Category Archives: gambling

Sports: Tigers Get Expected Win; Chiefs Off, Stunning NASCAR Announcement 

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(MIZ)—-Mizzou whomped Massachusetts last weekend. It would be news if they hadn’t, so let’s look ahead to a real-world game against Auburn next Saturday.

Auburn is 2-4 with a 31-13 loss to Georgia before their bye week. They come into the game against Missouri with three single-score losses to Cal, Arkansas and Oklahoma.

It’s Tigers against Tigers on Saturday,  Aubie against Truman in the mascot matchup. Missouri has won seven straight games at Faurot Field.

Missouri started rehabilitating itself against Massachusetts and gaining back two of the 12 slots it lost because of the Texas A&M debacle and heads into the game this weekend 19th and 16th in the polls.

Auburn head coach Hugh Freeze says he “couldn’t be more pleased” with the hard work of his defensive staff. But the Auburn Tigers have given up increasing numbers of points in four straight games with scores of 21-14, 24-14, 27-24, and 31-13.

Freeze says he and Missouri Coach Eli Drinkwitz are “made of a similar mindset of what coaching should be about.” Both were were assistance under Gus Malzahn during Malzahn’s eight-season stretch as head coach at Auburn. He says Missouri has “veteran guys that have proven to be some of the best in this lea whether they’re going against the top-tiered corners and safeties or not…It’s going to be a great test for us.”  Freeze says Auburn has to keep Missouri from making “explosive plays..” noting the matchup of Missouri’s receivers “is not one that you get overjoyed about” when you have a young secondary.

It’s Homecoming in Columbia, where the Tigers are undefeated. But they are 1-3 against Auburn, including a loss in the 2013 SEC championship game. The last time the two teams met, Auburn and Freeze beat Drinkwitz and Missouri 17-14 in overtime. Missouri has not beaten Auburn since 1973.

Missouri has been quiet about the apparent shoulder injury that forced Luther Burden III out of the game Saturday. Drinkwitz has said he will wait until the SEC injury report tomorrow to have more information.

(TIGER BASETBALL)—The media has pretty low expectations for Missouri basketball this season.  The conference basketball writers poll slots the Tigers men at 13th in the SEC this year. Missouri has been shut out in the pre-season list of the top three all-conference player list.

Statistician Kem Pomeroy’s KenPom rankings also puts Missouri 13th in the SEC and 53rd in the nation despite the Tigers having a top-13 transfer class and a top-five recruiting class.

Missouri will start trying to prove the raters wrong on November 4th when they open at Memphis.

The sports writers don’t expect much more from the Missouri women. They are picked to finish 15th in the SEC, with only Arkansas getting less respect in the pre-season outlook.  Tiger women were 2-14 in the conference last year which is two more wins than the men’s team got. The lady Tigers have no players on the first or second pre-season all-conference teams.

Tiger women tip off the season against Vermont, in Burlington.  They start the season with two true freshmen and four new transfers. (ZOU)

(CHIEFS)—Rashee Rice has had surgery on his injured knee. The good news is that it’s not a torn ACL.  The bad news, according to coach Andy Reid, is that it’s the posterolateral corner that was hurt.  “It’s probably the same result you’d get time-wise ,” says Reid. “It takes a while for that to come back.

Latest word on wide receiver Hollywood Brown: Don’t look for him this year. He’ll remain on the Il with his shoulder injury until the end of 2024.

And Isiah Pacheco: He has no timeline as he recovers from a broken fibula.

(BASEBALL)—The Royals finished off a gratifying season with a loss in the second round of the American League playoffs. The Cardinals packed it in after the regular 162 games.

Now will come weeks of speculation about trades, losses, desertions, free agent movements, and what the team should do and what trades it should make and so on and so forth.

When the teams DO something, it will appear in this column.

(SPORTS WAGERING)—Missourians will vote next month on whether to make betting on sports legal in this state.  Regular readers of bobpriddy.net know that your observer of the sports scene doesn’t mind people voting on the issue but they realize he considers the casino proposal disingenuous at best and filled with lies at the worst.

Do what you want, but don’t vote for sports wagering with the idea that you’ll be doing anything noble for education—or for anybody else but the casinos and the teams.  And watch for whether any of the teams expecting taxpayers to build them billion-dollar stadia or making millions of dollars in improvements on existing playing fields indicate they’ll spend any of the betting profits on those projects, thus lessening the investments they expect Missourians far from those playing fields to pay for.

So much for the stick and ball stuff.  Motorsports is in some turmoil as this article goes to press this week.

(NASCAR)—Is he in or is he out?  The answer for Alex Bowman is “out.” How can a car pass a technical inspection before a race and then lose so much weight during the race that it is ruled out of the playoffs after apparently making it to the semi-final round of eight?

It’s because Bowman’s car DID lose weight during the race.  Bowman was running 18th at the end of the race and would have been among the eight remaining drivers for the next three races before a final four drivers are decided.  But the disqualification of his car cost him 28 standing points and dropped him from sixth to ninth in the standings. Some of the points had been given him as the winner of the second stage of the race.  His demotion to last place, officially, means the stage winner was A. J. Almendinger, who is 46th in overall points.

A dash cam video from a competitor’s car saw Bowman’s car hitting a curb on the infield section of the Charlotte Roval, and a piece of the car’s underbelly flew off.  The piece appeared to be a rub block, a piece of hard rubber on the underside of the car that keeps the underbelly from hitting the pavement when the car becomes briefly airborne.

After reviewing events of the race, Hendrick Motorsports announced yesterday that it would not appeal the ruling.

Bowman’s disqualification puts two-time Cup champion Joey Logano back in the playoffs by four points.  Dropping out besides Bowman are Austin Cindric, Ty Gibbs, and Chase Briscoe.

Kyle Larson’s sixth victory of the year puts him back in the points lead by twenty points over Christopher Bell. They are trailed by Tyler Reddick, whose car was damaged in an early race crash that left him 26th in the late stages and below the cut line. Reddick ran a relentless final stage of the race and finished high enough to make the round of eight by three points over Logano. The Bowman disqualification  and Reddick’s run left Reddick third in the points standings heading to Vegas. He is trailed by William Byron, defending champion Ryan Blaney, Denny Hamlin, Chase Elliott, and Logano.  Elliott won the championship in 2020. Logano was the series champion in 2018 and 2022. Larson got the Cup in 2021. Hamlin has made the final four four times without winning a championship and is spoken of as a latter-day Mark Martin who finished second in the standings five times but never won the big trophy.

The next round of races that will see the field cut from eight to four begins next Sunday at Las Vegas.

(INDYCAR)—The season is over but preparations for 2025 put eleven drivers back at the Indianapolis Motor Speedway for more testing of the hybrid powerplant the teams used for the second half of the season. Each team in IndyCar was represented by one of its drivers.

Series champion Alex Palou had the hot lap at 224.342 mph, slightly faster than defending Indianapolis 500 winner Josef Newgarden’s 223.973.

IndyCar returns March 2nd at St. Petersburg, Florida, a street race.

 

 

“Winning for Education” Makes Losers of Teachers, Veterans

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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 50th 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 46th 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.

Sports: 7-Come-11 for Mizzou; Chiefs Escape Again; Royals in Danger; Cardinals Fans Send Message; and other stuff. 

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By Bob Priddy, Missourinet Contributing Editor

(For the few who follow these sports musings, my computer seems to have become confused about posting sports entries.  So before the weeks is out, and for the historical record, this post is finally being posted, albeit several hours late).

