Missouri is on the verge of a significant transformation as sports betting is set to become legal next year. This comes as a result of a ballot measure that just managed to pass, despite facing challenges and significant spending. State election officials have now certified that the sports betting measure received 50.05% support in the November election. Although the constitutional amendment is effective immediately, actual betting won't start right away. According to Missouri's measure, state regulators must commence sports betting no later than December 1, 2025.

Expansion and Market Presence

A total of 38 states and Washington, D.C. already permit sports betting, and this market has been expanding rapidly since the U.S. Supreme Court gave the green light in 2018. In Missouri, the $43 million campaign, a record for a Missouri ballot measure, was mainly funded by DraftKings and FanDuel, which dominate the nationwide sports betting marketplace. Remarkably, a combined $2 million was contributed by the state's six major professional sports teams - the St. Louis Cardinals, St. Louis Blues, Kansas City Chiefs, Kansas City Royals, Kansas City Current, and St. Louis City soccer teams. This shows the significant interest and involvement of these teams in the sports betting arena.

Benefits for Fans and Communities

Joining the 38 other states that allow sports betting will enable Missouri to better engage with its fans. As St. Louis Cardinals President Bill DeWitt III stated in a Thursday statement, this will keep tens of millions in Missouri for the benefit of classrooms and communities. The $14 million opposition campaign, funded entirely by Caesars Entertainment which operates three of Missouri's 13 casinos, did not result in a request for a recount. Missouri's constitutional amendment allows each casino and professional sports team to offer on-site and mobile sports betting. Teams will have control over on-site betting and advertising within 400 yards (366 meters) of their stadiums and arenas. Additionally, two mobile sports betting operators can be licensed directly by the Missouri Gaming Commission.

Tax Implications and Social Responsibility

Missouri will impose a 10% tax on sports betting revenue, which is lower than the national average of 19% that sportsbooks paid to states last year. Under the initiative, at least $5 million annually will go towards problem gambling programs, with the remaining tax revenues dedicated to elementary, secondary, and higher education. This shows Missouri's commitment to addressing the potential social issues associated with sports betting while also reaping the economic benefits.Supporters resorted to the initiative petition process to get the measure on the ballot after previous attempts to legalize sports betting failed in the state Senate. While sports betting is available in most states, it remains off-limits in some potentially lucrative markets like California and Texas. In 2022, California voters defeated two rival proposals to legalize sports betting after interest groups spent approximately $450 million promoting or opposing the measures. This highlights the complexity and political nature of legalizing sports betting in different states.