JEFFERSON CITY, Mo. (KFVS) – A new report from data tracking website GeoComply, reveals Missourians tried to make more than 11 million sports wagers since football season opened, but couldn’t do so because it remains illegal in the state.
That figure comes as voters are already deciding on Amendment 2 which would create a legal sports betting market in the state.
The amendment’s biggest selling point is a 10% tax on that gambling revenue, much of it promised to education.
Supporters argue it’ll fill a k-12 funding deficit, but opponents are skeptical it will put any money into classrooms.
Amendment 2, if passed, would empower the Missouri Gaming Commission to distribute sports betting licenses.
It limits gambling participation to those 21 and older.
The state auditor’s office estimates the amendment would generate anywhere from $0 to $29 million a year in tax revenue.
Supporters of the amendment said it’s unlikely to be $0, particularly after the GeoComply report revealed such widespread enthusiasm, even before legalization.
Skeptics of the claims that Amendment 2 will significantly bolster school funding believe the proposal contains massive loopholes and lacks clarification on key points.
“There’s all kinds of questions that that aren’t outlined in the language that will go before voters,” said Traci Gleason, spokesperson for the Missouri Budget Project.
Gleason noted, for example, that there’s technically no mechanism to collect the tax once it’s levied.
While the campaign backing Amendment 2, Winning for Missouri Education stated in a press release that because the state constitution empowers the Missouri Department of Revenue to collect taxes in general, it should not create any administrative snarls.
Another common criticism of Amendment 2’s predicted impact on education is that state lawmakers are likely to manipulate the state education budget by pulling a dollar away from K-12 funding for every dollar added by the gambling tax.
“There’s nothing that says that the legislature can’t take money out of other portions of the education budget to compensate for whatever money is generated through amendment two,” said Prof. Peverill Squire, a member of the Political Science faculty at the University of Missouri.
Below is the question as it will appear on the statewide ballot as well as the ballot title.
Official Ballot Title:
Do you want to amend the Missouri Constitution to:
- allow the Missouri Gaming Commission to regulate licensed sports wagering including online sports betting, gambling boats, professional sports betting districts, and mobile licenses to sports betting operators;
- restrict sports betting to individuals physically located in the state and over the age of 21;
- allow license fees prescribed by the Commission and a 10% wagering tax on revenues received to be appropriated for education after expenses incurred by the Commission and required funding of the Compulsive Gambling Prevention Fund; and
- allow for the general assembly to enact laws consistent with this amendment?
- State governmental entities estimate one-time costs of $660,000, ongoing annual costs of at least $5.2 million, and initial license fee revenue of $11.75 million. Because the proposal allows for deductions against sports gaming revenues, they estimate unknown tax revenue ranging from $0 to $28.9 million annually. Local governments estimate unknown revenue.
Fair Ballot Language:
A “yes” vote will amend the Missouri Constitution to permit licensed sports wagering regulated by the Missouri Gaming Commission and restrict sports betting to individuals physically located in the state and over the age of 21. The amendment includes a 10% wagering tax on revenues received to be appropriated for educational institutions in Missouri.
A “no” vote will not amend the Missouri Constitution regarding licensed regulated sports wagering.
If passed, this measure will have no impact on taxes.
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