DraftKings and Circa Sports have been awarded the two untethered sports betting licences in Missouri.
The decision by the Missouri Gaming Commission (MGC) was announced on Friday, 15 August, ahead of the market’s opening on 1 December.
DraftKings and Circa had been facing off against Flutter-owned FanDuel in the race to take a standalone licence.
The standalone licences cost $500,000, compared to a tethered permit at $250,000.
Tethered licences, where operators need to secure market-access deals with casinos or sports franchises in the state, come with the caveat of having to pay an additional fee to the market-access partner.
The trio of competing operators all delivered presentations to the regulator last week. The MGC has not yet disclosed its reasons for selecting DraftKings and Circa.
Circa is active in five US markets – Nevada, Colorado, Illinois, Iowa and Kentucky – with its high-volume, low-margin model.
A Circa statement read: “Winning one of Missouri’s first two untethered mobile betting licences is a great honour. 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.”
Missouri opened the door to regulated sports betting after state residents approved Amendment 2 at the ballot box at last November’s election.
There were hopes the market could have been live this summer, or at least before the start of the NFL season in September.
Reacting to the licence award, DraftKings North America president Matt Kalish said: “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.
“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.”
Missouri, which has a population of around 6.2 million, will become DraftKings’ 29th live US state for sports betting on 1 December.
Hours after the MGC approved DraftKings and Circa to take the untethered licences, FanDuel announced a market-access deal with MLS club St Louis City SC.
The operator did not disclose any financial details regarding the partnership. Missouri will become the firm’s 25th live sports betting market in due course.
Mike Raffensperger, FanDuel president of sports, said: “Missouri is home to some of the most passionate sports fans in the country, and we are thrilled to partner with St Louis City SC to introduce our industry-leading product to the Show Me State.
“We look forward to supporting the team and engaging with the community as we bring America’s number one sportsbook to fans across Missouri.”
While FanDuel has secured a market-access partner, there remains several slots still open, including market-access deals with several sports teams and land-based casinos.
BetMGM has penned an access deal with Century Casinos and bet365 has teamed up with the MLB’s St Louis Cardinals.
MGC chair Jan Zimmerman said: “The commission considered many factors before the two applicants were chosen.
“We commend Betfair Interactive US, LLC for its efforts. It was a difficult decision, but the commission is only able to grant two licences.”
Elsewhere, Circa Sports announced on Friday, 15 August, it is raising the minimum wager to $10 in Illinois from 1 September, rather than introducing a per-wager fee, as DraftKings and FanDuel plan to implement in a bid to absorb tax increases in the state.
The post DraftKings and Circa Sports awarded untethered licences in Missouri first appeared on EGR Intel.
Duo edge out FanDuel in race for the two coveted permits, with the Flutter-owned operator announcing a market-access deal with MLS side in preparation for market launch
The post DraftKings and Circa Sports awarded untethered licences in Missouri first appeared on EGR Intel.