Missourians spent $543 million wagering on sports in December, the first month of legal sports betting in the state. But only a fraction of that came back as tax revenue — just over $521,000.
Many of the sportsbooks authorized in Missouri reported negative taxable income in December. That’s largely a result of sports betting companies offering Missourians $125 million in free bets that month, aiming to get them started on mobile betting apps. And the amendment that legalized sports betting allows them to deduct “the cost of free play or promotional credits” from taxable earnings.
“We knew that that language was going to be a challenge for revenue,” said Jan Zimmerman, chair of the Missouri Gaming Commission. “But it wasn't unexpected.”
Even still, Zimmerman said she’s pleased with the rollout, and eager to learn more next week about how the industry fared in January.
“I'm optimistic. I'm hoping that, you know, people have kind of settled in, although there were certainly lots of bets in December,” Zimmerman said.
- Jan Zimmerman, chair, Missouri Gaming Commission
