Missouri could join 39 other states in legalizing sports betting if Amendment 2 is approved in the Nov. 5 General Election. If approved, Missouri residents over the age of 21 would be able to place wagers on professional sports games in casinos or online using popular sports betting apps.
“Every day, thousands of Missourians are betting on sports by using an illegal offshore website or app, or they’re traveling to one of the seven surrounding states to place their sports bets,” said Jack Cardetti, spokesperson for Winning for Missouri Education, a group supporting the amendment. “Really, our public policy makes no sense. The people of Missouri are betting, but we’re not getting any of the benefit from it.”
The amendment would allow the Missouri Gaming Commission to regulate licensed sports wagering, including online sports betting, gambling boats, professional sports betting districts and mobile licenses to sports betting operators. A 10% wagering tax on revenues received would be appropriated for education after expenses incurred by the commission, and there would also be required funding of the Compulsive Gambling Prevention Fund.
Ballot language lists a onetime cost of $660,000 and ongoing annual costs of at least $5.2 million are expected. The amendment estimates revenue from one-time license fees of $11.75 million and a maximum possible annual tax revenue of $28.9 million, though exact figures are unknown.
Cardetti is confident that the amendment will pass, citing a recent poll showing the majority of Missourians support legalizing sports betting. However, others question the way the amendment is structured.
“I keep reading that the way the law is written, they may be able to get around the taxes on it because operators can deduct a certain amount of promotional credits and free play costs against their taxes due,” said Mike Mathea, an adjunct economics professor at Lindenwood University.
Another potential downside to the law, according to Mathea, is that new tax revenue for public schools could mean politicians may not increase state education funding at the same rate they would if there was no additional tax revenue, canceling out any monetary benefit from the amendment.
In studies he’s read about other states passing gambling or cannabis laws with the promise of a percentage of tax revenue going to education, Mathea said initially, schools may receive an increase in revenue; however, it may not last.
“What tends to happen is that almost all of the increase (in revenue) tends to disappear over 15-20 years,” Mathea said.
Mathea did highlight an advantage to legalizing sports betting, other than tax revenue – that wagers would be reported.
“One of the things it will do is it will allow us to measure how much economic activity is going on,” Mathea said. “It’s sort of the same impact with legalized marijuana. While betting is illegal, people might be using a bookie, which is not legal, and goes unreported. Marijuana used to be bought illegally. Now we can see (what is being spent on it) because it shows up in the GDP of the United States.”
Cardetti said the tax revenue would not be part of the state’s regular budget for public education but would be extra funding on top of that.
“The schools get to decide how they spend their money,” Cardetti said. “The constitutional amendment doesn’t get that specific. That will be decided in the legislature with their annual funding bill, but all the money has to go to public education and the lawmakers can’t change that. It’s in the constitution. This is a completely separate and new funding stream."
Cardetti said gridlock in the state legislature has prevented action on sports betting for years, forcing advocates to turn to the ballot.
“As long as every state around us has it, we might as well have it,” Mathea said. “It’s probably not very good for bookies in the state, if there are any still around. I don’t think I’ve talked to a bookie since I was a college kid in Wisconsin.”
Mathea said Missouri might see an increase in gaming revenue in areas of the state that are not near a casino.
“They don’t have a casino near them, so for some people, this might be their only option,” Mathea said.
https://www.westnewsmagazine.com/news/on-the-ballot-sports-betting/article_0c861e28-7c37-11ef-9e97-fb03cd57ce42.html