Introduction

In the wake of Kansas legalizing sports betting, Missouri voters will decide whether or not to allow the same on the other side of the state line. Amendment 2 proposes allowing people 21 years old and older to bet on sports in Missouri. If it passes, the Missouri Gaming Commission would regulate sports betting statewide. The state would establish a 10% tax on revenues from sports gambling and allocate any leftover funds to education.

Missouri Anticipates

• A one-time cost of $660,000
• Ongoing annual costs of $5.2 million
• $11.75 million in revenue from initial licensing fees
• Up to $28.9 million annually from tax revenue

Video Transcript

Nick Haines [Host, Week in Review]: While abortion is getting more attention than any other issue on the ballot, another close second, at least in the ads seen on tv, is sports betting. 38 states have already approved it, including Kansas. 

Woman on Screen: $15 in honor of Patrick Mahomes on the Chiefs winning the Super Bowl. 

Nick Haines: It’s been 2 ½ years since Governor Laura Kelly, placed that first legal bet in Kansas. Since then, thousands of Missourians have been crossing state line roads to place their own wagers on the Chiefs, Royals and other sports. So, if this passes, Missourians won’t have to sneak over the border any more Brian? 

Brian Ellison [KCUR News]: Well, apparently not, and plenty of them were doing that by all accounts. The reality, Nick, is that I think the voters and potential sports bettors have been asking for this for many years. It’s had generally bi-partisan support in the legislature, other than a little complexity that was keeping it from being passed. This will be a significant change and there will be significant dollars at stake. 

Nick Haines: Where will you actually be able to bet if this passes?  

Matthew Harris [Park University]: Well, so there are a few different locations. Obviously, at casinos and this legislation also provides for casinos to partner with apps. So, there will be various different platforms where you can place a bet from your phone. There is also a piece in this legislature that would potentially provide for there to be betting spaces at actual stadiums. Eventually, you might be able to place a bet on Patick Mahomes +1.5 touchdown passes while you’re at Arrowhead Stadium. 

Nick Haines: So that’s why then, the Chiefs and the Royals are so fixated trying to get this on the ballot and helping with the money to get it on the ballot. So, that’s what’s in it for them? 

Meg Cunningham [The Beacon]: Yeah, I mean sports teams across the state are really interested in seeing this pass, of course there is that provision included. Also, they are just looking to see more engagement around their team, looking to see the public really engaged in those games. That’s the ultimate payoff for them. 

Nick Haines: We have seen tons of ads for this campaign to legalize sports betting. I thought it would be valuable to truth check that ads. Here’s one of the main commercials for the Proponents campaign. 

[Yes on Amendment 2 Campaign Ad Begins] 

Susan Wolk [Eureka, MO]: As a mom and former first grade teacher, I care deeply about education. That’s why I’m voting for Amendment 2. Legalizing sports betting will generate tens of millions of dollars every year for our classrooms helping to increase teacher pay. Amendment 2 has a constitutional guarantee that ensures the money from sports betting goes to our schools. No more wasted dollars. Take it from this mom and former teacher, Amendment 2 is the right thing to do. 

[Ad Ends] 

Nick Haines: Wow! Our teachers are going to be driving BMW’s and putting in in-ground swimming pools in their backyards if this sports betting measure passes Beth? 

Beth Vonnahme [UMKC Political Scientist]: No, I think the- there will likely be more than $0 in tax revenue that comes from this amendment. But, whether it’s $0 or $28 million or $100 million is really uncertain. That tax revenue depends heavily on the tax rate, on how much is actually generated in revenue, but also on all of the exemptions and deductions that these sports betting houses are able to claim. 

Nick Haines: The campaign website it could get over $100 million over 5 years that would be generated for education. 

Meg Cunningham: Yeah, they’re certainly going to go on the max end of the range when they’re marketing this to the public. There’s a lot of concerns amongst teachers and school board associations across the state about where this money is actually going to end up. You know, the School Board Associations sent out a note to its members saying this doesn’t even designate for public schools. So, there’s a concern that this money could just be dumped into the general revenue fund in the legislature and appropriations could be made differently than what we are seeing on television.  

Nick Haines: We have a long time viewer named Ramond who tried to do the calculations for us Matthew and he said there are 67,000 teachers in Missouri. So, $100 million in 5 years, that worked out to $0.50 per year. 

Matthew Harris: Yes, so that’s a nice television at Costco. If you’re going to vote for or against this, I think a big part just has to be “do you want sports betting or not,” because the money. Will there be some money? Probably, but given the deductions, given that we’re not sure if this money will be dumped into education but other funds will be taken out that would’ve gone to education. I think it really is just hard to say what will actually happen. 

Nick Haines:  But isn’t this better than nothing which is actually what will happen because they’re all going over to Kansas and they’re not getting any money out of this. 

Brian Ellison:  It may be better than nothing but much better than nothing. When she said “tens of millions of dollars,” she meant “2 tens of millions of dollars.” Hold that against the amount that is budgeted for education in Missouri each year, it’s $8.7 billion so I’m not even sure if we should be surprised if teachers don’t even notice that TV sized bump in their way. 

Nick Haines: Let’s remember that none of the money goes to education, it goes to a special fund to lure a major sports franchise over to Kansas. So, this, at least some of the money is going to the school or at least that’s what the proponents say. Let’s truth check one of the opponents ads now. 

[No on Amendment 2 Ad Begins] 

[Woman’s Voice]: Big out of state gambling corporations are spending millions pushing Amendment 2. A deceptive measure they claim will fund education. Amendment 2 will give them the power to operate online sports gambling and rake in billions. The state’s official analysis who included Amendment 2 would allow them to pay 0 gaming taxes to Missouri. That means $0 to Missouri schools. Zero. Stop the deceptive online gambling amendment. Vote No on 2.  

Nick Haines: Now do you understand why the public is confused? Zero dollars going to schools, Matthew? I mean, what are we to believe?  

Matthew Harris: I mean the number is probably somewhere between 0 and somewhere in the millions. One of the interesting things about the ads is one of the big proponents of the “No” side is actually Ceasars. They’re not on the “No” side because they’re against gambling. They want a deal that’s more fair favorable to them. 

Nick Haines:  Well, that’s good to know! So, that’s the reason why they are opposing it though you would think that they would be. What else do you think we need to know before we go to our polling station on election day, Meg? 

Meg Cunningham: The campaign would direct you to a part of the measure that says that there’s a 25% cap on those free and promotional bets, which are the tax free bets. So, they want to direct you to that figure and say “No, the $0 is not true, we’re capping out those free promo bets and the schools are actually going to get this money.” 

[End Transcript]

This video is part of a series of shorts focused on supporting voters at the polls this November. You can see all the videos in the series and stream additional election coverage from Kansas City PBS at kansascitypbs.org/ontheballot.