Missouri Sports Betting Launch Reshapes Neighboring Markets
Missouri opened its legal sports betting market on Dec. 1, and the immediate effect showed up across state lines. Kansas and Illinois both reported year-on-year declines in handle in the months that followed, with Kansas absorbing the sharpest drop.
The shift reflects a familiar pattern in US sports betting, where a new market pulls activity back within its own borders. At the same time, overall growth across the country has started to level off as more states reach maturity and competition from external factors, such as prediction markets, grows.
Kansas sports betting felt the impact first and hardest. The state’s sports betting handle fell 7.9% year-on-year in December 2025, then dropped 24.7% in January 2026. February followed with another year-on-year decline of 12.1%. Those numbers landed quickly after the Missouri sports betting launched, suggesting a direct pull from bettors who no longer needed to travel or cross state lines.
Illinois sports betting also recorded declines, though the movement was less dramatic. Handle slipped 3.4% year-on-year in December and 3.9% in January. The state had a few counterweights that Kansas did not. A stronger Chicago Bears season helped sustain betting interest, while broader market size provided some insulation.
Other variables were also at play. Kansas saw reduced engagement after the Kansas City Chiefs missed the playoffs, which removed a major driver of local betting volume.
Taken together, the data shows how quickly demand can shift when a new state enters the market.
Illinois tax changes impact betting activity
This is evident when looking specifically at Illinois. The state introduced a new betting tax on September 1, 2025, with operators charged $0.25 per wager for the first 20 million bets and $0.50 per wager thereafter.
The effect was seen in the state within weeks. Bets on professional and college sports in person were down 15% in September and October compared to the same time in 2024.
October alone saw roughly 5.4 million fewer bets placed year over year. Fewer tickets, though, did not mean less money overall. Total wagering volume increased during the same period, suggesting that bettors who stayed active were staking larger amounts per bet.
The market itself also changed slightly. bet365 opened a retail sportsbook at Walker’s Bluff Casino Resort in Carterville, adding another access point for bettors. Even with that expansion, overall participation dipped.
Tax revenue moved in the opposite direction. Sportsbooks generated $41.5 million in October 2025, up from $24.4 million a year earlier. The new wagering tax added another $14.6 million to that total.
Industry groups pushed back on what the numbers might signal. The Sports Betting Alliance argued that higher costs are forcing some bettors out of the regulated system. The group also pointed to Chicago’s new 10.25% local tax, approved in the city’s 2026 budget, as an added strain.
A legal challenge against that measure is already underway, while some Republican lawmakers in Illinois have raised similar concerns about the broader tax approach.
