Missouri lawmakers have taken a more calculated approach to tinkering with the tax levied on sports betting platforms that only recently launched in the Show Me State, a strategy likely intended to keep bettors from turning to offshore betting sites.
Contemplation Proclamation
Legislators in Missouri have backed off on a major proposed tax hike on the state’s new sports betting market, which launched on December 1, 2025, signaling a more cautious approach as they evaluate how much revenue the industry is actually generating.
Originally, a proposal would have raised the sports betting tax rate from 10% to 34%—one of the highest in the country. But that plan was removed from a broader gaming bill during a House committee meeting. Lawmakers instead decided to contemplate the option and review more data before making changes due to the relatively short time it has been available.
Rep. Jeff Myers said he supported dropping the tax increase for now so the state can better understand how the market is performing before making long-term decisions.
Rather than increasing sportsbook taxes, the revised bill focuses on riverboat casinos. It raises the per-admission fee from $2 to $5.50 and adjusts licensing costs. The measure passed the committee by a narrow 9–7 vote, reflecting ongoing disagreements among lawmakers about how aggressively to tax gambling.
Although the betting handle has already surpassed $1.5 billion, the promotional deductions allowed by the state to foster marketing for the nascent industry have decreased the taxable revenue. The state has only collected $3.6 million in the five months since mobile sports betting launched.
Sports bettors wagered approximately $329 million in March, generated primarily via mobile platforms. Although the tax revenue has been negatively affected by the 10% rate and the promotional write-offs, some believe that the legislature will impose a sunset clause on the promotional deductions before raising the tax rate.
Mike Leara, executive director of the gaming commission, said earlier this year, “These figures also reflect a market in its early stages, including the impact of significant promotional deductions that are customary during initial rollout.”
“When we finally get through some of these early start-up costs, we’ll see money,” he Leara added.
Ahead of Schedule
Despite the consternation among some Missouri lawmakers regarding the low taxes generated vis-à-vis an ambitious betting handle, the forecasts are well ahead of schedule. The initial projections called for the state to collect $4.8 million over the first 12 months of the industry, but Missouri’s tax coffers have already received over $3.6 million, or 75% of the projected annual revenue.
This indicates that more money is being wagered than previously estimated, which highlights what appears to be lower than expected revenues. Supporters have been quick to point that out, and one of them is Joe Maloney, Sports Betting Alliance CEO and President.
“In just the first four months of sports betting in Missouri, it’s evident fans appreciate having a legal and transparent way to place bets, while generating millions in state revenues and license fees,” said Maloney.
He also added, “No longer burdened by traveling to a border state or using illegal, offshore websites putting their personal and financial data at risk, Missourians are taking advantage of the consumer protections and responsible gaming tools that come with Missouri’s new program.”
Responsible Gaming
As Missouri’s sports betting market continues to grow, bettors need to approach wagering responsibly. Legal sportsbooks provide a safer and more transparent environment, but maintaining healthy betting habits remains essential.
- Manage your bankroll: Only wager what you can afford to lose.
- Avoid chasing losses: Emotional betting often leads to poor decisions.
- Stay disciplined: Stick to a strategy rather than reacting impulsively to results.
- Recognize variance: Don’t put too much emphasis on trends in small samples.
- Utilize responsible gaming tools: If you need a temporary break, don’t hesitate to use the responsible gaming features offered by sportsbooks.
