As Missouri voters prepare to weigh in on whether or not to legalize sports betting in November, a new study found Show-Me State sportsbooks could generate up to $560 million annually.
Last week, Winning for Missouri Education and Eilers & Krejcik released a new economic study to showcase how much legalized Missouri sports betting could benefit the state’s education system. With a 10% tax, Eilers & Krejcik estimates the industry could send $105 million to the public education system over the next five years.
“The numbers speak for themselves—legalized sports betting will bring in millions of dollars that could be used to improve our schools and invest in Missouri’s future,” Winning for Missouri Education spokesperson Jack Cardetti said in a release. “While Missouri continues to lose revenue to neighboring states that have already embraced sports betting, this ballot measure will help us bring those tax dollars back home, benefiting our students and educators.”
Missouri sports betting ballot question
Winning for Missouri Education led the effort to put sports betting on the ballot. The campaign was started by the six Missouri sports teams, while DraftKings and FanDuel have poured more than $20 million into it.
The question would legalize in-person and online sports betting. Each team and casino operator could partner with an online sportsbook, while the Missouri Gaming Commission could award two untethered licenses.
Eilers & Krejcik estimates the industry could generate $559.8 million in sports betting revenue by year five. According to the release, that outpaces the state’s estimates by 34%.
Missouri projections from E&K
The state used COVID-impacted data from Indiana to develop its projections, according to the release. The state estimates nearly $30 million in annual taxes.
Eilers & Krejcik used data from the recent launches in Ohio and Maryland. It also projects a quicker ramp-up to maturation and suggests $38.7 million in taxes for year five.
“Our study shows that Missouri has the potential to create a competitive, fast-growing sports betting market,” Eilers & Krejcik Gaming Managing Director Chris Krafcik said. “Our study takes a comprehensive approach, utilizing the latest data from comparable states that have recently implemented sports betting markets.
“This method allowed us to create a more accurate and nuanced projection of how Missouri’s market could perform under normal conditions and the potential tax revenue it could generate.”
Opposition remains in Missouri
Shortly after Secretary of State John Ashcroft certified the ballot question last month, a mysterious lawsuit emerged to challenge the verification process. The judge sided with Ashcroft, leaving the question on the ballot.
Since then, opponents started a campaign, with Caesars Entertainment and its Missouri casinos funding an initial $4 million donation.
Industry sources told LSR Caesars is unhappy with the ballot question. The question differs from previous legislative proposals, which included multiple skins for casino operators and no untethered licenses.
Recent Missouri sports betting polling shows that more than 50% of voters support the legalization of the industry.
