Missouri’s first full month of legal sports betting saw a $543 million (approximately €467 million) wagering handle in December. However, heavy promotional deductions pushed the reported Adjusted Gross Revenue (AGR) to a negative $20.7 million (roughly €17.8 million).
The Missouri Gaming Commission reported that deductions for winnings, voided bets, and promotional free play exceeded total wagers, leaving the state with just $521,000 (about €448,000) in tax revenue. The outcome reflects structural features of the new constitutional amendment approved by voters and the early stage of the market rollout.
Missouri Processes $543m in December Wagers, But State Receives $521k After Heavy Promotional Deductions: Key Insights
- Sportsbooks in Missouri processed $543 million (approximately €467 million) in wagers in December 2025, with more than 99% of wagers placed online. However, heavy deductions for winnings and promotions resulted in an adjusted gross revenue (AGR) loss of $20.7 million (about €17.8 million).
- The state collected just $521,000 (roughly €448,000) in tax revenue, representing less than 0.01% of the total amount wagered. Online operators distributed more than $125 million (around €107.5 million) in promotional offers, significantly reducing taxable revenue.
- Lawmakers and regulators said the low returns were expected during the early launch phase under the voter-approved constitutional framework. Industry stakeholders and officials anticipate higher revenues over time as promotions decline and betting patterns stabilise.
Revenue Shortfall Despite Robust Sports Wagering
The Missouri Gaming Commission’s financial statement for December 2025 revealed that total wagers reached $543 million (€467 million) in the first full month of legal sports betting. After accounting for winnings paid to bettors, cancelled wagers and promotional free bets, the adjusted gross revenue (AGR) was a negative $20.7 million (€17.8 million).
As a result, the state collected just $521,000 (€448,000) in taxes, representing less than 0.01% of the total handle. Retail sportsbooks run by eight licensed operators accounted for $4.15 million (€3.57 million) of the December handle. These operators reported a combined taxable AGR of $887,000 (€763,000).
Hollywood Casino led the charts with $158,000 (€136,000), followed by Century Casino Cape Girardeau with $146,000 (€126,000). Meanwhile, retail betting generated $88,000 (€76,000) in tax revenue for the state. Robust demand for online betting supported the rally, even though US lawmakers remain divided over legalising the market.
Online sports wagers equalled $538.8 million (€463 million) but ended with a negative taxable AGR of $21.6 million (€18.6 million). Heavy promotional deductions were a key factor, with operators offering more than $125 million (€107.5 million) in free bets and bonuses.
Major mobile operators FanDuel and DraftKings recorded the largest shares of mobile wagers. However, both operators reported negative AGRs, with FanDuel posting $7.18 million (€6.17 million) and DraftKings publishing $16.9 million (€14.5 million). Only four mobile operators posted positive taxable revenue in December.
Bet365 reported the strongest result at $3.83 million (€3.29 million). Both DraftKings and Circa Sports hold online-only licences, while the other 14 operators are linked to casinos, sports venues, or partnerships with major sports teams. Circa Sports handled about $1.4 million (€1.20 million) in wagers and paid a modest tax of $11,739 (€10,100).
Missouri’s Legislative Background and Promised Benefits for the Gambling Sector
Missouri voters narrowly approved sports betting via Amendment 2 in November 2024, with the measure passing with just 50.1% of votes. The constitutional amendment imposes a 10% tax on net sports wagering revenue, with allowances for deductions for promotional offers and federal taxes.
In October, temporary retail and mobile licences were granted, allowing registrations and operations to begin in November. The commission received nearly $7.5 million (€6.45 million) in licence fees from the 16 operators, most of which hold five-year licences. A portion of the licensing fees will cover administrative costs, with the remainder slated for the Compulsive Gaming Prevention Fund.
Officials stated that the revenue generated from licensing is a one-time infusion that will help support the regulatory framework as the market matures and raised concerns about the minimal tax take. State Representative Dirk Deaton described the revenue figures as “sad” and reflective of an initiative heavily influenced by online sports betting companies.
Senate Appropriations Committee chair Rusty Black said it was unclear when promised funds for education would materialise, noting that the marketing and promotional phase had limited the immediate tax revenue. Meanwhile, officials expect promotional offers to decline and market activity to settle as operators adjust their strategies.
The Sports Betting Alliance highlighted that early promotional deductions typically reduce taxable revenue as customers transition from unregulated betting. In comparison, nearby Kansas, with a similar tax and deduction structure, saw less than 1% of its $2.7 billion (€2.32 billion) handled in tax payments in its past fiscal year.
Missouri’s constitutional amendment cannot be altered by the legislature without another state vote, complicating efforts to revise tax rates or deduction rules. With most gambling tax revenues constitutionally dedicated to public schools and higher education, the meagre returns in December mean it may be many months before significant funds reach those accounts.