Missouri voters will be able to approve sports betting on the upcoming ballot after a judge dismissed a lawsuit Friday.
The decision by judge Daniel Green means Missourians can still approve sports betting this fall. If approved by a majority of voters, legal online and retail sportsbooks are set to begin taking bets sometime next year.
"Today's ruling, while expected, is nevertheless a big victory for Missourians, who overwhelmingly want to join the 38 other states that allow sports betting, so that we can provide tens of millions of permanent, dedicated funding each year to our public schools," read a statement from Jack Cardetti, spokesperson for Winning for Missouri Education, the coalition behind the campaign for the ballot measure.
"For too may years, Missourians have watched as fans cross state lines to place sport bets, which deprives our Missouri public schools of much needed funding. A vote for Amendment 2 in November will bring those dollars back to Missouri classrooms."
What comes next
The yes-no question to approve sports betting will appear on the ballots for all Missouri voters. If a simple majority approves, licensed sportsbooks will be legal via mobile apps beginning in 2025. Retail sportsbooks could also open adjacent to or within the state’s major professional as well as its riverboat casinos.
DraftKings and FanDuel are expected to lead the push to drum up the “yes” vote. A recent poll shows a near majority support for sports betting, but the lawsuit that threatened the measure underscores opposition.
The NFL’s Kansas City Chiefs, MLB’s Kansas City Royals and St. Louis Cardinals and the NHL’s St. Louis Blues have been among the referendum’s biggest supporters. The teams could further back the referendum through financial contributions as well as promotions at their respective stadiums.
The state’s casino industry has, notably, been less aggressive in backing the measure. The structure would allow DraftKings and FanDuel, already the national market share leaders, to enter the state without having to partner with a brick-and-mortar gaming property. Operators that own multiple Missouri properties including Penn Entertainment and Caesars would also be allowed one mobile sportsbook.
Still, if approved by voters this fall, expect Caesars and Penn-operated ESPN BET to go live in the state. Other national brands such as BetMGM, Fanatics, BetRivers, bet365 and Hard Rock could also seek licensure.
The referendum requires the first books to start taking bets by Dec. 1. Sports betting operators would likely push for regulatory approval by summer 2025 to capture the entirety of the lucrative football season.
Sports betting is already legal in seven of the eight states bordering Missouri, excluding Oklahoma. That includes Kansas and Illinois, which share Missouri’s two largest metro areas of Kansas City and St. Louis, respectively.
Background
A pair of Missouri residents sued to remove the question from the ballot. They argued that the measure’s proponents did not gather enough valid signatures to put the question before voters.
Missouri law requires citizen-led sports betting initiatives to collect verified signatures from at least 8% of voters in the previous gubernatorial election in six of the state’s eight congressional districts. The Secretary of State’s office verified enough signatures in August, though several districts barely crossed the threshold.
The verification of these signatures was questioned by the plaintiffs in the lawsuit that sought to remove several hundred approvals. The lawsuit also alleged the counting process itself was flawed; instead of a count that varied by each district’s population, the plaintiffs argued state law required each district to have an equal number of signatures needed for approval on the ballot.
Green determined the signatures and the means of counting them were sufficient to meet the state’s referendum requirements, keeping it on the ballot. The plaintiffs could appeal the ruling, but state law requires the ballot to be finalized by Sept. 10.
Lawyers from both sides questioned more than a dozen signature experts, election officials and other witnesses for several hours Sept. 5. Both parties challenged the validity of dozens of signatures individually.
(1/2) It sounds obvious, but animosity toward sportsbooks appears to be one of the factors in the lawsuit looking to prevent a Missouri sports betting measure; lawyers for the plaintiffs looking to stop betting basically accused DraftKings & FanDuel of paying to change MO law
— Ryan Butler (@ButlerBets) September 5, 2024
The plaintiffs’ attorneys also grilled Mike Pridmore, treasurer for the campaign financing the Missouri sports betting ballot measure. Pridmore said he acted as a representative to disperse campaign expenditures and had no direct role in how the money was spent.
DraftKings and FanDuel have contributed nearly all the $10 million raised by Winning for Missouri Education. Attorneys for the plaintiffs asked Pridmore if the two sportsbook operators were trying to pay their way into the state, a question withdrawn after objection from the defendant’s attorneys.
The exchange underscored the contentious nature of the campaign.
Once a political bellwether, Missouri voters have become increasingly conservative, especially outside the St. Louis and Kansas City metros. Winning for Missouri Education did not attempt to collect signatures in the state’s two most rural districts.
Much of the sports betting opponents’ lawsuit centers on signatures in the state’s first district, which encompasses the City of St. Louis and parts of St. Louis County. Polling shows St. Louis and Kansas City have among the highest levels of support for sports betting and have been focal points of the “yes” campaign.
