Missouri’s newly launched sports betting market generated intense early activity in December 2025, producing more than half a billion dollars in wagers during its first full month of legal operation. Despite the high volume of betting, the state collected only a modest amount in wagering taxes, as promotional incentives and other deductions outweighed operator revenue during the rollout period.

Sports betting officially began statewide on December 1, 2025, following a narrow voter approval of a constitutional amendment in November 2024. The Missouri Gaming Commission’s first Sports Wagering Revenue Detail Report provides a detailed picture of how the market performed during its opening month, capturing wagering volume, payouts, deductions, and tax outcomes across licensed platforms.

Heavy Betting Volume Defines the Opening Month

Between December 1 and December 31, bettors in Missouri wagered just over $543 million on sporting events. More than 99% of that activity occurred online, with mobile sportsbooks handling approximately $538.9 million, while retail locations accounted for just over $4 million. The report also indicates that the volume of activity included more than 25 million individual bets, underscoring the scale of early participation.

FanDuel emerged as the largest mobile sportsbook during the launch period, recording roughly $212 million in wagers and controlling close to 40% of the mobile market. DraftKings followed with approximately $195 million in bets. Among retail sportsbooks, Ameristar Casino in St. Charles reported the highest handle, at around $827,000.

The scale of wagering surpassed some early expectations, particularly given that the market opened late in the calendar year and during a period when many Missouri bettors had already been placing legal bets across state lines in Kansas or Illinois.

While betting activity was strong, sportsbooks collectively reported a negative taxable gross revenue for December. Operators paid out nearly $438 million in winnings and spent more than $125 million on promotional free-play bets and other customer incentives. When additional deductions such as voided or canceled wagers were included, total deductions reached approximately $564 million.

As a result, sportsbooks reported a combined negative revenue of about $20.8 million for the month. With no positive net revenue to tax, Missouri collected just $521,220 in sports wagering taxes, equal to far less than one-tenth of one percent of the total amount wagered.

The Missouri Gaming Commission also received nearly $7.5 million from initial license fees tied to the issuance of 16 retail and online licenses. Two of those licenses went to online-only operators, while the remaining licenses were connected to casinos, sports venues, or professional teams.

“The license-fee total reflects the fact that a majority of the licenses issued at launch are five-year licenses,” Mike Leara, the executive director of the gaming commission, said in a news release. “These figures also reflect a market in its early stages, including the impact of significant promotional deductions that are customary during initial rollout.”

Lawmakers Question Education Funding Expectations

The small tax return to the state has drawn criticism from some lawmakers, particularly given campaign messaging that promoted sports betting as a funding source for education. State Rep. Dirk Deaton described the early revenue figures as disappointing and said the structure of the amendment limited the state’s ability to capture meaningful tax income.

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

State Sen. Rusty Black also questioned how quickly education funding would materialize, noting that constitutional constraints prevent lawmakers from easily adjusting the tax structure. “Sports gaming will probably provide $100 million to education total, as long as I don’t die in the next 10 years,” Black said.

Under the Missouri Constitution, the first $5 million in annual sports betting tax revenue is earmarked for the Compulsive Gaming Prevention Fund, with remaining funds designated primarily for public education. Because December’s tax intake fell well below that threshold, no funds were directed to schools during the launch month.

Industry representatives and analysts have described the early results as typical for a new market. Christopher Boan of BetMissouri.com said, “This early performance shows that Missouri bettors were eager for a regulated marketplace. If engagement levels hold steady and operators continue investing in the market, Missouri will be well-positioned to cultivate a thriving sports wagering ecosystem.”

Others cautioned against expecting sports betting to meaningfully alter state finances. “Sports betting isn’t going to be a panacea for Missouri’s budget,” Ryan Butler, senior editor for Covers, said. “Even at its best, it’s just a small fraction of the overall budget.”