November 7, 2024

Business

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Missouri voters have made a significant decision by narrowly approving Amendment 2, which legalizes sports betting in the state. This move positions Missouri as the 39th state to embrace sports wagering, joining its neighbors in the growing trend of legalized gambling. The amendment is set to take effect within 30 days, allowing for the first legal bets as early as December 5, 2024.

Key Takeaways

Amendment 2 passed with a narrow margin of just 7,486 votes out of nearly 2.9 million cast.
The amendment allows sports betting through casinos and professional sports teams, with a 10% tax on revenues.
Funds generated from sports betting will be allocated to education and compulsive gambling prevention.

The Path to Legalization

The push for legal sports betting in Missouri has been a long time coming, fueled by frustrations with legislative inaction. Following the U.S. Supreme Court’s decision in 2018 to strike down the federal ban on sports betting, many states have moved to legalize it. Missouri’s Amendment 2 was driven by a coalition of professional sports teams, including the St. Louis Cardinals and Kansas City Chiefs, who gathered over 340,000 signatures to place the measure on the ballot.

Election Results

The final vote count revealed a close race, with Amendment 2 receiving 50.1% of the votes compared to 49.9% against. The results were particularly tight in Greene County, which voted 55% against the measure. The campaign supporting the amendment, Winning for Missouri Education, raised a record $41 million, significantly outpacing the $14 million spent by opponents, primarily funded by Caesars Entertainment.

What Does Amendment 2 Entail?

Under Amendment 2, the Missouri Gaming Commission will regulate sports betting, which includes:

Retail Sportsbooks: Each of the six major professional sports teams can establish a retail betting location near their stadiums.
Online Betting: The amendment allows for online betting platforms, with two licenses available for operators not linked to a Missouri casino or sports team.
Taxation: A 10% tax will be imposed on sports betting revenues, with funds directed towards education and compulsive gambling prevention programs.

Economic Impact

An economic study estimates that Missouri could see $21.8 billion wagered in the first five years post-legalization, with over 98% of bets expected to be placed online. The state could generate approximately $134 million in net revenue during this period, with projections indicating that revenue could reach $38.7 million by the fifth year.

Future of Gambling in Missouri

While Amendment 2 marks a significant step forward for sports betting in Missouri, another measure, Amendment 5, which sought to authorize a new casino near the Lake of the Ozarks, was rejected by voters. This outcome reflects a cautious approach to expanding gambling in the state, despite the enthusiasm for sports betting.

As Missouri prepares to launch its sports betting market, the focus will be on how effectively the state can regulate this new industry and ensure that the anticipated benefits, particularly for education, are realized. The approval of Amendment 2 not only reflects the changing landscape of gambling in the U.S. but also highlights the strong support for sports among Missouri residents.