Election showdown: DraftKings and FanDuel take on Caesars in Missouri

Voters in Missouri will consider Amendment 2 next week. The ballot initiative would legalize sports betting in the state for adults 21 and older through online platforms, casinos, and gambling boats.

If the amendment is passed, the Missouri Gaming Commission would regulate sports betting, with operations starting no later than December 1, 2025. A 10% tax would be imposed on sports betting revenue, with funds going primarily to education. The amendment also includes the typical provisions regarding responsible gambling.

Missouri is currently one of 12 states where sports betting is not legal. Meanwhile, neighboring states like Kansas, Iowa, and Illinois have legalized sports betting and increased state tax revenue. A $43 million campaign supporting the amendment has been funded entirely by DraftKings (NASDAQ:DKNG) and FanDuel (NYSE:FLUT) as the two U.S. market share leaders eye the potential in the 18th largest state. The amendment also authorizes additional sports betting licenses for professional sports teams, which has teams in Kansas City and St. Louis offering their public support for the measure.

Meanwhile, the $14 million opposition campaign has been funded entirely by Caesars Entertainment (NASDAQ:CZR). While the Las Vegas-based company is active in sports betting, it also operates three of Missouri’s 13 casinos and has said that it opposes the way this measure was written. A group called Missourians Against the Online Gambling Amendment claims the campaign supporting Amendment 2 makes false claims about the amount of tax revenue that would be generated for Missouri schools.

The latest polling shows that voters are nearly split on the sports betting issue.