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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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Colorado State Attorneys Ask Federal Court to Toss Tribal Sports Betting Lawsuit

State attorneys in Colorado have asked a federal court to dismiss a lawsuit filed by two federally recognized tribes challenging how sports betting was rolled out in The Centennial State.

Colorado sports betting Ute tribes
A patron at the Ute Mountain Casino Hotel Sportsbook places a wager. The Ute Mountain Ute and Southern Ute Indian tribes have sued the state of Colorado for how online sports betting debuted. (Image: Ute Mountain Casino Hotel)

In July, the Southern Ute Indian Tribe filed a lawsuit in Colorado’s US District Court on claims that the state and Gov. Jared Polis (D) failed to negotiate in good faith as required by the federal Indian Gaming Regulatory Act (IGRA). The Ute Mountain Ute Tribe joined the case in September.

The lawsuit challenges how Polis and the Colorado Division of Gaming finalized the state’s sports betting regulations after voters authorized sports gambling during a 2019 statewide referendum.

“The Tribes’ position is substantively incorrect,” the state’s filing read. “However, this Court need not address the merits of this case because it lacks subject matter jurisdiction over the Tribes’ claims and the Tribes fail to state a claim.”

The tribes allege they were kept in the dark about the state deciding not to expand their Class III gaming compacts to include online sports betting. The sovereign nations say they received cease-and-desist letters from the state gaming agency in June 2020 — a month after commercial mobile sportsbooks went live — ordering them to yank their online sports betting platforms. 

State Seeks Dismissal

When Colorado’s online sportsbooks regulated by the Gaming Division took their first wagers in May 2020, so did the mobile Sky Ute Sportsbook. The following month, as the Ute Mountain Ute Tribe was readying to launch its mobile sports wagering operation, the state threatened to revoke the operator licenses of the tribes’ sportsbook partners, US Bookmaking and IGT.

The state told the tribes that while their Class III gaming compacts expanded to include retail sports betting privileges following the 2019 referendum, the constitutional amendment didn’t expand tribal gaming to the internet.

As the Tribes argue that they have a sovereignty interest in their right to control gaming on Indian lands, so too does the State possess a sovereignty interest in the ability to regulate sports betting in Colorado,” the motion to dismiss continued.

The tribes believe the state wants to reap as much revenue from sports betting as possible. And since their Class III gaming compacts don’t include revenue-sharing provisions, a rarity among states that have entered into compacts with their tribal nations, allowing online tribal sportsbooks would presumably cut into the state’s windfall.

State officials told the tribes that they could only operate online sportsbooks if they agreed to share 10% of the sports betting revenue with the state. Another condition was agreeing to have their online sports betting platforms regulated by the Gaming Division.

The tribes say they tried to engage in discussions with the state before the rollout of online commercial sportsbooks but those requests went unfulfilled.

The Sky Ute Casino Resort shuttered its retail sportsbook in July 2023 after determining the operation to be unfruitful. A retail book remains at the Ute Mountain Casino Hotel.

Seminole Repercussions

The crux of the Colorado tribes’ lawsuit seems to hang on a recent federal ruling in Florida that concluded the Seminole Tribe’s running of an online sportsbook doesn’t violate the IGRA so long as the tribe’s internet sportsbook computer servers remain on the tribe’s sovereign land.

The Southern Ute and Ute Mountain Ute tribes seek financial damages and for the court to declare that their compacts provide online sportsbook privileges.

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Brazil Contemplates Ban on Online Sports Betting Over Addiction and Financial Strain

Brazil-considers-ban-on-online-sports-bettingBrazilian President Luiz Inácio Lula da Silva is contemplating an outright ban on online sports betting if the government’s recent regulatory efforts fail to address the growing issue of gambling addiction in the country. Since the legalization of online sports betting in 2018, there has been a dramatic surge in betting activity, raising concerns about the negative financial and social impacts on Brazilian households.

Worsening Socio-Economic Impact

Recent studies have revealed troubling trends linked to the rapid rise in online betting. Many Brazilian families are suffering financially due to an increased tendency to gamble, often using money intended for essential purchases. A significant portion of household income is reportedly being diverted to gambling, contributing to permanent debt and family bankruptcies. One study commissioned by a Brazilian retailers’ association found that 63% of online betting platform users experienced income declines, and 23% of those surveyed admitted to prioritizing gambling over purchasing necessities like clothing.

President Lula expressed particular concern for low-income families receiving social assistance through Brazil’s Bolsa Família program. Addressing the issue after casting his vote in São Paulo’s municipal elections, Lula stated, “Everyone knows that the person going to buy bread in the morning will make a small bet using the bread money.” He emphasized the importance of regulating the industry to prevent vulnerable populations from falling further into financial hardship. Lula added that, if the new regulations are insufficient in curbing the addiction, he “won’t hesitate in putting an end to [betting]

definitively.”

