Circa Sports is joining FanDuel and DraftKings in pursuit of an untethered sports betting license in Missouri.
The problem? There are only two of these licenses up for grabs ahead of the state’s market launch on Dec. 1.
Untethered licenses do not require sportsbooks to be associated with a casino or professional sports team. Which means operators don’t have to split their revenue or resources with land-based partners.
But, again, there's only two available in the Missouri sports betting market.
All 3 could apply for tethered licenses
Circa’s competitors for the license, DraftKings and FanDuel, contributed more than $40 million to a ballot effort that resulted in Missouri legalizing sports betting, according to Legal Sports Report,
Those two companies are also the top operators in America, representing a combined 68% market share, per CBS Sports.
The state’s deadline for untethered applications closed on Tuesday, so the three operators are the only ones in the race.
Thirty-one tethered sports betting licenses are still available for partners of the state’s six professional sports teams or 13 casinos. Those applications are due to the state by Sept. 12.
The Missouri Gaming Commission (MGC) will announce its selections for untethered licensees on Aug. 15 following a hearing on Aug. 13. All three of the operators seeking untethered licenses can also apply and possibly be issued a tethered license.
Circa Sports operates in only five of the 38 states with legal sports betting: Colorado, Illinois, Iowa, Kentucky, and Nevada. However, it maintains a positive reputation among sharp bettors because of its high betting limits, reduced vigorish (juice), and willingness to embrace sharp players instead of giving them limits or bans.
The sports betting landscape
Missouri will enter the sports betting market with a 10% tax rate on sportsbook revenue, which is much closer to the nation’s lowest rate (6.75% in Iowa and Nevada) than to the highest (51% in New Hampshire, New Jersey, and Rhode Island).
That’s despite nearby Ohio recently doubling its sports betting tax rate from 10% to 20%, and Illinois increasing its rate from 15% to between 20% and 40% and adding a $.25-.50 per-bet tax.
As far as untethered licenses, the MGC has officially received only one submission, from Underdog. That’s a rarity for the company, which primarily operates a Daily Fantasy Sports platform and is only approved for traditional sports betting in North Carolina.
Century Casinos, one of the state’s retail locations, has partnered with BetMGM, which is expected to seek a sports betting license. Earlier this year, the St. Louis Cardinals reached an agreement with bet365, which will also probably apply for a license in Missouri.