Sportsbook operators are lining up to go live in Missouri in December, with the state’s regulator already making one surprising licensing decision.
The Missouri sports betting landscape continues to take shape as Fanatics Sportsbook announced its market access partner Monday.
Fanatics is partnering with Boyd Gaming for access to the Missouri sports betting market. The company plans to launch online and in-person sportsbooks in the Show Me State. Boyd has two brick-and-mortar Ameristar casinos in the state, near Kansas City and St. Louis.
Fanatics is just the latest operator to unveil its plans for the market.
The Missouri Gaming Commission this month awarded two untethered licences to DraftKings and Circa. Other operators need to apply for the 14 remaining available online licences through partnerships with the state’s casino companies and professional sports teams.
Missouri sports betting remains on track for a 1 December launch. Tethered licence applications are due 12 September for sportsbooks looking to start taking bets in December.
Surprise Missouri sports betting licence decision
Along with DraftKings and Circa, FanDuel was a third applicant for the two available untethered licences. Though FanDuel would have been a safe bet as a state tax revenue driver, the MGC went with its top competitor and an operator catering toward a small segment of the market.
“The Commission considered many factors before the applicants were chosen,” MGC Chairman Jan Zimmerman said in a statement. “We commend Betfair Interactive US, LLC for its efforts. It was a difficult decision, but the Commission is only able to grant two licenses.”
Following the MGC’s decision, FanDuel announced a market access agreement with MLS team St. Louis CITY SC.
“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,” Mike Raffensperger, president of sports at FanDuel, said in a release.
Why Circa landed Missouri sports betting license
The untethered licences carry a $500,000 application fee, instead of the $250,000 fee for the tethered licences. However, holding a tethered licence means a third-party operator like Circa or FanDuel would need to pay its partner, perhaps through a revenue-sharing agreement.
During an MGC hearing for the licences, Circa owner Derek Stevens highlighted his sportsbook’s differences. That includes a target hold of 3.5%, compared to other operators bringing in rates north of 10%. He also noted 95% of the handle comes from wagers of more than $50. Stevens also said the sportsbook does not limit bettors.
He conceded Circa would not compete in terms of marketing spend or customer acquisition, but evidently was persuasive that the business model provides a separate revenue opportunity for the state by targeting different bettors.
“They saw it as an opportunity to attract different types of bettors to the state, for example, higher wagering,” MGC Executive Director Michael Leara told St. Louis Public Radio. “And that seemed to be appealing to the commissioners. Instead of having two of the exact same type of business models and betting platforms, having something a little bit different would be attractive to the people of the state.”
During the hearing, FanDuel estimated generating $400 million in annual revenue once the market hits maturity. DraftKings projects $175 million annually. Stevens did not provide a projected revenue figure.
The state will tax sports betting revenue at 10%.
FanDuel poured money into Missouri
Because of legislative infighting, the Missouri Legislature failed to pass sports betting measures for multiple years before the state’s sports teams led a ballot initiative. In November 2024, the issue passed with just over 50% of the vote.
DraftKings and FanDuel contributed more than $40 million during the campaign.
While those two led the way for sportsbooks in the ballot initiative, other operators are also keen on Missouri.
Bet365 has partnered with the St. Louis Cardinals for market access, while BetMGM paired up with Century Casinos.
Underdog has also applied for a licence but has not disclosed its partner. Caesars and Penn Entertainment, as ESPN Bet, will launch through their casinos in the state.
