DraftKings contributed another $5 million to bring legal online sports betting to Missouri, re-upping its commitment a month before Election Day.
DraftKings has now spent $15 million on the campaign. FanDuel has added $10 million.
The latest financial investment reaffirms DraftKings' commitment to bringing legal sports betting to Missouri. The nation's No. 2 mobile sportsbook by national market share operates a retail sportsbook across the Illinois state border in East St. Louis and offers mobile sports betting in six of Missouri’s eight neighboring states.
The latest contributions come in the campaign’s final stretch. Absentee ballots have begun being mailed out and early voting begins later this month. Election Day, the final chance to submit ballots, is Nov. 5.
Campaign status
DraftKings and FanDuel are hoping to secure public support with the new spending, much of it going to advertising and promoting the sports betting ballot measure. The first series of ads features Missouri public school teachers and highlights the millions in annual tax revenue expected to be generated by taxes on sportsbooks.
Winning for Missouri Education has launched its newest ad in support of Amendment 2, which will generate over $100 million for public education over the next 5 years by legalizing sports betting. It features Michelle, a teacher of 16 years from Wildwood and a mom of two children,… pic.twitter.com/TvvjcH0ik2
— Winning for Missouri Education (@yeson2missouri) October 1, 2024
Caesars, which operates three casinos in the state, has spent $4 million opposing the measure. Under the proposed regulatory structure, Caesars would only have access to one mobile sportsbook license.
In most other states that tie mobile sportsbooks to brick-and-mortar casino ownership, an operator receives at least one license per managed property. These licenses can be used for additional in-house sportsbook brands or can be sublicensed to a competitor.
The current regulatory structure also allows two “untethered” licenses for mobile sportsbooks that don’t have to partner with a brick-and-mortar property (and negotiate an accompanying partnership fee). The licensees have not been determined, but the pre-set criteria favor larger national brands, including DraftKings and FanDuel, the No. 1 national sports betting operator by market share.
The state’s other five casino operators have neither publicly supported nor opposed the sports betting ballot measure.
Polling shows near majority support for sports betting with roughly a quarter of respondents undecided and a quarter opposed. If proponents can convert a small piece of the undecideds while maintaining supporters, the measure would be poised to pass.
The most recent high-level polling came before the Caesars-backed opposition group launched its campaign. Opponents have spent millions on advertising, which is set to be released to the public later this month.
Potential Missouri sports betting future
If approved by voters next month, Missouri sports betting would begin sometime next year. Up to 14 mobile sportsbooks could enter the state.
DraftKings and FanDuel are the two likeliest entrants, probably via the two untethered licenses. Though it opposes the measure, Caesars would also likely launch in the state.
Penn Entertainment, which operates two Missouri casinos, would likely launch ESPN BET. Bally’s, another Missouri casino operator, would also be poised to launch Bally Bet.
BetMGM has a market access deal with Boyd Gaming, another Missouri casino operator, positioning them to enter the state. BetMGM already advertises heavily in Arrowhead Stadium for Kansas City Chiefs games.
Fun Fact: BetMGM is not allowed in this stadium; Missouri voters can approve mobile betting on this year's ballot; Arrowhead Stadium could also open an on-property retail sportsbook; BetMGM has retail books adjacent to the Arizona Cardinals and Washington Nationalz home stadiums pic.twitter.com/OXwmLeCwsx
— Ryan Butler (@ButlerBets) September 15, 2024
BetMGM, or other operators, could also earn market access through a partnership with any of the six major professional sports teams based in Missouri. The pro sports teams have been the biggest drivers for the “yes” vote, along with DraftKings and FanDuel.
A “yes” vote also would allow all six teams to open retail sportsbooks within or next to their respective home stadiums. The teams are: the Chiefs, Kansas City Royals, Kansas City Current, St. Louis Blues, St. Louis Cardinals, and St. Louis City SC.
Missouri would join neighboring Illinois along with Washington, D.C., Connecticut, Maryland, and Arizona among jurisdictions that permit in-stadium sportsbooks.
