Here’s why you might be seeing sports betting ads in Missouri even though it’s not yet operational

JEFFERSON CITY, Mo. (KFVS) – Some ads populating on social media and television are raising eyebrows in Missouri.

A DraftKings campaign advertising a deal that’s “now live in Missouri” could seem confusing upon first look. Although voters passed Amendment Two legalizing sports betting, the Missouri Gaming Commission has not yet awarded any licenses. However, Draftkings is not doing anything wrong.

Although it appears to be a sports betting commercial, DraftKings is advertising a fantasy game, and betting on fantasy sports is legal and regulated in Missouri. The Missouri Gaming Commission regulates fantasy sports, but it’s still going to be several months until the infrastructure is set up for sports betting.

“We’ve got that small intense group of people led by our executive director to make sure that we’re not missing anything,” said Missouri Gaming Commissioner Jan Zimmerman.

Betting on fantasy sports is not new. Companies like DraftKings can use this as an avenue to make money in states where sports betting is not legal, or in Missouri’s case, not yet operational.

When looking at the map of where the DraftKings pick-six deal is available, and comparing it to the map from the American Gaming Association of states where sports betting is legal, you’ll notice eight states where you can get this DraftKings deal but sports betting is not legal; that’s without including Missouri.

Betting money on fantasy sports is legal because of the Unlawful Internet Gambling Enforcement Act of 2006, which designates fantasy sports as a game of skill *not a game of chance, like sports betting. Because of this, betting on fantasy sports is not considered gambling.

The Missouri Gaming Commission said it hopes to have sports betting operational later this year. In the meantime, avid sports fans and gamblers will have to stick to fantasy sports.

“We are still very hopeful that we’ll be ready to go by mid to late summer,” Zimmerman said.

The Missouri Gaming Commission’s regular meeting is scheduled for tomorrow to continue its work toward getting sports betting set up.

In Missouri, there were more than 11 million attempts to place a sports bet just during the first half of the 2024 football season, according to data from GeoComply.

There will be a 10% tax on that gambling revenue. The auditor’s office is estimating up to $29 million in tax revenue coming from sports betting.

That revenue is allocated first to cover any of the “reasonable expenses” incurred by the Gaming Commission that were not covered by revenue from fees.

After those expenses are covered, 10% of the remaining wagering tax revenue or $5 million, whichever is greater, would be allocated to the state’s Compulsive Gaming Prevention Fund. Finally, whatever revenue is remaining is legally required to be spent on “institutions of elementary, secondary, and higher education” in Missouri.

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