Missourians Wager Over Half a Billion in Inaugural Month of December
Missouri finally launched sports betting in December, with a handle that significantly exceeded initial projections. However, the proliferation of free bets and promotions distributed by the sports betting platforms put a damper on the taxes paid to the state.
Successful Launch
It should be noted that the $543 million in wagers that Missouri’s sportsbooks accepted in their first month had much to do with the prime betting season, as the NFL and college football were still very active. Naturally, curiosity surrounding the nascent industry and the $125 million in bonus and promotional wagers enticed bettors to sign up for accounts and place their wagers.
Although the sportsbooks netted $104 million in revenue, that figure was severely diminished by the promo write-offs, and, as a result, the state was left with only $521,200 in tax money for December based on Missouri’s 10% tax rate on sportsbook revenue.
State Representative Betsy Fogle, who sits on the House Budget Committee, was cautiously optimistic despite the disappointing return to the state’s treasury from the first month of sports betting.
“I guess it’s not super surprising to me that we haven’t seen real dollars work their way into our revenue streams yet, and I would anticipate that those would increase as those promotionals have gone away,” Fogle said.
Market Share And Licensing Fees
However, the state’s 16 mobile and retail sportsbooks paid $7.5 million in five-year licensing fees. The first month in Missouri followed a similar pattern that we have seen throughout the nation.
According to the data, 99% of the bets were facilitated through online betting, while just one percent was wagered at retail sportsbooks. Moreover, FanDuel and DraftKings captured 75% of the market, virtually identical to the duopoly’s national market share.
Industry Reaction To Missouri Rollout
Jack Cardetti, spokesman for the Sports Betting Alliance, noted the higher-than-anticipated handle produced by the mobile sportsbooks in Missouri’s inaugural month and released the following statement:
“We applaud the Missouri Gaming Commission for its hard work to ensure a smooth and successful launch, and we’ve received overwhelmingly positive feedback from Missourians who are impressed with the tools and resources available to help them monitor their play, protect their data, and provide the security they feel in placing legal, regulated bets, while keeping their dollars in Missouri.”’
Great Expectations
January’s numbers have not been released, but it is fair to say the handle moving forward will likely plummet as college football’s national championship game has been played and the Super Bowl in February marks the end of the NFL season. Nevertheless, bettors will still have the NHL and NBA to hold their attention while the Major League Baseball season is looming at the end of March.
However, once the NHL and NBA seasons end in June, MLB games will become the center of attention, and the Boys of Summer do not attract bettors like the other sports, particularly football.
However, in September, Missourians will be able to wager on an entire season of professional and college football, which will be the ultimate litmus test of just how successful sports betting will be in a state whose voters passed it by the thinnest of margins.
Yet, the landslide of sports betting activity in December portends big numbers in the future. Industry insiders believe that Missouri’s annual sports betting handle for 2026 will be approximately $4 billion, which would translate to $400 million in profit on an optimistic 10% hold, leaving $40 million in Missouri’s tax coffers.
