Missouri to Award Untethered Sports Betting Licenses on Friday

The Show-Me State will officially license its first two online sportsbooks this week.

The Missouri Gaming Commission has confirmed it will award the state’s two untethered sports licenses on Friday, August 15. FanDuel, DraftKings, and Circa Sports all made presentations to the regulator today to support their applications for the coveted licenses. The one operator who will be rejected will need to establish an in-state partner for one of Missouri’s standard licenses.

The state’s pair of untethered licenses provides a unique advantage for those who win them. They allow operators to launch their online sportsbooks without needing to establish a partnership with an in-state tribe or pro sports franchise. This allows them to hold onto more of their profits while offering competitive odds and promotions.

While the MGC has not publicly favored any of the three sportsbooks, FanDuel and DraftKings will likely be awarded the untethered licenses. Both operators helped support the state’s effort to legalize sports betting, helping fund the ballot initiative that voters approved in November. That relationship is likely the reason that more operators didn’t pursue these in-demand licenses. 

Missouri’s sports betting market is set to go live on December 1.

Illinois Sports Betting Fight Still Raging

As excitement grows over Missouri’s sports betting launch, a far different situation is unfolding in neighboring Illinois. The state raised its tax rate in 2024 and added a new “per-bet” tax on July 1. Sportsbooks have taken action in response to the rapidly rising costs, with six of the state’s ten operators adding a surcharge or minimum bet requirement.

The impact of the battle unfolding in the Land of Lincoln could benefit Missouri. The state’s 10% tax rate is one of the lowest in the country, tempting operators to heavily invest in the market. This will also lead to better odds and cheaper prices than bettors will find in Illinois, leading bettors to cross state lines to place wagers.

While a lot can happen between now and December, it seems likely that Missouri will benefit from the destabilization of Illinois' sports betting.