Sports betting company FanDuel bankrolled Missouri's betting industry, yet failed to secure necessary licenses.
FanDuel Misses Out on Untethered Mobile Sports Betting License in Missouri
FanDuel, one of the major players in the sports betting industry, was not awarded an untethered mobile sports betting license in Missouri. The Missouri Gaming Commission (MGC) chose to grant its two available untethered licenses to Circa Sports and DraftKings instead [1][2].
The competition for these licenses was fierce, with FanDuel and DraftKings, two of the biggest names in the sports betting industry, pouring tens of millions into the 2024 ballot campaign that made sports betting legal in Missouri [5][6]. However, the limited number of licenses meant that only two recipients could be selected, and FanDuel was not among them [1].
Despite the initial setback, FanDuel has not given up on entering the Missouri sports betting market. They have secured market access through a partnership with Major League Soccer’s St. Louis City SC, which allows them to operate in Missouri despite not having a standalone untethered license [1][3][4].
Tethered licenses, on the other hand, require partnerships with casinos or professional sports teams. FanDuel has multiple partnership opportunities with Missouri casinos or professional sports teams to secure a tethered license [7]. However, the MGC has not yet awarded a tethered license to FanDuel [2]. FanDuel must apply for a tethered license before the Sept. 12 deadline to enter the Missouri sports betting market [8].
The decision by the MGC to award untethered licenses to DraftKings and Circa Sports, despite FanDuel's significant political investment and marketing resources, has been seen as surprising [9]. Circa Sports, for instance, admitted it could not match the marketing budgets, customer bases, or projected revenues of FanDuel and DraftKings [10].
In conclusion, FanDuel's efforts to secure an untethered license in Missouri were unsuccessful, but their partnership with St. Louis City SC has provided them with a pathway to enter the Missouri sports betting market. Their focus now shifts to securing a tethered license, which would require partnerships with casinos or professional sports teams in Missouri.
FanDuel, despite its significant investment and marketing resources, was not awarded an untethered mobile sports betting license in Missouri, yet they have secured market access through a partnership with St. Louis City SC. The sports betting market in Missouri remains a target for FanDuel, as they strategize to secure a tethered license, necessitating partnerships with Missouri casinos or professional sports teams. Despite lacking an untethered license, the odds for FanDuel's entry into the Missouri sports-betting market are not diminished, as they continue their pursuit in the casino-centric legal sports betting industry along with competitors like DraftKings.
