Missouri sports betting has produced $1.5 billion in handle and over 63 million individual bets in its first four months as a regulated market, according to data from the Missouri Gaming Commission and reporting compiled by industry trackers. Despite the strong topline volume, promotional deductions have kept state tax revenue around $3.6 million through March — well below pre-launch projections.
Month-by-month handle
Per the Missouri Gaming Commission’s published reports:
| Month | Handle | Operator Revenue | Hold % |
|---|---|---|---|
| December 2025 | $543.0 million | $20.76 million | 3.82% |
| January 2026 | $385.1 million | $6.70 million | 1.74% |
| February 2026 | $277.0 million | revenue rebounded | — |
| March 2026 | $329.4 million | $20.76 million | 6.30% |
December’s handle was inflated by launch-week sign-up activity and the late-season NFL window. January and February reflected typical seasonal taper between the NFL playoffs and March Madness. March handle picked back up with the NCAA Tournament.
Why tax revenue is lagging
The 10% tax rate on adjusted gross revenue (AGR) — set by Amendment 2 in November 2024 — applies after operators deduct promotional spend. According to the Missouri Independent, operators wrote off more than $125 million in free bets and other promotional benefits in December alone, exceeding net revenue by an estimated $20 million for that month. The result: Missouri collected only $521,000 in tax revenue from December’s $543M in handle.
This is a structural feature, not a glitch. The constitutional amendment voters approved in 2024 specifically allows licensed operators to deduct “the cost of free play or promotional credits” from taxable revenue.
What this means
For state finances, the $3.6 million collected through March is dramatically below the $35-100 million range that proponents had estimated during the 2024 ballot campaign. The Missouri Independent reported that under the constitutional amendment’s allocation rules, the first $5 million annually goes to the Compulsive Gaming Prevention Fund — meaning education funding (the next priority) may not see meaningful inflows until at least the next fiscal year.
For bettors, the high promotional spend is straightforward: operators competing for new accounts have been generous with welcome offers and ongoing odds boosts. New customers acquired during launch quarters typically receive significantly more promotional value than customers who join in steady-state windows.
What’s ahead
Operator promotional spending is expected to taper as the market matures. As deductions decrease, the percentage of handle that converts to taxable revenue should rise — meaning state tax receipts should grow even if handle stays flat. The Missouri Gaming Commission will continue to publish monthly handle and revenue reports through 2026.
For full month-by-month data, see the Missouri Gaming Commission’s official monthly reports at mgc.dps.mo.gov.