Missouri selects DraftKings and Circa Sports for mobile sports betting licenses, allowing unrestricted mobile sports gambling
Missouri Awards Untethered Sports Wagering Licenses to DraftKings and Circa Sports
In a significant move for the sports betting industry in Missouri, the state's Gaming Commission has awarded the two untethered sports wagering direct mobile licenses to DraftKings and Circa Sports. These licenses allow the operators to run mobile sports betting services without the need for a physical casino or sports team partnership, keeping 100% of revenues, minus a 10% tax on adjusted gross revenue[1][2][3][5].
The Missouri Gaming Commission Chairman, Jan Zimmerman, commended Betfair Interactive US, LLC for its efforts, but the company was not selected for the licenses. The Commission chose only two operators based on criteria including expertise in online sports betting, platform integrity and safety, past operating experience, advertising plans, revenue potential, commitment to responsible gaming, and capability to grow the bettor base[3]. Specific reasons for Betfair’s non-selection were not detailed, but it did not secure one of the two licenses amidst strong competition.
FanDuel, a major applicant like Betfair, was also not awarded an untethered license and is expected to pursue a tethered license with an in-state partner (a casino or professional sports team), which involves revenue-sharing and different economics[1][3].
Here's a summary of the license types and their revenue models:
| License Type | Awardees | Revenue Model | Notes | |-------------------|--------------------|------------------------------------------------|----------------------------------------------------------------------| | Untethered | DraftKings, Circa | Keep 100% revenue minus 10% state tax | No need for in-state partner; higher upfront costs, better long-term returns | | Tethered (pending)| FanDuel, others | Revenue sharing with casino or sports partner | Requires in-state partnership; applications due by Sept 12, 2025 |
The decision to award only two licenses was a difficult one for the Commission, and the recipients of the licenses have yet to be identified. The announcement was made on Friday by the Missouri Gaming Commission, which is the issuing body for the licenses. The licenses are of the "untethered" variety, suggesting they allow for mobile or remote sports betting.
The news marks a significant step forward for the sports betting industry in Missouri, with DraftKings and Circa Sports set to bring their services to the state. The Commission considered many factors before choosing the two applicants, ensuring a fair and thorough selection process. The announcement is expected to bring excitement and new opportunities for sports enthusiasts in Missouri.
[1] The Kansas City Star [2] St. Louis Post-Dispatch [3] Missouri Gaming Commission [4] Missouri Gaming Commission [5] Missouri Revised Statutes
DraftKings and Circa Sports, the recipients of Missouri's untethered sports wagering licenses, will offer casino-gambling and sports-betting services without a physical casino or sports team partnership, generating revenue under a 100%-revenue model minus a 10% tax on adjusted gross revenue. Despite strong competition, FanDuel, another major applicant, was not awarded an untethered license, indicating they will likely pursue a revenue-sharing tethered license with an in-state partner, and may offer casino-games and sports-analysis services as part of their sports betting offerings.
