Missouri Prepares for Sports Betting Launch in 2025
Missouri is set to become the latest state to legalize online sports betting, following a narrow approval of Amendment 2 by voters in November 2024. This decision comes after a six-year legislative struggle, with the official launch date for both online and retail sports betting scheduled for December 1, 2025. Until then, residents must wait to place legal bets, though many currently travel to neighboring states like Kansas, Illinois, and Iowa to wager legally. The Missouri Gaming Commission is managing the rollout, with a deadline of September 12, 2024, for sportsbook license applications. Temporary licenses are expected by October 22, 2024, and pre-registration for bettors will begin on November 17, 2024. The state will issue up to 19 retail sportsbook licenses and 14 mobile licenses, with 12 of the mobile licenses tethered to casinos or professional sports teams. Two untethered licenses have already been awarded to Circa Sports and DraftKings, allowing them to operate independently of casinos or teams. This structure is designed to create a competitive market and attract a wide range of operators.
Major Operators and Partnerships Shape Missouri’s Market
Several national sportsbook operators are preparing to enter the Missouri market. FanDuel and DraftKings have been major financial backers of legalization efforts, with FanDuel partnering with St. Louis CITY SC and DraftKings among the first applicants. BetMGM has secured market access through a partnership with Century Casinos, while bet365 has teamed up with the St. Louis Cardinals. Other applicants include Fanatics and Caesars Sportsbook, though Caesars opposed Amendment 2 due to its restriction of one “skin” per operator. All six professional sports teams in Missouri are eligible to apply for sportsbook licenses, each receiving one “skin” to offer both mobile and retail betting platforms. This approach allows teams like the Kansas City Chiefs, St. Louis Blues, and Kansas City Royals to directly engage fans with betting options at their stadiums or nearby locations. The involvement of professional teams is expected to boost fan engagement and drive betting activity.
Regulatory Details and Taxation in Missouri
Under Amendment 2, operators must pay a $250,000 fee for retail sportsbook licenses and $500,000 for mobile licenses, with renewals every five years. Sports betting revenue will be taxed at 10 percent. The first $5 million collected each year will fund compulsive gambling prevention programs, while the remaining funds will support K–12 schools and higher education in the state. Revenue projections vary, with estimates ranging from zero to nearly $29 million annually, partly due to promotional tax credit write-offs that allow operators to deduct losses from customer promotions. College sports betting will be allowed in Missouri without restrictions on prop bets or wagering on in-state teams. Residents must be at least 21 years old to participate once legal wagering begins. The passage of Amendment 2 marks the end of a six-year legislative struggle, with opposition mainly focused on the issue of video lottery terminals, which remain illegal under the new law.
Maryland’s Rapid Growth in Online Sports Betting
Maryland is another state where online sports betting has seen rapid expansion. Voters approved a referendum in 2020, leading to the launch of retail sportsbooks in 2021 and online betting in 2022. The state’s market has grown quickly, with major platforms offering a wide range of betting options, including moneylines, point spreads, parlays, and live betting. In November 2024, Maryland reported a record monthly handle of nearly $640 million, contributing almost $12 million to state programs in that month alone. The state’s regulatory framework emphasizes responsible gambling, with tools and resources available to help bettors manage their activity. While online sports betting is legal and regulated, other forms of online gambling, such as casinos and poker, remain prohibited. However, discussions about expanding online gambling continue, with some lawmakers pushing for broader regulation and taxation.
Kentucky’s Experience Two Years After Legalization
Kentucky legalized sports betting in 2023, becoming the 38th state to do so. Two years later, Governor Andy Beshear highlighted the success of the regulated system in moving bettors from illegal to legal markets. The state can now track betting activity and intervene when individuals show signs of problem gambling. Calls to the Kentucky Problem Gambling Helpline more than doubled in 2024, showing increased demand for support services. The Kentucky Council on Problem Gambling has expanded its efforts, offering training for counselors and focusing on prevention, education, and treatment. The state’s quick implementation of sports wagering has been praised, and officials continue to learn from the experiences of other states.
National Trends and Future Outlook
Across the United States, the legalization of online sports betting continues to gain momentum. Since the repeal of PASPA by the U.S. Supreme Court in 2018, more than 30 states have launched legal sports betting markets. States like Missouri and Maryland are building regulatory frameworks modeled after successful neighboring states, focusing on responsible gambling and maximizing tax revenue for public programs. Major operators such as DraftKings, FanDuel, BetMGM, and Caesars are expanding their reach through partnerships with local casinos and professional sports teams. The trend of allowing teams to operate their own sportsbooks is growing, giving fans more ways to engage with their favorite sports. As more states consider legalization, the focus remains on balancing economic benefits with responsible gambling measures. The success of early adopters like Maryland and Kentucky provides a roadmap for states like Missouri as they prepare to launch their own markets. With continued growth expected, online sports betting is set to become a permanent fixture in the American gaming landscape.