Plenty of support for Missouri legal wagering initiative, but fate unclear

While Caesars has backed down on its “no” on Amendment 2 contributions in Missouri, FanDuel 24 October added another $4.6 million in support of the legal sports betting initiative.

FanDuel’s latest deposit brings the total contributions to the “Winning for Missouri Education” campaign to $40.7 million (£31.2 million/€37.6 million), according to Missouri Ethics Commission records. That total alone would make the campaign the priciest in Missouri history. Before deciding to “focus our efforts on grassroots outreach and community conversations” and pulling $1 million worth of scheduled television advertising earlier this month, Caesars had funded the “no” campaign with more than $14 million.

The two biggest newspapers in Missouri have endorsed Amendment 2. But the Kansas City Star editorial board did so “with some hesitation” 10 October. In an editorial, the newspaper outlined concerns about addiction.

Whether or not the initiative will pass is unclear. The most recent polling released in September showed 52% in favor, 25% opposed and 22% undecided.

Key politicians support amendment

In addition, the “Winning for Missouri Education” website lists 28 politicians in support of the initiative. The list is a bit of a who’s who in terms of lawmakers that have previously sponsored legal betting legislation. Both of the state’s gubernatorial candidates are also the list. In terms of business leaders, every professional sports team and the superintendents or former superintendents of school districts across the state also endorse the proposal.

In addition, St. Louis Cardinals Hall of Famer Ozzie Smith is featured in television advertising in support of Amendment 2.

The state’s six casinos are not supporting the initiative, though Caesars is the only land-based casino operator to have spoken out. Caesars and Penn Entertainment each own three physical casinos in Missouri while Affinity Interactive, Boyd Gaming and Century Casinos each own two. Bally’s owns one, but should another gambling initiative pass, it hopes to add a second.

That proposal, Amendment 5, would increase the number of land-based casinos from 13 to 14. Proponents are lobbying for a new location on Lake of the Ozarks. Bally’s has already submitted a bid for the location.

Genesis of the proposal

Amendment 2 promises $100 million for education without a tax increase, though detractors have called the promise “disingenuous.” In this case, according to mailers being sent in Missouri, the proposal requires that 100% of tax goes to education. It prevents lawmakers from diverting the funds.

But the text of the initiative does not put a clear dollar figure on how much revenue will be available for schools. It also allows for up to 10% of tax revenue or $5 million to be directed to a problem gambling fund. In addition, it allows for “reasonable expenses” not covered by fees be used to reimburse the gambling commission. Tax revenue from legal sports betting won’t be included in “total state revenues” and requires an annual audit, according to the initiative language.

Amendment 2 came about after Missouri’s professional sports teams became frustrated with the legislature’s inability to legalise. The first efforts were as early as 2018. But from the start, Senator Denny Hoskins has sought to tie the issue to video lottery terminal (VLT) legalisation. Casinos oppose this because they say the machines — currently unregulated and untaxed — cut into their profits. The casinos want the VLTs prohibited altogether.

Hoskins went so far as to filibuster twice to prevent legal wagering bills from getting a senate floor vote. Hoskins is leaving the senate, and is running for secretary of state.

The St. Louis Cardinals are the key backers of Amendment 2. Chairman and CEO Bill DeWitt, Jr. led the process to get the initiative on the ballot. Since then, however, none of the state’s sports teams have contributed to the campaign.