A sports betting opposition campaign backed by Caesars in Missouri has spent $4 million to sway voters

In Missouri, several lawmakers and sports betting operators have been working diligently to get sports wagering and iGaming legalized. Groups have come together to help support the legislature and voice their opinions in favor of the market opening in Missouri. While their efforts are seen, there are still those against sports betting becoming fully legalized in the Show-Me State. 

Caesars’ sports betting opposition campaign has spent roughly $1.7 million on digital media. This is presumed to be an online campaign to increase the amount of “no” votes. Additionally, another $1.5 million was spent on “media buys”, typically on traditional media platforms. That includes television and radio. 

Their final major piece of the marketing campaign against sports betting legalization in Missouri was more than $600,000 in “direct mail.” More than $51,000 was spent on opinion polling services and $32,600 for video production. All that money used is roughly the $4 million that Caesars contributed. Despite being able to launch a mobile and retail sportsbook, Caesars is still opposed to sports betting legalization in Missouri.

Why is a profitable sportsbook like Caesars opposed to sports betting expansion?

Caesars Sportsbooks’ biggest opposition to sports betting in Missouri is the unfavorable regulatory structure for brick-and-mortar casinos. In most markets that tie in brick-and-mortar casinos with online operators, they earn at least one license of “skin” for each property. States like New Jersey allow multiple online skins for each physical property. 

The betting system in place for Missouri would allow Caesars Sportsbook to have access to at least three mobile sports betting licenses. They would correspond with their three physical retail locations, Horseshoe St. Louis, Harrah’s Kansas City, and Isle of Capri in Boonville. The sports betting operators can choose to open a second or third in-house sportsbook with the extra license. They could also strike a deal with a competitor to use the license. 

While Caesars would have a state-high three retail sportsbooks, in-person betting revenue doesn’t compare to what can be made through a mobile sportsbook. The language of the current ballot measure in Missouri permits two “untethered” mobile sportsbooks. This allows two sportsbooks to have mobile operations without having to partner with a brick-and-mortar casino. That favors two industry leaders in DraftKings and FanDuel.

Will the opposition campaign have any effect on sports betting legalization in Missouri?

There are currently six casino operators in Missouri and Caesars is the only one to make a public stance on sports betting. The other five operators include Penn Entertainment, Boyd Gaming, Affinity Gaming, Century Casinos, and Bally’s. All operators in the state except for Bally’s operate at least two casinos. This opposition campaign backed by Caesars could have a major effect on what could be a close vote. Recent major polls in the state say that roughly 50% are in favor, 25% are against, and 25% are undecided.