Circa Sports, led by Las Vegas impresario Derek Stevens, has scored a major upset in Missouri’s newly launched sports betting market. The Missouri Gaming Commission (MGC) awarded two highly coveted untethered mobile sportsbook licenses to DraftKings and Circa, bypassing industry leader FanDuel in a move that stunned analysts and insiders alike.
What Makes Untethered Licenses So Valuable?
Unlike tethered licenses—which require revenue sharing with a physical casino or sports venue—untethered sportsbook skins allow operators to retain 100% of their hold. With Missouri ranking as the 19th most populous U.S. state, these licenses represent a rare and lucrative opportunity for mobile-first operators.
Missouri voters approved retail and online sports betting via Amendment 2 in the 2024 election, passing by fewer than 3,000 votes. The constitutional change allows:
- Retail sportsbooks at casinos and pro sports venues
- Up to two online partners per licensed facility
- Two standalone (untethered) mobile sportsbook licenses
Circa and DraftKings Selected
The MGC’s August 15 resolution confirmed the selection:
“The Missouri Gaming Commission selects DraftKings and Circa Sports as the two top qualified applicants for the two available direct mobile licenses.”
If either fails a full suitability investigation, the Commission will choose from remaining applicants.
DraftKings, with mobile operations in 25 states plus Washington, DC, was a predictable pick. Matt Kalish, President of DraftKings North America, said:
“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.”
Circa’s Underdog Victory
Circa Sports, active in just five states (Nevada, Colorado, Illinois, Iowa, Kentucky), controls less than 1% of the national mobile betting market. Yet Stevens’ direct pitch to the MGC won over regulators.
“Winning one of Missouri’s first two untethered mobile betting licenses is a great honor,” Stevens said.
“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. Circa Sports is built for bettors — sharp odds, high limits, low hold.”
License Terms & Tax Structure
Pending final suitability checks, both operators will pay:
| Fee Type | Amount |
|---|---|
| Initial License Fee | $500,000 |
| Annual Renewal | $500,000 |
| State Tax Rate | 10% of GGR |
Missouri’s 10% tax rate is significantly lower than the national average of 19%, making it an attractive market for sportsbook operators.
FanDuel Left Out
Despite leading the U.S. mobile GGR market with an estimated 39% share, FanDuel was not selected. The decision underscores Missouri’s openness to non-traditional operators and signals a potential shift in how regulators evaluate sportsbook applicants.
