Missouri Sports Betting Shake-Up: New Law Could Reshape Betting In Neighboring States

Before Missouri approved legal sports betting, location data from GeoComply suggests that Missourians were actively travelling and placing wagers in other states. According to GeoComply Data, between September 5th and October 21st, 2024, over 216,000 active sports betting accounts were connected to Missouri residents. During the same period, over 2,800 travelled into Illinois and another 3,700 moved to Kansas specifically to bet on sports.

Now, the state’s legal sports betting landscape is changing.

Most Missourians are staying at home, keeping the money within the state. This isn’t just convenience; the new legal betting law could potentially reshape the state and its neighbors’, especially in terms of revenues, taxes, and economic opportunities.

Missouri and Neighboring States See “Change Patterns”

Travelling to other states to place bets is a common practice for some Missourians. Before the state’s launch of legal sports betting, locals near St. Louis and Kansas often crossed into Illinois and Kansas to place legal bets. Now that Missouri’s live, many of these bets can happen from home.

GeoComply reports that between September 5th and October 21st, 2024, there were around 216,000 mobile sports betting accounts linked to Missourians. During this time, around 3,700 Missourians travelled to Kansas, and another 2,800 moved to Illinois to bet on sports. 

According to Adam Hoffer, director of excise tax policy at the Tax Foundation, this phenomenon is comparable to “cross-border shopping”. Hoffer added that just based on where the state population is, you’re definitely going to see an impact on neighboring states”.

He then closed, saying, “as Missouri bettors stay in their homes and neighborhoods to place bets, other states will feel the impact of lost revenue”,

Here’s How Missouri Benefits—and What to Expect in Neighboring States

On the surface, allowing legal sports betting gives locals flexibility and convenience, and it keeps the money with the state. Missouri expects to earn around $28 million in tax revenue annually.

However, this boost is “minimal”, and won’t probably dent the potential collections in other states. One reason for this is Missouri’s late entry into legal sports betting. According to Hoffer, Missouri will see some changes, but it’s in Illinois where a lot of things can happen.

He added that Missouri isn’t going to be a huge winner in terms of cross-border bettors. Instead, Illinois will see more influx of cross-border bettors due to its “per-wager tax”.

Still, Missouri’s entry into legal sports betting can create ripple effects on the broader industry. In addition to cross-border bettors, this latest development can launch promo wars and put policy pressure. When one state legalizes (Missouri), it can shift the political conversations next door.

REFERENCES

• GeoComply
• Tax Foundation