even though Missouri law allows recounts for margins under 0.5%.

The push to legalize sports betting in Missouri has been fueled by neighboring states like Illinois and Kansas, which have already embraced regulated sports wagering. Following final certification, expected by December 10, Amendment 2 will take effect 30 days after the election. The Missouri Gaming Commission has until December 1, 2025, to establish licensed sports betting platforms statewide, allowing residents to bet both at casinos and via mobile apps.

What Amendment 2 Means for Sports Betting in Missouri

The passage of Amendment 2 opens up several betting options across Missouri. Once the market launches, residents will have access to both retail and online sports betting platforms. Professional sports teams in Missouri, including the Cardinals, Royals, and Chiefs, will be authorized to set up physical betting locations near their stadiums and offer branded mobile betting options.

Additionally, casinos in the state will be able to host sportsbooks on-site, with each casino eligible for an online sports betting license. Two additional online licenses will be available for platforms independent of casinos or sports teams, paving the way for major operators like DraftKings, FanDuel, BetMGM, and Caesars Sportsbook.

Missouri will join Kansas in taxing adjusted gross gaming revenue from sports betting at 10%, a comparatively low rate among states with legalized sports wagering. This tax will support the Missouri Department of Elementary and Secondary Education, and a portion will fund the Compulsive Gambling Prevention Fund to help those affected by gambling addiction. However, the amendment’s approval as a constitutional measure makes any future tax rate adjustments challenging, as changes would require another statewide vote.

Proponents of Amendment 2 believe sports betting will contribute much-needed revenue to Missouri’s education budget. According to the Winning for Missouri Education campaign, which received over $14 million in backing from FanDuel and DraftKings, sports betting could generate over $100 million in new tax revenue within the first five years of legalization. In comparison, Kansas has collected more than $20 million in tax revenue since it launched sports betting in 2022, directing funds toward attracting professional sports teams.

Missouri’s Journey to Legal Sports Betting and Broader Implications

Missouri’s journey to legalized sports betting has been marked by legislative challenges. Despite significant support for legalization in Kansas City and counties like Jackson, Clay, and Platte, efforts repeatedly stalled within the state legislature due to opposition from various interest groups. However, with Amendment 2’s approval, Missouri residents can expect betting options similar to those in surrounding states like Illinois, Iowa, and Tennessee.

Notably, the amendment includes restrictions, such as prohibiting prop bets on college athletes from Missouri-based institutions, which aligns with measures in other states. This stipulation reflects a cautious approach to collegiate sports wagering intended to address ethical and integrity concerns associated with betting on amateur athletes.

The American Gaming Association (AGA) reports that the U.S. sports betting industry reached a record $10.92 billion in revenue in 2023, underscoring the industry’s potential as a revenue source for Missouri. Nevertheless, revenue from sports betting, while valuable, is not anticipated to fully address Missouri’s educational funding needs, with estimates suggesting it may cover only a small fraction of the state’s annual $10 billion education budget.

With more than 35 states permitting some form of sports gambling, Missouri’s approval of Amendment 2 reflects a continued national trend toward legalizing sports betting. However, Oklahoma remains the lone border state holding out against sports betting, further distinguishing Missouri’s choice to capitalize on the industry. This decision also highlights the growing influence of major online gaming operators, with FanDuel and DraftKings spearheading the initiative in Missouri to significant effect.

Missouri’s sports fans can anticipate their first legal bets as early as December 2025, marking a new chapter for the Show-Me State’s gaming landscape.

Source:

“All in: Missouri Voters Pass Amendment 2, Legalize Sports Gambling“, kshb.com, November 6, 2024. 

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Kentucky House Passes Sports Betting Bill By Nearly 2-to-1 Margin

The Kentucky House passed a bill to legalize sports betting in the state early Monday evening.

