Circa Sports Surprisingly Lands Untethered Missouri Sports Betting License

Patrick Everson Sports Betting Expert

3 minute read

In what industry experts termed an upset, Missouri on Friday awarded Circa Sports one of the state's two untethered sports betting licenses. DraftKings Sportsbook got the second license in a three-way battle that included FanDuel Sportsbook.

Legal, regulated sports betting goes live in Missouri on Dec. 1. Other operators still have plenty of opportunity to join the fray, via tethered partnership licenses available with 13 casinos or six pro sports teams.

But the buzz of the sportsbook world Friday was Circa snagging a coveted untethered license.

Missouri Sports Betting

Upset Special

As VegasInsider reported last month, the Missouri Gaming Commission set a July 15 deadline to apply for one of the state's two untethered licenses. Only three operators did so: DraftKings Sportsbook and FanDuel Sportsbook, both completely expected; and Circa Sports, which was a sizable underdog.

The commission then reviewed those applications and, on Wednesday, allowed all three operators to appear before the commission and make their final push.

Circa Sports founder Derek Stevens, a sports betting aficionado and owner of multiple Las Vegas casinos, flew to the Show Me State to make his case. And apparently, it was a compelling one.

"We came in as the long shot against national giants like DraftKings and FanDuel. But our licensure approval today proves there's room for a different kind of operator," Stevens said via text message. "Winning one of Missouri's first two untethered mobile betting licenses is a great honor."

An untethered license allows Circa Sports to operate independently across the state of Missouri with its online/mobile product. There's a $500,000 licensing fee – twice as much as the tethered partnership license ($250,000) – but overall, Stevens said that was the best avenue.

"We felt this was an optimal route, because we were never sure if we could negotiate an agreement for a tethered license at a reasonable price," he said.

Doing Its Homework

Stevens credited the victory to Circa Sports' engagement throughout the application and review process. The sportsbook operator was engendering goodwill in Missouri well before Friday's decision came down.

"We've already connected with 81,000 Missourians through our Club One loyalty program. And we're ready to be an active part of the community, from local events to supporting youth sports," Stevens said.

Circa is obviously a far smaller operator than DraftKings, FanDuel and the big casino operators in the U.S. sportsbook space. But Circa is often recognized as a sharp book with fair pricing, willing to take action from the best professional bettors, while also welcoming bettors of all abilities.

Stevens said he felt that operating model worked in Circa's favor.

"We didn't win by trying to be the biggest. We won by staying true to who we are," Stevens said. "I want to thank the Missouri Gaming Commission for recognizing that and giving us the opportunity to bring the Circa Sports experience to the state of Missouri.

"We can't wait to get started."

The pseudonymous Jack Andrews, co-founder of Unabated, as well as a sharp bettor/advantage gambler, cheered the Missouri commission's decision. As the decision came down, Andrews and hundreds of other bettors were attending the annual BetBash conference at Circa Las Vegas.

"The biggest long shot to hit here was that state regulators decided to make for a more diverse market for their constituents," Andrews said. "With every state utilizing a market access model, which creates high barriers to low-margin operators, it's very tough to compete.

"Missouri recognized that untethered is the only relief from the market access model. Awarding one of those to a low-margin operator gives that operator a chance to compete more fairly."

DraftKings and FanDuel

As noted above, DraftKings Sportsbook was awarded Missouri's second untethered sports betting license. Neither DraftKings nor FanDuel Sportsbook would've been an upset selection, but DK was excited nonetheless.

"We're pleased to secure one of two direct mobile licenses in Missouri, paving the way for us to bring DraftKings' industry leading online sportsbook to fans across the state," DraftKings president Matt Kalish said in a news release. "Missouri is home to several professional sports teams and deeply passionate fanbases.

"We look forward to enhancing their sports experience with a dynamic and mobile platform."

It didn't take FanDuel long at all to move forward in Missouri. The sportsbook and fantasy sports giant announced Friday afternoon a sports betting market access agreement via one of the tethered partnerships, teaming up with MLS club St. Louis City SC.

Patrick Everson

Patrick Everson is a senior reporter for VegasInsider. Based in Las Vegas since 1994, he's worked in the sports betting journalism/content space for more than a decade. He's most known for his deep roster of contacts behind sportsbook counters, providing readers and viewers with the ins-and-outs of how events are being bet. He's also a thought leader in the sports betting space, often appearing on or moderating panels at national conferences. More from Patrick Everson