Stricter Regulations Underway

To address these growing concerns, the Brazilian government has introduced a set of regulations aimed at tightening control over the online sports betting market. The new rules mandate that international betting companies operating in Brazil must obtain local licenses, establish corporate offices, and provide customer support specifically for Brazilian users. Additionally, measures are being implemented to prevent money laundering, and credit card usage for betting will be prohibited under these guidelines, which are set to take effect by the end of the year.

Brazil’s Secretariat of Prizes and Bets (SPA) has already published a list of licensed operators, which includes some of the biggest names in the betting industry, such as Flutter Entertainment, Entain Group, and Betsson. These companies must now comply with local regulations, including partnering with Brazilian entities and adhering to strict financial and operational requirements. Hundreds of other companies have been denied licenses for failing to meet the necessary conditions.

Despite these new regulations, concerns about gambling addiction persist. In August alone, Brazil’s central bank reported that recipients of Bolsa Família spent over R$3 billion ($550 million) on bets, raising alarms about the impact on vulnerable communities. Lula’s government recently held a cabinet meeting to discuss whether to ban Bolsa Família beneficiaries from participating in betting activities, although no decision has yet been made.

Further Investigations and Potential Ban

As Brazil grapples with the consequences of its booming online gambling market, a separate parliamentary inquiry has been launched to examine the links between online gambling and criminal organizations. The inquiry, led by Senator Soraya Thronicke of the Podemos Party, aims to investigate potential money laundering activities and other illegal practices connected to online betting. Thronicke, addressing the gravity of the issue, noted, “There is no point in closing our eyes to this problem. It is a fact. It is one of the main reasons for attacks on life and separations.”

In recent months, Brazilian authorities have ramped up efforts to clamp down on illegal betting activities. As part of Operation Integration, a major money laundering crackdown, popular online influencer Deolane Bezerra was arrested in September for her involvement in promoting illegal online gambling activities. The inquiry will delve deeper into these connections, examining how criminal organizations may be exploiting the growing online gambling market.

Senator Dr. Hiran Gonçalves, another key figure in the inquiry, raised concerns about the lack of oversight in online betting transactions, especially with the use of cryptocurrencies and offshore operators. He highlighted the need for a robust inquiry to provide the Brazilian public with answers and ensure that the country’s financial system is not being compromised by unchecked gambling activities.

A Complex Balancing Act

Brazil is now at a crossroads, trying to balance the economic benefits of its rapidly growing gambling industry with the need to protect its most vulnerable citizens. While banning online sports betting entirely may seem like an extreme measure, Lula has made it clear that if the current regulatory measures do not effectively curb the social and economic harms of gambling, more drastic action will be taken.

Lula also acknowledged that completely banning betting may drive it underground, as has been the case with illegal cockfighting and clandestine number betting, known as “jogo do bicho,” which has been prevalent in Brazil since the 19th century. “Brazilians will always find a way to gamble,” he remarked, emphasizing the importance of tackling the problem without pushing it into unregulated spaces.

As Brazil’s gambling market continues to evolve, the government’s efforts to regulate it will be closely monitored. With nearly 25 million new users joining betting platforms this year alone, the stakes are high. If regulation proves ineffective in combating addiction and the negative financial impacts, Lula’s administration has made it clear that a ban remains a viable option.

Source:

“Brazil’s Lula Says He Will Ban Sports Bets if Addiction Not Regulated”, reuters.com, October 6, 2024.

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Missouri’s Sports Betting Initiative Heads to November Ballot

Missouri-wagering-initiative-will-be-on-November-ballotIn November, Missouri voters will have the opportunity to decide the fate of sports betting within the state. After a long history of failed attempts to pass sports wagering legislation, a judge’s ruling last Friday, September 6, 2024, ensured that the sports betting ballot initiative would remain on the state ballot.

If passed, the initiative would legalize both digital and retail sports betting in Missouri. The initiative has garnered strong support from Missouri’s professional sports teams and residents. Currently, many bettors from the Show Me State travel to neighboring states such as Illinois and Kansas to place their wagers.

Financial and Regulatory Benefits for the State

With neighboring states like Arkansas and Kansas already legalizing sports betting, Missouri is losing out on a potential revenue stream. Legalizing wagering would not only allow residents to place bets from the comfort of their own state but also create new economic opportunities through tax revenue and licensing fees.

The proposed initiative places sports betting under the regulation of the Missouri Gaming Commission. Both digital platforms and physical venues such as casinos and professional sports stadiums would offer sports wagering, with the commission overseeing operations to ensure compliance with state laws.

The measure also includes provisions for responsible gambling, which would be supported by a minimum of $5 million in annual tax revenue. Any remaining tax revenue from sports betting would be directed toward funding education, including elementary, secondary, and higher education programs.

This initiative promises significant economic benefits, with proponents estimating that the state could see tax revenues ranging from $0 to $28.9 million annually, depending on deductions and other variables.

