Friday, October 18, 2024

Online Betting: Do It For the Kids

What is it with the state of politics in America where corrupt gambling industry moguls and equally corrupt politicians have landed on a formula for expanding gambling that boils down to a pitch of… Do it for the kids?

First it was lotteries that were reintroduced to most states beginning in the 1970s. Then casino style gambling started getting pitched in communities in river locales still attempting to foster some nostalgic sense of old-timey paddlewheel riverboats that historically hosted a variety of gambling activities. Then "riverboat gambling" morphed into its modern grotesque form of "boats in moats" -- giant complexes supposedly still floating within concrete wrapped perimeters that bore zero resemblance to "boats" and were so massive that anyone entering the facility encountered zero stimuli that even implied they were boarding a "boat" of any kind. Then dozens of states threw in the towel on the "riverboat gambling" farce and approved pure casino developments.

That's been going on over the last twenty years. Now it seems the last frontier of unexploited gambling is online sports betting. And gambling interests are attempting to blow that barrier away and take in business from every state possible. However, eliminating this barrier still requires voter approval. So what's the angle being used to gain voter approval?

The same angle used to gain approval for lotteries, riverboat gambling and full casino developments. Tying approval of gambling development to tax revenues promised for education. You know… Do it for the kids.

Missouri voters will be voting on Amendment 2 in the November 2024 election which will allow online sports betting in the state. Supporters of the amendment describe the amendment as a tax on sports betting revenue that will generate MILLIONS of dollars that will go directly / solely to primary / secondary education in the state. Flyers sent by backers of the amendment cite appalling statistics regarding Missouri's appearance in nationwide statistics on teacher pay (#48) and class size (#48), implying that all of those problems will be instantly solved by approving this amendment and collecting the easy millions from those willing to bet money on sports.

A local television station's ongoing "ask us anything" segment fielded a question from viewers asking to confirm this claim. The station's review and discussion with a political science professor at a local university found pretty much exactly what you would expect:

  1. There is no language in the actual amendment that guarantees any minimum level of funding that will be provided to educational uses.
  2. There is no language in the actual amendment that actually restricts the State Legislature to only spending this tax revenue on education - the money goes straight into General Revenue.
  3. The amendment actually allows companies operating these online betting businesses to deduct costs from revenue PRIOR to calculating any tax due - which means this ISN'T a tax on top-line REVENUE, it's a tax on bottom-line INCOME which is subject to being rigged by the business to inflate expenses and reduce taxable income.

Visiting an actual casino in most areas of the country is an experience that is vastly different than what gets portrayed in ads on TV. In TV ad fantasy land, ads for casinos talk about "action." Ads consistently depict young, attractive stylishly dressed 20-something women and men standing around a well-lit card table cheering on some central character who is on a roll and about to score big on blackjack. These ad people are clearly winners in life, holding down prestigious jobs, blowing off a little steam with friends and impressing their future mates with their winning ways. You know… Action…

My employer used to host its annual "Holiday" Party (think the birthday cake scene in Office Space with 1700 reluctant employees) in a ballroom at one of two local casinos. This was a tradition from 2015 through 2022 except for a COVID break in 2020. Inevitably, the scene I would see upon driving to the selected casino at 5pm (the earlier you arrive, the earlier you can leave, right?) didn't involve hundreds of young 20-somethings arriving after work in their new $60,000 cars, dressed to the nines heading into the restaurant prior to hitting the casino. The scene I saw typically involved older people, no younger than late 40s, arriving in 20+ year-old beater automobiles with Bondo paint, missing hubcaps, unfixed dents, etc. Many would get out of their car and trudge to the entrance from the parking garages, with oxygen tank in tow as they prepared to sit next to a slot machine for three hours smoking themselves closer to death and spending themselves closer to oblivion.

For someone that might go to Vegas a few times for a weekend, gambling is just an excuse to make noise with friends while having a few drinks and playing games which are almost incidental to the larger experience. These people are NOT the types of people producing profits for casino and betting operators. Their entire business model is geared towards magnifying existing compulsive tendencies in maybe three to five percent of the population to drain their pockets as efficiently as possible. That's not an ethical business. That's the equivalent of a meth dealer operating with corporate protections.

So here's a question for the businesses and corrupt politicians to answer. And here's a question for voters facing these kinds of initiatives to ask.

Missouri has had a state lottery since 1986. Missouri has had riverboat gambling since 1992. Missouri has had full-blown casino gambling since 1997. Each of those changes required approval from voters who were told at the time tax revenues would be used to support schools.

With all of that gambling revenue, why are Missouri schools still #48 in the country for teacher pay and classroom size?

What's different about THIS bill for online sports betting that is different that will improve education in Missouri? Nothing.


WTH