The Kansas City Public Schools Chapter of American Federation for Teachers (AFT 691) teachers union is skeptical of the benefits of Constitutional Amendment 2 for legalized sports betting in Missouri.
Residents in the Show-Me State will vote on Amendment 2 during the Nov. 5 general election. Winning for Missouri Education is the campaign backing the sports betting ballot initiative.
Amendment 2 would set the sports betting tax rate at 10%. Promotional credits would also be capped at 25%. Additionally, the bill would allow Missouri’s professional sports franchises along with the state’s 13 casinos to operate retail and online sports betting.
Kansas City teachers union says “estimate unknown revenue” language is not reassuring for teachers’ salaries
A recent economic study commissioned by the campaign from Eilers & Krejcik Gaming found that Missouri gross gaming revenue (GGR) could reach nearly $560 million in total after five years of legalized sports wagering.
As a result, Missouri public education would receive up to $105 million in funding over the next five years. Plus, the study projects total GGR of $335 million in the first year.
GGR is projected to grow to almost $560 million by year five. Total tax revenue of $4.7 million is expected in the first year, increasing to $38.7 million in year five.
However, according to KCTV Live News, the teachers union is questioning the ballot language that states, “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.”
“One thing you can’t do is make promises in salaries, and this money is supposed to go raise teacher salaries, and you can’t commit to how much money is going to go to salaries,” said AFT 691 President Jason Roberts.
“That’s a terrible idea. Let’s say they commit to us; they’re going to give us $5 million for teacher raises for next year. So, we anticipate that $5 million and build that in and spend it. Well, what if they suddenly only give us $2 million? Who has to make up the other three because we have a collective bargaining agreement with the district to do that.”
A fiscal note released by the State Auditor in October 2023 shows several loopholes for sports betting operators
Roberts also cited a fiscal note released by the State Auditor in October 2023, highlighting multiple loopholes for sports betting operators to make deductions on promotional credits, free play, and federal taxes to gross receipts. Some would pay zero taxes for sports wagering.
“They’re going to play so they maximize their profits, they can write off whatever they want,” Roberts added. “And pay nothing in state and federal taxes then claim oh well nothing we can do.”
The Kansas City Public Schools Chapter of American Federation for Teachers also argued mobile sports betting hurts brick-and-mortar casinos. Less business would impact union jobs.
Amendment 2 was recently endorsed by Missouri governor candidates Crystal Quade (D) and Mike Kehoe (R). Both candidates support legalized sports betting. Libertarian candidate Bill Slantz supports the sports wagering measure as well.
Offshore sportsbooks in Missouri include BetOnline, BetNow, and BetUS.