Missouri has received its first applications for operator licenses ahead of the state's sports betting launch on Dec. 1.

DraftKings Sportsbook and Underdog were the first to submit applications to operate sportsbooks in the Show Me State. Missouri promises to be a hotbed for US sports betting, despite the referendum legalizing it narrowly passing last November.

A maximum of 14 online sports betting licenses will be available.

Preparing for launch

The Missouri sports betting licensing process began on May 15. Operators must pay a $500,000 online license application fee and be vetted by the Missouri Gaming Commission before they can receive a license.

Amendment 2 allows for a total of 33 licenses, 19 retail and 14 mobile.

Interested companies have until July 15 to apply for the two "untethered" mobile licenses and until Sept. 12 to apply for the remaining 12 "tethered" mobile licenses and 19 retail licenses.

Legal Sports Report reported that a Missouri Gaming Commission spokesperson confirmed the pair of operators are the only two to turn in their applications as of Monday. 

Who could seek a license?

Underdog operates its daily fantasy sports contests in 41 states, but it is only licensed as a legal sportsbook operator in North Carolina. Assuming it receives licensing, it would mark a rare shift in direction for the company.

Bet365 Sportsbook, although yet to apply for a license, has already taken steps to ensure it is up and running when the market launches. It partnered with the St. Louis Cardinals in March, giving it access to one of the licenses available to professional sports teams.

FanDuel Sportsbook CEO Peter Jackson said earlier this year that FanDuel would apply for a license in Missouri and give up to $80 million in free bets, promotions, and audience acquisition efforts once the state market goes live.

BetMGM has also said it would like to be operational by “Day 1.”

Fanatics, ESPN Bet, and Caesars, are also expected to apply for licenses.

Missouri's market could thrive

One of the biggest attractions for sportsbooks in Missouri is the Kansas City Chiefs. Football produces the highest handle and revenue totals for sportsbooks every year, and the Chiefs often find themselves in the playoffs if not the Super Bowl.

MLB's Cardinals and Kansas City Royals will also generate a lot of betting activity, as will the St. Louis Blues in the NHL.

Missouri's low 10% tax rate on sports betting will also assure that sports bettors receive attractive odds from sportsbooks.