For years, Missouri has seen tax dollars leave its state as bettors crossed the borders into Illinois and other states with legal sports betting.
But with Illinois’ new per-bet tax beginning at 25 cents, sportsbooks could start pushing customers in the other direction this year.
Missouri sports betting does not begin until Dec. 1, as regulators chose the latest possible date to launch. Missing the majority of the NFL season is never ideal for a new market but the state could see a bump thanks to the changes in Illinois.
Taking bets in Missouri will mean higher margins, especially for the biggest operators as they climb Illinois’ sports betting tax ladder.
Illinois tax details
The 2026 Illinois fiscal budget passed over the weekend with a surprise for sportsbooks hitting at the last minute.
The budget calls for a 25-cent tax on the first 20 million bets taken per operator annually. That tax doubles to 50 cents for every bet beyond 20 million.
Only two sportsbooks eclipsed the 20 million bet mark: DraftKings and FanDuel.
This comes a year after the state shifted to a scaled tax rate that goes as high as 40% compared to the previous 15% rate the market launched with in 2020.
Other states could ease tax burden
There is a significant difference between what the biggest operators in Illinois are facing in terms of taxes compared to its surrounding states.
DraftKings and FanDuel have already made changes in Illinois to help offset their increased costs and could incentivize players to head out of Illinois into one of the better tax environments on its borders. That includes Iowa, Kentucky and Ohio, with Ohio’s 20% tax rate being the most expensive.
Once December rolls around, Missouri and its 10% tax rate will be an option to send bettors who live along Illinois’ western border. That includes Greater St. Louis, the 23rd-largest metropolitan area in the country.
DraftKings could benefit more than FanDuel because of the original Illinois law that required in-person registration. DraftKings partnered with Casino Queen in East St. Louis, a stone’s throw from downtown St. Louis.
