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The Missouri Gaming Commission is preparing to make a pivotal decision on Friday, Aug. 15, that could reshape sports betting in the state.
Only two untethered licenses are available, and three very different companies are vying for them: industry giants DraftKings and FanDuel, and Las Vegas-based relative upstart, Circa Sports. It’s a classic David-versus-Goliath scenario — one side boasts marketing budgets and user bases in the millions, while Circa, a nimble contender, will need to rely on strategy to compete.
An untethered license is the golden ticket of sports betting. It allows a sportsbook to operate in a state without partnering with a local casino or professional sports team. For the big players like DraftKings and FanDuel, that’s a welcome bonus because it means they don’t have to share revenue. For a company like Circa, without the deep pockets or established partnerships of its rivals, it’s a matter of survival.
Three Rivals, Two Licenses, One High-Stakes Decision
When the operators appeared before the Missouri Gaming Commission to plead their cases, DraftKings and FanDuel leaned into their dominance, touting massive advertising campaigns, millions of users, and a proven track record of turning fantasy sports fans into full-time sports bettors.
FanDuel even offered an estimated $40 million a year in tax revenue, while DraftKings pledged about $35 million. Both also noted they spent heavily to help get sports betting legalized in Missouri in the first place. Their message was clear: “We’re the biggest, we’re the best, and we’ll make you the most money.”
Circa, however, came in with a different approach. CEO Derek Stevens cheerfully acknowledged they are the “small potatoes” of the group — and argued that’s exactly why they should win.
While the big sportsbooks cater to casual bettors placing small wagers, Circa targets serious gamblers. Stevens said his company would pursue a different audience: customers currently wagering on illegal offshore sites. These “conquest customers” often avoid large sportsbooks because of low betting limits and high “hold” rates — the percentage the house keeps from wagers.
Circa’s hold rate is just 3.5%, compared with the typical 14% to 16%, meaning better odds and bigger payouts for bettors. Stevens argued that by giving high-stakes players a legal home, Missouri could finally bring them into the regulated market — a quantity-over-quality approach.
“We’re going to attract people that own businesses, we’re going to attract farmers, we’re going to attract real estate people, we’re going to attract bankers, lawyers, accountants, and people that are currently betting offshore that are not going to go and bet into a 14% or 16% hold market,” Steven said.
Will the Underdog Score or Settle for a Partner?
The Missouri Gaming Commission faces a tough call Friday.
If Circa doesn’t get one of the untethered licenses, it’s not necessarily game over. The company could still seek a “tethered” license — the type granted through a partnership with a casino or sports team. Circa has already held talks with the Kansas City Royals and the St. Louis Blues — though such a deal would mean sharing revenue, something it would prefer to avoid.
No matter the decision, Missouri sports betting remains on track to launch Dec. 1, 2025.
