Missouri sees heavy online sports betting promo activity in June
Promotional outlays in Missouri consumed 37% of operator revenue in June. Online sports betting providers spent 3.5% of handle on promotions, a sequential increase from 2.9% of handle and 25% of revenue in May, according to figures released 30 July by J.P. Morgan analysts.
Handle statewide was US$258.3 million, of which operators kept US$24.6 million, a 9.5% hold rate. Promotional outlays represented US$9 million in spending.
DraftKings was dominant in the Show Me State, with US$103.4 million in handle and revenue of US$9.8 million. It held at 9.4% and spent US$3.4 million on promotions.
Finishing a distant second was FanDuel with handle of US$76.3 million and winnings of US$8.2 million. Holding at 10.7%, FanDuel also spent US$3.3 million in promotional capital.
Bet365 held at 9% on US$21.8 million In handle. It won US$2 million, of which US$1.3 million was returned promotionally.
A total of US$9.8 million in handle and US$1.2 million of winnings was registered by Caesars Sportsbook. Its hold percentage was a state-best 12.5%, while it expended US$200,000 promotionally.
Fanatics Sportsbook garnered US$20.2 million in handle, of which it retained US$1.5 million. Its hold was 7.6% and promotional outlay was US$500,000.
With US$16.5 million in handle and US$1.4 million of win, BetMGM saw a hold of 8.6%. Its promotional outlay was US$500,000.
Spending just US$100,000 promotionally, theScore Bet made US$500,000. From its US$8 million in handle, it saw a state-lowest hold of 6.6%.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
Launch costs gave way to a more measured market
Missouri’s June sports betting results fit into a pattern that has been developing since online wagering went live in the state: operators have been willing to spend heavily to acquire customers, but the intensity of that spending has moderated from the launch period and is now moving month to month with competitive pressure, sports calendar shifts and hold volatility.
The clearest contrast is with December, the market’s debut month, when Missouri sportsbooks produced unusually strong revenue but spent even more on promotions. In that first month, online operators generated US$103.4 million in revenue on US$538 million in handle, a 19.2% hold, yet promotional outlays reached US$125.1 million. That meant operators collectively posted a promotional deficit despite the strong hold, according to figures previously detailed in Missouri’s debut-month sports betting results.
That launch dynamic was not unusual for a new U.S. betting state. Operators typically use free bets and other incentives to build databases, defend national market share and condition customers to return to their platforms. Missouri’s tax structure also matters: promotional allowances are deductible up to a set threshold, making bonus spending more attractive than it would be in a state that taxes gross revenue without such relief.
Promotional spending normalized after January
By February, the most extreme launch spending had already eased. Promotional allowances fell to US$11 million, equal to 36% of revenue and 4% of handle, down from 61% of winnings and 9% of handle in January. Analysts at J.P. Morgan described the period as typical early-market noise tied to promotions and state accounting, but also said the dynamic was starting to normalize. The change was covered in Missouri’s February slowdown in sports betting promotions.
The February figures also underscored the two-tier nature of the market. DraftKings and FanDuel were already far ahead of the field by handle and revenue. DraftKings took US$105 million in bets and FanDuel US$93 million, while no other operator reached US$21 million in handle. FanDuel spent the most aggressively, with US$4.6 million in incentives, while Caesars Sportsbook spent US$200,000.
That split has remained central to Missouri’s competitive structure. The top two books use promotions not merely to add customers, but to shape the broader cost of competition. Smaller operators must decide whether to chase share with costly bonuses, preserve margins or target more selective segments of bettors.
March and April showed a steadier but costly equilibrium
March offered the first evidence that the state had moved past its opening promotional surge without becoming a low-spend market. Sports betting produced US$36 million in revenue from US$329 million in handle, a 10.9% hold. Of that revenue, US$12 million went back out in promotions and free play, equal to about a third of winnings and 4% of handle. Those results, summarized in Missouri’s March sports betting performance, showed promotional spending still elevated but no longer overwhelming operator win.
The month also highlighted a developing contest for leadership. DraftKings held a narrow handle advantage over FanDuel, with 36% of handle to FanDuel’s 33%, and it edged FanDuel in revenue by just US$100,000. BetMGM, Bet365, Fanatics Sportsbook, Caesars Sportsbook and theScore Bet filled out the market, but none was close to matching the top two.
