Missouri Poised To Put Pressure On Other Sports Betting States

Missouri's long-awaited launch of sports wagering has Show-Me State residents gathering online and in-person to regulated bookies, but don't be surprised if what's on offer begins to bring in a reasonable variety of out-of-state bettors as well.


- Missouri's launch of legal sports wagering functions a lighter tax concern and more competitive regulatory environment than some neighboring states, positioning it to attract citizens and out-of-state gamblers.


- High taxes and added per-bet charges in Illinois, together with restrictive or less attractive markets in Arkansas, Oklahoma, and possibly Kansas, might press gamblers to cross into Missouri.


- Industry leaders say the flow of bettors that once went from Missouri into close-by states might reverse.


Monday's launching 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 controlled 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 earnings, in addition to a brand-new per-bet tax of 25 or 50 cents.


Those taxes are being handed down to consumers by Illinois sports betting operators, which have employed deal costs and increased minimum wagering requirements to try to make the math work for them in the state.


"I believe you're visiting a variety of individuals coming from the east to the west today ..."@DerekJStevens joins VSiN as @CircaSports launches in the state of Missouri pic.twitter.com/F67M8opxkd


So, while Missourians were as soon as forced to take a trip to Illinois (or Arkansas, or Iowa, or Kansas) to make legal sports bets, they can now stay at home. It's likewise possible that residents of Illinois could start crossing over into Missouri to avoid paying sportsbook transaction charges.


According to Circa Sports CEO Derek Stevens, whose business now uses online sports betting in both Illinois and Missouri, the momentum has actually swung toward the latter market.


"I believe it's going to be really fascinating ... to see how numerous individuals now discuss the border into Missouri," Stevens informed Covers in an interview Monday. "You're going from a state with a very noncompetitive regulative environment now in Illinois to a state with an extremely strong regulative environment in Missouri. You have actually had a lot of individuals from Missouri going throughout the state line to go wager in Illinois. I believe the tide has actually completely changed."


No transaction fees, no issue


Illinois might currently be getting stung by the brand-new per-bet tax and the responses by operators to alleviate the monetary hit.


For example, the Illinois Gaming Board reported recently that state sportsbooks took more than 28.5 million bets on professional sports in September. However, in September 2024, those exact same sportsbooks managed more than 33 million bets on professional sports.


Stevens said he's had a number of people reach out to him currently to reveal their joy at not needing to leave Missouri to make a bet. That could be two times as real if they were handing over a little extra for a wager in Illinois.


"Doesn't matter where they live, they're all going to be wagering in Missouri now," Stevens stated. "They're not going to be paying a 50-cent or 25-cent fee on a bet."


It's possible, then, that Missouri's sports wagering market could put additional monetary pressure on the Illinois sports betting market. It's likewise possible that Missouri's state-regulated sportsbooks draw in some organization from its other neighboring states, albeit for various factors.


There is, for example, no legalized sports betting yet in Oklahoma. Therefore, some Oklahomans could choose to make their method to Missouri to put a few bets.


Brand commitment


Arkansas, meanwhile, has legalized sports betting, but it doesn't have the same brand names as Missouri boasts, a few of which have nationwide clout. This is due to most of Arkansas profits going to casino operators and not the sportsbook operators that the casinos have as partners.


The revenue-sharing rules have kept business like DraftKings and FanDuel on the sidelines in Arkansas; not so in Missouri, though. So, somebody in Arkansas might conceivably travel north to Missouri to buy from the sportsbooks there.


Former St Louis Rams and Kansas City Chiefs quarterback Trent Green before positioning the ceremonial very first bet at Horseshoe St Louis pic.twitter.com/dwZZ7PPMoS


Then there's Kansas, a state that has had a competitive market for online sports wagering since 2022. That market has taken advantage of a lack of legal sports wagering in nearby Missouri.


However, Kansas legislators chose this year to pause any contract-extension negotiations the local regulator was carrying out with licensed sportsbook operators.


While the pause will end next year, and the sportsbook contracts run into 2027, some lawmakers are also kicking around proposed modifications for the Kansas sports wagering market, such as a higher tax rate.


Solo FOMO


Another idea that's been mooted is transferring to a single-provider design with the Kansas Lottery.


The concept is that a single operator might yield more tax earnings for the state, however it would likewise deny Kansas wagerers of brand names they're currently utilizing. Those very same brand names would then be offered in Missouri, and Kansas wagerers could be going to make a trip to keep utilizing them.


"Right now, Kansas benefits considerably from Missouri not having legal sports betting," said John Pappas, a lobbyist appearing on behalf of the iDevelopment and Association, throughout a Kansas legal committee conference in September. "We see countless wagerers crossing state lines on a weekly basis into Kansas to position those bets. We may either lose those gamblers totally, or, if Kansas raises their (tax) rate, we might lose Kansas bettors going into Missouri where they can discover better chances, much better rates, and more competitive markets."


The pressure of a competitive market in Missouri also comes as states deal with the obstacle of across the country sports betting by means of federally controlled forecast markets.


Those exchanges are providing a reasonably fundamental form of sports betting compared to what state-regulated bookies can boast. Nevertheless, forecast markets are indeed a kind of competition for state-regulated sportsbooks in Missouri and beyond, which is why a number of court fights are ongoing over the legality of forecast market-offered sports event contracts.