Caesars Entertainment Contributes $4M to Anti-Sports Betting Campaign

Caesars Entertainment has made a significant financial contribution to a campaign opposing Missouri’s sports betting initiative. The casino giant donated $4 million to a political committee called Missourians Against the Deceptive Online Gambling Amendment. This committee was established on September 10 and aims to defeat the state’s proposal to legalize digital sports betting, listed as Amendment 2 on the November ballot.

According to the Missouri Ethics Commission (MEC) website, Caesars made its contributions on September 13 through three of its casino properties in the state. Tropicana St Louis, now operating as Horseshoe Casino, and Isle of Capri Casino Booneville each contributed $1.3 million. Harrah’s North Kansas City Casino added $1.4 million. So far, Caesars is the only casino company in Missouri to actively oppose the sports betting measure.

The Missouri Sports Betting Initiative: A Closer Look

The proposed Amendment 2, which survived a legal challenge last week, seeks to legalize online sports betting across Missouri. If ed, it would allow digital platforms to operate statewide, tethered to existing casinos and professional sports venues or teams. The initiative is heavily ed by Missouri’s professional sports teams, including the St. Louis Cardinals, who have championed this cause.

ers of the measure argue that legalizing digital sports betting would open new revenue streams for the state and create more entertainment opportunities for residents. However, opponents, including Caesars, claim the measure would harm traditional casino operations and fail to guarantee promised tax benefits for Missouri’s education system.

The initiative has also led to a growing divide between traditional casino operators and digital sports betting companies. Prominent digital wagering platforms like DraftKings and FanDuel have voiced strong for the initiative, pushing for the legalization of sports betting in Missouri. These companies, which lack a physical presence in the state, stand to gain significantly if the measure es.

DraftKings, FanDuel, BetMGM, and Fanatics Sportsbook have formed the Sports Betting Alliance (SBA) to advocate for Amendment 2. The SBA has already started its promotional efforts, with its first ment airing last week. According to the MEC records, DraftKings and FanDuel alone have contributed a combined $9.525 million to the initiative, with contributions continuing into September.

In contrast, Missouri’s traditional casino operators had remained largely silent on the issue until Caesars’ recent $4 million contribution, signaling a clear stance against the digital sports betting initiative.

For more than five years, legalizing sports betting has been a topic of heated debate in Missouri’s state legislature. However, progress has repeatedly stalled, largely due to disputes over including video lottery terminals (VLTs) in the legislation. Senator Denny Hoskins has been a strong proponent of tying sports betting legalization to VLTs, causing the issue to stall in every legislative session.

Three years ago, a coalition of casinos and sports teams attempted to push for a bill that would have allowed each casino operator to have up to three sports betting platforms, also known as skins. Under Amendment 2, each casino would be limited to just one skin, a significant reduction from earlier proposals. This limitation has raised concerns among major casino operators in Missouri, such as Caesars, Boyd Gaming, and Penn Entertainment, who have multiple properties in the state.

If the initiative es, Caesars and Penn Entertainment would each be entitled to one sports betting skin, compared to the three that were previously proposed. Boyd Gaming, which operates two casinos in Missouri, would also be limited to one platform, instead of the two it would have had under prior legislative efforts.

Opposition from Religious and Problem Gambling Groups

Opposition to the sports betting initiative is not limited to the casino industry. Religious groups and problem gambling advocates have also voiced concerns about Amendment 2. According to the “No on Amendment 2” campaign website, proponents of the measure have claimed that tax revenue from sports betting would go toward funding education. However, critics argue that “special loopholes” in the initiative could prevent any of that revenue from actually reaching Missouri’s schools.

The opposition campaign, ed by groups that seek to curb problem gambling, launched its website last week and released its first ment. These groups worry that legalizing sports betting could lead to an increase in gambling addiction and associated social issues, further complicating the debate over the initiative.

As Missouri prepares to vote on Amendment 2 in November, the debate over legalizing digital sports betting has intensified. With Caesars Entertainment’s $4 million contribution to the opposition campaign, the stakes have risen even higher. The vote will determine whether Missouri embraces digital sports betting, ing other states in expanding its gambling market, or if traditional casino operators and their allies succeed in keeping the status quo.

Source:

”Caesars contributes $4m to campaign against legal Missouri sports betting”, igamingbusiness.com, September 15, 2024.