What's Happening?
The Missouri Gaming Commission has granted untethered mobile sports betting licenses to DraftKings and Circa Sports, allowing them to operate statewide without partnerships. This decision, announced by MGC Chairman Jan Zimmerman, was unexpected as FanDuel, a leading U.S. market player, was not selected. Instead, FanDuel must pursue a tethered license, which requires partnering with a local casino or sports team, involving revenue-sharing agreements. DraftKings, with its strong marketing presence and projected $175 million annual revenue, was a predictable choice. Circa Sports, known for appealing to high-stakes bettors, also secured a license. The decision sets the stage for Missouri's sports betting launch on December 1.
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Why It's Important?
This development is significant for the sports betting industry in Missouri, as it introduces competition and variety. DraftKings and Circa Sports can operate independently, potentially capturing a larger market share due to their untethered status. FanDuel, despite its national prominence, faces challenges with a tethered license, which could impact its profitability and market strategy. The licensing decision reflects a strategic move by Missouri to diversify its sports betting market, potentially increasing state revenue through heightened competition. For bettors, this means more options and competitive offerings.
What's Next?
FanDuel must apply for a tethered license by September 12 to participate in the December launch. The company will need to negotiate partnerships with Missouri casinos or sports teams, which could affect its market entry strategy. Other operators like Caesars and BetMGM are also preparing to enter the market, increasing competition. The success of DraftKings and Circa Sports in capturing market share will be closely watched, as will FanDuel's ability to leverage its brand strength despite the constraints of a tethered license.
