2024 is a mixed year for sports betting supporters. Although no new states have successfully legalized online sports betting, one state has caused a sensation—Missouri. Missouri has made steady progress in legalizing sports betting, with a voting initiative expected to be proposed in November.
This plan, supported by Missouri's professional sports franchises, would allow sports betting in Missouri and use the tax revenue for educational programs. However, the path to legalization is not smooth. Recent lawsuits challenging the validity of the voting signatures could disrupt the entire process.
Lawsuit Against Missouri's Voting Initiative
The lawsuit challenging Missouri's voting initiative is a significant obstacle closely watched by sports betting stakeholders. The lawsuit claims that the Secretary of State's office erroneously allowed the sports betting legalization issue to appear on the November ballot, citing problems with the way signatures were counted.
If the lawsuit succeeds, it could effectively remove the sports betting issue from the ballot, putting Missouri's legalization efforts in jeopardy. This development adds a layer of uncertainty to the state's sports betting landscape, as industry insiders and the public await how the legal proceedings unfold.
Potential Impact of Missouri's Voting Initiative
If Missouri's voting proposal makes it to the November ballot, the fate of sports betting legalization will be decided by the state's voters. Although the measure is supported by the state's professional sports franchises, it does not guarantee that Missourians will approve the proposal.
The sports betting industry has taken a proactive approach, with industry giants like DraftKings and FanDuel donating significant funds to the "Win for Missouri Education" campaign. This suggests that there might be well-funded advertising campaigns to influence public opinion in favor of legalizing sports betting.
Neighboring States to Watch
If Missouri's voting initiative fails, the state legislature is likely to reconsider the idea of legalizing sports betting in the near future. But Missouri is not the only state worth watching in the coming years.
Neighboring states like Minnesota, Illinois, and Iowa are also exploring the possibility of legalizing sports betting. Particularly, Minnesota has been considering various sports betting bills for years, although negotiations often stall. With the success of online sports betting in Illinois and Iowa, Minnesota may face increasing pressure to follow suit.
Biggest Winners: California and Texas
While the Midwest might be a hotbed for sports betting activities, the two states often seen as the biggest winners in the industry are California and Texas. These states, with their large populations, are highly attractive to sports betting operators.
In California, previous efforts to legalize sports betting have not succeeded, but industry stakeholders have realized that gaining tribal support is crucial for any successful legalization effort. With renewed focus and a better understanding of the political landscape, California may be ready to join the sports betting revolution in the coming years.
As for Texas, the state legislature meets only once every two years, meaning the 2025 session will be crucial. Although pushing for casino expansion might overshadow sports betting legalization, industry stakeholders are expected to lobby heavily for a comprehensive gambling expansion plan that includes sports betting.
Slow but Steady Progress in the Southeast
While the West Coast and Midwest dominate discussions on sports betting, the Southeastern United States is also making gradual progress toward legalization.
Georgia and South Carolina have both considered sports betting bills in the past, although these efforts often stall. However, North Carolina's recent legalization of online sports betting could serve as a catalyst for neighboring states to reconsider their stance on sports betting.
Similarly, Florida's tumultuous journey with sports betting legalization is closely watched by industry observers. The Sunshine State's on-again, off-again relationship with sports betting leaves many wondering when it will finally join the ranks of states offering legal sports betting.
Wild Cards: Minnesota, Georgia, and South Carolina
Beyond the highly watched states like California, Texas, and Florida, there are other uncertainties worth watching in the coming years.
For example, Minnesota has been considering legalizing sports betting for years, but efforts have consistently encountered obstacles. With the success of online sports betting in neighboring states, Minnesota may face increasing pressure to finally take the step.
On the other hand, Georgia and South Carolina have made little progress in legalization, but recent developments in North Carolina can remind these states to reassess their stance on sports betting.
One important lesson learned by the sports betting industry over the past few years is that tribal support plays a crucial role in the legalization process. In states like California, where tribal gaming interests dominate, securing their support has proven to be a key factor in the success or failure of any sports betting plan.
