The sports betting industry got an honest-to-goodness jolt Friday when the Missouri Gaming Commission chose Circa over FanDuel for one of the state’s two “untethered” mobile wagering licenses.
- In a surprising move, the Missouri Gaming Commission awarded one of two “untethered” mobile sports betting licenses to Circa Sports, instead of industry giant FanDuel.
- Circa’s approval could be seen as a win for sharp bettors and smaller sportsbooks, as the operator offers high betting limits, accepts professional action, and promotes a more traditional, low-hold betting model.
- In a challenging market increasingly dominated by a few large players, Circa’s entry highlights continued opportunities for niche sportsbooks that cater to underserved segments.
What that means, in short, is that Circa Sports will not need a partner in Missouri to launch its online sportsbook Dec. 1, while FanDuel will (and will still most assuredly find one).
“The Commission considered many factors before the two applicants were chosen," Missouri Gaming Commission Chairman Jan Zimmerman said in a press release. "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."
It was an upset of significant proportions for the world of legal sports betting in the U.S. It was also a win for sports betting’s little guys when viewed through recent industry trends, such as consolidation and loss of smaller operators, and the complaints of sharps that no one will take their bets.
"We didn’t win by trying to be the biggest. We won by staying true to who we are" - Circa's Derek Stevens (partial) statement to @Covers on winning Missouri sports betting license
— Ryan Butler (@ButlerBets) August 15, 2025
FanDuel is, by its own account, the “No. 1 sportsbook” in the United States. It’s huge, it projected $400 million in eventual annual revenue in Missouri, and it plowed millions into getting the ballot measure passed in the state, which paved the way for legalized sports betting.
It was easy to think Missouri’s two untethered licenses were basically designed for FanDuel and its chief rival, DraftKings, which did earn the other permit. Together, DraftKings and FanDuel account for roughly 75% of all online sports betting-related revenue generated in the U.S.
Circa, by comparison, is small. The online sportsbook takes its name from its brick-and-mortar casino cousin in Las Vegas, and the app is live in only five states. DraftKings will be live in 29 states when it launches in Missouri in December.
Derek vs. Goliaths
Circa CEO Derek Stevens admitted his online sports betting operation can't keep pace with DraftKings and FanDuel in acquiring customers or advertising spend.
But what Stevens offered to Missouri regulators, successfully, was a different kind of sports wagering model, an old school one in which Circa takes the bigger, sharper wagers that others may fear.
It’s this model, paired with its popular survivor and pick’em contests, that has made Circa a favorite in the sharper bettor community.
“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,” Stevens told Covers on Friday. “Circa Sports is built for bettors, with sharp odds, high limits and a low hold.”
Saying your sportsbook is “built for bettors,” and that being a differentiating factor, is a major comment on the state of the legal sports betting industry.
As noted above, most of the regulated mobile action in the U.S. flows through DraftKings and FanDuel. They are successful and perhaps beloved by many, but not by all.
For the person who wants to bet a little to win a lot, DraftKings and FanDuel are ready and willing to take your bets. If you’ve got $10 for a 10-leg SGP, they are most certainly your guys. And that’s fine, that is what a lot of people want to bet. How else do you explain the bulging revenue reported by the Big Two?
So, again, all of that is fine. For some. However, if you’ve got 20 dimes that you want to get down on a football game, the Big Two may not be for you. Well, at least not on a regular basis, perhaps, or for long.
The art of bookmaking
Circa, though, could be the book for these types of bigger bettors. It is backstopped financially by casinos, sure, but that also means it is willing to take that larger action.
For proof, take the words of famous gambler Billy Walters, who praised Circa more than a year ago to (of all people) Joe Rogan.
"They're open to anyone and everyone that comes in the door,” Walters said of Circa, adding that they have “generous limits,” such as $50,000 a game for the NFL.
“But they’re smart,” Walters said. “These guys know how to book.”
Now, does Circa want a piece of what DraftKings and FanDuel offer? No doubt.
This, IMO, is what set Circa apart in regulators' eyes. Circa acknowledged it couldn't compete against DraftKings and FanDuel in revenue. But it has differentiated itself from the major national books by actively courting sharp bettors. https://t.co/B0llbOZxcC
— Ryan Butler (@ButlerBets) August 15, 2025
However, as my colleague Ryan Butler noted, it’s the overall different approach, clientele, and vibe that Circa puts out there that may have proven attractive to Missouri. A DraftKings user and a FanDuel user may be pretty similar; a Circa user could be much different.
FanDuel no doubt will still find a way into the Missouri sports betting market, but it will just require a bit more cost and effort. It’s hard to say if Circa would have shown up without the untethered license.
Licensing Circa in Missouri without the need for a partner means there should be at least be a home in the Show-Me State for the sharps of the sports betting world. Some of those same sharps would argue they are homeless elsewhere, limited or restricted to nothingness by other operators.
The limiting issue has gotten on the radar of a few U.S. regulators. Exactly how big of a problem it is remains a subject of debate and research, but it's being taken more seriously.
In Missouri, now, if these sharps can’t make an honest bet anywhere else, they could at least have Circa.
Making a legal bet on sports in the U.S. is not a guaranteed thing. Some states lack legal wagering altogether, and others still cap their markets by statute or by the price of entry they charge. The options are finite.
What's old is new again
Last July, investment banking firm Citizens JMP Securities estimated 74 companies had joined the legal online gambling market in the U.S. since 2018. Forty-three were still in business, 18 had shut down, 10 had pulled back or planned to close, and three had been acquired.
There have been additional comings and goings since then, such as Betfred’s flight from the U.S. Those who have hung on still face financial challenges, such as rising tax rates and, in Illinois, a new type of tax altogether. Then there is the competition sportsbooks face from offshore operators, the sweepstakes model of wagering, and from federally regulated prediction markets that now offer de facto sports betting in all 50 states.
It’s getting tougher to make a go of it in legalized sports betting. And yet the license earned by Circa, as well as new launches, like that of Boomer’s in Nevada, suggest there are some who still see opportunity in the sector. They also still see that opportunity as they try to play by the rules.
And, as Stevens noted, Circa is trying to do things a little differently. What’s eye-opening is that what is being framed as new here is relatively old school: taking bets, moving the line, and taking more bets.
Somehow, what's old may be new again, and that may be a winning selling point with some state regulators. Now, Circa must win over the bettors of Missouri as well. It will at least have a shot.
