On November 5, voters in Missouri will decide on Amendment 2, a constitutional amendment to legalize sports betting in the state. The proposal would authorize the Missouri Gaming Commission to regulate licensed sports wagering, including both online platforms and in-person betting at gambling boats and professional sports venues.
PHOTO: Team mascots next to boxes of signatures submitted to the Missouri Secretary of State in May 2024.
Original photo - Alyse Pfeil, Post-Dispatch
About this series…
This is Article #2 in a series of covering the NINE constitutional amendments and propositions that will be included on our November ballot. These articles will be published throughout October and will hopefully help explain what each ballot measure means (beyond the short ballot language we normally get to see). I will NOT be offering opinions on the candidates for office - you're on your own for that ;-)
My website and email list present the "newest" articles first, so this series will likely appear to you in reverse order. If you want to start from the beginning – start with Article #1 and follow the links to read the articles in the order they were published.
Constitution Amendment 2 - Sports Betting Legalization
On November 5, voters in Missouri will decide on Amendment 2, a constitutional amendment to legalize sports betting in the state. The proposal would authorize the Missouri Gaming Commission to regulate licensed sports wagering, including both online platforms and in-person betting at gambling boats and professional sports venues.
The measure includes a 10% tax on adjusted gross revenues — which refers to the amount left after payouts to bettors and certain expenses have been deducted. Although billions of dollars in total betting revenue are anticipated, the tax will only be applied to adjusted gross revenues, a significantly smaller amount.
Ballot Language
The official language of Amendment 2 as presented to voters is:
The Shift to Legal Sports Betting
With Amendment 2, Missouri would join a growing number of states that have legalized sports betting since the U.S. Supreme Court’s 2018 decision to strike down the federal ban on the practice. Since then, 38 states plus DC have implemented sports betting regulations. However, critics argue that projected revenues can fluctuate, creating uncertainty in budget expectations.
While the 10% wagering tax may seem like a positive step, it is worth noting that many other states with sports betting have higher tax rates. For example, New York taxes sports betting revenues at 51%, generating significantly more funding for public programs. Missouri’s relatively low tax rate could result in less public benefit, particularly if wagering volumes fall below expectations.
Light Blue shaded states have some form of Sports Betting as of 2024
How Does Missouri Compare to Neighboring States?
To better understand the potential impact of Amendment 2, it's helpful to compare Missouri's proposed tax rate with those of its neighboring states. Here's a snapshot:
| State | Tax Rate |
|---|---|
| Oklahoma | N/A (Sports betting not legal) |
| Kansas | 10% |
| Missouri (Proposed) | 10% |
| Kentucky | 9.75% (retail); 14.25% (online) |
| Illinois | 15% |
| Arkansas | 13% up to $150 million; 20% thereafter |
| Tennessee | 20% |
| Nebraska | 20% |
As the table illustrates, Missouri's proposed tax rate is competitive with some neighbors but lower than others. This could influence both the attractiveness to operators and the amount of revenue generated for the state.
According to estimates, Amendment 2 could bring in anywhere between $0 and $28.9 million annually in tax revenue for Missouri. That's a pretty big range. Variability in the estimates reflects concerns about the reliability of revenues. Of that, $5 million would go into a fund to prevent gambling addictions. Any remaining balance would go to public schools and higher education.
Previous Attempts to Legalization
Since the U.S. Supreme Court overturned the federal ban on sports betting in 2018, Missouri lawmakers have repeatedly tried to legalize it through legislation. Between 2018 and 2023, multiple bills were introduced aiming to establish a regulated sports betting market. However, these efforts consistently stalled due to disagreements over key issues like tax rates, licensing fees, and whether to include the legalization of video lottery terminals (VLTs) in the same legislation.
Some lawmakers advocated for lower tax rates to attract operators, while others pushed for higher rates to maximize state revenue for public programs. Concerns about problem gambling and the need for robust prevention measures also contributed to the legislative gridlock. As a result, despite strong interest from casinos, sports teams, and many legislators, Missouri has yet to legalize sports betting through the legislative process, leading to Amendment 2 being placed on the ballot for voters to decide.
Amendment vs. Statute: A Permanent Change
Missouri voters are often faced with both amendments and propositions on the ballot, but these terms have different legal implications.
