Missouri Launches Sports Betting as Prop-Bet Scandals Draw Scrutiny
Missouri launched legal sports betting on Monday, allowing many player-based prop wagers while banning bets tied to in-state college athletes.
LISTEN TO THIS ARTICLE:The debut of statewide wagering in Missouri comes at a sensitive moment for the industry: multiple recent scandals involving proposition bets have put professional and collegiate athletes under intense scrutiny. In the weeks before the rollout, two Cleveland Guardians pitchers were criminally charged in an alleged scheme linked to specific pitches, an NBA player was arrested in an investigation tied to insider information for gamblers, and the NCAA revoked the eligibility of six men’s college basketball players accused of manipulating in-game performance.
Prop bets – wagers on discrete events such as a player’s point total, passing yards, strikeouts or even the result of a single pitch – are now a central focus of regulators, leagues and betting operators. The American Gaming Association reported sports betting operators took in more than $11 billion through the first three quarters of the year, a rise of roughly 13% compared with the same period last year, underscoring how quickly the market has expanded since the Supreme Court cleared the way in 2018.
Joe Maloney, senior vice president of strategic communications at the American Gaming Association, said prop markets are changing fan engagement. "An increasingly popular way in which to provide for engagement for any type of fan", he said. Maloney later argued that recent indictments and policy responses demonstrate the system is reacting: "The criminal charges, player penalties and policy changes involving prop bets are a demonstration that the market is really working as intended."
Data collected in early-adopter states illustrates why concern is rising. Brad Humphreys, director of the Center for Gaming Research and Development at West Virginia University, said prop bets accounted for more than half of wagers on one large platform during a roughly one-month stretch this summer, and that most of those bets were placed as parlays, amplifying the volume and speed of wagering.
Researchers warn that the format carries distinct risks. Rachel Volberg, a research professor of epidemiology at UMass Amherst, noted: "Because prop bets speed up the ability to make multiple bets, they carry a higher risk of developing addictive behavior for some bettors." Missouri’s sports betting amendment responded in part to those concerns by earmarking at least $5 million a year for problem-gambling services.
The ballot measure that legalized wagering last year also included a limited restriction: prop bets tied to games involving Missouri colleges or universities are prohibited. The amendment passed after a contentious campaign fueled by a state-record $43 million effort largely financed by DraftKings and FanDuel, the dominant national operators. Jack Cardetti of the Sports Betting Alliance defended the compromise: "We thought this was a good middle ground that had worked in other states and that would uphold the integrity of the games here." The alliance has warned that a blanket ban could drive bettors to illegal, unregulated markets.
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Not everyone believes in-state limits will be effective. Nathan Novemsky, a marketing and psychology professor at Yale University, said the prohibition is unlikely to stop interest in player-specific wagers: "That’s going to be a Band-Aid on a dam that’s breaking here, because folks will just make those bets on other teams."
Policing suspicious activity largely rests with sportsbooks working alongside leagues and law enforcement. Major League Baseball, after the Guardians matter, reached an accord with major operators to cap wagers on individual pitches at $200 and to bar those bets from inclusion in parlays – a concrete change aimed at narrowing the scope for manipulation.
At the state level, the Missouri Gaming Commission has dedicated staff to oversee the new market and is recruiting additional regulators. Commission chair Jan Zimmerman says the agency is expanding its capacity, but detection and prosecution of fraud will rely on cooperation between operators, leagues and investigators.
Many Missouri residents have welcomed the new legal option after years of crossing state lines to wager. Suburban St. Louis resident Brett Koenig, who used to drive into Illinois to place bets, said he plans to wager from home and might try prop markets depending on offers. "It’s something I’ve been looking forward to for a long time", he said.
As the market grows, expect further legislative and industry debate: New Jersey lawmakers have proposed broader limits on prop betting, and leaders in other states, including Ohio’s governor, have urged tighter curbs on micro‑betting. Regulators and operators will face pressure to balance consumer protection, market demand and the integrity of sports.
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