Missouri sports betting revenue: How much tax revenue could be generated in the first month?

After a years-long struggle, Missouri betting will launch for pre-registration on November 17 and for real-money betting on December 1. How much Missouri sports betting revenue will be generated, how much of that will the state itself see and where will that money go? Those are just a few of the pressing questions with pre-registration beginning on Nov. 17 and legal online sports gambling beginning in Missouri next month.

Missouri sports betting revenue projections

With offshore wagering sites and illegal gambling operations generating billions in revenue each year, the case for legalization has always been that it's safer for the consumer to engage with a regulated product. In Missouri, lawmakers and economic forecasters had been crunching the numbers long before Amendment 2 was passed last November, and the early forecasts suggest an early surge of Missouri sports betting revenue.

Christopher Boan, an analyst at BetMissouri, projected a Missouri sports betting handle of $65.7 million in the first week alone and also estimates that the handle will hit $262.6 million in December before topping $1 billion within four months. In the first year, nearly $4 billion could be wagered in Missouri. However, betting handle is the total of all wagers made and the actual revenue generated depends on a number of market circumstances.

Two of the top online sportsbooks, FanDuel and DraftKings, have predicted a combined $575 million in revenue over the course of the first five years at market maturity, which comes after gambling winnings are distributed and online sportsbook promos are accounted for. Current Missouri sports betting laws implement a 10% gross tax rate, meaning the $575 million forecast from those sportsbooks to state regulators would generate $57.5 million in tax revenue for Missouri alone. There will be eight other operators also contributing to that fund.

First month sports betting revenue in other states

When New York launched legal online sports betting in January 2022, it set a record with $112.99 million in gross gaming revenue in its first month. However, don't expect Missouri sports betting revenue to reach those levels. New York is the fourth-largest state in the country and is more than three times the size of Missouri with nearly 20 million residents. It also has a glut of professional sporting franchises and already had a well-established gaming culture given its proximity to Atlantic City.

Missouri ranks 19th in population with just over 6.2 million residents according to recent estimates and it's closest comp in that regard would be Maryland. The 18th-largest state in the country did a $219 million betting handle over the first two weeks following legalization when it launched mobile sports betting late in 2022. And while gross gaming revenue for that period wasn't readily available, the state did reveal that it generated just over $700,000 in tax revenue during that period.

Maryland only has three professional sports teams from the four major American sports leagues within its borders (Washington Commanders, Baltimore Ravens and Baltimore Orioles), though it does have three more teams garnering local support in Washington D.C. (Capitals, Wizards and Nationals). Missouri has four (St. Louis Blues, St. Louis Cardinals, Kansas City Chiefs and Kansas City Royals) and both states have a flagship institution in a major conference (University of Maryland and University of Missouri), so it's a market worth noting for Missouri sports betting revenue projections.

Where does Missouri sports betting tax revenue go?

With the 10% gross tax rate, online sportsbooks won't be taxed quite as heavily in Missouri as it will in other states, but it should still generate tens of millions of dollars in Missouri sports betting tax revenue over the first few years. Expenses for the Missouri Gaming Commission, which regulates the industry within the state, come off the top.

Then the state has committed the greater of $5 million or 10% of total tax revenue to fund the Compulsive Gambling Prevention Fund, which provides responsible gaming tools for problemed gamblers and counseling services for those fighting gambling addiction. The entire remaining allocation of Missouri sports betting revenue taxes after that are required to be used to help fund Missouri public education.

In Maryland, the tax rate on sportsbooks was recently increased from 15% to 20% and their sports betting tax revenue doubled from October 2024 to October 2025, with the state reporting $14.1 million of income last month. Missouri sports betting will take time to build to those levels and the income level is likely to be smaller because of the 10% tax rate, but there are some consumer benefits like more operators and the potential for rewards like profit boosts and deposit bonuses because the state is creating a more competitive gaming landscape.

Missouri sports betting tax revenue may also be reduced early on because FanDuel alone is forecasted to spend upwards of $30 million on marketing to new customers in the lead up to legalization on Dec. 1. However, the Missouri Gaming Commission will report revenue on a monthly basis, so Missourians will get detailed breakdowns on how Missouri sports betting revenue is being divvied up and where it is going.