A dose of reality on sports wagering
This week, Missouri became the 39th state in the nation to offer legalized sports betting.
You probably know this whether or not you plan to place a wager in the coming days. The sports book algorithm seemed capable of finding anyone with a Facebook account and a passing interest in the NFL, NBA or college football.
In this way, sports wagering is somewhat different from recreational marijuana, which was approved in 2022 with restrictions on advertising – specifically campaigns that target children or make unsubstantiated health claims.
But sports betting and marijuana share a common thread. Both are formerly taboo products or services that have now been embraced – or at least grudgingly accepted. Both required voter approval and benefited from constitutional amendments that locked in very favorable state tax rates (10% for sports books and 6% for recreational marijuana compared to 21% for Missouri casinos).
With both measures, there’s an understanding that times have changed and certain decisions should be left to the individual. For some, that means putting money down on Sunday’s NFL games to make the experience more exciting.
However, Missourians should enter this new arena with eyes wide open. The amount of targeted advertising – including athletes casting ceremonial first bets at Missouri casinos -- serves as a reminder that the biggest winners in this new landscape aren’t the sports fans but the sports betting companies that flocked to the state.
Nor does sports betting solve all of Missouri’s funding problems. In fiscal year 2025, the 13 riverboat casinos contributed $361 million to education in Missouri, but school funding challenges still persist.
Some would say that gambling money tended to replace rather than supplement general revenue for education. With sports betting, schools are third in line after regulatory expenses and support for the state’s compulsive gambling fund. While there will be some eye-popping numbers generated from sports betting, that money will be divided among more than 500 school districts.
Responsible adults should be able to spend their money however they want, but those who see this new era as a painless answer to state or school funding challenges may be in for some disappointment.
We learned a similar lesson with casinos in 1994 and with marijuana in 2022.