(WANNA BET?)—-Before we dive into our weekly sports talk today, we want to call your attention to the first of a series of posts on your editor’s blog about the upcoming statewide vote on Sports Wagering.  If you go to bobpriddy.net and look for the entry for September 16, you will read about why sports betting might be fun for you but it will not be what the casino industry and our pro sports teams are telling you in their commercials.  We take no position on the issue itself but our pro sports teams have hitched their wagons to the casino industry and the casino industry is not shooting straight with Missouri voters.  In later posts, we’ll tell you why Amendment Two is not only NOT good for our schools, it’s terrible for our veterans and even for the host cities of our casinos.

Now, on with our regular show.

(MIZZ)—Missouri’s attempt to avoid a defeat from traditional SEC doormat Vanderbilt cost it some early-season esteem.  The Tigers dropped from 7th to 11th in the AP poll after slipping past the Commodores 30-27 in an overtime game more notable for what didn’t happen than what did.

Missouri won the statistical battle with 442 yards of offense to Vanderbilt’s 324, but erratic field goal kicking and the inability to cross the goal line once they reached the red zone left a lot of fans frustrated.  While the 442 yards might seem impressive, the 188 yards gained that did result in any scores is a telling statistic.

Missouri’s offense never seemed to find a rhythm while Vanderbilt’s quarterback Diego Pavia harassed the defense, beginning with a 60-yard TD pass that put Missouri into a 7-0 hole early. When Missouri was able to go up 20-13 in the third quarter, Pavia led Vanderbilt on an 80-yard touchdown drive to tie.

The fourth quarter provided a touchdown apiece but neither team could find the traction to take control.

Both teams scored touchdowns in the first overtime. In the second overtime, Missouri field goal kicker Blake Craig, who had an uneven day, got a field goal and when Vanderbilt stalled, its kicker, who had a slightly less uneven day, made his day, and his teams day, even worse by hooking the ball to the left.

Coach Drinkwitz, his staff, and his players have two weeks to figure out why the coffee hasn’t perked in the last two games.  They’ll play their first road game against Texas A&M on October 5. (ZOU)

(CONNOR WHO?)—Remember Connor Bazelack, who bolted from Missouri to become a high-expectation quarterback at Indiana?  He fled there for Bowling Green last year and decided to stay this year.  Last Saturday, Bowling Green played Missouri’s next opponent, Texas A&M and lost 26-20. Bazelak gave his team a chance to take a late lead when he threw a 65-yard touchdown pass but A&M recovered an onside kick with 38-seconds left to kill the Falcons’ chances.

Bowling Green is 1-2 with losses to then-eighth ranked Penn State, and then-25th ranked A&M by a total of 13 points.

Bazelak had two seasons at Missouri before one year at Indiana, where he set a school record with 66 pass attempts in one game. He threw for 13 touchdowns and 10 interceptions before heading to Bowling Green for 2023. He led the Falcons to the Quick Lane Bowl against Minnesota. His team led 10-9 at the half but lost 3024. Bazelak passed for one touchdown and ran for another. Afterward, he said he would stay at Bowling Green in hopes of winning a MAC championship.

(LOOKING AHEAD)—We are only six weeks away from the first Missouri Tiger basketball game.  November 4, against Memphis, in Memphis.  Missouri will have a chance to win its first SEC game since 2022 when it plays Auburn on January 4.  Missouri has a 20-game SEC losing streak going, including a tournament loss in 2023, and all 19 games (including the tournament) last year.

On to pro sports—-

(CHIEFS)—The Kansas City Chiefs played just well enough to win against the Atlanta Falcons although Falcons fans think the refs were the 12th player in red Sunday night.
The Chiefs survived 22-17, thanks to two stout late-game efforts by the defense, one of which appeared to have some officiating help (at least, to hear Atlanta fans and players speak).

Falcons QB Kirk Cousins, with 4:12 left in the game, had receiver Kyle Pitts in the Chiefs’ end zone, with smaller Chiefs safety Bryan Cook covering him. Cook appeared to be face-guarding Pitts, not following the flight of the ball, and appeared to hit Pitts early.  After the game, referee Tra Blank told the Atlanta Constitution why no red flag was thrown—because the officials in the moment and from their positions “did not feel that there was a foul committed.”  Pass interference calls are not reviewable, so officials could not check other views in the video system.

After the game, Atlanta coach Raheem Morris refused to comment, perhaps fearing a fine frmthe NFL for criticizing the referees: “I like my money. I’m smart enough to be aware not to dunk on the officials. They made the call, or didn’t make the call, it is what it is.”  He also noted the Falcons had another chance to win it, on the final play but failed.

The Chiefs have gone fourteen games without scoring thirty points. They are 9-5 in those games.

Travis Kelce against was not much of a factor, with four catches for 30 yards. After the game, Patrick Mahomes told Sports Illustrated  after the game that a lot of plays are being called for Kelse but “it’s like two or three (defenders) are going to him…I’m going to do my best to keep feeding him the ball whenever he’s there, whenever he’s open.” Mahomes thinks things will open up for Kelce as Rashee Rice and speedster Xavier Worthy, joined by a robust run game, get more involved.

(CARDINALS)—Only three questions remain for the Cardinals: whether they will finish at .500 or a little bit better, who won’t be back next year, and whether Ollie Marmol one of those who won’t be.

Last Friday’s loss to the Cleveland Guardians put the final nail in the playoff hopes coffin.  This season is only the third time this Century the Cardinals haven’t had any postseason opportunities.

The ‘Birds started the week 79-77. If they play .500 ball in their last two series, they’ll finish above break even.

Cardinal fans have sent a message that they’re not attracted to mediocrity or worse for a second straight year.  The end of the last homestand of the year left total attendance for 2024 at 2,869,783, the first time it’s been less than three-million since the latest Busch Stadium opened in 2006.

(ROYALS)—The Kansas City Royals are in danger of playing themselves out of the playoffs after a season that has brought a lot of hope and expectation from the fans.  But a disastrous week that has resulted in seven straight losses six to the Tigers and the Giants, have them on the brink of failure to make the playoffs for the first time since their World Series championship year of 2015.  They started the week at 82-74, tied with Detroit for the second wild card spot.  Minnesota is only one game back with six games left.

Sports Illustrated reports the Royals are at the bottom of the statistics in home runs, slugging percentage ad OPS and they have missed repeated chances to get a runner home from second base.

They have six games this week against the Washington Nationals (69-87) and the Atlanta Braves (85-71 and hoping to make the NL playoffs), all on the road.

Minnesota dropped out of a possible three-way tie for a playoff spot by losing a doubleheader to Boston Sunday.  If Kansas City and Detroit finish with the same records next weekend, Kansas City gets in because it has a winning record against Detroit this year.

Motoring on:

(NASCAR)—The field of playoff drivers eligible for the NASCAR Cup this year was winnowed from sixteen to twelve Saturday night at Bristol won by Kyle Larson in the most dominating performance in track history.  He took the lead on lap 35 and led 462 of the remaining 465 laps, giving up the lead only during pit stops. It’s his fifth win of the year, the most of any driver.

The race eliminated Ty Gibbs, who finished 15th; Martin Truex Jr., who was 24th; Brad Keselowski, finishing 26th; and Harrison Burton, who was 35th.  Larson leads the points for the remaining twelve drivers: Christopher Bell, Tyler Reddick, Willliam Byron, defending champion Ryan Blaney, Denny Hamlin, Chase Elliott, Joey Logano, Austin Cindric, Daniel Suarez, Alex Bowman, and Chase Briscoe.

Both Gibbs and Truex, who are teammates at Joe Gibbs Racing, were fast enough to contend for a slot in the second round. But they were TOO fast at a couple of critical points.  Truex was .09 mph too fast leaving his pit stall and Gibbs was too fast coming into the pits. The penalties put both at the back of the pack.  Keselowski, who owns part of the Roush Fenway Keselowski racing team never found the speed he needed, starting 23rd but never running in the top tier and finishing three laps off the pace.  Burton, who entered the playoffs 34th in regular season points but eligible because he won a race, was 78 laps behind but still running at the end, when he finished 35th in the 37-car field.

