DraftKings Contributes $5M to Missouri Sports Betting Legalization Campaign

DK Crown Holdings Inc., the parent company of industry-leading operator DraftKings, has made a significant move in the ongoing effort to legalize sports betting in Missouri by donating $5 million to the “Winning for Missouri Education” campaign. The contribution is Missouri’s most substantial political donation in over 16 years in the push to legalize sports wagering in the state.

Missouri Represents a Lucrative Opportunity

The massive donation is only part of a broader campaign by DraftKings, FanDuel, and their affiliated companies to support the passage of Amendment 2, a constitutional amendment aimed at legalizing and regulating sports betting in Missouri. Since January, that campaign has raised over $16.5 million, entirely from those leading sports wagering companies.

This newest $5 million donation surpasses the $3.5 million check that DraftKings contributed in August, which then was the single largest donation to the campaign in 2023. The continued flow of seven-figure donations into the committee’s cause underscores the value an open Missouri market represents to sports betting companies.

Public opinion remains mixed. A March poll evaluated support for sports wagering among Missouri voters at 60%, with 25% opposing it. However, an Emerson College poll conducted in June put the score at 52%, suggesting it could be a close vote. While most industry experts agree that Missouri sports betting is a matter of time, stakeholders hope this will happen sooner rather than later.

The Legislation Faces Significant Opposition

The path to legalization faces some opposition. A coalition called “Missourians Against the Deceptive Online Gambling Amendment” argues that the promises of increased education funding from this proposed sports betting law are deceptive. The group notes that the proposed sports wagering legislation may not provide the revenues the state expects.

Amendment 2 is a bad deal for Missouri. This deceptive measure was written by and for the financial benefit of its out-of-state corporate sponsors and funders.

Brooke Foster, Missourians Against the Deceptive Online Gambling Amendment spokesperson

Caesars Entertainment, another gaming industry giant, surprisingly opposes Amendment 2. The company operates casinos in Missouri, including Horseshoe St. Louis, and has contributed over $4 million to the opposition group. Industry insiders believe the operator does not oppose legalized sports wagering but rather finds the proposed legislation too restrictive due to a limit on how many apps can be associated with a single operator.

As the November vote approaches, both sides continue to rally support. The sports betting industry is betting on a favorable outcome, with DraftKings and FanDuel significantly investing in the pro-gambling campaign with the support of local teams like St. Louis Blues, Kansas City Chiefs, and the St. Louis Cardinals. However, the future of legal sports betting in Missouri remains uncertain.