Missouri Tax Rate Under Fire Again After Disappointing June

Missouri’s industry-friendly sports betting market is under fire once again.

The Show-Me State saw little revenue in June, despite the start of the 2026 World Cup. The Missouri Gaming Commission released its revenue reports for the month, which showed the market generated $13,672,673.27 in revenue, leading to a $1,373,965.93 tax payment to the state.

The revenue drop was attributed to fewer wagers being placed, not bettors' win ratio.

With the expected World Cup bump not materializing, calls to review the state’s low tax rate for operators may soon return.

Kansas City Hosted World Cup Matches

While most states saw the usual June drop in revenue, Missouri had a distinct advantage. It hosted four Group Stage matches for the 2026 World Cup in Kansas City, which included teams from Argentina and the Netherlands. Both boast large fanbases, leading to a large bump in tourism for the state.

The hope was that visitors would bet on the tournament, boosting revenue during the slow summer months. While tax revenue results varied between host states, several saw bumps in the overall handle. 

2026 Tax Hike Proposals Defeated

June’s numbers don’t signal a failing market, but they do bring into question the state’s industry-friendly market framework. Missouri’s 10% tax rate for operators is among the lowest in the country, and it allows far lower licensing and operating costs than most other US markets.

Earlier this year, some state lawmakers began supporting raising the tax rate closer to the US industry average. However, the market has only been live since December 2025, meaning it is still less than one year old.

As a result, the industry pushed back hard on the proposal, with operators arguing their licenses were purchased under the agreement of a 10% tax rate. 

Illinois vs. Missouri

As Missouri prepared to launch its sports betting market, neighboring Illinois enacted a controversial per-wager tax. The Show-Me State was praised for its decision to lower operating costs to create a more competitive market. As a result, many expected the state to become one of the hottest markets in the Midwest.

Almost one year later, the results have shown that this hasn’t been the case.

Illinois’ expensive operating costs led operators to raise costs for bettors to make up for it. This led to a significant drop in overall handle, but revenue numbers have remained strong. This has allowed the state to see an uptick in tax revenue, despite shrinking its market.

Missouri’s market underwhelmed over the first few months, but that was starting to change during the spring. However, June’s disappointing numbers show the market’s future success is far from guaranteed