The first race in the next round will be Sunday at the Kansas Speedway. The playoff field will be narrowed to eight after the next three races.

(INDYCAR)—IndyCar has established its charter system, seen as an underpinning of the future stability of the series.  Ten teams have accepted charters for 25 cars that will be guaranteed starting positions in all races in the series except the Indianapolis 500.  Penske Entertainment President Mark Miles calls the system “an aligned and optimistic vision” that “provides greater value for our ownership and the entries they field.”

The charter system guarantees 25 cars will compete for 22 positions in the series Leaders Circle program, a system that provides more than one-million dollars per car, based on a points schedule, to qualifying teams.  A team also has to make the field in the Indianapolis 500 to be eligible for the funds.

Several teams will have three regular-season entrants: Andretti Global, Arrow McLaren, Chip Ganassi Racing, Rahal Letterman Lanigan, and Team Penske. With two are A. J. Foyt Enterprises, Dale Coyne, Ed Carpenter,, Juncos Hollinger, and Meyer Shank Racing.

The first race for the new system will be March 2 on the streets of St. Petersburg, Florida.

(FORMULA 1)—McLaren’s Lando Norris led from the start to a 30-second lead at the finish to win the Singapore Grant Prix and take another bite out of the big points lead Max Verstappen built up in the first half of the Formula 1 season.  But F1 numbers-crunchers say that there aren’t enough races for Norris to overtake Verstappen even if he wins all seven remaining races and Norris finishes second in all of them, a highly-unlikely event.

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The Mugging of Missouri—Preview (and a correction**)

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The Missouri Gaming Commission has released its report for Fiscal Year 2023-2024. Your careful observer will be spending a few days updating his statistical tables while at the same time researching material for a speech at the Missouri River Regional Library on October 8th that will celebrate the 250th anniversary of the document that created this nation (no, it wasn’t the Declaration of Independence but I will be referring to two words in the Declaration as well as some words spoken in Washington four score and seven years later).

But when we return to the topic, we will show you why Amendment 2 not only represents a mugging of our public education system, but how it also deepens the decades of the casino industry’s mugging of our veterans nursing home program and their own host cities.

***We have corrected a paragraph in our previous post on Amendment 2 in which we addressed Highway Patrol security at casinos and said the casinos do not reimburse the gaming commission for those expenses.  We have corrected that paragraph to read:

The Highway Patrol provides security officers at our casinos. In the original version of this post, we reported the casinos do not reimburse the state for the costs of that security. We were incorrect. The annual report for FY2023-24, which became available to us after the original publication of this review, shows the casinos reimbursed the gaming commission $15.4 million for enforcement, a category that not only includes watching out for unlawful activity on the gaming floor but also includes investigations of those seeking various licenses connected to casino gambling.

We will continue to review our posts on this subject. It is not our intent to mislead our readers as we cast a critical eye at the claims of the industry and its allied professional sports teams.

Feel free to circulate these observations to friends, education groups, local newspapers, veterans groups, and your state legislators and/or candidates.  And don’t be afraid to react in the box at the end of our entries. We enjoy hearing from our participants in these public dialogues.

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Winning for Education is a Loser for Education—(updated to include corrected information regarding enforcement of gaming laws)

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—and for everybody but our casinos and our pro sports teams.

After watching an wholesome young woman, who describes herself in a commercial as a mother and a former teacher, tell me that approval of Amendment 2 in November (Sports Wagering) will mean millions of dollars for our public schools, I stopped by the State Auditor’s office to get some information that would tell me if the commercial is true.

I wanted the truth because my experience is that the casino industry and the sports teams pushing to legalize sports wagering have not been shooting straight for years with the legislature and now they are not shooting straight with us, the voters.

When a court ruling recently allowed the amendment to be on the November ballot, spokesman Jack Cardetti with Winning for Education, the misleadingly named organization campaigning for voter approval, proclaimed the decision a “big victory” that will “provide tens of millions in permanent, dedicated funding each year for our public schools.”  And he sounded the long-spoken mantra of the movement that approval would end Missourians going to other states for sports betting “which deprives our Missouri public schools of much-needed funding. A vote for Amendment 2 will bring those dollars back to Missouri classrooms.”

The fiscal note, as the document is called, tells a far different story about Amendment 2, the way it is written and the situations it creates. And it suggests the claim that approval would provide “tens of millions in permanent dedicated funding” for education is much less than fully true.

Your faithful observer has opposed the sports wagering bills in the legislature for several years, not because he opposes casinos (that issue was settled in 1992) or sports wagering. I have no use for them, but I have friends who lose as much money in an evening at a casino as I will spend treating Nancy to dinner and a movie or something like that. I leave the moral judgments on these issues to others. I am opposed, however, to casino and sports teams masquerading their multi-million dollar money-grabs as great benefits to the state, particularly to education which the fiscal note states clearly is not the case.

Those two industries will write as many checks as they need to, to sell the idea that sports wagering will make the state financially better off.   Far from it, as I hope you will learn today as we review the fiscal note for Amendment 2.

Let us start with something not in the fiscal note. Casinos will pay a 10% tax on revenues from sports wagering if Amendment 2 passes. Revenues from the two forms of gambling we have now—slots and table games—are taxed at 21%. The amendment, therefore, proposes an AVERAGE tax rate for all forms of gambling of 15.5%.

That’s right. Vote for Amendment 2 and you are voting to give the $1.9 Billion casino industry that plans to grow by hundreds of millions more an overall 25% tax cut. We will return to this issue later.

The Auditor, in assembling the fiscal note, asked a long list of state agencies to determine if the proposal has a monetary impact on them, positive or negative. Most say it won’t affect them but the Department of Revenue, which collects taxes from you, me, sports teams, and casinos, concludes after a lengthy division-by-division assessment:

“The Department of Revenue assumes this IP will not generate any revenue to the state.”

(“IP” refers to the initiative petition.) Then, the fiscal note details why it won’t.

Although the teams and the casinos will claim great financial benefits for the state, the department points out that Amendment 2 does not give the Revenue Department any power to COLLECT any taxes or fees. While the Gaming Commission is authorized to issue licenses for mobile betting companies, it is not authorized to COLLECT any of those fees. “It appears these retail license fees will not generate any revenue to the state, the Commission, or to the Compulsive Gaming Prevention Fund,” says the assessment of licensing fees, a phrasing used two other times on two other issues.

While the proposed amendment sets a ten percent tax on sports wagering revenues, says the fiscal note, it does not require casinos to pay it. “Without the identification of an agency to collect the tax, no tax can be collected,” says the study.

The Highway Patrol provides security officers at our casinos. In the original version of this post, we reported the casinos do not reimburse the state for the costs of that security. We were incorrect. The annual report for FY2023-24, which became available to us after the original publication of this review, shows the casinos reimbursed the gaming commission $15.4 million for enforcement, a category that not only includes watching out for unlawful activity on the gaming floor but also includes investigations of those seeking various licenses connected to casino gambling.

The department estimates initial costs of additional staff will be more than $1.6 million with ongoing costs of more than $1.2 million, with those moneys paid out of the state gaming fund, again, lowering the amount available to education. However, as noted by the Revenue Department, there is no power for the department to collect those funds from the casinos.

The Missouri Gaming Commission, which told me earlier this year was short 23 people already and is stretched thin just keeping up with contemporary responsibilities, estimates it will need to hire fifteen new people just to regulate sports wagering. The total cost of their salaries, benefits, and expenses is put at almost four million dollars a year and increasing in future years with salary and benefits increases.

