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RobyLane Kelley
Editorial Assistant
This article explains the phrasing in Amendment 2 of the 2024 Missouri Ballot, which aligns with the purpose of the “Know your Ballot” series. These articles are in no way an endorsement by the Northeast News Staff. The Know Your Ballot series will be posted to the Northeast News website (northeastnews.net).
The ballot will read: “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. As this proposal allows for deductions against sports gaming revenues, tax revenue estimates are unknown — ranging from $0 to $28.9 million annually. Local governments estimate unknown revenue.
Question 1: Allow Sports Betting in Missouri
In 2018, the U.S. Supreme Court ruled against a federal ban on sports betting — leaving the power in the hands of states to decide if citizens could place bets on their favorite teams. Since then, 38 states, including Kansas, have already laid the groundwork for legalizing sports betting. The benefit of sports betting includes how states use this revenue — Missouri’s plan for revenue is outlined in question three. The argument against the amendment follows the concern of enabling gambling addiction within the state. As revenue — the supporting evidence — will be discussed later in this article, this segment of “Know Your Ballot” will focus on the opposing evidence.
The National Council on Problem Gambling (NCPG) defines problem gambling or “gambling addiction” — not specific to sports betting — as “gambling behavior that is damaging to a person or their family — often disrupting their daily life and career. Anyone who gambles can be at-risk for developing a gambling problem. Gambling disorder is a recognized mental health diagnosis.”
The NCPG goes on to state that 1% — or 2.5 million — of U.S. adults “are estimated to meet the criteria for a severe gambling problem in a given year. Another 5 to 8 million (2-3%) would be considered to have mild or moderate gambling problems.” Those who suffer from one addiction are at a greater risk of developing another addiction, according to this study.
Question 2: Who can Gamble?
The amendment states that only adults over the age of 21 and physically in the state of Missouri would be legally protected to gamble.
Question 3: Where Will the Money Go?
The ballot lays out the projected budget for sports gaming revenues. The proposal suggests a one-time “$660,000 cost, ongoing annual costs of at least $5.2 million and an initial license fee revenue of $11.75 million.” The estimated tax revenue for the state is estimated to be anywhere from $0 to $28.9 million annually, with local revenue currently unknown.
The 10% “wagering tax” placed on sports betting revenue will be allocated toward education after covering the administrative cost of the Gaming Commission — the organization overseeing sports betting — and funding for the Compulsive Gambling Prevention Fund.
In 2022, Missouri had a similar amendment pass — the legalization of recreational marijuana. The amendment estimated an annual state revenue of $40.8 million. As of February 2024 — one year after the initial legalization — The Missouri Budget Project updated this estimate at approximately $69.4 million “based on the pace of current sales.”
The difference in the amendments comes in the tax structure. Marijuana legalization included specific revenue projections connected to sales growth, while sport betting is more variable. Sports betting will be influenced by participation rates and regulatory costs, while Marijuana is a sales tax.
Question 4: General Assembly
This final question states that — if passed — the state legislature will have the authority to pass additional laws to support amendment goals. The General Assembly will be allowed flexibility to make regulations within the parameters set by the amendment to better the industry for citizens.
Opposing Viewpoints
Like any law that must be voted upon, there are two sides: those for and against. The Supporting Committee — Winning for Missouri Education (WME) — Spokesperson, Jack Cardetti said, “Missouri is one of only about a dozen states that hasn’t legalized sports betting. And that means we lose out on millions of dollars that could be going to our classrooms, and millions of dollars of economic opportunity. So if this ballot initiative passes, Missourians will be able to place sports bets in a responsible, regulated manner.”
In an article by Missourinet, Sen. Denny Hoskins (R-Warrensburg) said he’s “not against putting that question on the ballot,” but is calling for clear language in the amendment and a higher tax rate to increase the money that would assist the programs the revenue is allotted for.
“Number one, the tax rate is very low. The fees are very low. There’s not enough money in there for problem compulsive gambling, which is going to be caused by legalization of sports betting here in the state,” said Hoskins. “…if sports betting passes in the state of Missouri, casinos will net another $25 million in net profit going to their bottom line. So, I want to make sure that Missourians are protected.” Sample ballots for the 2024 General Election can be found online at the Kansas City Public Library website or in the Northeast Newsroom at 2659 Independence Ave. If you or someone you know is suffering from the effects of gambling addiction, the NCPG is available online at 1800gamblerchat.org, by text at 800GAM or by calling 1-800-GAMBLER.
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