If the Second Amendment is approved in the Nov. 5 general election, Missouri could join 39 other states in legalizing sports betting. If approved, Missourians 21 and older will be able to bet on professional sports games in casinos and online using popular sports betting apps.
“Every day, thousands of Missourians bet on sports using illegal offshore websites and apps, or travel to one of seven surrounding states to place sports bets,” Winning for Missouri said. Education spokesman Jack Caldetti said. Groups supporting the proposed amendment. “Really, our public policy doesn’t make sense. The people of Missouri are making a bet and we’re not getting any benefit from it.”
This amendment would allow the Missouri Gaming Commission to regulate licensed sports betting, including online sports betting, gambling boats, professional sports betting districts, and mobile licenses for sports betting operators. The 10% gambling tax on revenues received, excluding costs incurred by the commission, will be used for education and will also require necessary funding for the Compulsive Gambling Prevention Fund.
The ballot text lists one-time costs of $660,000, with ongoing annual costs expected to be at least $5.2 million. The amendment estimates $11.75 million in revenue from one-time license fees and up to $28.9 million in annual tax revenue, but exact numbers are unclear.
Cardetti is confident the amendment will pass, citing recent polls showing a majority of Missourians support legalizing sports betting. But some have questioned the way the amendment is structured.
“When I read the way the law is written, I read over and over again that businesses may be able to avoid taxes by being able to deduct certain promotional credits and free play costs from the taxes they owe,” says Part-Time Economics. said Mike Mashier. Professor at Lindenwood University.
Another potential downside to the law, Mattea said, is that new tax revenue for public schools could prevent politicians from increasing state education funding at the same rate they would have without the additional tax revenue. This means that the financial benefits of the amendment may be canceled out. .
Mattea, who has read research that shows other states have passed gambling and marijuana laws with the promise of devoting a portion of their tax revenue to education, said schools may initially see an increase in revenue. However, it may not last long.
“What we often find is that almost all of the growth (in revenue) tends to disappear within 15 to 20 years,” Mattea said.
Macia emphasized the non-tax benefit of legalizing sports betting: bets will be reported.
“One of the things it does is it allows us to measure how much economic activity is going on,” Mattea said. “It’s a similar effect to legalized marijuana. Gambling is illegal, but some people may be using bookmakers that are illegal and unreported. Marijuana used to be purchased illegally. Now you can see (what it’s being used for) because it shows up in the U.S. GDP.”
Cardetti said the tax revenue is not included in the state’s regular budget for public education, but is additional funding on top of it.
“Schools can decide how to spend the money,” Cardetti said. “The constitutional amendment is not that specific. It would be decided in Congress’ annual funding bill, but all the money has to go to public education, and lawmakers can’t change that. It’s in the Constitution. It’s a completely separate new funding stream.”
Cardetti said gridlock in the state Legislature has blocked action on sports betting for years, forcing advocates to turn to the vote.
“As long as all the states around us have it, we might just as well have it,” Mattea said. “Even if bookstores still exist in the state, it’s probably not a very good thing. I don’t think I’ve talked to a bookmaker since I was a college student in Wisconsin.”
Mattea said Missouri could see an increase in gaming revenue in areas of the state that are not near casinos.
“For some people, this may be their only option because there are no casinos nearby,” Matea said.