Now, let’s do some simple math. The gaming commission estimates it will collect $11.75 million in licensing fees in the first year. Licenses last five years so there would be little or no revenue for the next three years until renewals would produce a new revenue stream.  After the commission takes out its costs, the amendment requires ten percent of the revenues or five-million dollars a year go into the Compulsive Gambling Prevention Fund.

Here’s some more simple math:  The Gaming Commission estimates casino taxable revenues, before any deductions, could total $1,044,684,610.20 in the first five years. That’s Billion.

At ten percent, the state could receive $104,468,461.02 during that time.  If that amount were taxed at the same rate Missouri taxes slot machine and table game revenues (21%), the state would realize $219,383,768.14 before casino deductions allowed in the amendment.

So Cardetti is correct.  Education will get tens of millions of dollars—-$104.5 million in the first five years.   But our schools would receive $219.3 million if sports wagering was taxed at the same rate charged slot machines and table games. To bring this down to a more easily-grasped situation:  If someone were to offer to give you $10,500 if you gave them $21,900, would you take that deal? Supporters of Amendment 2 hope you will.

There is no reason Missourians should accept a ten percent tax on sports wagering. Fourteen states have gaming taxes of more than the proposed ten percent including neighboring states of  Illinois (20-40), Arkansas (13-20), and Nebraska (20). Three states tax sports wagering at 50-51% (Delaware, New Hampshire, and Rhode Island). Pickswise.com says the national average is 19%.

While the commission calculates the $104.5 million in taxes that the state might get in the next five years “may be sufficient to cover the Missouri Gaming commission costs to license and regulate sports wagering,” there is a major caveat.  The calculations “are uncertain based on the inclusion of a deduction for ‘any federal tax’ with no corresponding definition or explanation as to what that would include.”  Such a deduction, and others allowed in the proposal, can significantly cut revenues to the state.

Long story short: “There is concern that the licensing fees will not cover the expenses of the Missouri Gaming Commission…during the years in which licensing fees and renewals are not collected (i.e. years two, three, and four,” says the Revenue Department. On top of that is the failure of the proposal to state where those fees would be deposited.  Also not clear is how that money will be disbursed if and when it is collected and deposited.

The Commission now has no limits on fines for sports wagering operators for violations of the laws and rules.  The proposed amendment limits those penalties. Bad idea, says the commission.  Casinos, of course, think it’s just swell.

And getting back to that $104.5 million for education. The proposition says tax revenue will go to elementary and secondary education only after the Commission takes out its “reasonable expenses” plus another five-million dollars for the gambler’s fund. In years when little or no renewal or licensing fees are collected, the MGC will have to dip into the tax funds that would otherwise go to the schools to pay its bills and to put that five-million dollars aside for the problem gamblers fund—which the gaming commission would oversee, although it thinks the Department of Mental Health would do a better job. So, in years two, three, and four, the tens of millions for education will be reduced by some, or several, tens.

Now, here is the capper.

All of these calculations of state revenues are completely uncertain—

—because this proposition, for the first time, allows casinos to deduct a lot of money from the revenues that are taxed.  So in addition to a sports wagering tax rate that is less than half the rate on other forms of gambling and creates a 25% cut in the overall gambling tax rate, the casinos want voters to approve a system that lessens the amount that can be taxed and, in fact, will allow casinos to pay NO tax, perhaps for months at a time.

If you want to know what that could mean, says the Gaming Commission, look at Kansas.

In February 2023, Kansans wagered more than $194 million in sports bets. The state, however, received $1,134 in state tax revenue due to language permitting operators to deduct free play or promotional credits before assessing their state taxes.  Some operators had not paid any state taxes through the first quarter of 2023 due to the deductions they were permitted to claim.

February, folks.  That’s Super Bowl month when a lot of Missourians (according to the casino industry) went to Kansas to bet.  And the state of Kansas—with provisions similar to those the casinos want to enact in Missouri—was paid only $1,134 dollars in taxes on $194 million in bets.

It could happen here because the proposed amendment allows a casino whose accountants calculate losses for one month to carry over the loss to the next month’s calculations, leading the Commission to conclude, “The totality of the deductions…will result in sports wagering licensees showing negative adjusted gross revenues and therefore paying no sports wagering tax…The carryover provisions…would further impact the ability of the Commission to meet its reasonable expenses and further impact or eliminate contributions to the Compulsive Gambling Fund and education in the state of Missouri.”

Read that again—Provisions of this proposed amendment might NOT put millions into our education system at all.  Instead, they could “impact or eliminate” contributions to our schools.

So—the basic question for the people of Missouri is this: Who is being honest with you?  Is it the Department of Revenue and the Missouri Gaming Commission, or is it an industry that flourishes because its games are guaranteed to take all of your money sooner or later?

And the casinos want to keep it all. The records show that the gaming industry will not leave a penny behind in Missouri that the people and the state do not force it by law—not written by the gaming industry—to leave.

The proposition that the attractive mother and former school teacher wants you to think will be wonderful for our schools is a shell game without a pea.

And believe it or not, this is only part of the story.  There is more.  And it’s equally bad, if not worse—especially if you are a veteran and if your city has a casino in it.

We’ll get to that later.

If you want to read the entire fiscal note, ask the State Auditor’s office to send you fiscal note 24-160.

Some of you might be much more sophisticated mathematicians than I am.  Please let me know if there are unwarranted or even plain erroneous assumptions in any of the statistics quoted here. I would note, however, that they are based on the State Auditor’s fiscal note for Amendment 2. If necessary, corrections will be made in this entry and a future entry will ask readers to go back and note the corrections.

Sports:  Wanna bet?  Polling on Sports Wagering, moving KC Teams to Kansas.  And Other Sports Stuff

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By Bob Priddy, Missourinet Contributing Editor

(GAMBLING)—Sports wagering hasn’t been approved for the ballot yet, but Missourians appear narrowly willing to allow it if it’s on the November ballot.

A poll of more than 1800 Missourians earlier this month by Emerson College, The Hill, and Nextstar Media, shows 38.3% of prospective voters want it while 35.4% of prospective voters oppose it. That leaves more than 26% undecided.

Emerson College (in Massachusetts) Senior Polling Director Matt Taglia says, “I don’t think folks necessarily know what all it entails but a lot of them are, in principle, supportive of the idea.”

An organization supporting sports wagering—the misleadingly named Winning for Missouri Education (actually, approval of the proposal as submitted will make Missouri school losers) has submitted more than 300,000 petition signatures to put the issue on the November ballot. The Secretary of State’s office and county clerks throughout Missouri are verifying the signatures.

(CHIEFS/ROYALS; STAY OR GO?)—The same poll shows 46% of respondents think it is “very important” to keep the Kansas City Chiefs from being lured to Kansas. Another 17% say it is “somewhat important.” Twenty-two percent would not miss the Chiefs in Missouri.

Support for the Royals is a little softer. Thirty-eight percent say it’s “very important;” twenty percent say it’s “somewhat.”  Two dozen percent of the respondents say they would be bothered at all if the Royals move across the state line.

(CARDINALS)—The St. Louis Cardinals have finally staggered two games above .500 thanks to their weekend sweep  and the news got even better yesterday with the reactivation of catcher Wilson Contreras from the DL several says earlier than expected. He’s been out since May 7 because of a broken arm. He’s been on a minor league rehab assignment since June 18, going 3 for 21 at Memphis.

His activation has meant a trip back to Memphis for backup catcher Nick Raposo.

Before his injury, Contreras had a half dozen homers, a dozen RBIs and a .280 average through the team’s first 31 games. He will rejoin a team that is playing far better than it was before he was hurt.  The Redbirds are eleven games over .500 in his absence, the best record in the National League since May 12 at 24-13.