Meredith
State Rep. Michael Meredith discusses House Bill 551, which would legalize sports betting in the state, on the House floor Monday. The bill passed by a nearly 2-to-1 margin and now heads to the Senate. (Image: Casino.org)

The 62-34 vote on House Bill 551 cleared the three-fifths majority supporters needed to get since the bill generates revenue and makes appropriations in a non-budget year.

The bill would allow Kentucky’s nine racetracks to offer retail sportsbooks at its tracks and simulcasting facilities. It also would allow tracks to partner with up to three mobile operators each.

Tracks would pay $500,000 for a license, with an annual renewal fee of $50,000. Operators would pay a $50,000 license fee and an annual renewal fee of $10,000.

Retail sports betting revenues would be taxed at 9.75% of adjusted gross revenues, while online operators would pay a 14.25% tax. The only deductions allowed would be for the .25% federal excise tax the federal government places on each wager.

It’s the second straight year the House has passed a bill. Once again, the bill now heads to the Senate, where last year’s bill died after failing to get a committee hearing or a floor vote before the session ended. This year, the bill will need 23 yes votes to pass in the 37-member Senate.

However, supporters are expressing optimism for this year’s bill, even as just five legislative days remain in the session.

State Rep. Michael Meredith, R-Oakland, the bill’s primary sponsor, believes they are about a couple of votes away from the 23 they need to pass the bill in the Senate this year.

Problem Gaming Fund Added to Bill

One reason for Meredith’s optimism is what was included in a House floor amendment Monday. That bill included a provision for a problem gaming fund, with that fund receiving 2.5% of the tax revenue generated annually.

That was explicitly added, Meredith said, because a couple of senators requested it.

Hopefully, that’ll shore up those (votes), and we’ll narrow it down,” Meredith told Casino.org after the bill’s passage.

The problem gaming fund was one that state Rep. Al Gentry had championed, D-Louisville, who has been the primary co-sponsor on sports betting legislation in the House.

Gentry had filed a bill earlier in the session that would have created a problem gaming fund that would have received money from all sectors of legal gaming in Kentucky. While this fund would only be covered by sports betting tax revenue, he told Casino.org he was still delighted to see it inserted.

Kentucky is one of a few states that does not have a problem gambling fund.

“I put a lot of work into pushing that for a few years now and glad to see it’s in there,” he said.

In addition, both Meredith and state Rep. Matt Koch, R-Paris, have talked about bringing up a more comprehensive problem gaming fund for next year’s session.

The problem gaming fund was the second significant positive change for the bill. Last week, the House Licensing, Occupations, and Administrative Regulations Committee approved a substitute bill that removed a 12-month, in-person licensing requirement for mobile account registrations.

While the House passed Meredith’s floor amendment, two others brought by a bill opponent failed.

State Rep. Josh Calloway, R-Irvington, sought to ban the use of credit cards for sports betting deposits and raise the minimum age to place a wager on a sporting event from 18 to 21. Both failed, with the age change falling by a 39-48 vote.

Calloway, after his amendments were defeated, said on the floor that he would not stop fighting for Kentuckians, especially against things that can “destroy people’s lives permanently.”

Time Running Out in Kentucky General Assembly

Supporters of the sports betting bill received good news last week when an advanced agenda for Tuesday’s Senate Licensing and Occupations Committee hearing included HB 551. However, Meredith said , after Monday’s vote, the committee may not take up his bill until possibly Wednesday. The Senate L&O Committee is also expected to take up the gray/skill games bill that passed the House last week and a bill that would legalize medical marijuana.

While Meredith and other supporters express optimism about the bill’s chances, the clock is running out on this year’s session.

After Monday, there are just five legislative days remaining. Three of them take place this week, with lawmakers recessing starting on Thursday for Gov. Andy Beshear’s veto consideration period.

The session will conclude on March 29-30.

Another thing the bill has in its favor is Beshear’s support. He campaigned four years ago on legalizing sports betting and reiterated that support earlier this year in his State of the Commonwealth address.

“I don’t think you’re going to see a veto,” Meredith said. “So, I think everybody’s pretty comfortable sitting it down until after the veto period.”

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