Cross-Border Betting Expected to Decline as Missouri Market Opens

Missouri's first legal sportsbooks opening will mark the end of years of people betting in other states and change the way people bet in the Midwest. While Missourians can now place bets from their own homes, the broader regional economy may take a hit.  

Before the launch, thousands of people who now have access to the Missouri sports betting market regularly traveled to nearby states to place bets. GeoComply found more than 216,000 active mobile sportsbook accounts in Missouri between Sept. 5 and Oct. 21, 2024. 

The data showed that more than 3,700 Missourians crossed the border and took advantage of Kansas sportsbook promos. More than 2,800 crossed into Illinois to take advantage of Illinois sportsbook promos during the same period.

Analysts expected these habits to shift quickly now that Missouri sports betting apps are available within state lines. Adam Hoffer, Director of Excise Tax Policy at the Tax Foundation, noted that Missouri's central location made cross-border activity a significant factor. 

He said the launch would inevitably affect betting flows in surrounding states. Voters approved legalization in November 2024, and residents preparing for the rollout said convenience was a major benefit. 

Missouri is projected to generate roughly $28 million in annual tax revenue from sports betting. While the state does not expect to attract many cross-border bettors given its late entry, analysts indicated that recent tax policy changes in Illinois could drive some residents there to Missouri sportsbooks. Lucrative Missouri sportsbook promos will also aid in the switch.

Lawmakers in the Illinois sports betting market implemented a per-wager tax that Hoffer said may discourage frequent betting and could prompt some bettors living near the border to seek more favorable conditions. He added that later-adopting states, such as Missouri, were able to study tax structures in other places. 

Although higher tax rates risk reducing sportsbook margins and potentially leading to worse odds, it could prompt bettors to cross state lines.

Kansas grows fund to lure professional teams

The launch of Missouri sports betting comes as Kansas accelerates its own competitive efforts along the border. 

Kansas has quietly built a pot exceeding $26.2 million dedicated to attracting professional sports franchises, including the Kansas City Chiefs and the Kansas City Royals to hope over the border to Kansas. 

The state's fund can be used to support any professional team, covering principal or interest costs on state or municipal bonds for stadium development or related facilities. The fund supplements previously approved incentive frameworks, adding financial flexibility as both states continue negotiations with local teams. 

Kansas lawmakers granted a deadline extension in July for the Chiefs and Royals to accept hundreds of millions in stadium incentives. Missouri approved its own package earlier in the year.

At a recent legislative hearing, Sen. Mike Thompson reviewed how Kansas accumulated the funds with limited public attention. He said the statute made clear that the money could be directed toward financing new or expanded stadium projects aimed at drawing a professional franchise into the state, characterizing the provision as support for helping a team secure a profitable facility within Kansas.