He returns while Nolan Arenado spent his second straight game on the bench. He came out of Saturday’s game with a sore left forearm. He’s gotten an injection for the pain.

Noot News:  Lars Nootbar is getting close to a rehab assignment. He’s been out since early may with a left oblique strain.

(ROYALS)—The Royals have cooled off in June but remain five games above break even. Their performance since winning eight straight and soaring to 15 games over .500 to going 8-18 since has some fans wonder if the team has turned the wrong corner as the season nears the halfway point.

Former Missouri Tiger Max Scherzer, making his first start of the year for the Texas Rangers, shut down the Royals Sunday, as the Royals were swept in a series for the first time this year.

The sagging performance has left KC nine games behind the Cleveland Guardians and worse, a game behind Boston in the wild card standings.

They got some offensive punch back yesterday with the reactivation of Michael Massey from the ten-day DL. Back problems have limited him to just 29 games this year. His back problems have been treated with recent injections to relieve the pain.

And now, some wheels:

(INDYCAR)—Nobody knows his way around Laguna Seca tese days better than Alex Palou.  In his last four races on the California road course, he has had finishes of  1-3=1=2, picking up his second win of the year and moving into the IndyCar points lead.

He finished about two seconds ahead of Colton Herta in what he called “a chaotic race” that relied on a tire strategy that was “a bit risky for the position we were in.”

Former Indianapolis 500 winner Alexander Rossi was fourth, giving his Juncos Hollinger Racing team its best finish ever in the series.

The win gives Palou a 25-point lead over Will Power. Scott Dixon is running third.

(NASCAR)—The track was damp and another rain storm was threatening and NASCAR decided to finish the weekend race at New Hampshire with cars using rain tires. Christopher Bell and other competitors had to sit out a two-hour rain and lightning delay before re-starting on a damp surface.  Although parts of the track were dry at the end, enough other segments remained damp that NASCAR decreed no car would switch to slicks.

Bell led almost half of the laps to become the fourth driver to have at least three wins this year.

 

The race was only the second one on series history to use the new kind of tires. NASCAR Senior VP for Competition, Elton Sawyer, praised the development of the tire. “We’d have been done with 82 laps to go and instead it gave us a chance to get back to green,” he said.

(NHRA)—We don’t usually comment on the folks who seek 300 mph in less than a quarter mile but John Force’s engine explosion and crash in Virginia during the weekend.  Force is 75 years old but still competing at the highest levels of National Hot Rod Association competition.

His engine blew up as his car crossed the finish line, crashed into the wall and came to rest in the middle of the track.  He was conscious when the safety crew got to him but was taken to a nearby hospital where he was admitted to the Intensive Care Unit. Daughter Brittany told reporters later, “My dad’s going to be all right…He’s one of the toughest people I know.”

(FORMULA 1)—The Spanish Grand Prix went to Max Verstappen with Lando Norris and Lewis Hamilton taking the other podium positions.

F1 has unveiled specifications for its 2026 cars:

It says the new cars will be “more agile” because of a weight reduction, will increase use of batteries and the use of sustainable fuels. Aerodynamics will become more active with moveable front and rear wing.  F1 will have six engine manufacturers—compared to three for NASCAR and two for IndyCar.

(Photo credits: Rick Gevers,  Bob Priddy, F1)

The Jontay Thing

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Just as Monday’s entry was being written came news of the tragedy of Jontay Porter, the Columbia kid, ex-MU Tiger, fringe NBA player who is the first person permanently banned from the NBA since Jack Molinas was banned 71 years ago for betting on games he played with the Fort Wayne (now Detroit) Pistons.

The Porter case is of special interest not only because of his Missouri roots but also because Missourians might be deciding whether sports betting should be legalized in our state—and what that might mean to the confidence we have in our big-time sports teams and their games.

Alex Kirschner, writing for Slate.com says Porter “did things worse than anything Pete Rose ever got up to.”

Jeff Zilgitt of USA TODAY was equally unforgiving when he wrote, “In all of Jontay Porter’s idiocy, he provided a service to other professional athletes who might consider placing bets on games in which they are direct participants or in which they have insider knowledge to provide to gamblers. It’s almost impossible to pull it off in a world of legal, regulated and monitored gambling. It’s even more impossible when you’re as blatant as the NBA says Porter was.”

Kirschner  notes that sports leagues “make a lot of money off of people betting on their games…It’s a cash grab, yes.  But from the leagues’ perspective, it’s also a payment in exchange for tolerating certain risks. Sports leagues profit from betting but they are also terrified of it.” 

 Porter, he says, committed two sins and flirted with a third.  He disclosed privileged information to bettors and manipulated in-game outcomes. In Porter’s case, he took himself out of a game early so he would not meet projected performance levels.  The third circumstance that terrifies leagues, says Kirschner is outright throwing of games. “The single easiest way to threaten a league’s multibillion-dollar business is for people to doubt that they’re watching a game left to chance…If that goes, everything could go.

Porter is only 24 years old. Kirschner says his career is in the dumpster because he has been involved in the biggest betting scandal involving a player since sports wagering was legalized in this country in 2018. “If the Black Sox were a 10 on the scandal scale,” he writes, “Porter probably is a 6 or 7.”

Zilgitt darkly predicts this will happen again. “Someone always thinks they can beat the system, and maybe someone can but not Jontay Porter and his simple attempt at trying to make extra money. It’s inevitable, just as it was inevitable it happened in the first place.” Porter, who has spent most of his pro career in the NBA’s minor league, was being paid $410,000 this year to play for the NBA’s Toronto Raptors. The league investigation says he made $22,000 on the bets he placed on the game from which he removed himself, claiming illness.

The “idiocy” that Ziglitt attributes to Porter is explained by Kirschner who writes that the kid used the gambling companies that partner with the pro leagues to place his bets—-and those bets are monitored by the leagues. “If Porter were collaborating with underground bettors and bookies, his activity would have gone undetected,” he wrote.

In Kirschner’s view, pro sports teams are just asking for this kind of problem.  Sports wagering companies are aggressively advertising their “services,” leading to greatly expanding participation in betting. He bluntly observes, “A bigger pool of bettors means a bigger pool of potential crooks. In a subtle but real way, the NBA courted the Porter scandal.”

Pro sports leagues fought against sports wagering until the U. S. Supreme Court legalized it nationwide in 2018.  Once it was legalized, the leagues had no choice but to get in bed with the betting industry.  Pessimists might be forgiven for wondering if they’ll stay on their separate sides of the bed.

And whose reputation is damaged by this scandal?  Not the gaming industry.  It’s sports and those who play them.  A player has been banished for life. Pro sports worries whether its fans think its product is genuine and honest.

Zilgitt quotes NBA Commissioner Adam Silver saying the Porter case “raises important questions about the sufficiency of the regulatory framework currently in place, including the types of bets offered on our games and players.” Zilgitt notes Silver has advocated federal regulation of sports wagering and suggests outlawing or limiting certain kinds of bets.

Not considered by either columnist is what role state regulatory agencies can play or should play in terms of disciplinary actions against casinos that handle such bets or wagering companies that process them. In this case, the hammer has fallen on the player, deservedly so, but those who took, paid, and processed his bets appear to be facing no penalties.

Missouri’s pro sports teams are gathering signatures to get a statewide vote on a constitutional amendment legalizing sports wagering.

The proposal mirrors bills introduced in this year’s legislative session that grievously disadvantage the state and the programs that rely on gambling income for their budgets.  The Missouri Gaming Commission has warned that the legislation pushed at the Capitol by gaming interests does not raise enough revenue for the commission to adequately regulate sports wagering. Nor does it do anything to punish the betting industry that produced the measley $22,000 that Porter won.

