Missouri residents to vote on legal sports betting in November

Pro sports teams in the state, sportsbooks themselves, are in favor of legalization, hoping voters feel the same.

Missouri residents will have their say in November on whether to allow legal sports betting in the state, after state officials announced on Aug. 13 that enough signatures in support of a referendum had been certified to place a statewide ballot question to voters.

The “Winning for Missouri Education” initiative: Key supporters

The shrewdly-named “Winning for Missouri Education” is the group, backed by six professional sports franchises in the state, that hopes to see the “Show-Me State” join three dozen other U.S. betting states – including neighboring states Kansas, Illinois, Iowa, Kentucky, Tennessee, Arkansas and Nebraska – that offer legal, regulated sports betting options.

Missouri’s proximity to legal sports betting states a key factor

The history of the spread of state-approved gambling expansion in the U.S. typically follows this pattern, as a portion of the public that is not enamored with gambling comes to realize that their family, friends, neighbors and co-workers already gamble legally – but in other states that subsequently reap that tax revenue. The bulk of Missouri’s population is located in Kansas City – which rests on the border with Kansas – or St. Louis – which is immediately adjacent to Illinois.

So opposition to the legalization of gambling in their state, many voters learn, does not stop many residents from legally wagering their money. And with the group in support of the ballot question directly making the link toward providing new funding for youth education – a winning proposition for most voters – the referendum has a reasonable chance to succeed.

Major Missouri sports teams rally behind the ballot initiative

Bill DeWitt III, president of the MLB’s St. Louis Cardinals, declared in a press release: “Missouri is now just one step away from joining most other states in legalizing sports betting and being able to provide millions of dollars to Missouri classrooms.”

The other sports franchises that support the effort are the Super Bowl champion Kansas City Chiefs, the NHL’s St. Louis Blues, MLS’ St. Louis SC, MLB’s Kansas City Royals, and the National Women’s Soccer League Kansas City Current franchise. (Missouri does not currently have an NBA franchise.) The recent football success of the Chiefs in particular, and the team’s endorsement of the proposal, can wield a positive influence on casual voters.

There does not appear to be a well-funded coalition in opposition to the ballot question, contrary to the situation that was previously the case in some states such as Nebraska.

Sports betting giants push for legalization in Missouri

Which sportsbook companies would be likely to operate in Missouri if voters approve? FanDuel and DraftKings – daily fantasy sports operators who have branched into sports betting and into online casino gaming in the few states where that option is available – provided most of the millions of dollars that were necessary to fund the effort to gather sufficient signatures to put the question to voters this fall

Meanwhile, casinos in Missouri have partnerships with other operators such as BetMGM, Bally’s, Caesars, and ESPN BET, so the sports betting marketplace likely would be robust in the state. That’s good news for consumers, as each operator is likely to offer appealing promotional signup bonuses upon legalization in hopes of gaining significant market share.

The tax rate on sports betting revenue would be set at 10%, or below the national average, which includes a 51% tax rate in New York State. The modest rate likely would lure numerous operators to Missouri. Supporters estimate that about $29 million would be raised annually to fund various education programs.

Missouri is the 18th most-populated state in the country, according to the U.S. census. The only larger states without legal sports betting are California (1st), Texas (2nd), and Georgia (8th).