Three Companies Vie for Missouri’s Two Untethered Betting Licenses

The Battle for Untethered Licenses

The two “untethered” licenses allow operators to run online sportsbooks without tying to a Missouri casino or pro sports team, dodging costly revenue-sharing deals.

FanDuel and DraftKings, who poured over $40 million into the referendum legalizing sports betting in Missouri, are seen as frontrunners.

Their deep experience, robust marketing plans, and commitment to responsible gaming align with the MGC’s seven criteria, including revenue generation and player engagement.

Circa Sportsbook, favored by high-stakes bettors for its generous limits, faces a tougher road. Its lean advertising and smaller revenue streams may struggle to meet the MGC’s focus on maximizing state funds and growing player bases, potentially pushing Circa to seek a “tethered” license instead.

Tethered Licenses and Market Dynamics

“Tethered” licenses require partnerships with Missouri’s riverboat casinos or six pro teams, like the Kansas City Chiefs or St. Louis Cardinals.

Operators like Underdog, BetMGM (partnered with Century Casinos), and bet365 (tied to the Cardinals) are already positioning for these licenses, with applications due by September 12. Caesars Sportsbook, ESPN BET, Bally Bet, Fanatics, BetRivers, and Hard Rock are also expected to apply, potentially bringing a dozen mobile sportsbooks to Missouri.

Tethered licenses cost $500,000 annually for online and $250,000 for retail, with a low 10% tax on winnings, making Missouri’s market a draw compared to high-tax states like Illinois.

Missouri’s 6.2 million sports fans and low 10% tax rate make it a hot market. The state’s narrow legalization vote in November 2024, passing by under 3,000 votes, sets the stage for a competitive rollout.