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Missouri Poised to Put Pressure on other Sports Betting States

Missouri's long-awaited launch of sports wagering has Show-Me State locals gathering online and in-person to regulated bookies, but do not be stunned if what's on offer begins to bring in a reasonable variety of out-of-state bettors also.
- Missouri's launch of legal sports betting features a lighter tax concern and more competitive regulatory environment than some neighboring states, positioning it to attract homeowners and out-of-state wagerers.
- High taxes and included per-bet fees in Illinois, along with restrictive or less enticing markets in Arkansas, Oklahoma, and potentially Kansas, could push gamblers to cross into Missouri.
- Industry leaders say the circulation of bettors that as soon as went from Missouri into neighboring states could reverse.
Monday's debut of legal sports wagering in Missouri is under a regulatory and statutory structure that is more beneficial to sportsbook operators than some other jurisdictions.
In terms of taxes, Missouri's regulated bookies are on the hook for 10% of their revenue. In surrounding Illinois, the Land of Lincoln requires online sportsbook operators to turn over 20%-40% of their profits, in addition to a new per-bet tax of 25 or 50 cents.
Those taxes are being handed down to consumers by Illinois sports wagering operators, which have used transaction charges and increased minimum wagering requirements to attempt to make the math work for them in the state.
"I believe you're visiting a number of people originating from the east to the west today ..."@DerekJStevens signs up with VSiN as @CircaSports launches in the state of Missouri pic.twitter.com/F67M8opxkd
So, while Missourians were when forced to travel to Illinois (or Arkansas, or Iowa, or Kansas) to make legal sports bets, they can now stay at home. It's likewise possible that locals of Illinois might begin crossing over into Missouri to prevent paying sportsbook deal fees.
According to Circa Sports CEO Derek Stevens, whose company now uses online sports betting in both Illinois and Missouri, the momentum has swung towards the latter market.
"I think it's going to be extremely interesting ... to see how numerous individuals now go over the border into Missouri," Stevens told Covers in an interview Monday. "You're going from a state with an extremely noncompetitive regulatory environment now in Illinois to a state with an extremely strong regulative environment in Missouri. You've had a lot of individuals from Missouri crossing the state line to go wager in Illinois. I believe the tide has actually totally changed."
No deal costs, no problem
Illinois could already be getting stung by the brand-new per-bet tax and the actions by operators to reduce the monetary hit.
For example, the Illinois Gaming Board reported just recently that state sportsbooks took more than 28.5 million bets on expert sports in September. However, in September 2024, those same sportsbooks handled more than 33 million bets on professional sports.
Stevens stated he's had a variety of individuals reach out to him currently to reveal their pleasure at not having to leave Missouri to make a bet. That could be doubly true if they were shelling out a little additional for a wager in Illinois.
"Doesn't matter where they live, they're all going to be betting in Missouri now," Stevens stated. "They're not going to be paying a 50-cent or 25-cent cost on a bet."
It's possible, then, that Missouri's sports wagering market might put additional financial pressure on the Illinois sports wagering market. It's also possible that Missouri's state-regulated sportsbooks bring in some business from its other nearby states, albeit for different reasons.
There is, for example, no legalized sports wagering yet in Oklahoma. Therefore, some Oklahomans might decide to make their way to Missouri to position a couple of bets.
Brand commitment
Arkansas, on the other hand, has actually legalized sports wagering, but it does not have the same brand names as Missouri boasts, a few of which have across the country clout. This is because of most of Arkansas income going to gambling establishment operators and not the sportsbook operators that the gambling establishments have as partners.
The revenue-sharing guidelines have actually kept companies like DraftKings and FanDuel on the sidelines in Arkansas; not so in Missouri, however. So, somebody in Arkansas could conceivably travel north to Missouri to patronize the sportsbooks there.
Former St Louis Rams and Chiefs quarterback Trent Green before putting the ceremonial very first bet at Horseshoe St Louis pic.twitter.com/dwZZ7PPMoS
Then there's Kansas, a state that has actually had a competitive market for online sports wagering since 2022. That market has gained from a lack of legal sports wagering in close-by Missouri.
However, Kansas legislators chose this year to stop briefly any contract-extension negotiations the local regulator was conducting with certified sportsbook operators.
While the pause will end next year, and the sportsbook contracts face 2027, some lawmakers are also subjugating proposed changes for the Kansas sports wagering market, such as a higher tax rate.
Solo FOMO
Another concept that's been mooted is relocating to a single-provider design with the Kansas Lottery.
The idea is that a single operator could yield more tax earnings for the state, however it would likewise deny Kansas bettors of brands they're presently using. Those exact same brands would then be available in Missouri, and Kansas gamblers might be ready to make a trip to keep using them.
"Today, Kansas benefits significantly from Missouri not having legal sports betting," stated John Pappas, a lobbyist appearing on behalf of the iDevelopment and Economic Association, during a Kansas legislative committee meeting in September. "We see countless gamblers crossing state lines on a weekly basis into Kansas to put those bets. We may either lose those bettors entirely, or, if Kansas raises their (tax) rate, we may lose Kansas wagerers going into Missouri where they can find much better chances, better rates, and more competitive markets."
The pressure of a competitive market in Missouri also comes as states deal with the challenge of nationwide sports betting through federally controlled prediction markets.
Those exchanges are offering a fairly basic type of sports wagering compared to what state-regulated bookies can boast. Nevertheless, forecast markets are undoubtedly a kind of competitors for state-regulated sportsbooks in Missouri and beyond, which is why several court battles are continuous over the legality of forecast market-offered sports event agreements.