Missouri has officially joined the growing list of U.S. states that have legalized Missouri Sports Betting. On November 5, 2024, voters narrowly approved Amendment 2, a constitutional amendment permitting both online and in-person sports wagering within the state. This decision marks a significant shift in Missouri’s approach to gambling and is poised to have substantial economic and social implications.
Missouri Sports Betting Journey to Legalization
Efforts to legalize sports betting in Missouri have been ongoing for several years. Legislative attempts often encountered obstacles, particularly disagreements over the inclusion of video lottery terminals (VLTs) and concerns about regulatory frameworks. In response to these challenges, a coalition comprising Missouri’s professional sports teams—including the Kansas City Chiefs, St. Louis Cardinals, and St. Louis Blues—along with major sports betting operators like DraftKings and FanDuel, initiated a campaign to place the issue directly before voters. Their efforts culminated in Amendment 2, which appeared on the November 2024 ballot.
Key Provisions of Amendment 2
Amendment 2 introduces several critical changes to Missouri’s legal landscape:
- Authorization of Sports Betting: The amendment allows individuals aged 21 and over to engage in sports wagering, both online and at designated physical locations such as casinos and professional sports venues.
- Regulatory Oversight: The Missouri Gaming Commission (MGC) is tasked with overseeing all sports betting activities, ensuring compliance with state regulations and maintaining the integrity of betting operations.
- Taxation and Revenue Allocation: A 10% tax is imposed on the adjusted gross revenue from sports betting. After covering regulatory expenses and allocating funds to the Compulsive Gambling Prevention Fund, the remaining revenue is earmarked for public education, including both K-12 schools and higher education institutions.
- Implementation Timeline: The MGC is required to establish sports wagering operations by December 1, 2025. However, there is optimism that the market could launch earlier, potentially by the start of the 2025 NFL season.
Missouri Sports Betting Economic Implications
The legalization of Missouri sports betting is anticipated to have several economic benefits:
- Revenue Generation: Projections suggest that sports betting could generate substantial revenue for the state. An analysis by Eilers & Krejcik Gaming estimates that Missouri could see approximately $560 million in annual sports betting revenue, translating to significant tax income for educational purposes.
- Job Creation: The establishment of sportsbooks, both physical and online, is expected to create new employment opportunities in areas such as technology, customer service, and regulatory compliance.
- Competitive Positioning: With neighboring states like Kansas, Illinois, and Tennessee already offering legal sports betting, Missouri’s entry into the market aims to retain betting activities—and the associated economic benefits—within the state.
Social Considerations
While the economic prospects are promising, there are social factors to consider:
- Responsible Gambling: The amendment allocates funds to the Compulsive Gambling Prevention Fund, emphasizing the state’s commitment to addressing potential increases in gambling addiction through research, treatment programs, and support services.
- Public Sentiment: The narrow margin of the vote—approximately 50.1% in favor—indicates a divided public opinion. This underscores the importance of transparent implementation and ongoing public education about the benefits and risks associated with sports betting.
Next Steps for Implementation
The Missouri Gaming Commission faces a comprehensive agenda to ensure a smooth rollout:
- Regulatory Framework: Developing detailed regulations that address licensing procedures, operational standards, consumer protections, and advertising guidelines.
- Licensing: Issuing licenses to qualified operators, including Missouri’s 13 casinos and six professional sports teams, each eligible to offer on-site and mobile sports betting platforms.
- Public Awareness: Launching educational campaigns to inform residents about legal betting options, responsible gambling practices, and available support resources.
Missouri Sports Betting Potential Market Players
Several major Missouri sports betting operators are expected to enter the Missouri market:
- DraftKings and FanDuel: Both companies have been instrumental in supporting the legalization campaign and are likely to apply for the two untethered licenses available.
- Caesars Sportsbook: With existing casino operations in Missouri, Caesars is well-positioned to integrate sports betting into its offerings, despite its initial opposition to the amendment’s specific provisions.
- BetMGM and Fanatics Sportsbook: These operators may seek partnerships with local casinos or sports teams to establish a presence in the state.
Conclusion
The legalization of sports betting in Missouri represents a significant development with the potential to generate economic benefits and enhance entertainment options for residents. However, the narrow approval margin and the complexities involved in implementation highlight the need for careful planning and responsible management. As the state moves forward, balancing economic interests with social responsibilities will be crucial to the successful integration of sports betting into Missouri’s cultural and economic fabric.
FAQs about Missouri Sports Betting
Is sports betting legal in Missouri?
Yes, sports betting is now legal in Missouri. Voters approved Amendment 2 on November 5, 2024, legalizing both online and retail sports betting in the state. The Missouri Gaming Commission is currently establishing regulations, with plans to launch sports betting operations by December 1, 2025.
When will sports betting be available in Missouri?
While the constitutional amendment takes effect now, betting won’t begin immediately. State regulators must first draft rules and take applications from sportsbooks. The Missouri Gaming Commission aims to launch sports betting by late spring or early summer 2025, well before the amendment’s December 1, 2025, deadline.
Who will be eligible to participate in sports betting in Missouri?
Individuals aged 21 and over, physically located within Missouri, will be eligible to engage in sports betting. This applies to both online and in-person wagering. Geolocation technology will be used to ensure bettors are within state lines.
Which entities will offer sports betting in Missouri?
Each of Missouri’s professional sports teams and land-based casinos will be eligible to offer on-site and mobile sports betting. Additionally, the Missouri Gaming Commission holds two untethered licenses, likely attracting major operators such as DraftKings and FanDuel.
How will sports betting revenue be taxed and allocated in Missouri?
Missouri will impose a 10% tax on sports betting revenue. Funds are designated primarily for educational institutions, with at least $5 million annually allocated to problem gambling programs.
What measures are in place to promote responsible gambling in Missouri?
The Missouri Gaming Commission is committed to promoting responsible gaming. Measures include self-exclusion programs, deposit limits, time limits, and reality checks. Additionally, funds are allocated to the Compulsive Gambling Prevention Fund to support public awareness campaigns, research, and treatment programs.