A recent poll conducted by Saint Louis University and YouGov PLC found that approximately 50% of Missouri residents support the sports betting initiative, while 30% oppose it, and 20% remain undecided.

Judge’s Decision Clears Path for Voter Approval

On Friday, Cole County Circuit Judge Daniel R. Green ruled that the sports betting ballot initiative would remain on the November ballot. This decision followed a seven-hour hearing in which political consultants argued that the initiative should be disqualified due to allegedly invalid signatures.

Judge Green ultimately ruled that the plaintiffs failed to present enough evidence to prove that 95 signatures were improperly verified by the Secretary of State’s office. He emphasized that lawsuits aimed at removing certified ballot initiatives are “highly disfavorable.” By keeping the sports betting initiative on the ballot, voters now have the opportunity to decide its future.

A Crucial Vote for Missouri’s Future

In addition to the sports betting initiative, Missouri voters will also weigh in on Amendment 5, which would authorize the Missouri Gaming Commission to issue an additional gambling boat license for the Lake of the Ozarks region. Both initiatives have the potential to reshape the state’s gaming landscape and provide new revenue streams for public services.

As Missouri looks to join the growing list of states that have legalized sports betting, the November vote will be a pivotal moment for the state’s economy and gaming regulations. If passed, the initiative will bring much-needed tax revenue while ensuring that sports wagering is conducted in a responsible and regulated manner.

Source:

“Sports betting will be on Missouri ballots this November” by Caroline Pettey and Joey Schneider, newsnationnow.com, September 8, 2024.

“Missouri wagering initiative will be on November ballot, judge rules” by Jill R. Dorson, igamingbusiness.com, September 8, 2024.

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Texas Sports Betting Unlikely Before 2027 Amid Rising Opposition

Indy-Gaming-Why-Texas-is-for-now-not-likely-to-legalize-sports-bettingEfforts to legalize sports betting in Texas are facing substantial hurdles, largely due to increased lobbying and campaign contributions aimed at legalizing casinos in the state. These actions have galvanized anti-gaming forces in Texas, reducing the likelihood that sports betting will be legalized in the near future.

According to a recent report by Eilers & Krejcik Gaming, a Southern California advisory firm specializing in sports betting analysis, Texas has been removed from the list of states likely to legalize sports betting by 2025. The firm attributes this decision to the intensifying opposition to gambling in Texas, driven primarily by efforts from Las Vegas Sands Corp.

Las Vegas Sands has invested millions of dollars over the past decade in failed attempts to legalize casinos in Texas. The company is once again leading a push for a casino bill as the state approaches its biennial legislative session. Despite these efforts, opposition to gambling in the state has only strengthened, creating significant obstacles for the legalization of sports betting.

The Texas Tribune reported in May that Miriam Adelson, who controls 53 percent of Las Vegas Sands, contributed $9 million to the Texas Defense Fund, a political action committee that supported Republican incumbents in the Texas House during the primary elections. In addition to this political involvement, Adelson spent $3.5 billion in December to acquire a 73 percent stake in the NBA’s Dallas Mavericks. The team, which recently lost to the Boston Celtics in the NBA Finals, is expected to advocate for a new arena in Dallas, potentially tied to a future hotel-casino resort operated by Las Vegas Sands.

Mark Cuban, co-owner of the Mavericks who retained a 27 percent stake in the team, emphasized the importance of the casino aspect of the project. Speaking at a sports economics forum in Dallas, Cuban stated, “The 10 percent of the people who gamble pay for everything else,” highlighting the financial viability of integrating a casino into the project.

Andy Abboud, Senior Vice President of Sands, also spoke at a recent event hosted by the North Texas Commission, a public-private partnership that includes Dallas-area businesses and local governments. Abboud briefed business leaders on the potential benefits of destination gaming, with the commission forming an exploratory committee to examine the issue further.

However, these initiatives have only intensified opposition from Texas’ anti-gaming faction, which is predominantly led by Republicans in the Texas State Senate. Chris Krafcik, an analyst from Eilers & Krejcik, noted that while the Texas House passed an online sports betting bill in 2023—backed by major sports betting companies, a coalition of Texas’ professional sports teams, and former Texas Gov. Rick Perry—it was ultimately blocked in the Senate. This development supports Krafcik’s view that “the Senate is the chamber that matters, and things there are not moving in the right direction.”

Krafcik also pointed out that the Texas Republican Party has explicitly instructed lawmakers to oppose any form of gambling expansion, as well as any budget proposals that include revenue from legalized gambling. He highlighted the party’s firm stance against gambling, noting that “[the party’s platform]

even explicitly addresses the warmer reception gambling expansion has had in the House.”

Given these challenges, Krafcik now believes that Texas may not legalize sports betting until at least 2027, with the earliest possible launch coinciding with the NFL season opener in the fall of 2028.

Source:

“Indy Gaming: Why Texas is, for now, not likely to legalize sports betting”, thenevadaindependent.com, August 21, 2024.

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