Missouri Sports Betting Generates $543M in First Month, But State Sees Only $521K

Promotional offers and deductions offset taxable profits, leaving little for problem gambling and education funds

Feb. 1, 2026 at 2:15pm

Got story updates? Submit your updates here. ›

Missouri's new sports betting industry generated over $543 million in wagers during its first month of operation in December 2026, but deductions for promotional offers and other expenses left the state with just $521,200 in tax revenue - less than one-one-hundredth of 1% of the total amount wagered. The low tax revenue is attributed to provisions in the voter-approved constitutional amendment that allowed operators to deduct the cost of free bets and other promotional benefits provided to customers.

Why it matters

The low tax revenue from Missouri's new sports betting market raises concerns about whether the industry will provide the promised financial benefits to education and problem gambling programs, as voters were told during the campaign to legalize sports betting. It also highlights the power of major sports betting operators to shape legislation in their favor through expensive ballot initiative campaigns.

The details

In December 2026, Missourians placed over $543 million in sports bets, with more than 99% of the wagers placed online. However, the 16 licensed operators provided customers with more than $125 million in free bets and other promotional benefits. As a result, most operators showed a negative net result, and the total deductions exceeded net revenue by $20 million. This left the state with just $521,200 in tax revenue, far below initial projections.

  • Missouri voters narrowly approved sports betting in November 2024, with a majority of just 2,691 votes out of almost 3 million cast.
  • The first month's wagering in December 2026 far exceeded some estimates.

The players

Missouri Gaming Commission

The state agency that issued the 16 retail and online sports betting licenses and published the financial report on the industry's first month of operations.

Mike Leara

Executive director of the Missouri Gaming Commission.

Dirk Deaton

Republican state representative from Noel who chairs the House Budget Committee.

Rusty Black

Republican state senator from Chillicothe who chairs the Senate Appropriations Committee.

Betsy Fogle

Democratic state representative and ranking member of the House Budget Committee.

Got photos? Submit your photos here. ›

What they’re saying

“We might as well have just made them tax free at this point.”

— Dirk Deaton, Republican state representative and House Budget Committee chair (kjo1055.com)

“Sports gaming will probably provide $100 million to education total, as long as I don't die in the next 10 years.”

— Rusty Black, Republican state senator and Senate Appropriations Committee chair (kjo1055.com)

“I thought it was disingenuous, and I recommended people not vote for it because of the promises for education.”

— Betsy Fogle, Democratic state representative and House Budget Committee ranking member (kjo1055.com)

What’s next

The Missouri Gaming Commission anticipates that as the sports betting market matures and promotional offers diminish, the state's tax revenue from the industry will increase over time.

The takeaway

Missouri's experience with the launch of legal sports betting highlights the power of major operators to shape legislation through ballot initiatives, as well as the challenges states face in generating significant tax revenue from the industry, especially in the early stages. The low initial returns raise doubts about whether the industry will provide the promised financial benefits to education and problem gambling programs.