The controversy over Amendment 2 in Missouri

Sports betting legality in the U.S. with the red representing where it is illegal, and green represents it being legal.Photo byCC BY-SA 4.0, via Wikimedia Commons.

The above map displays the legality of sports betting as of January 2024. Where it is illegal is depicted in red. On the November 5, 2024, ballot, Missourians will be presented with Amendment 2 and they will decide whether sports betting should be legalized in their state.

Amendment 2 is being advertised as having positive effects in helping education in the state. One commercial states it will help underfunded schools and underpaid teachers.

On the other side of the debate, it's being questioned whether that is true using advertisements showing teachers asking you to vote no.

When you vote on Amendment 2, your priority should be whether you want sports betting in Missouri to be legal or not because it's unknown what the tax revenue will be to benefit education.

You can't get around the fact that sports fans who support sports betting want Amendment 2 to pass. Also, people would rather see the money coming into Missouri instead of Kansas or Illinois where sports fans go to place their bets.

There's a debate about whether the passage of Amendment 2 will financially affect schools. Supposedly, "The amendment includes a 10% wagering tax on revenues received to be appropriated for educational institutions in Missouri." (Source.)

If there's money to grab, schools could benefit if it passes. The question is how much will there be left to grab?

According to the ballot language, a 10% tax on gambling revenue would be designated for education after the operators pay their expenses and the compulsive gambling prevention fund. However, according to KOLR 10 Investigates, sportsbooks could manipulate their revenue so that there could be little or nothing left for schools.

While Winning for Missouri Education (political action committee) implies that over a five-year period, there could be millions of tax revenue left for education, you also need to know it's possible there could be no tax revenue left. (DraftKings and FanDuel have been funding the effort.)

The ballot for Amendment 2 includes the language, "Because the proposal allows for deductions against sports gaming revenues, they estimate unknown tax revenue ranging from $0 to $28.9 million annually. Local governments estimate unknown revenue."

The above language states there could be 0 tax revenue, or there could be up to $28.9 million. What's left will be based on what sportsbooks can deduct. Those deductions will determine what they pay in taxes. Supposedly, deductions will be capped in Missouri. It's unknown how much tax revenue there will be for education.

If passed, the proposed amendment would be known as Article III, Section 39(g) of Missouri's Constitution. It can be read in its entirety here.

MoLottery

For years, people, including teachers, may have wondered where the money from Missouri's Lottery was going. Initially, it indicated a lot of funds would go toward education. This may be why some are hesitant to vote yes for Amendment 2.

According to MoLottery, 3 to 4% of the Missouri Lottery does go to public education:

Since 1986, the Missouri Lottery has contributed more than $8 billion to the state of Missouri and public education. Annual Lottery contributions comprise about 3-4% of the state's funding for public education – an effort shared by local, state and federal governments.

You can visit here to see the Jackson County FY2024 Lottery Proceeds Expenditure Summary, or you can click here to see your county's summary. Regarding elementary and secondary education, click here to see fiscal year 2024 funding.

Note, however, that when the state allocates funds to a school district, it's at the district's discretion how it chooses to use the funds.

Thanks for reading.