Winning for Missouri Education recently announced the results of a sports betting economic study that revealed the handle in the first year would be over $3.25 billion, generating millions in revenues for the state’s education system.
Show Me the Money
There is plenty of money waiting to be made in the Show Me State according to a recent study commissioned by the pro-sports betting PAC, Winning for Missouri Education. A 23-page report issued by the consulting firm, Eilers & Krejcik Gaming, on behalf of Winning for Missouri Education, shows that the previous estimates on sports betting in the state were far too conservative.
“Our study shows that Missouri has the potential to create a competitive, fast-growing sports betting market,” said Chris Krafcik, managing director at Eilers & Krejcik Gaming.
The study showed the following:
- Total potential gross gaming revenue of $335 million in the first year, growing to almost $560 million by year five.
- Total tax revenue of $4.7 million in the first year, rising to $38.7 million in year five.
- Over five years, up to $105 million for Missouri schools.
“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,” said Jack Cardetti, spokesperson for Winning for Missouri Education. “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.”
Losing Business
Cardetti points out that Missourians are crossing state lines to wager in neighboring states with those funds being deposited in the coffers of those adjacent state governments.
“In fact, our policy right now is pushing people to help Illinois classrooms and Kansas classrooms and Iowa small businesses and Arkansas small businesses,” said Cardetti.
The referendum in November will ask Missouri voters to approve mobile sports betting in the state; only a simple majority needs to answer in the affirmative for it to pass. As the law is currently written a 10% tax would be levied on sportsbooks’ revenues coupled with a $500,000 licensing fee and a 25% promotional cap.
“It’s important there’s a cap. We did that in Missouri that ensures that we are going to bring in 105 million to education over the next five years,” added Cardetti.
Not Everyone’s a Fan
A newly formed group denouncing sports betting in Missouri has been vocal in its opposition and argues there is no guarantee that the taxes collected on sports betting revenue would be earmarked for the state’s public education fund.
A statement from the group reads:
“Even if the measure creates new revenue (after all the self-serving deductions are made), it would allow politicians to legally divert existing dollars away from education and simply back-fill with any new revenue.”
Brooke Foster, the campaign’s spokesperson, has argued that the sports betting initiative is a “bad deal for Missouri” and believes it “was written by and for the financial benefit of its out-of-state corporate sponsors and funders.”
“We are building a broad coalition and are prepared to wage a vigorous campaign to educate voters across the state and ensure the measure is defeated,” Foster added.
