If you are a teacher, know a teacher, and/or are part of a teacher’s organization, you need to read what we are going to tell you about the sports betting proposal on the November ballot, Amendment 2, which is deceptive and hardly moves the financial needle for teacher’s salaries.

If you are a veteran, know a veteran, and/or are part of a veterans group, you need to read what we are going to tell you on Wednesday about the sports betting proposal on the November ballot, Amendment 2. It makes veterans even bigger losers than they have been.

Today we’re going to talk about the casino industry’s manipulation of voters with its campaign that will not deliver, by far, the great benefits to public education system the casino industry wants voters to think it will.

We are going to throw a lot of numbers your way today. The numbers are based on the casino industry’s own statistics as reported annually to the Missouri Gaming Commission and a couple of other sources.

They again suggest the casino industry is not shooting straight with us. But that’s not unusual.

We do not mind if you favor sports wagering.  But if you vote for it on the basis of the advertising by “Winning for Education,” the front organization for the casinos and their sports team bedmates, you need to know what you are doing TO our teachers, not for our teachers.

First: some basic information.  Missouri’s thirteen casinos generate revenue for state programs and services from two sources: a 21% tax on casino adjusted gross revenues (what’s left after all successful bettors are paid off) and admission fees ($2 per admission; we won’t distract you with the process of determining admissions; that’s for our next post about making veterans bigger losers than they have been for more than a decade).

Missouri had 521 school districts in fiscal year 2023. We will use that number in our calculations. It had 88,669 classroom teachers and 18,097 administrators and supervisors (including people such as guidance counselors, school nurses, and librarians), in 2,355 buildings.  The enrollment for the 2022-23 school year was 861,494.

The legislature approved a budget for the Department of Elementary and Secondary Education of $10,394,092,704 for the 2022-23 fiscal year.

Gaming consultant Chris Krafcik estimates total state revenue from the 10% tax on sports wagering will produce $4.7 million in the first year and $38.7 million in the fifth year of sports betting.

If we divide those figures by 521, the number of school districts, we find that sports wagering will produce an average of only $9,021 per district in the first year.  In year five, the number rises to $74,280 per district.

If we divide those numbers by 88,669 (the number of classroom teachers listed above) we find the average teacher could get a raise of $53.00 in the first year and a raise of $436 in the fifth year. Not even close to keep up with the cost of living.

If we spread those amounts among teachers AND administrators, all 106,756 of them, the average wage increase in the first year is $44 and in year five, it is $369.

That’s less than a tank of gas in the first year and not many groceries in the fifth one.

If, after looking at these numbers, that you still believe the industry commercials saying sports wagering will make any significant difference in the Missouri teacher salaries, I will sell you the Gateway Arch. The attractive teachers in the commercials who talk of sports wagering generating more than $100 million dollars in five years are blowing smoke.  While the statement might be true in terms of raising that amount of money, the suggestion that it will produce anything meaningful for teachers is cattle byproduct.

Let’s assume the elementary and secondary education budget does not increase in the next five years.  Simple division indicates $38.7 million for education in the fifth year of sports wagering would add .00037% to that budget.  Four ten-thousandths of one percent, to round things up.

It’s even worse. These numbers only involve elementary and secondary education.  The proposed amendment says funds will go to higher education, too.

Missouri has SIXTY-SEVEN institutions that are accredited as degree-granting post-secondary education institutions. There are thirteen public universities.  There are 39 private universities (which are not excluded. The language of the amendment says only “higher education.”), and thirteen community colleges.  There also are some schools from other states that offer programs or degrees in Missouri.  The amendment contains no language limiting the funding to public post-secondary schools, not does it address in any way those out-of=state institutions with degree programs here.

We haven’t come up with how many faculty, staff, and administrative employees those higher education institutions would add to the pie.

But the school won’t get all of that money to begin with, assuming there is money from casino taxes.

Money for education will not be used for education until amounts are taken out for:

—Regulation.   The Missouri Gaming Commission can have some of that money if the various licensing fees casinos will pay do not fully pay the costs of regulation, and

—“the greater of 10% of such annual tax revenues or $5,000,000 to the Compulsive Gamblers Fund.”

Those paltry raises we’ve calculated for our elementary and secondary school folks might wind up being measured in pennies, or pocket change.

If, after looking at these numbers, that you still believe the industry commercials saying sports wagering will make any significant difference in the Missouri teacher salaries, I will sell you the Gateway Arch. The attractive teachers in the commercials who talk of sports wagering generating more than $100 million dollars in five years are blowing smoke.  While the statement might be true in terms of raising that amount of money, the suggestion that it will produce anything meaningful for teachers is cattle byproduct.

Let’s assume the elementary and secondary education budget does not increase in the next five years.  Simple division indicates $38.7 million for education in the fifth year of sports wagering would add .00037% to that budget.  Four ten-thousandths of one percent, to round things up.

And that doesn’t even calculate how much MORE education would get if sports wagering would be taxed at the same rate as other forms of Missouri gambling, 21%.  But Amendment 2 sets a rate at less than half of that and then has provisions that can significantly lower taxable revenue or even make it a deficit, meaning there will be some months when the casinos put NO money into the education fund.

The amendment also allows casinos to carry over the loss to the next month’s calculations, lowering tax revenue for that month too—or increasing the possibility that a casino can calculate another zero-revenue/zero tax month.

In the 2023 legislative session, a Senate bill proposed boosting the minimum teacher’s salary from $25,000 to $38,000 and increasing the salary for a teacher with a master’s degree and at least ten years of experience from $33,000 to $46,000.  The bill never came to a vote because of internal dissension within the Senate, thanks to the Freedom Caucus.

The National Education Association  April 24, 2023 released a report showing Missouri ranks 50^th in starting teacher pay with an average of $34,502 with only 43 districts paying started new teachers $40,000 or more. The report calculated a minimum living wage was $46,944.

A World Population Review study of 2024 salaries lists Missouri as one of seven states starting teachers at less than  $50,000 with only Montana paying less.  The overall Missouri average teacher salary in this study is $53,999, ranking Missouri 46^th ahead of Mississippi, South Dakota, Florida, and West Virginia.

Yeah, sports wagering will solve a lot of problems with our teacher salaries and other education system problems.. Suuuure it will.

Don’t bet on sports wagering because it will do wonderful things for our schools. It won’t.  Amendment 2 just makes the drop in the bucket even smaller, thanks to the sweetheart tax rate and the deductions that now will allow a reduction of taxable revenue.

We aren’t sure why any dubious proposition that appears on our ballots thinks it can succeed by telling you it will do great things for education. They don’t. And this one surely won’t.

Governor Joe Teasdale once told me, “I’ll never lie to you but there will be times when I won’t tell you the truth.”   I interpreted the second half of that sentence to contradict the first.  But that’s the kind of disinformation campaign being waged by the casino industry and its bedmates, our major league sports teams.

But what do you expect from an industry that is built on the concept that you will be a loser more often than you will be a winner?

Give your local education leaders these numbers and see how many of your teachers would make commercials endorsing this proposal.

Amendment 2 will be a loser for our schools.  You can bet on it.