Just after losing out on a Missouri untethered sports betting operator’s license, FanDuel announced a partnership with Major League Soccer's St. Louis City SC.
The Flutter Entertainment-owned sportsbook announced the deal on Friday, which will help it gain access to the Missouri market once sports betting goes live in December. The Missouri Gaming Commission (MGC) requires all tethered operators to secure partnerships with a land-based casino or pro sports team.
FanDuel was denied one of Missouri’s untethered licenses early Friday. Circa Sports and DraftKings received the two available untethered licenses.
Bouncing back
FanDuel, the nation’s leader in sports betting, will be live in 25 jurisdictions once it completes its launch in Missouri, assuming it is approved for operation.
It and all other sportsbooks interested in a tethered operator’s license will be eligible for the Dec. 1 launch if they submit their license applications by Sept. 12.
FanDuel President of Sports Mike Raffensperger confirmed to Legal Sports Report that the company will indeed seek a tethered license in Missouri.
“Missouri is home to some of the most passionate sports fans in the country, and we are thrilled to partner with St. Louis City SC to introduce our industry-leading product to the Show Me State. We look forward to supporting the team and engaging with the community as we bring America’s No. 1 sportsbook to fans across Missouri.”
Bet365 earlier this year announced a partnership deal Major League Baseball's St. Louis Cardinals.
The MGC can grant up to 19 retail sports betting licenses and 14 online sports betting licenses.
The difference between untethered and tethered licenses is that the latter requires operators partner with a Missouri casino or professional sports team. That means they have to strike agreements and share their profits with their partners, making the untethered classification more lucrative to operators.
Missouri market prepares for launch
FanDuel missing out on an untethered license in favor of Circa was totally unexpected.
As the nation’s largest operator, the sports betting giant has much more pull and financial clout than Circa, which serves a smaller section of bettors, said Circa CEO Derek Stevens.
“Circa Sports is built for bettors, with sharp odds, high limits, and a low hold. We’ve already connected with 81,000 Missourians through our Club One loyalty program, and we’re ready to be an active part of the community, from local events to supporting youth sports.
“We didn’t win by trying to be the biggest. We won by staying true to who we are, and I want to thank the Missouri Gaming Commission for recognizing that and giving us the opportunity to bring the Circa Sports experience to the state of Missouri. We can’t wait to get started!”
Missouri’s sports betting market is expected to generate up to $30 million in annual tax contributions.
Operators will be charged 10% of their adjusted gaming revenue. After the MGC’s regulatory costs are covered, 10% or $5 million, whichever is greater, will be used to fund the Compulsive Gambling Prevention Fund.
The remaining funds will be used to support public education.