As MI reports, the major obstacle to the sports betting launch is a competing form of gambling present in the state. Supporters of video lottery games available at gas stations and convenience stores throughout Missouri reportedly request the inclusion of video lottery machines in the sports betting bill. As this is not acceptable for sports wagering proponents, the prospective bill seems stuck in the middle of the situation. Senate President Pro Tem Caleb Rowden reportedly said: “I don’t think anything is different this year one way or the other. I don’t know that it makes a tremendous difference in this chamber. Both sides are pretty entrenched.”
$28.9 Million Annual Revenue Estimate:
Under the proposed amendments to the bill HB 2502 filed in April 2023, the six sports teams playing in arenas with at least 11,500 seats would be eligible for a sports gambling license, as well as the 13 land-based casino operators and two online sports wagering platforms. The bill would reportedly allow for bets to be placed either online or in person. As reported, the gross gaming revenue to be generated by sports wagering operations is estimated at around $28.9 million a year to generate tax revenues of 10 percent of the net gaming revenue. Also, the proposal includes a $5 million injection into the problem gaming fund with the remaining portion of the revenue to be funneled to public education programs.
According to the source, the campaign has been funded by FanDuel and DraftKing, the two leading online sports betting operators, with each platform contributing $250,000 to the campaign committee Winning for Missouri Education. The sports teams included in the coalition are the St. Louis Cardinals, St. Louis Blues, St. Louis CITY SC, Kansas City Chiefs, Kansas City Royals, and the Kansas City Current, according to NPR. The same source reports that the organization has to gather between 171,592 and 188,537 signatures until May 8, 2024 to make the ballot. The number of votes reportedly needs to stand for 5 percent of the vote for governor in the latest elections in each of the state’s six districts.
Around $1.85 Billion Handle Expected:
As reported by MI, the Missouri sports wagering market could follow the Missouri Lottery and land-based casinos to reach around $1.8 billion or, respectively, $1.9 billion annual handle. The estimate is reportedly also based on the neighboring state of Kansas recording a $1.85 billion handle in the first year of sports betting launch in the state. Organizers of the campaign also said that the legalized sports wagering would regulate a black market in the state. They reportedly stated: “Recent estimates suggest that Missourians place roughly $2 billion a year in bets using offshore gaming websites, while other Missourians drive to neighboring states to place wagers.”
