Few parties are more integral to the launch of Missouri sports betting than FanDuel and DraftKings.
Most notably, they were the two biggest financial backers of the petition that led to the ballot measure voters approved to legalize sports betting in Missouri. As such, the assumption has always been that both companies would each secure one of the two most coveted sports betting licenses for The Show-Me State.
Under the terms of Amendment 2, the addendum that paves the way for sports gambling to debut in December 2025, Missouri will offer two “untethered” licenses. These agreements essentially allow a pair of sportsbooks to operate more independently throughout The Show-Me State. Having one opens all sorts of promotional doors, as well as the ability to drive more access and overall business opportunities.
FanDuel and DraftKings both feel like ideal candidates to land those licenses. After all, when you think of online sports betting in the United States, you probably think of them before you do any other company.
Some even initially believed FanDuel and DraftKings would grab these licenses without any pushes from other sportsbooks. As it turns out, though, this is not going to be the case.
Circa Sports is Attempting to Land an Untethered Missouri Sports Betting License
Circa Sports is apparently entering the mix for an untethered Missouri sports betting license. This could potentially create an issue for one of FanDuel or DraftKings. Here is Carl Cachia of Cleveland.com with more:
“FanDuel and DraftKings, the two biggest financial backers of the ballot measure, each applied for one of two available “untethered” (not tied to a partnership with land-based casino or pro sports team) sports betting licenses before the July 15 deadline. The surprise was that Circa Sports also applied for a license, which is a head-scratcher given the cost and the fact DraftKings and FanDuel seem extremely well-positioned to take a license each.
“Circa can still get access to Missouri sports betting if it comes to an agreement with one of Missouri’s land-based casinos (or six pro sports teams), but that would cut into profits. Three operators will present their cases to regulators on August 13. A decision will be made by August 15. BetMGM and bet365 have already gained market access, while DraftKings and Underdog became the first operators to apply for a license on June 11. The MGC is accepting sports betting applications until Sept. 12, which is the deadline for any operator that wants to take wagers on Dec. 1, 2025. There will be 19 retail (brick-and-mortar) sportsbook licenses and 14 mobile sports betting licenses awarded (12 tethered to casinos or pro teams).”
Cachia isn’t kidding about the cost aspect. Acquiring and retaining an untethered Missouri sports betting license runs $500,000 per year. Certain legacy sportsbooks like Caesars or BetMGM might not even want to foot that bill. Circa Sports entering the mix when they have a lower United States sports betting market share relative to so many peers is definitely surprising.
Circa Sports is Clearly Trying to Expand Their Sports Betting Footprint
On the flip side, Circa Sports’ application does make sense when you consider how aggressively they’re trying to expand. They just unveiled a state-of-the-art location in the Kentucky sports betting market and are also running operations in Iowa, Illinois, Colorado and Nevada.
This represents a stark departure from the company’s previous model. For so long, Circa Sports was essentially exclusive to Nevada sports betting. Over the past few years, though, they have made it clear they want to broaden their impact across the United States.
In particular, it does seem like they want to increase their presence in midwestern markets. Iowa, Illinois and Kentucky are all clustered together. Colorado and Nevada are near one another as well.
Moreover, by opening the largest sportsbook in Kentucky, Circa Sports may be trying to corner the market on retail-location impact. They finished third in retail sports betting handle for The Bluegrass State’s most recent batch of reporting, trailing venues for Churchill Downs and Derby City Gaming.
Pushing for an untethered sports betting license in Missouri tracks with that agenda. Circa Sports would be free to open up other retail spots outside casinos and pro sports stadiums.
It will be Interesting to See How Missouri Sports Betting Regulators Handle This
Since the Missouri sports betting licensing process is an application rather than a sweepstakes, all three operators will lay out their cases to regulators later this month. Most continue to assume DraftKings and FanDuel will win out. But if it’s not a matter of increasing bids or fees, it will be interesting to see whether Circa Sports can make a compelling case for itself.
Of course, we also can’t be too sure what regulators will value most. If they are bent on hammering out long-term agreements with sportsbooks, DraftKings and FanDuel are the obvious calls. Those companies can guarantee they’ll be operating indefinitely. Circa Sports does not necessarily have that luxury outside of Nevada operations. There is a chance they could pivot if they don’t start yielding the returns they seek.
This isn’t to say they will fail. But knifing into market shares is a difficult proposition. So many other companies have tried and failed. Now, Circa Sports is showing more of an iron stomach than many others. It also helps that the Missouri sports betting market will be a new one. Theoretically, then, it should be easier for them to begin their operations on even footing with industry heavyweights. Heck, merely beating out one of FanDuel or DraftKings for a spot would be huge by itself.
Whether it’s also possible remains to be seen. One way or the other, we’ll find out by the middle of August.
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