Missouri’s Gaming Commission (MGC) recently awarded its two untethered mobile sports betting licenses to DraftKings and Circa Sports, setting the stage for the state’s December 1 launch. This decision surprised many, as FanDuel, the U.S. market leader, was edged out by Circa, a niche operator favored by high-stakes bettors.
Untethered licenses allow these winners to offer mobile betting statewide without needing partnerships, giving them full control over operations and revenue. DraftKings, with its massive marketing muscle and projected $175 million in annual revenue, was a predictable choice. Circa stood out by targeting serious gamblers with fair odds, high limits, and low margins, appealing to those using offshore sites and diversifying the market.
For FanDuel, missing out means pivoting to a tethered license—the only remaining option for entry. Tethered licenses require partnering with a Missouri casino or sports team, which involves sharing revenue and adhering to the partner’s terms. This adds costs and complexity compared to untethered freedom, potentially squeezing profit margins in a competitive landscape.
FanDuel must apply by September 12 to join the launch. With its strong national presence and history of funding Missouri’s betting initiative, it has leverage for a prime partnership. However, competing against untethered rivals like DraftKings and Circa from the outset could make customer acquisition more challenging and costly.
Other operators, such as Caesars, ESPN BET, BetMGM, and bet365, are already lining up deals. FanDuel’s tethered status might limit aggressive promos, but its brand strength could still help it claim a solid market share.
This licensing split promotes variety: DraftKings brings mass appeal, Circa caters to pros, and tethered entrants like FanDuel add depth. For bettors, it means more choices; for the state, it means higher revenue through increased competition. FanDuel’s tethered approach underscores the challenges of entering regulated markets without top-tier access.
MGC Chairman Jan Zimmerman presided over a unanimous vote by the commission, granting untethered licenses to DraftKings and Circa. In a subsequent press release, Zimmerman stated that both companies are “candidates for priority investigation in awarding the state’s two available sports wagering direct mobile licenses.”
“The commission considered many factors before the two applicants were chosen,” she said. “We commend Betfair Interactive US, LLC (FanDuel) for its efforts. It was a difficult decision, but the commission is only able to grant two licenses.”
At the time of publishing, FanDuel had not yet commented on the decision by the MGC.
