KANSAS CITY, Mo. (KCTV) – Absentee voting has begun in Missouri, and the commercials to legalize sports betting have peppered on-air ad space. While supporters say millions could raise teacher salaries and better public education overall, some educators are skeptical.

The Kansas City Chapter of the American Federation for Teachers Union has urged Missourians to read the ballot language carefully.

On game days, Jackson Shank said he always ventures out of Kansas City, Missouri, due to current state laws.

“If we’re going to watch the Chiefs game, we’re going to a bar on the Kansas side,” Shank said. “Because if the Chiefs go down, we love to live bet them, because we’re notorious for coming back.”

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Without sports betting in Missouri, Kansas City restaurants like Lew’s Grill and Bar worry they’ll keep losing customers to the Kansas side, where sports fans can gamble and watch games simultaneously. Lew’s co-owner Andy Lewellen said he notices customers doing what Jackson does. So, a “yes” on Amendment Two could mean more business for his restaurant.

“You might get intrigued in another game that you place a wager on that will keep that person in your bar,” Lewellen brainstormed. “To have another meal, soda, or adult beverage.”

What promoters of Amendment Two have said is a plus is viewed too good to be true by the Kansas City Public Schools Teacher’s Union. The union is skeptical of the ballot language that states “Because the proposal allows for deductions against sports gaming revenues, they estimate unknown tax revenue ranging from $0 to $28.9 million annually. Local governments estimate unknown revenue.”

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“One thing you can’t do is make promises in salaries and this money is supposed to go raise teacher salaries and you can’t commit to how much money is going to go to salaries,” AFT 691 President Jason Roberts argued. “That’s a terrible idea. Let’s say they commit to us they’re going to give us $5 million for teacher raises for next year. So, we anticipate that $5 million and build that in and spend it. Well, what if they suddenly only give us $2 million? Who has to make up the other three because we have a collective bargaining agreement with the district to do that.”

Roberts also pointed to a report released by the State Auditor in October of last year highlighting many loopholes for sports betting companies to make deductions on promotional credits, free play, and federal taxes to gross receipts. To the extent, they would pay zero taxes for sports wagering. Page 11 of their report concludes in part, “Section 11(a)(4) would allow an operator to deduct up to 25% of the gross costs of promotional credits and free play. As a result, the Commission anticipates that operators will be permitted to deduct amounts to the extent the operator pays zero gaming taxes for sports wagering. Section 11(a)(5) is not clear as to whether “any federal tax” includes taxes from any jurisdiction or just federal taxes imposed from business in the State of Missouri. Further, by using the language contained in the present initiative petition (“any sums paid as a result of any federal tax), the provision appears to permit a sports wagering operator to deduct its federal income tax, its federal employment tax, its federal excise tax, and any other federal tax when determining its adjusted gross receipts. In other words, the Commission anticipates that by permitting such deductions, some operators will pay no gaming taxes on sports wagering.”

“They’re going to play so they maximize their profits, they can write off whatever they want,” Roberts added. “And pay nothing in state and federal taxes then claim oh well nothing we can do.”

The Kansas City Public Schools Chapter of American Federation for Teachers also argued mobile sports betting takes business away from casinos, which can hurt union jobs. And that also adds to their opposition to the amendment.

Amendment Two did get endorsements from both Missouri Governor candidates – Republican Mike Kehoe and Democrat Crystal Quade. Their support for the ballot measure follows a study released by Eilers & Krejcik calculating it could raise a maximum of $105 for Missouri Public Schools over a five-year period after passing.

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