April continued the same trend. Missouri sportsbooks accepted US$273.4 million in wagers and won US$33.5 million, a 12.3% hold. Promotional allowances were US$10 million, or 31% of win. DraftKings again led the state in handle and revenue, while FanDuel produced a stronger hold and spent more on promotions. The details in Missouri’s April sports betting results pointed to an equilibrium in which operators had reduced launch-level giveaways but still treated Missouri as an active battleground.
April also showed how market share can be expensive to defend. FanDuel’s US$5 million in promotions was nearly twice DraftKings’ US$2.8 million despite the companies’ broadly similar revenue. Bet365 returned US$1 million of its US$2.3 million in revenue to players. Fanatics and BetMGM each spent US$600,000, while Caesars and theScore Bet each spent US$200,000.
DraftKings and FanDuel set the pace
The June results therefore are less an isolated spike than part of an ongoing duel. DraftKings led Missouri with US$103.4 million in handle and US$9.8 million in revenue, while FanDuel followed with US$76.3 million in handle and US$8.2 million in revenue. Each committed more than US$3 million to promotional activity. Their combined scale gives them advantages in product, pricing, customer retention and marketing reach, but it also means they define the market’s promotional baseline.
For DraftKings, Missouri has become a state where it has mostly held the top revenue position. The company led revenue in every month except March through April, according to prior state data. Its June spending of US$3.4 million was high in absolute terms but broadly consistent with its strategy of defending leadership while keeping promotional activity below the December launch surge.
FanDuel’s profile has been different. It has often posted strong hold percentages and has repeatedly used heavier bonuses to compete for share. In February it was the most promotional operator, in April it again outspent DraftKings and in June it nearly matched DraftKings’ promotional total despite lower handle. That suggests FanDuel continues to value Missouri customers highly enough to subsidize acquisition and retention even as the market matures.
Smaller operators face sharper trade-offs
The stakes are different for the rest of the field. Bet365, Fanatics, BetMGM, Caesars and theScore Bet must compete in a state where the leaders absorb most of the betting volume. Their promotional strategies show varied approaches. Bet365 spent US$1.3 million in June on US$2 million of revenue, a high promotional ratio that signals an effort to gain traction. Fanatics and BetMGM each spent US$500,000, while Caesars spent US$200,000 and theScore Bet US$100,000.
Those decisions determine whether a smaller operator prioritizes share or near-term profitability. Caesars, for example, has repeatedly used restrained promotional spending in Missouri. That helped it preserve margin in some months, but its handle has remained modest. Bet365 has taken a more aggressive posture, using promotions to establish itself as a credible third competitor behind the two leaders. Fanatics has also shown signs of share-building, including April, when it was one of only two operators to grow handle share.
Missouri’s figures resemble broader U.S. patterns in which new entrants or expanding brands spend heavily to buy visibility. A recent Michigan comparison is instructive. When Bet365 debuted there, its promotional play significantly skewed statewide figures, helping lift promotional allowances and complicating year-over-year comparisons. That dynamic was evident in Michigan’s May sports betting surge, where Bet365 captured 14% of handle and more than half of its activity was promotional play.
The tax and margin question now dominates
Missouri’s June promotional ratio, 37% of operator revenue, shows the state remains expensive for sportsbooks even after launch spending has faded. The figure was up from May’s 25% and above April’s 31%, suggesting promotional intensity can reaccelerate when operators see an opening to gain customers or respond to rivals. Because promotional outlays are deductible within limits, the state’s policy helps sustain that competition.
For operators, the question is whether higher promotions generate durable customers or simply subsidize bettors who move to the next offer. June’s 9.5% hold was healthy, but not enough to make promotional spending irrelevant. Every percentage point directed to bonuses reduces taxable revenue and operating margin, even if it supports long-term market share.
For Missouri, the trade-off is equally clear. Promotions can stimulate betting activity, attract customers to regulated platforms and accelerate market development. But when operators deduct significant free-play spending, the state may see less tax revenue than headline handle and gross win imply. That tension has defined Missouri’s first several months and remains central to evaluating whether the market is maturing profitably or still being underwritten by aggressive customer acquisition.
