The Missouri Gaming Commission on Friday stunned many in the gaming industry when it announced the first two Missouri sports betting licensees: Circa Sports and DraftKings.
DraftKings getting one of the two was expected. The Boston-based operator – along with FanDuel – spent millions of dollars on getting a constitutional amendment on the 2024 ballot, which passed by less than 3,000 votes. While operators can partner with professional sports franchises or in-state casinos for a license, the amendment also allowed for two untethered licenses. It was widely anticipated that FanDuel and DraftKings, by far the two largest online sports betting operators in the United States, would receive those.
Instead, in a brief meeting Friday, the state’s regulatory agency chose a Las Vegas-based operator that does not have the breadth of FanDuel, that being the soon-to-be Circa Missouri Sportsbook.
“The Commission considered many factors before the two applicants were chosen,” Missouri Gaming Commission Chair Jan Zimmerman said in a statement released after the meeting. “We commend (FanDuel) for its efforts. It was a difficult decision, but the Commission is only able to grant two licenses.”
Circa was the only other applicant for an untethered Missouri sports betting license. With an untethered license, an operator doesn’t have to partner with a sports team or casino to gain access.
What Circa Offers For Missouri Sports Betting
The commission heard from all three applicants on Wednesday as each gave their pitch on why they should receive one of the first available Missouri sports betting apps licenses. Derek Stevens, Circa CEO, admitted that his company was the smallest of the three and that it would not provide the immediate tax revenue either FanDuel or DraftKings could offer.
Circa bills itself as a low-hold sportsbook. That means its margins, or revenues generated from sports betting, are usually around 3.5%. That’s significantly lower than the other two, whose higher margins are driven largely by the amount of parlay wagers it accepts from their customers. It also has far fewer customers than either one in the five states where it operates.
“What I can tell you is that we will attract a different style bettor,” he said. “We will attract conquest customers that currently the state of Missouri is missing out on.”
Those people are business owners, farmers, bankers, lawyers and others who currently are betting through offshore operators.
“We're going to attract people that want to bet legally and want to do this from an American perspective,” he added. “They would prefer to bet within the United States, within a legal jurisdiction.”
Stevens told commissioners that roughly 95% of Circa’s handle is generated by wagers of $50 or more.
'Long Shot' Applicant Comes Through
In a statement after Friday’s announcement, Stevens told BetMissouri it was “a great honor” to get an untethered license. He added the company is already connected with more than 80,000 residents through Circa’s loyalty program and that it is ready to be as active in Missouri as it is in its other markets.
“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,” he said. “We didn’t win by trying to be the biggest. We won by staying true to who we are, and I want to thank the Missouri Gaming Commission for recognizing that and giving us the opportunity to bring the Circa Sports experience to the State of Missouri. We can’t wait to get started.”
Missouri will be Circa’s sixth state. It currently operates in Colorado, Illinois, Iowa, Kentucky and Nevada. The operator is developing a new app that it expects to roll out in a couple of states later this year and elsewhere next year.
DraftKings 'Pleased' With License Award
The DraftKings Missouri Sportsbook will be the 29th U.S. market for that operator. In its presentation on Wednesday, the company’s executives said it has more than 4 million active users across the country, and it has a large customer base already in the state via its online fantasy sports application.
“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,” DraftKings North America President Matt Kalish said in a statement. “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.”
What’s Next For Missouri Sports Betting
Friday’s decision by the commission will not keep FanDuel out of Missouri. The Flutter Entertainment brand can apply for a license with an in-state partner. Those applications are due Sept. 12 for approval in time for the Dec. 1 launch date.
“We appreciated the opportunity to present to the Missouri Gaming Commission and respect their decision,” a FanDuel spokesperson said in a statement to BetMissouri. “We look forward to bringing our leading sportsbook product to Missouri residents."
One sportsbook, Underdog, has already submitted its license application. Several others are also expected to apply, including BetMGM, bet365, Caesars Sportsbook, ESPN BET and Fanatics.
When the market launches, real money Missouri sportsbook promo codes will be waiting here at BetMissouri.com.
USA Today photo by Jeff Curry