“Measley,” as in how little he gained compared to how much he has thrown away.

The Porter scandal is a tragedy for him and for sports in general.  How will Missouri voters see the issue now that one of our own has become a self-induced victim of a system we are being asked to approve?  He might be the first but nobody expects he will be the last.

If Missourians approve the proposition, will they also undermine trust in the games that they love?  How many Porters are needed before we wonder about every missed free throw, every error, every missed tackle, every overthrown pass, every wide shot on goal?

(If you want to read the full articles on which we’ve based two entries):

Jontay Porter NBA betting scheme is a lesson in stupidity (usatoday.com)

Athletes beware: Jontay Porter NBA betting scheme is a lesson in stupidity (msn.com)

The Stadium Thing

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Here’s a sand-in-the-underwear situation for you.

Owners of our big-time sports teams—the Royals, the Chiefs, the Blues and the Cardinals (and our two pro soccer teams)—want you and me to reach into our pockets to pay major parts of the costs of building new stadia or upgrading old ones for them.

The Royals and the Chiefs overlooked a critical issue as their effort to extend the Jackson County sports tax was trounced by voters recently. The Cardinals are overlooking the same issue with reports that they will be seeking state support for the updating of Busch Stadium III (although team president Bill DeWitt III says such a report is “premature.” :

None of them has mentioned how many millions of dollars they will make from sports wagering. None of them has given any indication that they could use that money instead of taxpayer funds for their new projects.

It is a failing that might not bode well for the teams and the casinos that want to put a sports wagering proposition on the ballot later this year, a proposal that hugely disadvantages the state and the programs that years ago the casinos promised could be funded with taxes and fees from legalized gambling.

Would it not make sense to ease voter worries about city and state subsidies for stadium construction and improvements if the teams committed to using the first few years of the giant profits they expect from sports betting for their stadium projects instead of expecting a tax handout from the citizens?  

 Why should the legislature give any team that will profit from sports betting any funds from state taxpayer pockets?  Why should the legislature lessen financial support for, say, mental health services, veterans homes, education, senior services programs, and nursing home support so sports teams that soon will be divvying up hundreds of millions of dollars a year from people thinking they can consistently beat game-day odds don’t have to use those funds?

Opponents of sports wagering might be able to make a lot of hay out of this oversight by the teams and the casinos.  It’s an election year. If you are a voter, you should ask your candidates if they favor taking money away from state programs to build or maintain playing fields while the team owners and the casinos rake hundreds of millions of dollars in lost consumer bets into their pockets instead of investing them in stadium projects in their home cities?

You should ask those questions.  And if your candidate says the sports teams should be allowed to pick your pocket with a tax while lining their pockets with gambling revenues, you should look for another square on the ballot to fill in.

These two issues are joined at the hip and voters, especially those in the home areas of our major league teams, should hold their legislators and their sports teams accountable.

 

How Our Major League Sports Teams Are Plotting A Massive Rip-off Of The State 

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By Bob Priddy, Missourinet Contributing Editor

Most of our patrons do not read the Tuesday entries that focus on sports. We ask that you carefully read this one, however, at least the first part.

(SPORTS WAGERING PETITION)—-Our six major league sports teams have crawled into bed with an industry whose sole characteristic is greed and the people of Missouri could become their abused children.

The teams, fed up that the legislature has failed to legalize sports betting, have launched a petition campaign highly favorable to the casino industry and detrimental to the public to put the issue on the ballot.

It’s a rip-off of major league proportions.  The Cardinals, Royals, Chiefs, Blues, and Missouri’s two major league soccer teams are collecting petition signatures to ask voters to let them and our thirteen casinos pocket millions of dollars with a sweetheart tax package that will take millions away from Missouri schools, veterans, and even the host cities of the casinos.

Hidden in the deal is a big tax cut for the casino industry that is made bigger with provisions that lower the amount of money to be taxed.

The petition campaign constitutes nothing less than a mugging of the state of Missouri.

Let’s begin with a simple question.  Would you knowingly bet eleven dollars, knowing that the most you ever could win would be TEN dollars?

That is what the teams and the casinos are going to do to Missourians.  The state is guaranteed to be a loser with the very first bet.  Here is how it will work if voters fall for this scheme:

Missouri’s casinos pay a twenty-one percent tax on revenues remaining after they have paid off winners of bets.  So much money is bet in Missouri that the casinos have approached revenues of two-billion dollars in each of the last two years and are on track to equal last year’s record or set a new revenue record for a third straight year.

Simple elementary school mathematics shows how the teams’ casino allies will grow immensely wealthy with this scam while the things that are supposed to be financed with the gambling tax are massively short-changed.

The proposed tax rate on sports betting is only ten percent, eleven percentage points below the rate charged for the last thirty years of casino gambling on table games and slot machines. Thus, the state would give up eleven of the present twenty-one percentage points to get ten

The American Gaming Association’s latest annual report says Missouri would be the twelfth state with a tax of ten percent or less.  Fourteen states have tax rates above ten percent or that top out above ten percent, including three states that charge fifty and fifty-one percent. Only five states on the AGA’s chart show rates of less than ten percent.

But there is something dark behind the petition’s demand that the rate be ten percent here.

Ten percent and twenty-one percent produce an average of 15.5 percent, an effective twenty-five percent tax cut for all Missouri casino gambling.

While the teams’ sophisticated advertising campaign will tell voters the proposal wll generate millions of dollars more for the state education fund and for their host cities, the truth is that it will produce less.

Financial analysts who advise the Missouri General Assembly forecast taxable revenes from casino gambing will jump from almost two billion dollars to $2.4 billion within four years.  A twenty-one percent tax of that amount would produce $504 million with ninety percent going into funding for elementary and secondary public schools. The other ten percent would be distributed to the thirteen cities that have casinos in them and to one county that shares revenues with the casino city.  An average tax of 15.5% would produce $372 million, again with the 90-10 split, $132 million less than if the twenty-one percent tax is maintained.

While $372 million dollars on the low end might seem to be an impressive sum, here is something else the casinos and the sports teams will never tell you in their promotions and advertising:

The Missouri Gaming Commission reports that casinos in the last fiscal year paid gambling taxes of $403.3 million dollars on revenues from slot machines and table games alone.

Approving sports wagering as proposed in the petition will take more than thirty million dollars away from the state, not add revenue.

Our metropolitan areas will feel the difference most acutely.  Host communities in the St. Louis metro area, which has four casinos, will lose $5.6 million in the first four years of sports wagering under the petition plan.  We wonder if Cardinals President Bill DeWitt III, who has been the spokesman for the teams during legislative committee hearings, has ever thought of what this plan will cost his main ticket-buying community.

Host communities in the Kansas City metro area, also with four casinos, will lose $3.65 million, something we bet the Chiefs and the Royals haven’t considered. .

Our figures are based on projections made by legislative fiscal analysts.

Legislative fiscal analysts forecast the ten percent tax will cost the thirteen host cities more than eleven million dollars, total, in the first four years of wagering, money they would receive if sports wagering were taxed at the same rate as slots and table games.  Amazingly, the association that represents those cities doesn’t seem to care. It has endorsed whatever the casinos have asked for from the legislature. One wonders if the city councils or the citizens of those communities has ever heard how much they have lost in the past thirty years because the two-dollar admission never having adjusted for inflation and how much they will lose if the petition passes.

By our calculations, using the Bureau of Labor Statistics annual inflation calculator, the state already has lost almost $1.1 Billion in admission fees because casinos are paying the same fee they paid when the first two of them opened thirty years ago this year.

