Missouri's long-awaited launch of sports wagering has Show-Me State locals flocking online and in-person to regulated bookmakers, but do not be stunned if what's on offer starts to attract a reasonable variety of out-of-state gamblers as well.

- Missouri's launch of legal sports wagering functions a lighter tax concern and more competitive regulative environment than some neighboring states, placing it to bring in residents and out-of-state gamblers.

- High taxes and added per-bet fees in Illinois, together with limiting or less enticing markets in Arkansas, Oklahoma, and possibly Kansas, could push bettors to cross into Missouri.

- Industry leaders say the flow of gamblers that when went from Missouri into close-by states could reverse.

Monday's debut of legal sports wagering in Missouri is under a regulatory and statutory structure that is more favorable to sportsbook operators than some other jurisdictions.

In terms of taxes, Missouri's managed bookmakers are on the hook for 10% of their revenue. In surrounding Illinois, the Land of Lincoln needs online sportsbook operators to turn over 20%-40% of their profits, in addition to a new per-bet tax of 25 or 50 cents.

Those taxes are being handed down to customers by Illinois sports betting operators, which have employed transaction fees and increased minimum betting requirements to try to make the mathematics work for them in the state.

"I think you're visiting a variety of individuals originating from the east to the west today ..."@DerekJStevens signs up with VSiN as @CircaSports launches in the state of Missouri pic.twitter.com/F67M8opxkd

So, while Missourians were as soon as required to take a trip to Illinois (or Arkansas, or Iowa, or Kansas) to make legal sports bets, they can now remain home. It's likewise possible that homeowners of Illinois might begin crossing over into Missouri to avoid paying sportsbook transaction costs.

According to Circa Sports CEO Derek Stevens, whose company now provides online sports wagering in both Illinois and Missouri, the momentum has swung towards the latter market.

"I think it's going to be very fascinating ... to see how many people now go over the border into Missouri," Stevens informed Covers in an interview Monday. "You're going from a state with a really noncompetitive regulative environment now in Illinois to a state with a very strong regulatory environment in Missouri. You've had a great deal of individuals from Missouri going throughout the state line to go bet in Illinois. I think the tide has actually totally changed."

No transaction fees, no problem

Illinois could currently be getting stung by the new per-bet tax and the actions by operators to reduce the financial hit.

For example, the Illinois Gaming Board reported just recently that state sportsbooks took more than 28.5 million bets on professional sports in September. However, in September 2024, those very same sportsbooks handled 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 happiness at not needing to leave Missouri to make a bet. That might be two times as true if they were dishing out a little extra for a wager in Illinois.

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

It's possible, then, that Missouri's sports betting market might put additional monetary pressure on the Illinois sports wagering market. It's also possible that Missouri's state-regulated sportsbooks bring in some business from its other neighboring states, albeit for different reasons.

There is, for example, no legalized sports wagering yet in Oklahoma. Therefore, some Oklahomans might choose to make their way to Missouri to put a couple of bets.

Brand commitment

Arkansas, on the other hand, has legalized sports wagering, however it doesn't have the same brand names as Missouri boasts, some of which have across the country influence. This is because of the bulk of Arkansas earnings going to gambling establishment operators and not the sportsbook operators that the gambling establishments have as partners.

The revenue-sharing guidelines have kept companies like DraftKings and FanDuel on the sidelines in Arkansas; not so in Missouri, though. So, somebody in Arkansas could conceivably travel north to Missouri to purchase from the sportsbooks there.

Former St Louis Rams and Kansas City Chiefs quarterback Trent Green before placing 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 betting considering that 2022. That market has taken advantage of a lack of legal sports betting in neighboring Missouri.

However, Kansas legislators chose this year to pause any contract-extension settlements the regional regulator was conducting with certified sportsbook operators.

While the pause will end next year, and the sportsbook agreements run into 2027, some legislators are also kicking around proposed changes for the Kansas sports betting market, such as a greater 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 could yield more tax profits for the state, however it would also deprive Kansas wagerers of brand names they're currently using. Those same brand names would then be offered in Missouri, and Kansas gamblers could be willing to make a journey to keep using them.

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

The pressure of a competitive market in Missouri likewise comes as states deal with the obstacle of nationwide sports wagering through federally controlled prediction markets.

Those exchanges are providing a fairly basic kind of sports betting compared to what state-regulated bookies can boast. Nevertheless, forecast markets are certainly a kind of competition for state-regulated sportsbooks in Missouri and beyond, which is why several court battles are ongoing over the legality of forecast market-offered sports occasion contracts.