Missouri legalises sports betting after ballot approval

Sudhanshu Ranjan December 9, 2024

SiGMA news

Missouri has become the thirty-ninth state in the US to legalise sports betting after receiving 50.05 percent support on a ballot measure during the November election. This measure saw record-setting funding, almost $43 million, from DraftKings and FanDuel. The legalisation of sports betting in Missouri reflects the growing acceptance of the industry across the country.

Ballot measure gains support

The ballot measure received enormous support from DraftKings and FanDuel. An additional $2 million was received from Missouri’s professional sports teams, including a professional baseball team, highlighting local community support. St. Louis Cardinals President Bill DeWitt III stated, “Joining the 38 other states that already allow sports betting will enable us to further engage with our fans while keeping tens of millions in Missouri for the benefit of our classrooms and communities.”

On the other hand, Caesars Entertainment, which operates three of the 13 major casinos in the state, tried their best to stop the competition in the betting market. They funded a $14 million opposition campaign, citing concerns about the negative impact on the state’s casinos and market disruption following the introduction of sports betting. With a winning margin of just 50.05 percent, the measure reflects a divided public opinion. Despite this, no recount has been requested.

Key provisions of law

Following the approval of the new constitutional amendment, Missouri regulators can launch sports betting by December 1, 2025. Under the new law, professional sports teams and casinos in Missouri can offer both on-site and mobile sports betting. The Missouri Gaming Commission will supervise and ensure that everything is executed properly and efficiently.

Missouri has opted for a 10 percent tax on sports betting revenue, significantly lower than the national average of 19 percent. At least $5 million annually will be earmarked for problem gambling programmes, ensuring robust support for these initiatives. The remaining funds will be channelled into education, providing a substantial financial boost to the sector.

Sports betting in the U.S.

Since the Supreme Court lifted the federal ban in 2018, 38 states and Washington, D.C., have legalised sports betting. States like New Jersey have seen significant economic benefits, becoming a model for other states, including Missouri. Missouri’s tax rate and regulatory strategy seek to strike a balance between market access and generating state revenues.

Sports betting is projected to generate millions in revenue for Missouri, benefiting public education and other essential services. For instance, New Jersey generated over $414 million in tax revenue last year. Legalisation ensures oversight, transparency, and measures to prevent illegal gambling activities, creating a safer environment for consumers.