DraftKings' new $5 million donation intensifies the battle to legalize sports betting in Missouri

The race to legalize sports betting in Missouri has seen a new financial boost, with DraftKings contributing a further $5 million to the "Winning for Missouri Education" campaign on Tuesday. This donation, the largest single contribution to a political campaign in Missouri in over a decade, comes as voters prepare to decide the fate of sports betting in the state this November.

DraftKings' latest donation brings the total raised for the pro-Amendment 2 committee to over $16.5 million since January, largely funded by DraftKings and FanDuel, the two largest companies in US the sports betting industry. These contributions are part of the lastest effort to legalize sports wagering, with Missouri aiming to join its neighboring states, such as Illinois and Kansas, which have already embraced the practice. 

This is not DraftKings’ first significant contribution. In August, the company wrote a $3.5 million check to the same campaign, which at the time was the largest donation of the year.

While DraftKings and FanDuel are pouring millions into the campaign supporting the legalization of sports betting, there is strong opposition. Caesars Entertainment, which operates several casinos in Missouri, has contributed over $4 million to the "Missourians Against the Deceptive Online Gambling Amendment" campaign.

Caesars’ Missouri properties, including Horseshoe St. Louis, are concerned that the proposed amendment may reduce the profitability of traditional casinos in favor of digital platforms.

Moreover, opponents of the measure argue that the proposal's promises of increased funding for education may not materialize as expected. Under the current language of the amendment, sports betting companies would be allowed to deduct promotional expenses from taxable revenue, potentially lowering the state's revenue from betting activities.

While the state's share of sports gambling revenue is set at 10%, the financial impact remains uncertain, with projections ranging from zero to nearly $29 million annually.

With the election looming, Missouri voters remain divided on the issue. A recent poll conducted by Emerson College revealed that 52% of likely voters support the amendment, while 25% are opposed, and 23% are undecided.

Support is highest among younger voters, particularly those aged 30 to 39, with nearly 70% in favor of the proposal. However, as voter age increases, support drops, with less than half of those over 60 backing the measure.

If approved, Missouri will join a growing list of states that have legalized sports betting, providing residents with an opportunity to legally place wagers on sporting events. The proposed amendment would allow licensed sports betting platforms to operate under a regulated framework, with the state benefiting from a share of the profits.

Proponents, including Missouri’s professional sports teams like the St. Louis Cardinals, argue that the measure could bring millions in much-needed revenue to the state, benefiting schools and public services.