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Caesars Entertainment is leading the effort to oppose Missouri sports betting initiative Amendment 2.
In a filing with the Missouri Ethics Commission, Caesars entities funded the Missourians Against the Deceptive Online Gambling Amendment campaign with $4 million.
The campaign funding, submitted Sept. 13, came the same day the first opposition commercial aired in Missouri. The commercial focused on the “big out-of-state gambling corporations” looking to benefit from passing Amendment 2.
Caesars previously had partnered with those same online gaming companies in pushing for legalizing online sports betting through the Missouri legislature.
Sources tell PlayUSA that ballot measure proponents and opponents are seeking clarification from the Missouri Gaming Commission on whether each Missouri casino would receive an online sports betting skin under the initiative.
The commission next meets Sept. 25. However, new MGC Executive Director Mike Leara isn’t taking office until Oct. 2.
The Missouri initiative is just one state gambling issue on November ballots. You can check out other key issues in our election 2024 advance.
Skin ambiguity main reason for Caesars opposition
Caesars was part of the group of Missouri casinos, professional sports teams and national gaming operators jointly supporting sports betting legalization efforts in the legislature the past three years.
A Caesars representative declined to explain the company’s initiative opposition at this time. However, sources indicate Caesars is concerned about potentially being limited to one mobile app in the state and the precedent it would set for possible future Missouri online casino legalization.
Six casino companies operate 13 casinos in Missouri. Other Missouri casinos that supported the legislative efforts haven’t joined the opposition but also aren’t part of the coalition supporting the initiative.
The legislation supported by Caesars permitted each casino to have three skins, with a maximum of six per casino company.
The initiative only allows one online skin per casino, and there’s ambiguity around whether that is per casino or per casino company. It also allows two untethered apps, which would presumably go to the companies financially backing the initiative, DraftKings and FanDuel.
Caesars operates three casinos in Missouri, each of which gave to the opposition campaign. Harrah’s North Kansas City provided $1.4 million, Tropicana St. Louis and Isle of Capri Boonville each contributed $1.3 million, and Caesars Enterprise Services added $156,202.79.
Sources indicate that Caesars also was behind the failed lawsuit that attempted to invalidate the initiative by challenging its certification.
Ad questions promises of money to education
Titled “Zero,” the commercial from Caesars and the opposition campaign starts with a TV screen picturing the proponent ad that began airing just days earlier.
The ad goes on to rebut the proponent’s pitch that Amendment 2 would bring tens of millions of dollars to Missouri classrooms and teachers.
Here’s the commercial’s transcript:
“Big out-of-state gambling corporations are spending millions pushing Amendment 2, a deceptive measure they claim will fund education. Amendment 2 would give them the power to operate online sports gambling and rake in billions, but the state’s official analysis concluded Amendment 2 would allow them to pay zero gaming taxes to Missouri. That means zero dollars for Missouri schools.”
The ad refers to a fiscal note produced by the Missouri State Auditor’s Office last October. In it, the Missouri Department of Revenue stated:
“Without the identification of an agency to collect the tax, no tax can be collected. Therefore, it appears this section will not generate any revenue to the state, the Commission or to the Compulsive Gaming Prevention Fund.”
Jack Cardetti, spokesperson for the initiative campaign, said this was a non-issue. That the Missouri Constitution and statutes give the Missouri Department of Revenue independent authority to collect all taxes imposed by law.
In addition to the tax collection uncertainty, initiative opponents highlight the allowance of promo deductions.
The official ballot title lists estimated annual tax revenue ranging from $0 to $28.9 million and references “deductions against sports betting revenues” as reason for the large differential.
“The proponents of Amendment 2 are making empty promises about education in order to sway voters, and Missourians deserve to know the truth about the measure,” opposition campaign spokesperson Brooke Foster said. “In reality, Amendment 2 contains no guarantees that a single penny will go to our schools. These out-of-state online gaming corporations are using Missouri students and teachers as a gimmick to pass online sports gambling while giving themselves huge tax deductions.”
Could MGC opinion really end Caesars’ opposition?
Sources indicate that proponents have been in discussions with Caesars for months trying to address the concerns over skins.
Changes at the Missouri Gaming Commission made it impossible to get clarification prior to the start of media campaign season for the election.
The MGC announced Leara as executive director on Sept. 6, right around the time that proponents and opponents made their media buys. Leara has past experience at the MGC, having served as its chairman for nearly four years beginning in 2019. Most recently he was the state supervisor for the Missouri Division of Alcohol and Tobacco Control.
If Leara reassures Caesars the commission will interpret the initiative as each casino getting a mobile sports betting app, it’s possible the opposition campaign ends.
Cardetti assured PlayUSA that proponents intend the initiative to provide one online mobile sports betting skin for each Missouri casino and professional sports team.
“We are hopeful Caesars will take another look at the initiative and come to the conclusion that, just as it was intended, Amendment 2 is a win for their casinos in Missouri, each of which would have a sports betting license, a win for Missouri sports fans and a win for Missouri schools.”
Polling shows importance of eliminating initiative opposition
The latest polling from Emerson College/The Hill shows the Missouri sports betting initiative in an improved but still vulnerable position immediately before the media campaigns began.
Conducted Sept. 12 and 13, the poll asked, “How would you vote on the ballot measure that would legalize sports wagering for individuals over 21?”
Of the 850 likely voters polled, 52% responded they would vote yes, 25.3% said they would vote no and 22.7% were unsure.
A June poll from Emerson College showed 38.3% in support and 35.4% against.
Although the margin in support was wide, passage requires more than 50% vote yes on the initiative. So 52% is a narrow margin for passage before any negative campaigning.
That’s why it’s important for the initiative’s chances to address Caesars’ concerns and cut short the opposition campaign.
