With sports betting rapidly gaining ground across the U.S., Missouri could soon join the ranks of states allowing legal wagers. Amendment 2, a proposal to legalize sports wagering in Missouri, will be on the general election ballot on Nov. 5. This article explores everything Missouri voters need to know about the amendment, including its impact on state revenue, how regulations would be enforced, and what voting “yes” or “no” could mean for the future of sports betting in the state.
What is Amendment 2?
Amendment 2 is a ballot measure that will allow Missouri voters to decide if sports betting should become legal in the state. If approved, the amendment would permit adults 21 or older to place bets on sports games, events, and outcomes. Voters will decide on this significant legislation on Nov. 5, which would mark Missouri’s entry into the sports betting arena alongside 38 other U.S. states and the District of Columbia.
What Does Voting “Yes” on Amendment 2 Mean?
By voting “yes” on Amendment 2, Missourians would be legalizing sports betting within the state. A “yes” vote would allow residents to place bets on a range of sports events and would open opportunities for both in-person and online betting through casinos, mobile apps, and even casino-like machines in specific locations. Here’s how it breaks down:
- Sports Teams and Events: Missouri residents would have the opportunity to place bets on professional teams, including local favorites.
- Casino and Mobile Betting: Betting would be allowed at casinos and via regulated mobile apps.
- Legal Framework: The Missouri Gaming Commission would oversee this new industry, ensuring that only authorized operators can conduct betting activities within the state.
In short, voting “yes” on Amendment 2 would make Missouri part of the growing number of states that allow legal sports wagering. However, as with any major legislative change, there are more details and stakeholders involved.
What Happens if Amendment 2 Fails?
If Amendment 2 does not pass, sports betting could still become legal in Missouri, but only through a new law passed by the Missouri General Assembly and approved by the governor. However, there has been considerable political gridlock in previous legislative attempts to pass a sports betting law. This impasse largely stems from a disagreement over video lottery terminals—the casino-style machines that appear in gas stations and truck stops across the state.
- Video Lottery Terminals: Legislators disagree over whether to regulate these terminals, which adds complexity to sports betting legalization efforts.
- Future Legislative Efforts: While Amendment 2 excludes video lottery terminals, if it fails, these debates will continue to hold up future sports betting laws.
Thus, a “no” vote would maintain the status quo in Missouri, leaving residents with no legal option for sports betting unless lawmakers manage to resolve their differences.
Key Regulations Under Amendment 2
Should Amendment 2 pass, several regulations will govern Missouri’s sports betting industry. These rules are designed to ensure fair play, prevent fraud, and reduce problem gambling. The main regulatory body overseeing these activities will be the Missouri Gaming Commission, which currently supervises casinos. Some notable regulations include:
- Advertising Restrictions: Sports betting operators would be barred from advertising to minors.
- Background Checks: Potential operators and employees must pass background checks, with anyone convicted of felonies or gambling offenses prohibited from running a betting operation.
- Problem Gambling Resources: Websites and mobile apps will need to provide information on responsible gambling and resources for those seeking help.
Failure to comply with state regulations could result in hefty penalties, such as a $50,000 fine for minor infractions or up to a $100,000 fine and even license probation/revocation for repeat violations.
Additional Regulatory Framework
The Missouri Gaming Commission would also work within strict guidelines as it oversees this new market. The Commission cannot create new laws but can enforce rules as laid out by the amendment and any subsequent laws enacted by the Missouri General Assembly.
| Regulation | Description |
|---|---|
| Tax Rate | 10% on adjusted gross revenue from sports betting |
| Advertising Ban for Minors | No ads targeted at individuals under 21 |
| Background Checks | Required for all operators and employees |
| Penalties | $50,000-$100,000 fines for regulatory non-compliance |
| Missouri Gaming Commission Role | Regulatory oversight, but no legislative powers |
Financial Impact of Legal Sports Betting in Missouri
The financial benefits of legalizing sports betting through Amendment 2 could be substantial. The state government estimates that sports betting could generate up to $29 million in annual revenue, with most of that amount earmarked for public education. Here’s how the funds would be allocated:
- Public Schools and Higher Education: $24 million is estimated to support schools.
