The Caesars-backed campaign to oppose Missouri sports betting legalization has spent nearly all of the $4 million raised to sway voters against the measure, according to financial disclosures released last week.
The campaign has spent roughly $1.7 million on "digital media," presumably around an online campaign to drum up the "no" vote. Another $1.5 million was spent on "media buys," which typically indicates ad spending on traditional media such as television and radio.
The final major piece of the marketing was more than $600,000 in "direct mail." More than $51,000 was spent on opinion polling services along with roughly $32,600 for "video production."
This represents nearly all of the roughly $4 million Caesars has contributed to stop voters from approving the measure on this fall’s ballot. The opposition comes even though Caesars would be able to launch its mobile sportsbook statewide and open retail sportsbooks at its three managed properties if this measure were approved.
Caesars opposition explained
Caesars spent millions opposing the measure because of an unusual regulatory structure that brick-and-mortar casino operators consider unfavorable compared to the system in other jurisdictions.
In most other markets that tie brick-and-mortar casino operations with online sports betting licensure, an operator earns at least one license or "skin" for each property. Some states, including New Jersey, allow multiple online skins for each physical property.
Under the system in these other states, Caesars would have access to at least three mobile sports betting licenses corresponding to its managed Missouri properties: Horseshoe St. Louis, Harrah’s Kansas City, and Isle of Capri in Boonville. Companies can use these licenses on a second or third in-house mobile sportsbook or, more commonly, strike a deal with a competitor to use the license. Financial terms of these deals are seldom disclosed publicly, but these partnerships create an additional revenue stream for the original license holder.
The Caesars-backed Missouri sports betting opposition campaign has spent (roughly) the following:
— Ryan Butler (@ButlerBets) September 30, 2024
- $1.7m in digital media
- $1.5m in media buys
- $600,000 in direct mailing
- $51,100 on opinion surveys
- $32,600 in video production
This represents nearly all of the $4m raised
And while Caesars would have a state-high three retail sportsbooks, one at each casino, in-person betting revenues typically pale compared to money generated from mobile offerings.
Additionally, the language of the current ballot measure permits two "untethered" licenses for mobile sportsbooks to enter the state without having to strike a partnership with a brick-and-mortar property. The criteria laid out for the two untethered partners would seem to give a significant advantage to DraftKings and FanDuel, the two nationwide market share leaders.
Not surprisingly, DraftKings and FanDuel have been the biggest donors toward the "yes" vote, contributing roughly $10 million apiece.
What comes next
The other five Missouri casino operators — Penn Entertainment, Boyd Gaming, Affinity Gaming, Century Casinos, and Bally’s — have not taken a public stance on the amendment. All but Bally’s operate two casinos in the state. None have donated to the opposition campaign.
Though supporters have a financial leg up, Caesars’ opposition — and the accompanying multimillion-dollar spending campaign — could tilt what may be a close vote.
Recent major polls show roughly 50% support and 25% opposition with 25% undecided. Should backers maintain their current levels and attract just a portion of the undecided votes the measure would pass easily.
But these polls have come out after supporters began their first ads and before the opposition starts its campaign, which last week’s spending reports show is imminent.
Along with one license apiece for each of the six Missouri casino operators, all six major professional sports teams that play in the Show Me State would also be able to partner with a third-party operator for a mobile sportsbook if the measure is approved by voters. The teams, led by the St. Louis Cardinals, St. Louis Blues, Kansas City Chiefs and Kansas City Royals, have joined FanDuel and DraftKings as the most prominent supporters of the measure.
This would mean 14 potential Missouri mobile sportsbooks, assuming DraftKings and FanDuel secure the two untethered licenses. Caesars (despite its opposition) as well as Penn-managed ESPN BET and Bally's-managed Bally Bet would also be among the likeliest entrants. Other major books with pre-existing or potential market access deals include BetMGM, Fanatics, and bet365.
Missouri may not meet the full allotment of 14 books. Nine operators control roughly 99% of the national market share and more than a dozen sportsbooks have ceased US operations in the six years since the Supreme Court struck down the federal wagering ban.
If approved, Missouri would be the 31st state with statewide mobile sports betting and the 39th to offer at least one legal online or retail sports betting option. It would be the only state in 2024 to legalize sports betting.
The ballot measure language requires the first sportsbooks to go live by Dec. 1, 2025 if the measure passes. The first mobile and/or retail books would likely go live before the 2025 football season, which is typically sportsbooks’ most lucrative time of the year.
