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In its first month, Missouri’s sports betting recorded more than $543 million in revenue and more than 25 million bets. But the tax revenues going to education were lower than many expected. The shortfall raises questions about the promises some voters were sold on when they approved the Missouri sports betting amendment in November 2024.
Amendment 2’s language specified that the 10% wagering tax on Missouri sports betting revenue received would “be appropriated for education after expenses incurred by the Commission and required funding of the Compulsive Gambling Prevention Fund.”
With more than 2.9 million votes cast, the ballot measure passed by less than 3,000 votes. Thanks to a campaign that emphasized the benefits of sports wagering revenue to Missouri education.
Why December Tax Revenue Was So Low
Per the Missouri Gaming Commission, slightly more than $521,000 in tax revenue came in during December. As KMBC-TV explained in a report, “Missouri allows its sports books to write off various expenses and ‘promotional credits,’ those so-called ‘free bets’ Missourians receive.
In December, introductory offers from multiple online sportsbooks contributed to more than $125 million in promotional free-play giveaways. That’s likely an unparalleled amount of free play for bettors. The anticipated January numbers will likely be more indicative of Missouri sports betting revenue. Still, it was surprising to see giants like Fanatics, FanDuel, and DraftKings register negative Adjusted Gaming Revenue (AGR) in their initial month of Show Me State operations.
MGC Chair Jan Zimmerman, quoted by KMBC in its story, remarked,
“It’s not as much, obviously, as we want to hope, you know, going forward… I am an advocate for education and for mental health. Any amount of money that is going to go to them that previously didn’t exist is a win in my book.”
She pointed out that tax earnings in the first quarter of 2026 will include two extremely popular betting events — the Super Bowl and March Madness. Those Q1 earnings will be reported over the next several months.
“We’ll see truer numbers,”
Zimmerman noted about forthcoming reports, including the January 2026 numbers. This covers the bulk of the NFL playoffs and the college football national championship, expected to be released today.
Per the Missouri Independent, Mike Leara, MGC’s executive director, added,
“In six months, we’re going to have a better gauge of what to expect on the month to month basis, and I think that it will increase these numbers.”
He did lay some blame at the feet of state lawmakers for the initial low tax revenue. Since they failed to pass sports betting legislation, this opened the door to an amendment that only levied a 10% tax on sports betting, whereas other states have set much higher rates. For example, neighboring Illinois uses a sliding scale tax on sportsbooks ranging from 20% to 40%.
National Betting Expected to Surge
In the days leading up to Super Bowl 60, the American Gaming Association estimated that legal U.S. sportsbooks would take in an estimated $1.76 billion. The numbers are up from $1.39 billion in 2025, with Missouri newly contributing to the total.
Despite her optimism, she indicated to KCUR-FM, Kansas City’s National Public Radio affiliate, that this year’s wagering sets a baseline for future years.
“The real comparison will be Super Bowl 2026 compared to Super Bowl 2027,”
Zimmerman added.
