DraftKings and Underdog Apply for Sports Betting Licenses in Missouri

Boston-based DraftKings and Underdog Fantasy Sports are the first operators applying for a sports betting license in the Show Me State, but others will undoubtedly follow.

Heading to the Front of the Line

The sports betting industry in Missouri is set to launch on December 1st, but despite the application process being open since May 15th, only two operators have come forward to enroll. DraftKings, one of the two powerhouses in the U.S. sports betting market, and Underdog Fantasy Sports, whose only traditional sportsbook is in North Carolina, are the first to make it official.

DraftKings spent millions of lobbying dollars, along with FanDuel, to get sports betting approved in Missouri. Therefore, it is no surprise that they are among the first in line to be vetted by the Missouri Gaming Commission to obtain a sports betting license. However, Underdog is known mostly for their sports fantasy sites but may be pivoting to the more traditional sports betting market after getting a license in the Tar Heel State.

The application window shuts on September 12th, which likely means a busy summer for those tasked with investigating and vetting the various sportsbooks. However, the application deadline for those sportsbooks seeking one of the state’s two untethered licenses, also known as Direct Mobile Licenses, is July 15th, and it is likely DraftKings will be seeking one of those.

The advantage of having a Direct Mobile License is that the sportsbook will not be obligated to partner with either the state’s gambling casinos or its professional sports franchises. Those partnerships cost money, and obtaining an untethered license is highly desirable.

FanDuel will likely go after one of them as well after spending a considerable sum to get sports betting on the ballot and circumventing the gridlocked Missouri legislature.

Late Launch

It has been a circuitous route for pro-sports betting supporters who unsuccessfully tried to get the Missouri legislature to approve sports betting. The primary stumbling block was Senator Denny Hoskins, who had no issue with sports betting but demanded that any sports betting bill be attached to one legalizing VLTs (video lottery terminals) in the state.

The professional sports teams decided to start a PAC called Winning for Missouri Education that was tasked with educating the public about the benefits of sports betting and how the taxed revenues would positively impact their educational system. The PAC got the required 170,000 signatures to have its question placed on the ballot.

DraftKings and FanDuel spent approximately $30 million combined on getting the project off the ground and onto the ballot so Missourians could vote on whether to have sports betting in their state.

Hoskins’ obstinacy was circumvented, but he didn’t forget the slight. After term limits forced him to vacate his senatorial seat, he was named Missouri’s Secretary of State earlier this year. In an ironic coincidence, he was asked if sports betting could be launched in time for the NFL and college football seasons.

This would have put the launch shortly before September, but he denied the request, stating it was not an emergency, which is why a December 1st deadline has been reached.