In the most recent fiscal year, the state received $57.9 million in admission fees. Had the fees been adjusted annally for inflation, it would have received $113.5 million. But inflation works both ways.  The $57.9 million the state did receive had a purchasing power of only $29.5 millon because of the loss of purchasing power of the two 1993 dollars. Remember, half of the two-dollar admission fee goes to the host cities.  But their association doesn’t seem to care.

And it’s worse.

Buried within the petition are six deductions not allowed in today’s law that will reduce taxable income by several millions of dollars. The deductions encourage casino bookeepers to try to show their casino produced a monthly loss on paper.  If they can, the schools, home dock cities and other state entities listed as beneficiaries of this new form of gambling will receive zero revenues that month.

But it’s far worse than that.

If a casino can show that it had a paper loss for a month, the amount it claims as loss will carry over to the next month and be used to calculate that month’s profit or loss, again reducing the casino’s tax payments. Can anyone name any other business or industry in Missouri that is allowed to calculate their taxes this way?

Two states provide scary examples of the dangers of the carryovers for Missourians to consider.  In November, 2022, Louisiana casinos reported a statewide loss of $25.6 milllion because some of the casinos took bets made by a Texas furniture store owner that the Texas Rangers would win the World Series, which they did. In the same month, Maryland casinos reported a statewide loss of $33.6 million after they spent more than $60 million in promotional credits as part of the state’s launch of mobile betting.

But it’s far worse than that.

Let’s go back to the admission fee. Casinos also pay the state a two-dollar admission fee for each person who goes through the turnstiles to the gambling floors. If the gamblers stay longer than two hours, the casino pays another two dollars—a policy that began on the first day that casinos opened thirty years ago this year when they actually were boats and river cruises actually were possible.

A prediction was made at the East Coast Gaming Conference in 2019, a few months after sports betting was legalized by the U. S. Supreme Court, that within five to ten years, ninety percent of sports wagers would be placed online. Just two years later, gambling analyst Larry Henry reported on Casino.org that more than eighty percent of sports bets already were being placed online and New Jersey, the first state to legalize sports betting after the court ruling, 92 percent of sports wagers had been placed online in 2021.

If Missouri follows national trends, ninety percent of sports bets soon will be online and not made by people who go through the turnstiles of our casinos.  Under the petition, those online bets will produce zero revenue for programs and services whose budgets have suffered greatly because turnstile admissions have declined by about forty-seven percent in the last twelve years.

Who is suffering the most? The Veterans Commission Capital Trust Fund, which provides money for veterans nursing homes. Admission fee funding of care for our veterans has dropped by 63 percent in the last decade.  Nothing in the petition does anything to reverse that trend.

The Missouri Gaming Commission’s budget has declined by more than twenty percent in the last decade. It has twenty-three fewer employees than it had then. And it is facing a major increase in enforcement responsibility if the petition passes. The commission will collect some licensing fees but the petition also requires it to use some of its new money to pay for a problem gambler’s assistance fund.

Numerous studies have indicated gambling addiction will at least triple with the introduction of sports wagering and remote betting.  The money to be set aside for “compulsive gambing prevention” comes out of the commission’s pocket. It comes out of the taxes benefitting schools and home dock cities and fees going to the gaming commission. Nothing in the petition requires the casinos or the teams to contribute directly to a fund to counter the problems their new form of gambling will create.

And two more things before we go.

The casino industry has spent a lot of time and resources trying to convince your legislators and mine that sports wagering is a stand-alone issue that need special care and feeding.  It is not.  Their own bills just add “sports wagering” to the list of games of skill in our state laws.  In the now-seven years that sports wagering bills have been introduced, not one has said anything that defines sports wagering as differing from poker, blackjack, craps, or any other table game or slot machine.  A bet is a bet is a bet.  And if you bet long enough the casino will have all of your money whether you bet on the spin of a wheel, the fall of a card, the roll of a die, or the pull of a lever.

The committee backing the petition campaign says sports wagering will provide new good-paying jobs.

Will it generate enough new jobs to replace the 5,600 people laid off in the host cities during the last fifteen years?  Will it replace the $100 million-plus in payrolls lost each year by the host cities in that same period?

Everybody loses except the teams and the casinos in this petition campaign. People going into casinos know they’re playing on tables tilted against them. That’s fine.  But before Missourians support this blatant deception against our state by the casinos and our sports teams, they should look at how much they will lose regardless of whether they gamble.

The casinos have never dealt the top card on the deck to the legislature while trying to convince it to approve sports wagering.  Now they, with their sports team bedmates, are doing the same with the general public.

The legislature could fix all of this during this session. But don’t expect it to. There are 197 state representatives and senators in our General Assembly.  The Associated Press has reported that casinos, sports teams, online sports betting companies, and video gaming terminal inerests have hired about eighty lobbyists to pressure the people we presume represent us into representing those interests instead. That’s one lobbyist for ever 2.5 members of our legislature. It is hard to grow a backbone and do what is right on this issue when  you are surrounded by lobbyists backed by interests with bottomless checking accounts and a willingness to support re-election bids or to support opponents for those with the courage to reject the ongoing mugging of Missouri.

The only recourse Missourians will have if this petition gets enough signatures to be on the ballot later this year is to vote it down.  If they fail to do so, their state will be a big loser.

(All of the statistics used in this entry are drawn from the annual reports of the Missouri Gaming Commission, the American Gaming Association, legislative staff fiscal notes for pro-casino legislation, and the U. S. Bureau of Labor Statistics. We never have seen the homework the casinos to justify the claims they have made in the past or the present).

Now, we take a look at the history behind a cold football game, a cold-shooting basketball team, and the latest from baseball’s hot stove league)

(CHIEFS)—The regular season wasn’t pretty for the Kansas City Chiefs but they looked almost as solid as the frozen field at Arrowhead Stadium Saturday night with their dominating 26-7 wild card playoff win over the Miami Dolphins, a team that hasn’t won in forever  in cold weather.

The game goes into the record books as the fourth-coldest game in NFL history.  Here’s where it fits in:

December 31, 1967  Lambeau Field, Green Bay comes from behind to beat Dallas 21-17 on the famous Bart Starr quarterback sneak behind center Ken Bowman and Right Guard Jerry Kramer who pushed Defensive Tackle Jethro Pugh aside just enough for Starr to cross the line.  Temperatur at the start of the game: -13. Wind Chill  -48. The game was dubbed “The Ice Bowl.”  Green Bay went on to defeat the Oakland Raiders 33-10 in Super Bowl II.

January 10, 1982  “The Freezer Bowl”  Riverfront Stadium, Cincinnati. Coach Forrest Gregg, who played in “The Ice Bowl” is now the coach of the Bengals, who beat the San Diego Chargers 27-7. San Diego’s only touchdown was scored by former Missouri Tiger Kellen Winslow.  Game time temperature: -9  Wind Chill -59.  Some of the players in this game, as in the Green Bay-Dallas game reported health problems for the rest of their lives because of the playing conditions.

January 10, 2016  TCF Bank Stadium, Minneapolis. Seattle beats the Vikings 10-9 when Bill Walsh’s field goal attempt goes wide left with 22 seconds on the clock. Minus-6 with a windchilll of minus-25.

January 13, 2024 Arrowhead Stadium,  Chiefs beat the Miami Dolphins in the southernmost NFL cold game on record, 26-7. Harrison Butker’s four field goals and two extra points outscore the Dolphins, who lost their eighth straight game played in below-freezing temperatures. Quarterback Tua Tagovailoa dropped to 0-5 in games played below 45 degrees.  Game time temperature: -4  Windchill -20. At the end it was -9 and -28. The extreme cold sent 69 people to aid tents run by the city fire department. About half were for hypothermia symptoms and fifteen people were taken to hospitals where seven were suffering from hypothermia, three for frostbite and five for various other reasons.

