JEFFERSON CITY, Mo. (KCTV) – Sports betting companies are promising to bring money into Missouri as they vie for one of the state’s gaming licenses.
Wednesday, the Missouri Gaming Commission heard from three companies seeking the two available mobile gaming licenses: FanDuel, DraftKings, and Circa Sports. The commission will announce who is getting the two mobile licenses on Friday.
Sports betting is expected to fully launch in Missouri by Dec. 1. This all comes after Missourians voted to legalize sports betting in November 2024.
The commission is considering seven factors when determining who will get the two available mobile licenses. These are written into the amendment put in the Missouri Constitution:
- Expertise in business
- Integrity, sustainability and safety
- Past relevant experience
- Advertising and promotional plans
- Ability to generate revenue for the state
- Commitment to responsible gaming
- Capacity to increase number of betters on their platform
FanDuel and DraftKings both spent millions on the campaign to legalize sports betting, and now they’re hoping to cash in. The third applicant, Circa Sports, sets itself apart by encouraging large bets and professional gamblers, but cannot provide as much tax revenue for the state as the other two.
Other companies will get licenses, but will have to partner with an existing casino or professional sports team in Missouri. Some of these partnerships are already being announced.
Sports betting was sold to Missourians as a way to bring more tax money into the state, especially for education. Missouri is facing a possible budgetary shortfall right now because of declining tax revenue and a loss in federal money.
Budget experts are guessing sports betting could provide the state with an extra $29 million at most, but that’s not much compared to the estimated $1 billion loss.
“It could be really next to nothing in the end. And when you take it into the context of a budget shortfall, it’s going to do nothing to make up the gap,” said Traci Gleason with the nonpartisan research group Missouri Budget Project.
Under Amendment Two, there will be a 10% tax on that gambling revenue. The auditor’s office is estimating up to $29 million in tax revenue coming from sports betting. That revenue is allocated first to cover any of the “reasonable expenses” incurred by the Gaming Commission that were not covered by revenue from fees.
After those expenses are covered, 10% of the remaining wagering tax revenue or $5 million, whichever is greater, would be allocated to the state’s Compulsive Gaming Prevention Fund. Finally, whatever revenue is remaining is legally required to be spent on “institutions of elementary, secondary, and higher education” in Missouri.
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