Missouri’s first month of legal sports betting produced over $543 million in wagers, yet the state received only a fraction of expected revenue due to extensive promotional deductions. Financial reports from the Missouri Gaming Commission show that online platforms accounted for more than 99% of activity.
Voters narrowly approved sports betting in November 2024, passing the measure by 2,691 votes out of nearly three million cast. Sportsbooks launched statewide on December 1, exceeding early estimates, but provisions in the constitutional amendment allow operators to deduct promotional costs, sharply reducing taxable revenue.
Promotional Spending Limits Tax Revenue
The commission reported 16 licensed sportsbooks issued over $125 million in free bets and incentives, resulting in negative net revenue for most operators. DraftKings and FanDuel, which dominate the market, paid no taxes for December. The state’s total tax intake was $521,200, less than one-one-hundredth of 1% of wagers. Licensing fees contributed nearly $7.5 million.
“The license-fee total reflects the fact that a majority of the licenses issued at launch are five-year licenses,” Mike Leara, executive director of the Missouri Gaming Commission, said. “These figures also reflect a market in its early stages, including the impact of significant promotional deductions that are customary during initial rollout.”
Operator Performance And Market Trends
DraftKings handled $195 million in wagers, paid out $163 million in winnings, and issued $48.5 million in promotional benefits, carrying $16 million in deductions into January. FanDuel booked $212 million, paid $166 million in winnings, and applied $53 million in promotions, also paying no tax. Circa Sports handled $1.4 million in wagers and paid $11,739 in tax.
FanDuel led online operators with 39.5% of the handle, followed by DraftKings at 36%, with Bet365 third at $57.7 million. Retail sportsbooks were smaller, with Fanatics Sportsbook at Ameristar posting the largest handle at $827,146. The commission noted 62% of FanDuel’s wagers were parlays, which produced higher holds than standard bets.
Education Funding Remains Uncertain
Missouri’s constitutional structure directs most gambling tax revenue to public education, with the first $5 million reserved for the Compulsive Gaming Prevention Fund. Leara said 9% of licensing fees fund administration, with the remainder going to the prevention fund.
“When we finally get through some of this early start up costs, we’ll see money,” Leara said.
State Rep. Dirk Deaton described the revenue outcome as “sad,” adding, “We might as well have just made them tax free at this point.”State Sen. Rusty Black, a former teacher, questioned campaign claims on education benefits: “It doesn’t necessarily match the commercials that got this passed, does it.” He later said, “Sports gaming will probably provide $100 million to education total, as long as I don’t die in the next 10 years.”
Jack Cardetti, spokesman for the Sports Betting Alliance, praised the launch. “We applaud the Missouri Gaming Commission for its hard work to ensure a smooth and successful launch,” Cardetti said.
Source:
“Missouri sports betting tops $543M in first month but deductions leave state with only $521K”, issouriindependent.com, January 30, 2026
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