Missouri Sports Betting Debut Drives March Madness Activity

Missouri is looking to benefit from the March Madness season, with it being the first for the Show-Me State since sports betting was legalized in December 2025.

Ziv Chen

Last Updated: March 21, 2026 1:49 PM EDT • 2 minute read

Pictured: Missouri Tigers center Shawn Phillips Jr. dunks as we look at the first year of legal March Madness betting in the state. Photo by Jeff Curry-Imagn Images

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The 2026 NCAA Men’s and Women’s Basketball Tournament marks the first March Madness in which Missourians can legally bet on the sports event. This has led to increased consumer involvement in the state.

The legal Missouri sports betting launched in December 2025, and the state recorded a handle of $543 million in the first month. The returns are being sustained during March Madness, which supports the American Gaming Association's projection of $3.3 billion in legal bets in 2026.

This is a 54% increase over three years as more states open their doors for sports betting.

Sports betting has led to greater consumer activity in the Show-Me State, moving from viewing only to also betting during games. In St. Louis, Ballpark Village has become a central hub for this activity, according to media outlet KMOV.

The 10-acre venue, anchored by a 65-foot LED screen, is drawing large crowds and placing live bets throughout the matchups.

“It’s great, you know we are blessed for having the arch madness from the MVC for 30 years here in Downtown St. Louis and for them to bring the NCAA here, is really remarkable and will make a huge impact in downtown,” said Andrew Dreyer with Ballpark Village.

In-game wagering keeps people watching longer and coming back for more. This leads to better betting engagement, which was good news for projections that the state will reach a handle of $4.5 billion this year.

Betting tax returns were low at first, with only $521,200 collected in the first month as operators took promotional deductions. There are differences between states in betting patterns. In Missouri, bettors are wagering on Arizona to win the tournament. This is similar to Colorado and Arizona.

However, in Illinois, next to Missouri, bettors are backing Michigan at +350.

Operator write-offs limit early tax contributions

That surge in activity on Missouri sports betting apps has not translated into proportional tax revenue. FanDuel and DraftKings, which financed the 2024 legalization campaign, generated a combined $120 million in winnings during the first two months without paying state taxes on those profits.

The two operators handled 73% of the $928 million wagered and accounted for 77% of total profits, according to data from the Missouri Gaming Commission.

Missouri applies a 10% tax on sportsbook revenue, but the law allows operators to deduct promotional credits, federal taxes, and other business costs. These deductions reduced taxable income to zero in the opening months.

Across December and January, sportsbooks reported $157.7 million in net winnings, with mobile platforms responsible for 99% of that total. The state collected $659,196 in taxes over the same period, less than 0.5% of operator revenue.

DraftKings and FanDuel reported similar wagering volumes, with $339.7 million and $338.4 million, respectively. FanDuel recorded $65.6 million in winnings, while DraftKings posted $54.4 million.

Both operators continue to carry forward significant write-offs, including $20.6 million for DraftKings and $8.1 million for FanDuel, delaying future tax obligations as Missouri sports betting continues to expand.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.