The Missouri Gaming Commission announced Friday that DraftKings and Circa Sports received the state’s two untethered sports betting operator’s licenses.
The special classification of license means the operators don’t need to partner with a land-based affiliate, whether that be a local casino or a professional sports team. It also means that FanDuel, America’s leader in sports betting and one of three applicants for an untethered license, will have to find a retail partner to offer sports betting in Missouri.
Circa, DraftKings, and FanDuel appeared before the commission on Wednesday to share their final pitch. The decision is regarded as a major upset in the American sports betting landscape.
The first operators are chosen
According to Legal Sports Report (LSR), the companies’ Wednesday pitches each centered on different ideas.
DraftKings played up its product and the volume of its operations.
FanDuel dove into its vast experience and success with audience acquisition.
Circa Sports admitted that it operated on a much smaller scale but said that its focus was on competitive odds for newcomers and experienced gamblers.
The Missouri Gaming Commission (MGC) gathered again on Friday to make its final decision, which was announced later in the morning. DraftKings President of North America Matthew Kalish said issued a statement after securing one of the two available licenses.
“We’re pleased to secure one of two direct mobile licenses in Missouri – paving the way for us to bring DraftKings’ industry-leading online sportsbook to fans across the state,” Kalish said. “Missouri is home to several professional teams and deeply passionate fanbases, and we look forward to enhancing their sports experience with a dynamic and responsible mobile platform.”
Circa hailed its success as an underdog and staying true to its core principles rather than trying to appeal to a wider audience. It worked with members of the commission, said MGC Chairman Jan Zimmerman.
“The commission considered many factors before the two applicants were chosen. We commend Betfair Interactive US, LLC for its efforts. It was a difficult decision, but the commission is only able to grant two licenses.”
No love for FanDuel (for now)
Despite not being chosen to operate as an untethered entity, FanDuel still plans to join the Missouri market when it launches in December, a FanDuel spokesperson told LSR.
“We appreciated the opportunity to present to the Missouri Gaming Commission and respect their decision. We look forward to bringing our leading sportsbook product to Missouri residents.”
With the untethered operators chosen, Missouri will now turn its attention to vetting and approving tethered operators. The difference between these two classifications is that tethered operators have to share their profits in arrangements made with their partners.
All of Missouri’s sports betting operators, regardless of their classification, will begin operations when the state market launches on Dec. 1. Operators hoping to receive tethered licenses must submit their applications to the MGC by Sept. 12 to be eligible for the opening-day launch.
Missouri voters approved sports betting in November 2024 by the narrowest of margins, securing 50.1% support for Amendment 2.
The state will impose a 10% tax on sportsbooks’ adjusted gross revenue. The state expects to receive close to $30 million in annual contributions from sports betting.