      The game broke the record for the coldest game at Arrowhead Stadium.  The Chiefs beat the Broncos 48-17 on December 18, 1993. Footall Reference reports the temperature at the start of the game was 0.5 degrees.

December 10, 1972  Metropolitan Stadium, Minneapolis Green Bay 23, Vikings 7. Temperature at game start 0. Wind Chill -18. Green Bay’s running backs, John Brockington and MacArthur Lane combine for more than 200 yards rushing, 99 by Lane, who had come over from the St. Louis Cardinals that year. Later, Lane was with the Kansas City Chiefs and in his last year in his career, 1978, rushed for 144 yards against  the Bills. He was 36 years and 199 days old and remains the oldest player to rush for more than 100 yards in an NFL game.

January 20, 2008  Lambeau Field  New York Giants 23 Packers 20 on a 47-yard field goal 12:25 into overtime by Lawrence Tynes. Temperature -4, Wind Chill -24.

December 26, 1993  Lambeau Field  Packers vs. the now-LA Raiders. Packers win 28-0. Game time temperature 0, Wind Chill -22.

January 15, 1994  Ralph Wilson Stadium, Buffalo, Coldest game played at Orchard Park in Buffalo. Game start temperature 0, Wind Chill -32. Bills come from behind in the fourth quarter with a fourth quarter touchdown pass from Jim Kelly to Bill Brooks to win 29-23.

December 3, 1972  Metropolitan Stadium, Minneapolis. -2 at the start with a windchilll of -26. Vikings kicker Fred Cox outscores the Bears with three field goals and two PATs in a 23-10 Minnesota victory.

Kansas City’s defense again was dominant, keeping the Dolphins out of the red zone all night long.  Miami’s only score was a 53-yard touchdown pass and run to former chiefs receiver Tyreek Hill who otherwise was not a factor in the game. The win against Miami moves the Chiefs into next week’s game against the Buffalo Bills, who beat the Pittsburgh Steelers last night in the game delayed for a day because of a typical Buffalo winter storm that dumped more snow into the stadium than an army of scoopers could remove on Sunday.

(miz)—The Missouri Tigers reached the halfway point of their regular season Saturday, losing their sixth game in their last seven outings and could drop below .500 tonight when they play league-leading Alabama on the Crimson Tide’s court.  Alabama is 11-5 overall with a five-game winning streak. Missouri is now 8-8. The Tigers join Arkansas and Vanderbilt in the SEC cellar with 0-3 records.

SB Nation’s Sam Snelling reports the Tigers have not defeated a high major opponent since losing Caleb Grill early in December with an injury to his non-shooting wrist. He had surgery  and might be back later this month.

Snelling suggests coach Dennis Gates is giving his veteran players a chance to right the ship, but it’s not working. Five of his guys have played more than 100 games in their college careers with Nick Honor accounting for 139. Noah Carter, John Tonje, Connor Vanover, and Sean East II all have more than 100 games. He wonders when Gates will realize his veterans aren’t getting the job done and when he will start building for tomorrow with his younger guys. (zou)

(BASEBALL)—No big new signings by the Royals and the Cardinals but the Redbirds have made an interesting front office move by hiring Chaim Bloom as an advisor. Bloom was with the Boston Red Sox until he was dumped by Fenway Sports Group despite being credited by some with cutting spending while rebuilding the team’s farm system.

He’ll be an advisor to Cardinals President of Baseball Operations John Mozeliak, who plans to step aside after the 2025 season, prompting questions about whether Mozeliak is grooming his successor. Mozeliak warns against jumping to conclusions. “where it leads to, we’ll see,” he says.

It’s the second major advisory step taken in the off-season by the Cardinals, who signed Yadiar Molina earlier as an advisor, prompting speculation about his role growing from advisor to manager.  Molina is managing in the Puerto Rico winer league and wants to manage in the bigs.  Present Cardinals manager Oli Marmol is in the last year of his contract. Mozeliak does not expect friction between the M’s.  Although he’s a supporter of Marmol, he also recognizes the Cardinals cannot have another year with problems on the field and in the locker room.

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Passive 

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Maybe it’s a case of thinking the old days were better than today.  Maybe not.

The legislature has returned to the Capitol.  Most people have no idea how quickly things move when the session starts or how intense the work is—or how contentious is can become if a partisan renegade group decides it must prevail, their minority status be damned.

For the last three years the sessions’ last week or so have become mired in political mud and the sessions have been the least productive in long, long memory because of conflicts between the legalization of those Video Lottery Machines that are pimples in our convenience stores and sports wagering legislation that seeks to give our casino a significant tax break to the detriment of our education funds and even to the further detriment of their own host cities.

But that’s a diatribe for another time.

It seems to from our high position that the baneful effects of term limits, about which we were warned in 1992, have produced another regrettable trend.

A passive legislature.

The loss of institutional memory because of term limits cannot be overstated.

One of the bigget warnings before 1992 was that term imits would transfer power from the chambers to the hallways, where lobbyists roam, because no senior members would be around to advise newcomers on the role of the General Assembly in the process of lawmaking and in the process of shaping state fiscal policy.

The transfer became obvious several years ago when, during debate, the sponsor of a bill would ask of another lawmaker proposing an amendment, “Have you checked with so-and-so out in the hall?”

Later the issue became even more egregious as I watched lawmakers during debate checking their cell phones for text messages from the paid influencers outside the chamber. Lobbyists are banned from being on the House and Senate floors. Physically.  But their electronic presence is undeniable.

As we have watched for these many years, it seems that the legislature today is more likely to accept legislation without question and without hearing the voice of the public as much as it once did. Although we don’t cover committee meetings as much as we did in our reporting days, we have been in a large number of them on the issue of sports wagering, a special interest of ours for several reasons.

The caisno industry, now unfortunately aided and abetted by our major professional sports teams that need millons of dollars a year to try to keep pace with bigger-market moneybag teams, has always presented bills that are—to be frank—terrible fiscal policy for the state and its people and especially for schools, veterans, and the casino’s home cities.

Glaringly absent is any aggressive interrogation of the industry.  I can recall only two instances in which any semi-extensive questions were asked and only one when the questions were aggressively put (and the industry’s response was hardly direct).

In the old days—and I intensely dislike using that phrase—it seemed the legislature, while heavily influenced by lobbyists (who have a place in the system) and their checkbooks, looked more critically at legislation.  And it seems that lawmakers who were more likely to be presented a problem took an initiative, now missing, to fix the problem.

Many legislative hearings where held at night so members of the public could more easily be present without missing a full day of work. Night meetings are scarce today, leaving the field more and more to those who can affort to buy representation.  The voice of the citizen is muted in today’s system and the general assembly is more susceptible to being influenced by political action committee money.

In the first year of my lobbying career (working on getting the casinos to pay to keep the Steamboat Arabia Museum in Missouri), I took some findings of casino greed to a member of the House who told me, “Oh, the casinos will be interested in this. I’ve already gotten two checks form them this year.” He apparently was totally unaware of what a self-indictment his statement was.

Some legislator’s offices are festooned with plaques from organizations thanking them for their support.  When I was running the Missorinet newsroom we had a rule that we would accept no awards from any organization we covered.

We were not their friend. Nor were we their enemy.

We are one of those in the halls again this year, raising our pitiful voice against the steamroller called the casino industry, hoping again that we will trouble the consciences of those who sit quietly while the industry presents its plans for getting richer and richer while the services that serve the people of Missouri that rely on revenue from the industry get poorer and poorer, and poorer still under proposed sports wagering legislation.

Somebody has to ask the questions.  Too bad it isn’t the people who are presented with bills the industry wants passed.