DraftKings and Underdog Lead Missouri Sports Betting License Race
DraftKings and Underdog became the first to apply for Missouri’s online sports betting licenses, kicking off a high-stakes race ahead of the state’s December 1 launch.
First Movers in Missouri’s Betting Market
DraftKings and Underdog submitted the first two applications for online sports betting licenses. The application window, opened May 15, runs until September 12, with a December 1 launch date set by Amendment 2, passed by voters in November 2024.
DraftKings, a market leader with a 35% U.S. share, and Underdog, a rising daily fantasy sports (DFS) operator, aim to capitalize on Missouri’s $1 billion projected betting market, per H2 Gambling Capital.
DraftKings and Underdog’s early applications signal their hunger for Missouri’s market.
Underdog, known for DFS pick’em contests, leverages its Missouri gaming ties. “We’ve had a longstanding relationship with the gaming commission,” said Staci Stern, Underdog’s VP of Government Affairs, citing their fantasy sports license.
Both are eyeing one of two “untethered” licenses, which don’t require casino or team partnerships, with decisions due August 15.
Missouri’s Betting Framework Takes Shape
Missouri’s sports betting rules, shaped by Amendment 2, allow up to 14 online and 19 retail licenses. The state’s 13 casinos, like Century Casinos, and six pro teams, including the Chiefs and St. Louis Cardinals, can each secure one retail and one online license.
A 10% tax on adjusted gross revenue will fund education, with $5 million annually for problem gambling programs and $4 million for rural infrastructure.
The legal betting age is 21, aligning with most states. Applications for untethered licenses close July 15, with hearings August 13, while partnered licenses must be filed by September 12.
Other Players in the Race
DraftKings and Underdog aren’t alone. BetMGM, partnered with Century Casinos, confirmed its bid on May 27, offering online and retail betting at Cape Girardeau and Caruthersville.
Bet365 secured a deal with the St. Louis Cardinals in March, planning a Busch Stadium sportsbook.
FanDuel, with a Boyd Gaming tie and $10 million campaign donation, is a lock to apply.
ESPN Bet, backed by Penn Entertainment’s two Missouri casinos, also signaled intent.
Caesars, operating three casinos, and Fanatics, with a PointsBet acquisition, are likely contenders. Up to 21 online licenses could be issued, leaving room for smaller players like BetRivers.
The Road to Legalization
Missouri’s path to legal sports betting was rocky. After years of failed bills, like House Bill 556 in 2023, Amendment 2 passed by a razor-thin 50.05% to 49.95% vote on November 5, 2024.
Backed by $55 million from DraftKings, FanDuel, and pro teams, the measure became law December 5, making Missouri the 39th state to legalize sports betting.
Secretary of State Denny Hoskins’ February 2025 rejection of emergency rules delayed hopes for a summer launch.. The Commission’s 82 staff, with six focused on betting, are now racing to meet the December 1 deadline.
Recommended