Missouri’s Journey to Legalization
Missouri has joined the growing list of states embracing online sports betting. On January 1, the state legalized both retail and online sports betting, becoming the 39th state to do so. This move followed a successful ballot initiative in 2024, which narrowly passed with the support of Missouri’s professional sports teams. The legalization was approved by fewer than 10,000 votes out of 2.9 million cast, highlighting the contentious nature of the issue.
Implementation Delays and Licensing
Despite the legalization, the rollout of sports betting in Missouri has faced delays. The law mandates that sports betting operations must be functional by December 1. However, due to a delay caused by the Secretary of State, the law will not take effect until August 30. This delay has pushed back the screening and approval of licenses for 19 retail and 23 online sportsbooks. As a result, the statewide launch will occur after the start of the football season, a significant setback for sports enthusiasts.
Partnerships and Market Entry
Several major brands are poised to enter Missouri’s sports betting market once it goes live. The St. Louis Cardinals have already partnered with bet365 as an Official Betting Partner. Additionally, BetMGM Missouri is likely to partner with the Kansas City Chiefs. Other major brands like DraftKings, FanDuel, Caesars Sportsbook, and ESPN BET are expected to make their entry, bringing a competitive edge to the market.
Regulatory Framework and Taxation
The new law allows professional sports teams to establish retail sports betting locations near their stadiums. They can also partner with branded Missouri sports betting apps. Six casino operators in Missouri can operate retail sportsbooks at their properties and offer online casinos. Two additional licenses are available for companies without partnerships with casinos or sports teams. Amendment 2 plays a crucial role in regulating licensed sports wagering. It allows the Missouri Gaming Commission to oversee the operations and includes a provision for a 10% wagering tax on revenues. This tax is directed towards education after expenses and funding compulsive gambling prevention efforts.
Support and Opposition
The campaign “Winning for Missouri Education” was instrumental in gathering signatures for the ballot measure. FanDuel MO and DraftKings MO financially supported Amendment 2, recognizing the potential benefits of legalized sports betting. However, they faced opposition from Caesars, which had concerns about its existing employment and investment in Missouri. This opposition highlights the complex dynamics at play in the legalization process.
Current Status and Future Prospects
Currently, only fantasy sports platforms like DraftKings and FanDuel are accessible in Missouri. Traditional sports betting is yet to launch statewide, leaving many eager bettors waiting. Applications for online sportsbook licenses, known as “skins,” will be accepted from May 14 through May 30. The governor’s office is expected to release rules by May 13, setting the stage for the next phase of implementation.
National Context and Trends
Missouri’s journey reflects a broader trend across the United States. As more states legalize sports betting, the industry continues to grow, offering new opportunities and challenges. The legalization of sports betting is not just about generating revenue; it’s also about ensuring responsible gambling practices and protecting consumers. As states like Missouri navigate these waters, they contribute to shaping the future of sports betting in the country.
Conclusion
The legalization of online sports betting in Missouri marks a significant milestone for the state. While delays have hindered the initial rollout, the groundwork is being laid for a robust sports betting market. With major brands ready to enter and a regulatory framework in place, Missouri is poised to become a key player in the sports betting industry. As the state moves forward, it will be crucial to balance economic benefits with responsible gambling practices, ensuring a sustainable future for all stakeholders involved.