Missouri’s Ambitions New iGaming Goals Before 2026

Missouri’s sports betting market is preparing for a December 1 launch, and operators are rushing to secure their foothold. The state’s regulator has already made one unexpected licensing decision, reshaping the early dynamics of the market. Fanatics Sportsbook confirmed Monday that it will enter Missouri through a market access partnership with Boyd Gaming. The deal gives Fanatics both online and retail entry points, with Boyd’s Ameristar casinos in Kansas City and St. Louis serving as brick-and-mortar hosts.

The move adds Fanatics to a growing list of operators outlining Missouri plans, as companies look to capture early market share in a state where sports betting legalization was narrowly approved by voters in 2024. Earlier this month, the Missouri Gaming Commission (MGC) issued two of its most valuable assets: untethered online sportsbook licenses. DraftKings and Circa Sports secured those approvals, beating out FanDuel, which had been viewed as a frontrunner. The untethered licenses cost $500,000—double the fee for tethered licenses—and allow operators to enter the market without a local casino or sports team partner. FanDuel, despite its national market share and heavy investment in Missouri’s ballot campaign, was left out.

MGC Chair Jan Zimmerman called the decision difficult but defended the outcome, noting that the Commission could only issue two licenses.

 

Circa’s Niche Strategy Wins Over Regulators

Circa’s approval reflects the Commission’s interest in diversifying operator models. Unlike DraftKings or FanDuel, Circa runs a low-hold, high-limit sportsbook that targets sharp bettors and larger wagers. Owner Derek Stevens emphasized Circa’s 3.5% hold, compared to double-digit rates at larger competitors, and its willingness to accept higher stakes without limiting customers. While Circa lacks the marketing resources of its rivals, MGC officials said the distinct model could attract a different segment of bettors and create an incremental revenue stream for the state.

“It wasn’t about duplicating business models,” MGC Executive Director Michael Leara told St. Louis Public Radio. “The commissioners saw Circa as appealing to higher-wagering bettors, which broadens the market’s overall base.” FanDuel, in contrast, had projected $400 million in annual revenue at market maturity—well above DraftKings’ $175 million forecast. Circa did not provide projections.

FanDuel Rebounds With Sports Partnership

After missing out on an untethered license, FanDuel quickly moved to secure tethered access. The company announced a partnership with Major League Soccer club St. Louis CITY SC, giving it a pathway to launch online betting in December. “Missouri is home to some of the most passionate sports fans in the country,” said Mike Raffensperger, FanDuel’s president of sports. “We are thrilled to partner with St. Louis CITY SC to introduce our industry-leading product.” Missouri’s road to legalization was marked by repeated legislative failures before professional sports teams pushed the issue to the ballot. The 2024 referendum passed with just over 50% support.

DraftKings and FanDuel were the largest financial backers of the campaign, contributing more than $40 million. Their investment underscored the market’s perceived value, though FanDuel’s licensing setback highlights the unpredictability of regulatory decisions. With 14 tethered licenses still available, more operators are preparing entries. Partnerships already confirmed include:

• Bet365 with the St. Louis Cardinals
• BetMGM with Century Casinos
• Caesars and Penn Entertainment’s ESPN Bet through their own casinos
• Underdog, which has applied but not disclosed a partner

 

Instead of having two of the exact same type of business models and betting platforms, having something a little bit different would be attractive to the people of the state.

 

Outlook

Fanatics’ move with Boyd Gaming positions it as another major player, while Circa’s approval signals that Missouri regulators are willing to prioritize diversity of operator models over market size alone.

Sports betting revenue in Missouri will be taxed at 10%. While the full financial impact will depend on how quickly the market matures, operators are expected to compete aggressively for early adoption in December. The MGC’s licensing choices suggest that Missouri’s sports betting ecosystem may not simply mirror larger states. Instead, it could evolve into a mix of high-volume operators and niche sportsbooks, creating a competitive environment with varied consumer options.