Circa Sports Scores an Upset, Awarded Untethered Sportsbook License in Missouri

On Friday, the Missouri Gaming Commission awarded DraftKings and Circa Sports the state’s two highly coveted untethered online sports betting licenses, while tethered licenses will be announced on September 12th.

Circa Outduels FanDuel

Circa Sports stunned the competition and was awarded one of two untethered sports betting licenses, with Boston-based DraftKings receiving the other.

The conventional wisdom assumed the two biggest sports betting platforms, FanDuel and DraftKings, would be awarded these two untethered licenses based on the revenue they generate. Both of these sportsbooks also donated millions to the Winning for Missouri Education PAC that brought legalized sports betting to the Show Me State.

The sportsbooks were given 30 minutes to detail why their company was the best fit for an untethered license. FanDuel and DraftKings are traditionally awarded these licenses and have had plenty of practice articulating what they bring to the table, primarily customers, in front of these committees.

However, Circa Sports made a compelling argument for its old-school bookmaking, focusing on competitive odds and the appeal for gamblers who have traditionally bet with offshore or local bookmakers. It did not attempt to hide the fact that its footprint pales in comparison to industry powerhouses FanDuel and DraftKings, but it believes that the value Circa Sports offered would ultimately win them customers.

Circa CEO Derek Stevens opened his presentation after the industry leaders, saying, “I realize we are small potatoes compared to what was just presented.”

FanDuel Expected to Join Others in Missouri

Sportsbooks value untethered licenses because they do not have to furnish a share of the profits to in-state designated partners. In this case, Missouri’s casinos and professional sports franchises are required as partners for sportsbooks to gain access to the Missouri market via tethered licenses, which is why both groups supported online sports betting.

However, the two untethered licenses allow sportsbooks to access the market without partnering with one of these entities. Although that makes the license more valuable, as the sportsbook does not have to share its revenues, it does not derive the exposure that partnering with a sports team or casino would provide.

FanDuel and DraftKings spent $40 million on the PAC that convinced voters to approve sports betting, as the revenues would be directed to the state’s educational system. Thus, the name Winning for Missouri Education was born. Therefore, it was assumed the two would be surefire winners of untethered licenses.

However, FanDuel must now align with either a casino or sports franchise to access the Missouri market and will join as many as 10 others, like Caesars, ESPN Bet, Bally Bet, and Hard Rock Bet, to name a few.

Despite not securing an untethered license, a FanDuel spokesperson was gracious in defeat, stating, “We appreciated the opportunity to present to the Missouri Gaming Commission and respect their decision. We look forward to bringing our leading sportsbook product to Missouri residents.”