Missouri regulators have awarded the state’s two untethered mobile sports betting licenses to DraftKings and Circa Sports, positioning the operators to launch in one of the last major U.S. markets still closed to online wagering.
The Missouri Gaming Commission (MGC) said the licenses will allow both companies to operate independently without requiring partnerships with local casinos or professional sports teams. Mobile betting is expected to go live on December 1, pending final approvals.
DraftKings, the nation’s No. 2 sportsbook by handle, projected $175 million in annual revenue once the market matures. That would contribute to the state’s expected $60 million in tax revenue under Missouri’s 10% levy on sports betting. Missouri would become the 29th state where DraftKings operates.
“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,” said Matt Kalish, DraftKings president and co-founder. “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.”
The bigger surprise was Circa Sports, a Nevada-based bookmaker with a single-digit market share nationally, which prevailed over larger rival FanDuel, which had also applied for an untethered license. Circa has built its brand around welcoming professional gamblers, offering high limits to all customers, and running on a 3.5% hold rate compared with about 10% at most competitors.
“Winning one of Missouri’s first two untethered mobile betting licenses is a great honor,” Derek Stevens, CEO of Circa Sports, told Covers. “We came in as the long shot against national giants like DraftKings and FanDuel, but our licensure approval today proves there’s room for a different kind of operator.”
FanDuel, which had invested heavily in lobbying for legalization and projected $400 million in annual Missouri revenue, did not secure a direct license. Instead, it struck a market access deal with Major League Soccer club St. Louis City SC and is expected to apply for a tethered license before the September 12 deadline. Missouri would be the 25th state where it operates.
“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,” said Mike Raffensperger, president of sports at FanDuel.
The MGC said up to 21 mobile sports betting licenses are available; the two awarded Friday were the only untethered. St. Louis City SC is one of six professional teams in the state eligible to hold a license. In addition, Missouri’s 13 casinos can apply.
The two stand-alone permits cost $500,000. Other operators seeking entry may pursue tethered licenses, which carry a $250,000 application fee. Market-access agreements with local partners — often structured as a percentage of revenue or a set payment — are negotiated separately.
Other operators, including Caesars, ESPN BET, BetMGM, bet365, Fanatics, Underdog, BetRivers, Hard Rock, and Bally Bet, are also expected to seek market access agreements for the Missouri market.
