Online sports betting promotions slow down in Missouri in February
In February, promotional allowances from Missouri sports books dipped to US$11 million – 36% of revenue compared to 61% of winnings in January.
Promotional outlays in Missouri are tax-deductible up to 25% of handle. February’s largesse represented 4% of handle and January’s was 9%.
Sports books held 11.3% on handle of US$277 million, for a gross of US$31 million. J.P. Morgan analyst Daniel Politzer commented that this was “typical handle/hold noisiness associated with promotions/state accounting in the first few months of a market launch (though this dynamic is starting to normalize).”
Tightest of the books was FanDuel, which held at 12.9%. Its US$93 million in handle boiled down to US$12 million. This put it just slightly behind market leader DraftKings, which garnered US$13 million from handle of US$105 million, for a 12% hold rate.
Third in hold and gross was Bet365. It held at 10.7% for a US$2.2 million return on handle of US$20 million. Fanatics Sportsbook realized US$1.6 million in revenue off US$18 million in handle, holding 8.6%.
BetMGM trailed Fanatics in revenue with US$1.4 million. Its hold rate was 7.1% on US$20 million in handle. Caesars Sportsbook saw US$12 million in handle and US$800,000 in winnings, for a hold of 6.1%.
TheScore Bet saw US$7 million in handle and US$800,000 in win. It held at 10.6%. Figures for Circa Sports were not available.
Promotionally, FanDuel was the most lavish, putting out US$4.6 million in incentives. Caesars Sportsbook was stingiest, laying out US$200,000 in free play.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
Promotions cool as Missouri’s market matures
Missouri’s online sportsbooks are moving past the launch sugar high. After a December debut defined by lavish giveaways and unusually high hold, operators pulled back sharply in January and tightened again in February. Promotional allowances fell to US$11 million in February, or 36% of revenue, down from 61% in January. Because Missouri lets operators deduct promotional credits up to 25% of handle, early spending was always likely to be front-loaded. The new data suggests the market is settling into a steadier pattern as books chase sustainable share rather than splashy acquisition.
The early arc is textbook. December’s first month carried a 19.2% statewide hold and US$103.4 million in revenue on US$538 million in handle, but operators collectively lost money after doling out US$125.1 million in promos. Those launch dynamics are detailed in this look at Missouri’s debut month in December, which notes FanDuel’s early lead and Bet365’s outsized 31.7% hold. By January, promo outlays had already dropped to 61% of revenue from 119% in December, signaling that the costly land grab was giving way to more measured spend. The January inflection is captured in Missouri promotions drop sharply in January, which also showed DraftKings overtaking FanDuel in handle share as operators recalibrated tactics.
From splashy launch to sharper discipline
December’s opening month was always going to skew metrics. A 19.2% hold is outsized for a mature market, and the month featured heavy parlay action, brand promotions and accounting quirks typical of launches. The December breakdown shows FanDuel topping revenue and handle and DraftKings close behind, with BetMGM and Caesars eking out positive wins despite lighter spending. Several operators, including Bet365, offered aggressive promos that juiced hold and churn but compressed net results once credits were counted, as laid out in the debut-month report. The eye-popping promo total flipped the market to a net loss, an outcome that tends to normalize as promo budgets taper and bet mix stabilizes.
That normalization arrived quickly. In January, the statewide hold eased to 14.2%, still elevated but down from December. Promotions fell to 61% of revenue from 119%, according to the January readout in Missouri promotions drop sharply in January. Market shares shuffled as spending patterns shifted. DraftKings captured 37% of handle to FanDuel’s 33%, while Bet365 and BetMGM each held 9%. Fanatics, Caesars and theScore split the remainder. Operator holds also reverted toward trend lines, with BetMGM loosest and Bet365 tightest.
February’s pivot: tighter holds, targeted spend
February extended the downshift. Operators held 11.3% on US$277 million in handle for US$31 million in gross win. Promotional outlays equaled 4% of handle, half the January rate and well below December’s peak. That dynamic aligns with early lifecycle patterns that industry analysts have flagged: launch surges followed by tapered promos and steadier accounting as the base of repeat bettors grows.
Competition at the top remained close. FanDuel’s 12.9% hold on US$93 million in handle yielded US$12 million in revenue, narrowly behind DraftKings’ US$13 million on US$105 million in handle at a 12% hold. Bet365 ranked third in hold and gross with US$2.2 million on US$20 million in handle at a 10.7% hold. Fanatics, BetMGM, Caesars and theScore clustered behind. The spread reflects a pivot from broad-based giveaways to more targeted offers. FanDuel still spent most on February promotions at US$4.6 million, which likely supported parlay-led hold, while Caesars was the most conservative at US$200,000.
The emerging picture is a market where operators are right-sizing acquisition and retention against the state’s tax-deductible cap. With fewer free bets in play and less distortion from initial accounting, February’s figures point to a competitive equilibrium that weighs hold efficiency, parlay penetration and disciplined customer incentives.
How Missouri stacks up against national currents
Missouri’s February step-down parallels trends seen in larger states, where operators have leaned on parlay mix and measured promos to drive higher-margin growth. New York’s February performance underscores that approach. There, books generated $185 million on $2 billion in handle with a 9.4% hold, led by FanDuel’s 12.5% hold and $93 million in win as detailed in New York sports betting soars in February. DraftKings held more loosely in New York at 7.2%, which constrained win despite similar handle scale. The divergence shows how operator strategy and bet mix can swing outcomes even within the same competitive pair.
Month-to-month comparisons in New York also highlight volatility tied to promotions, parlay share and calendar effects. In a separate February read, DraftKings defies downward New York trend, DraftKings grew win despite a slight handle dip while rivals saw pullbacks, and average hold landed at 8.5%. The split narratives point to how small shifts in promos or pricing can move hold several points for any given month. Missouri’s downward drift in hold from December to February likely reflects a similar rebalancing rather than a demand reset.
Meanwhile, a steadier Midwest comparison comes from Iowa, where handle was US$203.5 million in February and online net receipts reached US$20.9 million, up year over year, according to Iowa online sports betting hits US$203.5 million in February. DraftKings led there with US$75.2 million in handle and higher net receipts versus a year earlier. The Iowa snapshot suggests mature states can sustain receipts with tighter promotional spend and stable hold even when handle is flat. That path is instructive for Missouri as it exits its launch phase.
What the next few months could reveal
The stakes in Missouri now turn on who optimizes parlay economics, retains early cohorts and spends judiciously under the state’s promo deductibility cap. February’s data shows FanDuel and DraftKings running neck and neck with double-digit holds, while Bet365 and Fanatics are carving out spots with disciplined pricing and selective incentives. BetMGM and Caesars are leaning conservative on giveaways, which could support margin but risk ceding share if rivals outspend during key sports windows.
Operator commentary has flagged “noisiness” around launch accounting and early promos, and the month-to-month declines in Missouri’s promo ratio echo that. The next checkpoints will be March Madness and the run-up to the NFL preseason, when promotional calendars typically re-accelerate. If February’s pattern holds, expect more targeted offers rather than blanket free bets, steadier holds near low double digits, and a continued tug-of-war between FanDuel’s parlay-led edge and DraftKings’ handle scale.
Longer term, Missouri’s trajectory will be measured by whether revenue per bettor rises as acquisition slows, whether promo efficiencies hold under seasonal pressure and whether smaller brands can differentiate on product or price without heavy subsidy. The early timeline from December’s splash to February’s restraint sets the baseline. The next moves will show who can turn launch momentum into durable profit.
