Kansas City Royals Seek New Betting Partner Following Underdog Exit
The Kansas City Royals find themselves without a commercial ally in the newly activated Missouri sports wagering market. Just days before the state officially launched operations on December 1, 2025, prospective partner Underdog Sports withdrew its application for a sports betting license.
Underdog Withdraws Missouri Application
A spokesperson for the Royals confirmed on Wednesday, November 26, that the team is actively engaging with potential replacements.
The team had originally announced a multi-year agreement with Underdog in September 2025. That deal included plans for a mobile platform and potentially a retail sportsbook near Kauffman Stadium.
While Underdog will retain its license to offer fantasy sports contests in Missouri, it has abandoned its pursuit of a full wagering certificate in the state.
The Pivot to Prediction Markets
Underdog’s abrupt departure stems from a broader strategic shift within the gaming industry. The company elected to pivot its resources toward the emerging sector of prediction markets.
Operators like Underdog view prediction markets as a high-growth sector with lower entry barriers compared to the saturated landscape of traditional sports betting (OSB).
In Missouri, the OSB market is highly competitive, featuring heavy taxes and entrenched giants like DraftKings and FanDuel. By sidestepping the Missouri betting license, Underdog avoids potential regulatory conflicts.
Several state regulators across the U.S. have warned that offering prediction markets could jeopardize standing sports betting licenses. Underdog chose to prioritize its new product vertical over a foothold in Missouri.
The Race for Market Access
The withdrawal places the Royals back into a crowded marketplace where most prime assets are already claimed. Missouri law authorizes up to 14 mobile operator licenses.
Two of these were “untethered,” meaning they did not require a team or casino partner. Regulators awarded those standalone permits to DraftKings and Circa Sports.
The remaining operators must secure “tethered” licenses through agreements with casinos or professional sports teams. Competitors moved quickly to lock down these spots:
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FanDuel secured access through St. Louis City SC (MLS).
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bet365 partnered with the St. Louis Cardinals (MLB).
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BetMGM entered the market via Century Casinos.
The Royals are not the only franchise in flux. As the market opened, the Kansas City Chiefs, St. Louis Blues, and Sporting Kansas City were also listed among teams that had not yet launched a live betting partner product.
However, the Royals possess a valuable commodity: the right to host a retail sportsbook within 400 yards of their stadium, in addition to a mobile skin. The team must now identify a remaining operator willing to invest in the state despite the late start.
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