Missouri Voters Pass Sports Betting Amendment

Missouri sports betting is about to enter the Missouri market.

Amendment 2 was narrowly passed in Tuesday’s election, pushing legal sports betting in the Show-Me State. The initial results show that the amendment passed by 0.2%, showing how divided the state is over the topic. While there is no date for when the market will go live, we have an idea of how it will look.

The amendment will establish a 10% tax rate on the sports betting industry. Operator tax revenue will fund the state’s education system and problem gambling funds. The Missouri Gaming Commission (MGC) will regulate the new industry.

The victory for sports betting proponents ends a years-long battle in the state legislature. Soon-to-be Missouri Secretary of State Denny Hoskins led the opposition in an attempt to expand sports betting proposals to include other forms of gambling. His success in blocking bills led to proponents looking for another way.

The Winning for Missouri Education was formed earlier this year, spearheaded by the state’s pro sports teams. They gathered enough signatures to get sports betting on the ballot. While they presented several strong arguments to voters, the most significant was the $100 million in tax revenue projected over the first five years.

Worries Over Tax Projections Continue

Opponents of sports betting will continue to sound the alarm over how the amendment handles industry taxation. The new law will allow operators to deduct any federal taxes. If enough is written off, sportsbooks won’t have to pay anything to the state.

While the $100 million projection from Winning for Missouri Education is legitimate, it doesn’t consider federal write-offs. That means the state could be introducing an influx of problem gambling without the financial rewards. 

The potential for the state to lose most or all of the industry’s tax revenue would be devastating for the education system. Unlike other states, this funding would replace the current funding instead of adding to it.