The first two sports betting operators are on the board in Missouri.
Key Takeaways
- DraftKings' application to operate in Missouri is no surprise from one of the U.S. market-share leaders.
- Underdog’s only traditional sportsbook is in North Carolina.
- Several other sportsbooks are poised to apply and be approved for the Dec. 1 launch.
DraftKings and Underdog are the first sportsbooks to apply for an operating license in the Show Me State, Missouri Gaming Commission public relations coordinator Elizabeth Hoffman confirmed with Covers on Thursday. The approval process, which opened May 15, requires operators to be investigated by state officials and meet the requirements and rules to obtain a license.
The DraftKings application is no surprise. One of the top two market-share leaders in the U.S. combined with FanDuel to contribute more than $30 million to help get Missouri sports betting on the ballot in November. DraftKings already operates a sportsbook in 25 U.S. states.
Underdog runs a daily fantasy sports site in 41 U.S. states, but North Carolina is the only jurisdiction where Underdog’s traditional sportsbook currently operates. Missouri would be its second market.
Missouri is scheduled to launch sports betting on Dec. 1. The deadline to apply for licenses is Sept. 12.
Partner up
Sportsbooks can gain market access through partnerships with land-based casinos or in-state professional sports teams. Six licenses will go to each category. Two untethered licenses are also available, allowing sportsbooks to get into Missouri without paying a fee or having to share revenue with a partner.
BetMGM, third in U.S. market share, is expected to gain access after striking a partnership with Century Casinos last month. The deal could also give BetMGM sportsbooks branding rights at Century’s two brick-and-mortar locations.
The St. Louis Cardinals have a deal that will give bet365 a branded retail sportsbook in the Ballpark Village near the team’s Busch Stadium and likely online access as well.
Other potential operators
Caesars, PENN Entertainment (ESPN BET), and Bally’s already operate casinos in a state with 13 in-person gaming spots and are poised to obtain licenses.
FanDuel confirmed earlier this year that it plans to apply for a license. More potential applicants include Fanatics Sportsbook, Rush Street Interactive, Hard Rock Bet, and Circa Sports.
Sports betting operators in the Show Me State will pay a 10% tax rate on adjusted gross revenue.
