FanDuel Sportsbook Submits Application for Missouri License

The Show-Me State has a new industry leader looking to join its soon-to-launch sports betting market.

FanDuel Sportsbook has confirmed it applied for a sports betting operating license in Missouri. The operator is pursuing one of the state’s two direct mobile licenses. These do not require a partnership with a local casino or pro sports team, allowing those sportsbooks to keep more of their profits.

The announcement comes a month after top rival DraftKings Sportsbook applied for a direct mobile license. Underdog has also applied, but with a casino partner in place. Bet365 and BetMGM have also established partnerships for market access, but have yet to submit applications.

More operators are expected to pursue the new market. With neighboring Illinois adding a controversial new per-bet tax, many expect the state’s online operators to apply and shift focus to the emerging Missouri market.

Sports betting is set to launch in Missouri on December 1, the latest date allowed by the state’s new sports betting laws.

Are Direct Mobile Licenses a Mistake?

Missouri’s two direct mobile licenses give FanDuel and DraftKings plenty of reason to invest heavily in the market. The sportsbook giants, which dominated the US market share, were hit the hardest by the last two Illinois tax changes. These licenses will provide them with extra revenue to offset those losses, but that won’t be the case for the rest of the industry.

Smaller rivals struggle to compete with FanDuel and DraftKings in every market, but will be at even more of a disadvantage in Missouri. With the two leaders not splitting profits with a partner, they’ll bring in far more money and still be able to offer industry-leading odds and promotions. That won’t stop sportsbooks like BetMGM and bet365 from entering Missouri, but it might limit the investment they spend.

Time will tell if the market lives up to the promise, or if these coveted licenses will prevent it from reaching its full potential.