Nine Operators Receive Licenses for Online Betting in Missouri

The Missouri Gaming Commission (MGC) has announced the issuance of nine temporary online sports betting licenses in preparation for the upcoming launch of sports wagering in the Show-Me State in December of this year.

Missouri Gaming Commission Gives Nine Licenses

The announcement represents the conclusion of years of discussion and legislative work to introduce regulated sports betting in Missouri. All nine applicants have been granted temporary licenses, allowing major operators to begin preparing for the market’s launch. The applicants are: BetMGM, bet365, Caesars Sportsbook, Circa Sports, DraftKings, ESPN BET, Fanatics Sportsbook, FanDuel, and Underdog.

Interestingly, seven operators were required to obtain tethered licenses by partnering with an existing Missouri-based entity. Among these partnerships, BetMGM teamed up with Century Casinos in May, while bet365 secured market access through an agreement with the St. Louis Cardinals in March.

FanDuel will enter the state via its partnership with MLS club St. Louis City SC, and Fanatics Sportsbook has joined forces with Boyd Gaming.

ESPN Bet and Caesars Sportsbook are leveraging their parent companies’ established casino holdings in Missouri, including Hollywood Casino, River City Casino, Harrah’s Kansas City, and Horseshoe St. Louis. Meanwhile, Underdog gained market entry through a partnership with the Kansas City Royals.

However, some operators, namely DraftKings and Circa Sports, previously secured untethered online licenses earlier in the year. These partnerships granted both operators the ability to conduct operations independently of any in-state casino or professional sports team.

More Needs to Be Done Before Sports Betting Officially Launches

While the nine operators have received licenses before Missouri officially launches sports betting on December 1, there is still much more work to be done in preparation for the changes. For starters, the Missouri Gaming Commission is set to officially enact its sports betting regulations on November 30, just one day prior to the market’s launch. Any changes to internal controls or house rules must be submitted before this date.

In the future, the MGC may issue up to 19 retail sports betting licenses and 14 online licenses if it chooses to do so. However, it has not confirmed whether it will reach this level, and such extensive market saturation seems unlikely to be sustainable. Operators may begin user account registration and funding starting at midnight on November 17, as long as all procedures adhere to state regulations.

However, some concerns, especially on the business side, remain. Some have called into question whether all these operators will be able to make a decent profit, and have pointed out several potential issues. For starters, Missoula has a population of about 6.24 million. Combining this with the fact that up to 14 operators will have licenses, tax, and other financial obligations, and the fact that the state’s neighbors also have legal sports betting, this might result in an oversaturation of the market. This might leave a very thin margin for each operator, posing the question if sports betting will be a stable business sector in Missouri in the long run.