In a closely watched decision, Missouri voters approved Amendment 2, which legalizes sports betting within the state, marking a significant shift in the state’s gaming landscape. Meanwhile, Amendment 5, which sought to establish a new casino near the Lake of the Ozarks, was defeated. The outcome reflects a complex stance on gambling expansion, with voters embracing sports wagering but halting further casino development.

The final tally on Amendment 2 remained uncertain until the early hours, according to Missouri Independent, with Greene County’s last-minute reporting tipping the scale. While southwestern Missouri’s opposition tightened the margin, the amendment ultimately passed by a narrow 14,000-vote lead out of nearly 2.9 million ballots. This approval will enable Missouri residents to place bets on sports events by year’s end, possibly as soon as December. Lawmakers will now work to establish a timeline for implementing the newly approved amendment, with legal betting anticipated to start as early as December 5, 2024, but no later than December 1, 2025.

New Path for Sports Betting in Missouri

Under Amendment 2, major sports franchises and casino operators within the state will be permitted to launch both physical and online sports betting platforms. Each of Missouri’s six professional sports teams can establish on-site sportsbooks in dedicated districts surrounding their stadiums and offer team-branded online betting services. Missouri‘s six casino operators are also allowed to open sportsbooks and provide online platforms. Additionally, two licenses will be reserved for online operators without direct ties to a Missouri team or casino.

Taxed at 10%, the revenue generated from sports betting will contribute to the state’s education fund and support gambling addiction services. However, the amendment’s taxation structure allows operators to deduct both federal and promotional expenses before calculating taxable revenue, raising concerns about the actual financial benefit to the state.

The pro-sports betting campaign, “Winning for Missouri Education,” played a pivotal role in garnering support, spending nearly $41 million on its efforts, largely financed by industry giants DraftKings and FanDuel. Despite an opposition campaign backed by Caesars Entertainment, which invested $14 million before pulling ads close to Election Day, sports betting proponents managed to maintain their lead, though by a far slimmer margin than expected.

“Missouri has been missing out on potential revenue from sports betting, with residents often turning to neighboring states or offshore platforms,” said Jack Cardetti, spokesperson for Winning for Missouri Education. “This amendment provides a way to capture that revenue to fund state education and meet other critical needs.”

With more than 35 states now allowing some form of sports wagering since the U.S. Supreme Court lifted the federal ban in 2018, Missouri joins all its bordering states, except Oklahoma, in legalizing the practice.

Amendment 5 and the Defeated Lake Ozark Casino Proposal

While Missouri voters showed support for sports betting, they were less enthusiastic about expanding casino operations with Amendment 5, a proposal that would have authorized a new casino project near Lake of the Ozarks. With roughly 52% of voters opposing, the measure was defeated, making it one of the rare instances since 1980 that Missouri has voted down a casino expansion.

The proposal’s failure halts plans for a state-regulated casino in the region. Instead, an ongoing project led by the Osage Nation in Miller County will proceed without state competition, as the tribe aims to secure federal recognition of the land as ancestral, allowing it to establish a casino and convention center under tribal regulations. Once federal approval is granted, the state will negotiate a compact with the Osage Nation, establishing shared law enforcement protocols and determining a taxation framework comparable to state standards.

Amendment 5 faced significant hurdles, with supporters spending $10.2 million to sway voters, yet they were unable to overcome the skeptical climate fueled by debates on the merits of expanded gambling. The last time Missouri voters turned down a gambling initiative was in 2004, a similar measure for a casino on the White River near Rockaway Beach.