Missouri voters have narrowly passed Amendment 2, paving the way for the legalization of sports betting in the state. This amendment empowers the Missouri Gaming Commission to oversee sports betting operations, granting licenses to existing casinos, online platforms like DraftKings (DKNG, Financial) and Flutter Entertainment (FLUT), and professional sports teams.
Following the announcement, DraftKings saw its stock price increase by 4.55% in pre-market trading on Wednesday, while Flutter Entertainment's shares rose by 2.96%. The amendment also includes financial provisions such as a $500,000 license application fee, a requirement for renewal every five years, and a 10% tax on adjusted gross sports betting revenue.
Out of 3,572 precincts, votes from 3,570 were tallied, with 50.2% of voters in support of the amendment. Missouri was previously one of the 12 states in the U.S. where sports betting was illegal. Neighboring states like Kansas, Iowa, and Illinois have increased state revenue by approving sports betting, influencing Missouri's decision.
DraftKings and Flutter Entertainment, both leaders in the U.S. market, are eyeing the potential in Missouri, the 18th largest state, and have contributed $43 million to campaigns supporting the amendment. The measure also allows for additional sports betting licenses for professional sports teams, which have been publicly endorsed by teams in Kansas City and St. Louis.
