Missouri Launches Sports Betting Market Amid Uncertain Times

Over 30 states have legalized sports betting before Missouri, but there is a good reason why the Show-Me State’s launch has captured national attention. 

The state officially launched its regulated sports betting market, ending a years-long battle to legalize the industry. Operators have been anticipating Missouri going live due to the low tax rate and large population. Bet365, BetMGM, Caesars, Circa, DraftKings, Fanatics, FanDuel, and theScore Bet.

While the launch is great news for sports bettors and the state, the timing leaves much to be desired.

The launch comes as the sports betting industry is fighting for its survival. The first challenge has come from sports prediction markets, which some sportsbooks are working to offer. The new industry isn’t considered gambling, meaning operators don’t need to follow the same regulations and pay the same tax rates. FanDuel and DraftKings are looking to launch sports prediction platforms as soon as this month, while Fanatics appears to be aggressively pursuing its own.

The second challenge is coming from the public and lawmakers. There has been a growing call for severe crackdowns on sports betting regulations amid rising problem gambling and betting scandals. Most of this happened after Missouri voted to legalize the industry, but the state chose to move forward with its original framework.

Underdog, ESPN Bet Don’t Make Launch

The challenges facing the sports betting industry have already taken a toll on the new Missouri sports betting market. The state originally handed out 10 sportsbook licenses, but two of those platforms won’t be available. 

ESPN Bet and Underdog were set to launch today, but neither did. ESPN Bet was shuttered about two weeks before then as the platform struggled to compete. Penn Entertainment, which operated the failed sportsbook, will instead launch its Canadian platform, TheScore Bet.

Underdog’s decision to abandon the Missouri market came last week. The operator, whose sportsbook is only live in one state, decided to put its full focus on its new prediction market platform. With several states threatening to pull sportsbook licenses of operators who choose to offer the controversial markets, the operator felt it was safer to further invest in predictions.