Missouri promotions drop sharply in January
Outlays by online sports books to players fell in January, the second month of sports wagering in Missouri. The promotional giveaways went from 119% of revenue in December to 61% in January.
Hold in Missouri was 14.2%, the tightest reported for a month. J.P. Morgan stock analyst Daniel Politzer opined in a 2 March investor note that this was “reflecting typical handle/hold noisiness associated with promotions/state accounting in the first few months of a market launch.”
After a strong first month in the Show Me State, FanDuel faded to second in terms of handle, with 33% of the market to DraftKings’ 37%. Bet365 and BetMGM shared third place with 9% each, while Fanatics Sportsbook took 6% of wagers and Caesars Sportbook 4%. Penn Entertainment’s theScore brought up the rear with 2%.
Bet365 held the most tightly, with 17% to DraftKings’ 16%. BetMGM was the loosest at 3.7%. Others included FanDuel (15.8%), theScore (11.2%), Fanatics (9.4%) and Caesars (8.7%).
DraftKings outpaced FanDuel in terms of revenue, US$23 million to US$20 million. The duo outpaced Bet365’s US$5.8 million, as well as Fanatics’ US$2 million. BetMGM’s US$1.2 million was edged by Caesars’ US$1.3 million, while theScore reported US$1 million in revenue.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
A second-month reset in context
Missouri’s sharp retreat in promotional outlays looks less like an outlier than a familiar second-month correction that follows splashy market debuts. Early launches often feature aggressive sign-up bonuses and risk-free bets to build brand awareness and initial handle, then a quick pivot to more measured spending once operators size up player quality, hold variability and competitive position. The tightening in January coincides with operators across North America rebalancing toward profitability and longer-term retention after a year of elevated customer acquisition costs.
The broader shift is being discussed openly by industry marketers who argue that leaning on bonuses alone is a race to the bottom. At the Canadian Gaming Summit, a panel of marketers from major brands emphasized that with customers registered on multiple apps, the economic case for constant promotional escalation is weakening. Their focus is moving to customer experience, trust and personalization to keep players returning without endless bonus churn. That strategic turn helps explain why a new market’s second month often sees a colder eye on how much promotion is actually needed to retain viable customers.
Missouri’s mix of leaders and laggards by handle and hold also fits the pattern: strong national brands tend to capture early share, but hold dynamics and promo accounting can whipsaw monthly revenue tallies. What matters for operators in month two is not headline handle but the quality of acquired players and the sustainability of the spend supporting them.
From bonuses to brand: retention takes the lead
The industry’s evolving playbook favors loyalty built on product, content and reliability rather than serial incentives. In Ontario and other competitive provinces, operators have been forced to win on execution because users face minimal friction to switch apps, with bonuses often rewarding that behavior. Panelists at the Canadian Gaming Summit framed the solution as a cohesive user journey that starts with seamless onboarding and continues with localized content, responsible gaming tools and stability. As one speaker put it, players will keep multiple apps but default to the one that consistently meets expectations.
That thinking is pushing operators to refine segmentation, tailor offers and right-size promotions to a player’s intent. Gamification and deeper data use are not about increasing churn but about understanding preferences to surface relevant experiences. In that environment, big blanket bonuses lose potency. The industry case for dialing back promos after launch months becomes clearer: high-spending incentives are table stakes to get in the consideration set, but they are not what keeps customers.
This philosophy was front and center in the panel discussion on building loyalty through brand at the Canadian Gaming Summit. The conversation underscored how personalization and local relevance can curb the need for perpetual giveaways while lifting retention. Read more about those operator strategies in the session recap, operators seek retention strategies beyond promotions.
Marketing heat from regulators
Any recalibration of promotional strategy is also happening under tighter regulatory scrutiny of advertising and influencer campaigns, especially where illegal operators creep into consumer feeds. In Australia, Meta’s moderation lapses have drawn fresh criticism after multiple posts promoted offshore crypto gambling to large audiences despite user reports. An Australian regulator reiterated that influencers face steep penalties for facilitating access to unlicensed wagering, yet some content stayed live and accessible to adults even after being flagged.
That enforcement message is not aimed at licensed sportsbooks, but it raises the reputational temperature for all gambling marketing on social platforms. Regulated operators have little appetite to be caught in the undertow of a crackdown fueled by offshore promotions that flout local law. Stricter platform policies or regulator-led restrictions could narrow the advertising lanes that licensed brands rely on, making costly promotions a less effective lever. For details on the Meta episode, see Meta fails to remove illegal crypto gambling promotions despite warnings.
Offshore pressure at marquee events
The marketing advantage of illegal sites is especially visible around major tournaments, where brand association and giveaways can mislead consumers. During the Australian Open, unlicensed operators used tournament logos and player images, offered premium ticket promotions and racked up social engagement, according to reporting cited by industry groups. Regulators vowed to block offending sites but acknowledged that some users bypass restrictions via VPNs.
For licensed sportsbooks, this is a twofold threat: offshore promotions can siphon casual bettors and complicate efforts to demonstrate that regulated markets protect consumers. It also risks confusing new customers about what is legal, undermining the trust that compliant brands are trying to cultivate as they wean customers off bonus-first behavior. The dynamic was captured in coverage of illegal gambling sites using the Australian Open in promotions, which highlighted gaps between enforcement capability and the pace of offshore marketing.
When payments and fees change the math
Promotional pullbacks are one lever. Payments policy and data-rights fees are another. In the Philippines, a central bank directive that cut off e-wallet access to licensed platforms in August hit transaction volumes and revenue at a leading supplier. The operator reported a steep quarterly profit decline even as nine-month earnings rose on earlier momentum, underscoring how quickly payments friction can reset growth curves. The company leaned on product innovation and retail performance to cushion the blow, but the episode shows how non-marketing levers can force immediate spend and strategy adjustments. The numbers are in DigiPlus Q3 earnings drop after e-wallet blocks.
Fee structures for sports data and rights can have similar effects. A dispute in Australia over proposed betting fees tied to soccer competitions led major bookmakers to remove state-league markets and warn they might pull A-League offerings. Operators said the new construct could amount to almost 30% of revenue on some games, well above norms for other leagues. If fees rise faster than revenue, operators are more likely to prune markets, trim promotions or push bettors toward products with better unit economics. That standoff is detailed in bookmakers drop state leagues amid Football Australia dispute.
These policy and cost shifts cascade into promotional decisions. When access or margins tighten, the bonus budget is often first on the chopping block, especially for markets beyond core tentpole events.
The stakes for the next few months
For Missouri, the early trendline suggests the market is normalizing faster than some expected, with operators testing how low they can set promotions without losing share or quality of play. The bigger picture is an industry embracing a post-land grab phase where brand, product reliability and responsible marketing do more heavy lifting than subsidies.
Watch for three signals: whether promo intensity re-accelerates around March college basketball and the NBA playoffs, if share gaps widen as operators push personalization and local content over blanket offers, and how regulatory and fee pressures abroad foreshadow similar debates in U.S. states. If the experience in Canada, Australia and the Philippines is any guide, the cost of marketing, access and payments will keep shaping what bettors see — and how much they’re offered — long after a market’s opening month.