Amendments refer to changes to the Missouri Constitution. There are two ways amendments can be placed on the ballot: either through the state legislature or by citizen-initiated petitions. Once passed by voters, constitutional amendments have a lasting impact and can only be changed or repealed by another amendment, which must again be approved by voters. The process for changing an amendment makes them more permanent than statutes, as they form part of the state's foundational legal framework.
Propositions, on the other hand, are typically statutory changes proposed either by the legislature or through the citizen petition process. Propositions can include both statutory measures and legislative-referred ballot measures. Unlike amendments, propositions do not alter the constitution but instead create or change state laws. The legislature retains the power to amend or repeal propositions after they pass, making them more flexible but also less permanent than amendments.
Both amendments and propositions require a simple majority vote to pass in Missouri. However, there is an ongoing debate about whether to increase the vote threshold for passing constitutional amendments, potentially requiring a supermajority or additional district-based requirements to ensure broader statewide support.
In recent years, there has been a growing trend toward placing constitutional amendments on the ballot, especially through the citizen initiative process. This trend reflects public desire to address issues like healthcare, ethics reform, and marijuana legalization when the state legislature does not act. As a result, Missouri’s constitution has seen frequent amendments, sparking discussions about the need for reform in how amendments are proposed and approved.
One of the key factors voters must consider is that Amendment 2 would amend the Missouri Constitution, making it more difficult to modify in the future compared to a legislative statute. Any adjustment would require another statewide vote, potentially limiting flexibility to address unforeseen consequences.
Weighing the Benefits and Considerations
Supporters of Amendment 2 argue that it provides a regulated framework to curb illegal betting. They claim that legalizing and taxing sports wagering would generate significant new revenue for education and consumer protections.
Missouri is one of only about a dozen states that hasn't legalized sports betting. And that means we lose out on millions of dollars that could be going to our classrooms, and millions of dollars of economic opportunity.”
Jack Cardetti, spokesman - Winning Missouri Education PAC
Opponents, including State Senator Denny Hoskins (R-21), who has been a supporter of sports betting in Missouri, and even introduced a bill to legalize it. However, he doesn't support Amendment 2.
I’m not against putting that question on the ballot, but I’ve consistently said that the ballot language that they are using, I don’t believe best serves the people of Missouri. Number one, the tax rate is very low. The fees are very low. There’s not enough money in there for problem compulsive gambling, which is going to be caused by legalization of sports betting here in the state.
State Senator Denny Hoskins (R-21)
The opposition group Missourians Against the Deceptive Online Gambling Amendment has also criticized the measure for similar reasons.
PAC Money and Political Support $$
The Winning Missouri Education PAC has been the driving force behind the campaign for Amendment 2. In September, the parent company of DraftKings contributed $5 million, bringing total industry contributions to $15 million. These funds are financing a media campaign that highlights how tax revenue could benefit Missouri’s schools.
On the other hand, Caesars Entertainment has contributed $4 million to a PAC opposing the measure. Critics, including Caesars Entertainment’s casinos in Missouri, argue that the benefits of the measure are overstated and question whether tax revenue will truly benefit education at the levels claimed.
Deciding Yes ✔ or No ✔
Ultimately, the decision to vote Yes or No on Amendment 2 hinges on whether you support legalizing sports betting in Missouri at this time and through a constitutional amendment. While the prospect of new revenue is appealing, it's important to note that the projected tax revenue represents less than 0.06% of the state's annual budget—a relatively minor contribution.
As always, make sure to consider all aspects and make an informed decision that aligns with your views. You've got this!
Next Article...Sources
- "Missouri Sports Betting Initiative Lands Another Massive Check from Mobile Gambling Giant" – St. Louis Post-Dispatch
- "Group Behind Missouri’s Sports Betting Amendment Releases Study" – FOX4 Kansas City
- "Missouri Voters to Decide on Sports Betting Legalization Initiative in November" – Ballotpedia
- "Opposition Forms to Missouri Sports Wagering Question" – FOX4 Kansas City
- "Missouri Amendment 2, Sports Betting Initiative (2024)" – Ballotpedia
- "Missouri Amendment 2 Sports Betting Legalization" – KCUR
- "Kansas City Star - Sports Betting Opposition and Support" – Kansas City Star