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FanDuel and DraftKings Lead Missouri Sports Betting License Battle
Just 48 hours before Missouri awards its two prestigious untethered sports betting licenses, the state's three competing operators made final pitches to regulators in a high-stakes presentation. FanDuel, DraftKings, and Circa Sports each outlined compelling arguments for why they deserve the coveted direct licenses, which allow online sports betting operations without requiring partnerships with local casinos or sports teams.
The Missouri Gaming Commission faces a challenging decision between industry giants and a specialized operator, with the announcement scheduled for August 15. These untethered licenses command premium pricing at $500,000 compared to $250,000 for tethered alternatives, reflecting their superior operational flexibility and revenue potential.
Market Leaders Emphasize Existing Customer Base and Revenue Projections
DraftKings and FanDuel leveraged their dominant market positions and substantial Missouri presence through daily fantasy sports operations. Both operators highlighted their ability to convert existing customers and generate significant tax revenue for the state.
DraftKings CFO Alan Ellingson projected $175 million in annual gross gaming revenue within five years, serving approximately 900,000 customers representing one-fifth of Missouri's legal-age population. The company emphasized its proven track record in adjacent states where Missouri residents already cross borders to place bets.
FanDuel presented even more aggressive projections, with Senior Director Stephen Higgins forecasting $400 million in annual gross gaming revenue by 2034 when the market reaches maturity. The operator cited 110,000 existing Missouri-based customers who already wager with FanDuel in neighboring legal states, representing immediate demand and tax revenue potential.
Under Missouri's 10% tax rate, these projections would generate $17.5 million and $40 million in annual tax revenue for DraftKings and FanDuel respectively. Both companies promised customized Missouri experiences, including emphasis on the Cardinals-Royals rivalry and prioritizing local teams on their platforms.
Circa Sports Stakes Claim as Premium Betting Alternative
Circa Sports CEO Derek Stevens acknowledged his company's limitations compared to the industry leaders but positioned Circa as serving a distinct market segment. Stevens readily admitted Circa couldn't compete on raw revenue generation, calling his company "a small potato" compared to the presentations from FanDuel and DraftKings.
However, Stevens emphasized Circa's unique value proposition targeting high-volume professional bettors currently using offshore platforms. He highlighted Circa's 3.5% hold rate compared to competitors' 10%+ rates, with 95% of handle coming from bets exceeding $50.
"We take larger bets, we do not limit professional players," Stevens explained. "We're going to attract people who are currently betting offshore who are not going to bet into a 14 or 16% hold market."
The Missouri market represents significant opportunity beyond these three untethered applicants. Underdog and Fanatics have applied for tethered licenses, while established operators like BetMGM, Bet365, Caesars, Bally's, and ESPN Bet have secured partnerships with local casinos or sports teams.
The Missouri Gaming Commission can issue up to 14 total online sports betting licenses, with tethered license applications due September 12 following this week's untethered license awards.