- Problem Gambling Prevention Fund: $5 million would be set aside specifically for programs aimed at addressing problem gambling and addiction.
The 10% tax rate on adjusted gross revenue means that Missouri wouldn’t tax the total amount wagered but only the net profit that sports betting companies make after payouts.
Breakdown of Adjusted Gross Revenue
The adjusted gross revenue model means companies are allowed to exclude certain promotional expenses, like free bets, from being taxed. This allows companies like DraftKings to keep more revenue, which they could then reinvest in marketing and promotions. For example:
“If DraftKings offers a $200 promotional credit to new users, that amount can be deducted from their gross revenue, as long as it stays under 25% of total revenue for the month.”
This exemption structure benefits both operators and the state, providing growth for the industry and consistent tax revenue for Missouri’s schools and addiction prevention programs.
Supporters and Opponents of Amendment 2
Supporters
Many stakeholders, including every major professional sports team in Missouri, have come out in favor of Amendment 2. Support also comes from sports betting companies, which stand to benefit from legal operations in Missouri. The Winning for Missouri Education campaign has raised $6.5 million in support of the amendment. Advocates argue that legalized sports betting will keep gambling revenue within Missouri, instead of sending it across the border to Kansas or Illinois.
Opponents
Not everyone is in favor of Amendment 2. A lawsuit filed by political consultants Blake Lawrence and Jacqueline Wood seeks to challenge the legality of the amendment’s placement on the ballot. The complaint asserts that the Secretary of State used incorrect district maps to verify signatures, potentially invalidating support in the 1st Congressional District. Opponents of sports betting also raise ethical concerns, fearing that the availability of sports betting could lead to increased rates of gambling addiction and financial hardship among Missouri residents.
How Soon Could Sports Betting Begin if Amendment 2 Passes?
If Amendment 2 passes, sports betting in Missouri could start by Dec. 1, 2025, although it’s possible that the process could move faster. The Missouri Gaming Commission has indicated it will need time to conduct background checks, process applications, and develop a regulatory framework. However, given the frameworks other states have used, some believe betting could be up and running sooner.
Comparatively, when Gov. Laura Kelly signed sports betting into law in Kansas, the first legal bet was placed within months, suggesting a similar timeline might be achievable in Missouri.
FAQs
What is Amendment 2 in Missouri?
Amendment 2, passed in November 2022, legalized sports betting in Missouri. It allows both in-person and online sports betting at licensed casinos and on designated sports betting platforms, providing a regulated framework for the state’s sports betting industry.
Who can participate in sports betting under Amendment 2?
To participate in sports betting in Missouri, individuals must be at least 21 years old. Additionally, they need to place bets through licensed sports betting operators or at licensed casinos within the state.
How does sports betting work in Missouri?
Sports betting in Missouri can be conducted in two primary ways: in-person at licensed casinos and online through mobile sports betting platforms. Bettors can wager on various sports events, including professional and collegiate sports, with a range of betting options, such as moneylines, point spreads, and over/under totals.
What are the tax implications for sports betting winnings in Missouri?
In Missouri, sports betting winnings are subject to state and federal taxes. Winnings are considered taxable income, and bettors are required to report them on their tax returns. Additionally, operators are required to withhold taxes on winnings exceeding a certain threshold.
When will sports betting be available in Missouri?
Sports betting in Missouri became operational in 2023 following the passage of Amendment 2. The exact launch dates for various operators may vary, but bettors can check with licensed casinos and approved online platforms for specific availability and offerings.
Conclusion: Voting on Amendment 2
Missouri’s Amendment 2 represents a critical decision for residents on whether to legalize sports wagering within the state. With strong support from sports teams, a clear regulatory plan from the Missouri Gaming Commission, and a significant revenue boost expected for public schools, many Missourians may see the benefits of voting “yes.” However, concerns about problem gambling and questions over signature verification have also fueled a strong debate. Whatever the outcome on Nov. 5, the vote on Amendment 2 will determine Missouri’s stance on sports betting for years to come.
Missouri voters have a powerful voice in the decision on Nov. 5, as the results of the Amendment 2 ballot measure could either maintain the current laws or transform Missouri into a leader in regulated sports betting, joining the ranks of states that have embraced this popular form of entertainment.
Callista
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