FanDuel Sportsbook Loses Out on Coveted Missouri License

FanDuel Sportsbook took a surprising loss in the Show-Me State today.

The Missouri Gaming Commission (MGC) announced that it had awarded its two untethered sports betting licenses to DraftKings Sportsbook and Circa Sports. FanDuel was the only other sportsbook to apply for the pair of coveted licenses, but will now be forced to pursue another avenue into the soon-to-launch market.

Missouri’s untethered licenses provide operators with a significant advantage. Since they do not require an in-state partnership, the sportsbooks aren’t forced to split their profits. 

The regulator’s decision to award Circa Sports a license over FanDuel came as a shock. The Las Vegas-based sportsbook has established itself as a top destination for big-money bettors, but owns only a fraction of the US market share. 

Conversely, FanDuel remains the most popular sportsbook among US bettors, combining with DraftKings to dominate the industry.

The industry-leading sportsbook played a key role in helping to legalize sports betting in Missouri. That relationship led many to expect that they would land a license, leading operators like BetMGM, bet365, and Underdog to decide against applying.

Missouri’s sports betting market is set to launch on December 1, giving FanDuel plenty of time to pursue another license.

What Went Wrong for FanDuel?

The MGC has pledged to have an open and fair licensing process that wouldn’t favor larger sportsbooks. When the three operators applying for the licenses made their presentations, the regulator proved those weren’t empty words.

The regulator seems to have been won over by Circa’s argument for why they deserved an untethered license. Their pitch acknowledged their small size, but also their niche market with big-money bettors and a reputation for world-class odds. Representatives also claimed that the sportsbook’s focus on high-stakes betting is convincing bettors to switch from offshore platforms to the regulated US market. 

FanDuel’s argument focused more on its proven track record in the US. They hammered MGC commissioners with facts and numbers to demonstrate their massive success, but it apparently wasn’t enough to sway commissioners.