US elections drive gaming revenue and promise market growth

Júlia Moura October 18, 2024

To discuss the initiatives impacting the gaming industry in the US during the upcoming elections, it’s essential to highlight the key issues and states, such as Missouri, Arkansas, Virginia, and Colorado. Each state has specific proposals related to casinos and sports betting that directly influence local economies and the regional political landscape.

Missouri

In Missouri, located in the Midwest, Amendment 2, which seeks to legalize sports betting, is on the ballot. Pro-betting organizations like Winning for Missouri Education have raised over $32 million to support the campaign, with significant contributions from betting companies like DraftKings and FanDuel. Local sports teams, such as the Kansas City Chiefs and the St. Louis Blues, also back the amendment. The proposal would allow sports betting at riverboat casinos and professional sports facilities, as well as authorize mobile licenses, favoring major operators like DraftKings and FanDuel. The proposed tax rate is 10%, with deductions for federal taxes and promotional credits.

On the other hand, the opposition, led by the group Missourians Against the Deceptive Online Gambling Amendment, with support from major companies like Caesars Entertainment, has raised around $14 million. According to Brooke Foster, the group’s spokesperson, the amendment is a deceptive measure designed to benefit out-of-state companies, harming local interests. To increase opposition, the group has launched ads warning of false promises related to education funding, comparing the current proposal to the state lottery, which, according to them, did not meet expectations.

Arkansas

In Arkansas, located in the southeastern US, the state Supreme Court rejected a lawsuit challenging the validity of an initiative to prevent the construction of a fourth casino in Pope County. With this decision, voters will decide the fate of Issue 2, which, if approved, would revoke the license granted to Cherokee Nation Entertainment and require popular approval for any new casino in the state. Since voters authorized four casinos in 2018, only the Pope County license remains pending due to ongoing legal disputes.

Virgínia

In Virginia, also located in the southeastern US, a vote in Petersburg will decide if the city will become the fifth in the state to allow casino construction. In 2020, the Virginia General Assembly passed a law permitting casinos in five cities, provided local voters approved. So far, Richmond has been the only city to reject the measure twice, prompting the Assembly to transfer the possibility of construction to Petersburg.

Colorado

In Colorado, located in the Midwest, the focus is on Proposition JJ, which aims to eliminate the current $29 million cap on sports betting tax revenue allocated to water conservation projects. The measure would allow the state to retain all revenue generated, removing the need for refunds to betting operators. Currently, the state constitution limits the use of this revenue and mandates the return of the excess.