DraftKings and FanDuel Amplify Missouri Sports Betting Push with $5 Million Donations

Caesars Entertainment allocated more than $4 million to fund opposition efforts.

The contributions by DraftKings and FanDuel were made to the Winning for Missouri Education political action committee, the primary group spearheading the sports betting legalization effort in the state. Their donations significantly bolster the committee’s financial as it campaigns for a constitutional amendment that could transform the sports betting landscape in Missouri.

With these contributions, the two sports betting giants have each invested around $10 million in the campaign, which has raised more than $20 million overall. Most of this funding comes from DraftKings and FanDuel, the two largest sportsbooks by national market share, demonstrating their commitment to the measure’s success.

The Potential Impact of Legal Sports Betting in Missouri

The proposed constitutional amendment would allow retail and online sports betting in Missouri, giving the state’s six casino operators and major sports teams the ability to apply for one online sports betting license each. Currently, Missouri is one of the few states where sports betting remains illegal, even as 38 states and Washington, D.C., have embraced legalized wagering in some form.

If approved by voters, Missouri casinos and sports teams would be allowed to partner with online sportsbooks to offer betting options, and two untethered licenses would also be available for sports betting operators that do not need to partner with existing brick-and-mortar establishments. This untethered license model offers a unique opportunity for operators like DraftKings and FanDuel, who are not tied to any specific land-based casinos in the state.

A majority vote in favor of the amendment would pave the way for Missouri to launch legal sports betting in 2025.

While DraftKings and FanDuel have been vocal in their for the sports betting measure, Caesars Entertainment has quietly taken steps to oppose it. Caesars recently made a $4 million contribution to the Missourians Against the Deceptive Online Gambling Amendment campaign, which is fighting against the proposed legislation. The company’s donation highlights concerns over the proposed regulatory framework that could potentially limit Caesars’ financial opportunities in the state.

Despite owning three casinos in Missouri, including Tropicana St. Louis, Harrah’s North Kansas, and Isle of Capri Boonville, Caesars would face restrictions under the ballot initiative that could affect its ability to obtain multiple sports betting licenses. This contrasts with other states that allow operators to secure multiple licenses based on the number of properties they own, a structure that could provide Caesars with more revenue opportunities.

Although Caesars would still be eligible for both a retail and mobile sports betting license under the current proposal, the company appears concerned that the regulatory system could favor DraftKings and FanDuel, potentially allowing them to capture a significant share of the market.

Tight Battle Ahead as Election Nears

The November 5 general election will be a critical moment for the future of sports betting in Missouri. Polls suggest a close race, with approximately 50% of voters currently in favor of the amendment and 25% opposed. The remaining 25% are undecided, making their votes crucial in determining the outcome.

The Winning for Missouri Education committee has released ments highlighting the potential tax revenue benefits for public education, should sports betting become legal. A recent report by Eilers & Krejcik Gaming projects that the state could collect around $4.7 million in sports betting taxes during the first year of operation, providing a significant boost to education funding.

On the other side, the opposition group funded by Caesars, Missourians Against the Deceptive Online Gambling Amendment, has yet to announce its spending plans. The group is led by Jacqueline Wood, who previously filed an unsuccessful lawsuit to keep the sports betting measure off the ballot.

With millions of dollars pouring into both sides of the campaign, Missouri’s sports betting debate is heating up. DraftKings and FanDuel’s substantial contributions signal their confidence in the potential success of the initiative. However, with Caesars backing a strong opposition effort, the final decision rests with Missouri voters.

The results of the November 5 election will determine whether the state s the growing list of U.S. jurisdictions that have embraced legal sports betting or whether the Show-Me State continues to ban it. For now, both ers and opponents are rallying to make their voices heard as the vote approaches.

Source:

”Missouri: FanDuel, too, contributes $5 million to sports betting campaign”, cdcgaming.com, September 24, 2024.