- Online sports betting sites that are regulated locally launch in Missouri in two months.
- Circa, DraftKings, FanDuel, and Underdog are some of the notable sportsbooks that will launch when the market launches on December 1.
- The launch of sports betting in Missouri will result in less sports betting tax revenue in Kansas.
- The most likely way that Kansas legislators will offset the lost revenue is by raising the tax rate on sports betting revenue that betting sites must pay.
JEFFERSON CITY, Mo. – The Missouri online sports betting market launches in two months from today, on December 1, 2025. When the market launches, it will affect both sports betting in both Missouri and Kansas.
The new online sports betting sites in Missouri that will be launched must obtain one of two licenses.
The most sought-after license was the Sports Wagering Direct Mobile Licenses, of which there were two. These licenses allowed the announced sportsbooks in Missouri to operate without partnering with either a land-based casino or professional sports team. Circa and DraftKings were awarded those licenses.
The other licenses were awarded to sports betting sites that secured partnerships with land-based casinos or professional sports teams in the state. FanDuel was one of the first sportsbooks to secure this style of license, which they did by partnering with St. Louis CITY SC. The latest partnership was announced between Underdog and the Kansas City Royals.
Other facts about the launch of sports betting in Missouri include:
- Sports betting will be governed by the Missouri Gaming Commission.
- The legal sports betting age at MGC-regulated sites will be 21 years old.
- Sports betting revenue generated by operators will be taxed at a 10% rate.
How Does Sports Betting In Missouri Affect Kansas?
The launch of new Missouri sports betting sites directly affects the market for online sports betting in Kansas because so many residents of the Show-Me State would travel across state lines to bet online.
The practice of crossing state lines to bet on sports online is especially prevalent in Kansas City, which is on both sides of the Kansas-Missouri border.
When Missouri residents no longer have to travel to Kansas to access legal sports betting sites, the Kansas sports betting market will shrink.
That means less tax revenue generated and less revenue for the online betting sites located in Kansas.
The issue of less revenue for betting sites in Kansas is essentially moot because those platforms will likely begin offering their services in Missouri, but the reduction in tax revenue is significant.
One way Kansas lawmakers are considering to minimize the incoming reduction in tax revenue is by raising the current 10% rate on sports betting revenue generated by sportsbooks.
To begin with, that 10% sports betting revenue tax is already relatively low. Consider that nearby states like Arkansas and Illinois charge sports betting sites a 20% and 50% tax on revenue.
With the precedent already set, the best way to offset the lost tax revenue in Kansas due to the impending Missouri online sports betting launch is for the state to raise its tax rate for sports betting revenue generated by the operators.
