Missouri schools are not expecting a major budget increase from the state’s newly legalized sports betting industry, despite more than $3.2 million being transferred into education funds during the first year of legal wagering.
Missouri voters approved sports betting in November 2024 after supporters highlighted education as one of the major beneficiaries.
The Missouri Gaming Commission initially estimated that sports betting could generate more than $6 million for education in its first year, with annual revenue potentially reaching about $20 million over the following four years.
However, the money being generated does not necessarily mean school districts will receive additional funding beyond what was already included in the state’s budget.
Sports Betting Money Already Included in State Budget
During fiscal year 2026, $3.213 million was transferred into the Missouri Education Fund. Another $1.084 million was transferred to the Sports Wagering Education Fund on June 9.
Yet, as of Aug. 13, Southern Boone County R I School District said it had not received any payments specifically identified as coming from the Missouri Education Fund.
Under the Missouri Constitution, sports betting operators are required to pay 10 percent of their monthly gross gaming revenue to the state for education. Sportsbooks can deduct certain expenses, including player winnings, promotional wagers and federal taxes, before the tax is calculated.
The larger issue for schools is how lawmakers have chosen to use the revenue.
According to Missouri Department of Elementary and Secondary Education Chief Communications Officer Lucas Bond, lawmakers included sports wagering revenue in the state’s existing education appropriations.
House Bill 2 includes $6.805 million from the Sports Wagering for Education Fund for the foundation formula, which helps provide funding to school districts. The budget also includes $1.2 million for career readiness assessments and $400,000 to create an online parent portal.
Bond said the funding can help support those appropriations if sports betting revenue continues as projected. However, the money going toward the foundation formula is not expected to create a net increase for schools.
Districts Await Clearer Picture of Funding
Columbia Public Schools Chief Financial Officer Heather McArthur said school districts generally do not receive a detailed breakdown showing the exact source of every dollar in their state payments.
Gaming revenue earmarked for education is generally included under the Classroom Trust Fund line on district payment statements. Those funds are currently being distributed according to the state’s existing budget appropriation.
The situation could change later in the fiscal year as Missouri officials gain a clearer picture of sports betting revenue and make additional distributions or adjustments.
The issue highlights the difference between generating new revenue and increasing school funding. Although legalized sports betting created a new source of money dedicated to education, lawmakers determine how that money is incorporated into the state budget.
For Missouri schools, that means the arrival of sports betting revenue does not automatically translate into larger budgets. Instead, much of the money is being used to support education spending that was already planned.
