Three Takeaways from the First Month Results of Missouri Sports Betting

Missourians came out in a big way for the state’s first month of legalized sports betting. According to data released Friday by the Missouri Gaming Commission, more than $543 million was wagered during December.

The December launch came more than a year after voters in the Show Me State narrowly approved a constitutional amendment legalizing retail and online sports betting statewide. Efforts to expedite the launch failed after the Missouri Secretary of State rejected the Gaming Commission’s request to implement emergency rules.

With the Gaming Commission’s reports now available, not only do we see how much was wagered across the state, but we can also identify other takeaways and topics to watch in the state. Here are three I’ve identified so far.

1. Parlays Pad Profits

It’s well known that online sportsbooks love to push parlays, but Missouri’s monthly data reveals just how important these multi-leg wagers are and just how willing bettors are to make them.

The data shows that Missouri bettors placed 56% of their wagers and almost 40% of the total handle on parlays in December. That number is likely to increase somewhat as operators adjust their reports.

Not only are parlays the top betting option, but they’re also significant profit generators. FanDuel and bet365 reported holds higher than 36% from parlays in December. The lowest hold was Circa’s at 21.2%.

Across the board, among online operators that took 99.8% of all bets placed in Missouri in December, parlays accounted for $74.2 million in gaming revenue. That’s 71.8% of the $103.4 million the online apps reported generating.

Just something for bettors to think about as they devise their Super Bowl bets.

2. Bet365 A Clear Third

FanDuel and DraftKings dominate the U.S. market, and that’s also the case in Missouri. FanDuel took 39.5% of the December handle, while DraftKings accepted 36.3%. The order may vary between states, but FanDuel and DraftKings typically command about 75%-80% of the handle.

Coming in third was bet365, with its $57.7 million in wagers equaling 10.7% of the monthly handle.

That itself is not that big a surprise, as the British-based sportsbook holds that spot in several other states, like Ohio and Kentucky. What is surprising is that bet365 has a larger edge over rivals BetMGM and Fanatics in Missouri than it does in other states.

In Missouri, bet365 more than doubled the handle of both operators in December. In Ohio, bet365’s $75.5 million December handle was just $12.3 million more than BetMGM and $22 million more in a state where $932.2 million was wagered online.

One reason bet365 held a larger advantage in Missouri was the amount of free play it offered customers. Missouri bettors received $14.4 million in bonuses and credits from bet365 in December. BetMGM offered less than $1.9 million, and Fanatics offered just less than $4.1 million.

Can either of them catch up with bet365, especially with Fanatics rolling out a massive promotional effort with Kendall Jenner for the Super Bowl? It’ll be something to watch in the months ahead.

3. Missouri Pays for Legislative Inaction

There aren’t that many states left that may still legalize sports betting. All but 11 allow brick-and-mortar sportsbooks or online wagering or both, but of those states still considering legalization or expansion into online, Missouri provides a cautionary tale.

Missouri lawmakers tried for years to pass a sports betting bill. Every time, it died in the state Senate as supporters of video gaming terminals filibustered sports betting bills because Missouri casinos opposed VGTs.

Those filibusters finally led sportsbooks, namely DraftKings and FanDuel, to take matters into their own hands. In 2024, they put together the campaign to get a constitutional amendment on the ballot, and when sportsbooks get a chance to write the measure, don’t be surprised if it stands to benefit them.

Missouri’s constitutional amendment allows operators to deduct promotional spending from their tax liability. That enabled FanDuel to list nearly $220 million in deductions for a net loss of almost $7.2 million. DraftKings posted deductions totaling $212.2 million, resulting in a net loss of $16.9 million.

Only four of the eight online operators reported taxable gross revenue. When you include the retail operators’ revenue, the state tax receipts for December totaled just $521,201.

It could be a while before the state finally starts receiving revenue from all operators, as the amendment voters approved in November 2024 allows operators to carry over their losses until they reach a zero balance.