It's the shock heard throughout the sports betting industry. On Friday, Missouri announced that DraftKings and relatively small sportsbook Circa Sports were successful in winning its only two untethered sports betting licenses, beating out giant FanDuel for the privilege.
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New customers only. Deposit min. $10. Place first bet of min $5 and get $100 in bonus bets if your bet wins.
Gambling Problem? Call 1-800-GAMBLER.
21+ and present in OH.
Missouri Liked What Circa Was Selling
On Wednesday, the Missouri Gaming Commission (MGC) welcomed all three applicants for its two untethered licenses to plead their case. Representatives for DraftKings, FanDuel, and Circa did exactly that, stating what they could bring to the state and why they were better than their competitors.
You can get the highlights from that meeting with the Missouri Gaming Commission here.
The commission felt that DraftKings and Circa best fit the criteria they set out when looking for applications. That is, expertise in online sports betting, maximizing revenues, as well as relevant experiences, to name just a few.
FanDuel's loss is shocking. Considering that the sportsbook is largely seen as the biggest in the US, with nearly 40% of gross gaming revenues generated by sportsbooks. FanDuel would have been a prime candidate to "maximize revenues".
Before the meeting, the thought of FanDuel acquiring an untethered license seemed like a forgone conclusion. The company donated millions to a pro-gambling advocacy group Winning for Missouri Education, which led the push to open up Missouri's sports betting market.
FanDuel now has until September 12, 2025, to find a partner in the Missouri market and file for a tethered sports betting license. A tethered license will cost FanDuel millions in revenue sharing with said partner. Something the company said it will do.
I wrote about the difference between Missouri's tethered and untethered license here.
Who Is Circa Sports?
Circa Sports is only live in Colorado, Illinois, Iowa, Kentucky, and Nevada, but it sets itself apart with a pro-sharps business model.
Unlike other books where bettors are limited for being too successful or from betting above certain limits, Circa lets bettors fly. There are no limits on their platform, something CEO Derek Stevens made sure to tell the MGC delegation on Wednesday. Stevens was also clear to note that 90% of the bets the book takes are over $50.
Circa's approach was perhaps what tipped the scales in their favor. They can attract a different kind of bettor than either DraftKings or FanDuel.
Terms and Conditions
New customers only. Deposit min. $10. Place first bet of min $5 and get $100 in bonus bets if your bet wins.
Gambling Problem? Call 1-800-GAMBLER.
21+ and present in OH.
Why Was Circa Successful?
It seems that the choice wasn't between Circa and FanDuel, but rather DraftKings and FanDuel. The commission was likely impressed by DraftKings' assertion that they have 50 full-time employees who are 100% dedicated to responsible gambling initiatives.
A commitment to responsible gaming was one of the criteria the commission sought in the untethered application process, something DraftKings easily cleared.
However, only the Commission can truly answer as to why Circa was chosen over FanDuel.
