DraftKings, Circa Hospitality get first online sports betting licenses in Missouri

JEFFERSON CITY, Mo. (KMIZ)

The Missouri Gaming Commission voted Friday morning to give DraftKings and Circa Hospitality the state's first two mobile sports betting licenses.

The commission awarded the licenses at its meeting. The state can offer up to two licenses for companies to offer sports betting on people's phones across the state.

DraftKings, Circa and FanDuel made their pitch to the commission on Wednesday. DraftKings and FanDuel are considered major players in the sports betting game, available in most states where betting is already legal.

The two companies put millions of dollars into the 2024 ballot measure that brought legal betting to the state. Circa Hospitality, a Las Vegas-based brand, touted its local partnerships in places like Las Vegas and Chicago as part of its pitch.

Despite FanDuel having 7 million users last year, the state opted to go with Circa, touting their business model as a way to attract different types of bettors to the state. 

“We felt like Circa attracts a different type of bettor, a higher-dollar bettor. Their business model is different,” Jan Zimmerman, the chair of the Missouri Gaming Commission, told ABC 17 News. “The presentation by Circa,  they said, ‘We recognize that we are not one of the big dogs. We're not on the same level as, you know, either FanDuel or DraftKings.' But we felt that, their business model and what they were going to be offering was different enough from both DraftKings and FanDuel that they certainly deserve the opportunity.” 

Unlike most gambling sites chasing mass-market appeal, Circa targets a niche audience, aiming for just a 3.5% market share and closing 2024 at 3.1%. The focus is on high-stakes players, with more than 90% of bets placed at $50 or higher. The strategy is designed to attract bettors Missouri could be missing out on, such as offshore players who prefer lower market holds over larger, mass-market sportsbooks.

“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. Circa Sports is built for bettors, with sharp odds, high limits and a low hold. We’ve already connected with 81,000 Missourians through our Club One loyalty program, and we’re ready to be an active part of the community, from local events to supporting youth sports,” Circa said in a statement. 

Missouri will become the 29th state that DraftKings operates in once mobile betting goes live. DraftKings said in a statement that it intends to launch its mobile app in Missouri on Dec. 1.

“We’re pleased to secure one of two direct mobile licenses in Missouri — paving the way for us to bring DraftKings’ industry-leading online sportsbook to fans across the state,” Matt Kalish, president of DraftKings North America, said in a statement. “Missouri is home to several professional teams and deeply passionate fanbases, and we look forward to enhancing their sports experience with a dynamic and responsible mobile platform.”

While FanDuel missed out on a direct mobile sports betting license, it did announce a new market access agreement with St. Louis City FC on Friday.  

“Missouri is home to some of the most passionate sports fans in the country, and we are thrilled to partner with St. Louis CITY SC to introduce our industry-leading product to the Show Me State,” said Mike Raffensperger, President, Sports at FanDuel said in a statement. “We look forward to supporting the team and engaging with the community as we bring America’s #1 Sportsbook to fans across Missouri.”

The initiative petition passed by voters that legalized sports betting requires the state to issue all licenses at the same time, meaning Circa and DraftKings have not yet received their untethered license.  

The commission is still accepting applications from sports teams and casinos seeking to offer on-site betting. Applications are due by Sept. 12, with all licenses expected to be issued in mid-to-late October.

However, Missourians will still have to wait until December to legally wager on sports. The state’s new gaming rules won’t take effect until the end of November, so Missourians will not be able to bet on sports until the official launch date on Dec. 1.

The Missouri Gaming Commission had to create pages of rules from scratch to prepare for the application process, coming up with the following criteria for applicants: 

• Expertise in online sports betting
• Integrity, safety and sustainability of the platform
• Past relevant experience
• Advertising and promotional plans to increase and sustain revenue
• Ability to generate, maximize and sustain revenue for Missouri
• Commitment to and plans for promotion of responsible gaming
• Capacity to increase the number of bettors on the platform

“If there's any advantage of being relatively late to the game,  the staff had the opportunity to talk with other jurisdictions that already have sports wagering,” Zimmerman said. “The staff put in some long hours, some late nights, and some weekends in order to create all of those rules. And so I always encourage people who wonder why things take as long as they do to take a look at those rules.”