Circa Sportsbook, the Las Vegas-based operator known for catering to sharp bettors, earned one of Missouri’s two untethered sports betting licenses, the state’s Gaming Commission announced on Friday.
DraftKings has also been given untethered market access, while FanDuel will have to partner with either a casino operator or a professional sports team in order to launch in the state.
All three operators made presentations to the MGC on Wednesday.
Circa was an underdog to emerge victorious in this three-horse race for two spots.
When sports betting launches in the state, expected Dec. 1, Missouri will become Circa’s sixth state, joining Nevada, Colorado, Kentucky, Iowa, and Illinois.
Circa’s Derek Stevens highlights differentiated model, low hold to Missouri sports betting regulators
Circa owner Derek Stevens acknowledged during his presentation on Wednesday that while his company won’t match the revenue FanDuel and DraftKings will produce in the state, it offers a different experience for customers, returns to players a greater percentage of money bet, and brings dollars currently being wagered offshore to the regulated US market.
“I’ve got to come up with a way to differentiate ourselves from 70% of the market share that’s located right in this room here right now,” a humble and deferential Stevens told commissioners after they heard from DraftKings and FanDuel.
“Our business model is far different than the other presenters here today. It’s not necessarily better—it’s just different.”
While large sports betting operators hold 12-16% of handle (returning 84-88% to players), Circa targets a hold percentage of 3.5%, meaning 96.5% goes back to winners.
“We focus on bigger bets, bigger volume, bigger handle,” Stevens continued. Bets of over $50 account for 95% of the wagers Circa writes, and Circa is attractive to sharper and bigger bettors, many of whom play with offshore books. An estimated 75% of sports betting handle is placed with illegal operators, according to Stevens,
“We take larger bets, we do not limit professional players, and we work with customers to learn from them,” Stevens said. “ … We provide value that brings people back into the legal market.”
Stevens commended Missouri for a structure that allows smaller operators to thrive.
“We are in front of you here today because we think Missouri has set up a regulatory background that can be a leader within U.S. gaming operations,” he said. “[In] some states, it’s going to be tougher, but I think the way Missouri set up the regs is attractive to a company such as ours.”
DraftKings, FanDuel tout revenue, responsible gaming
DraftKings’ and FanDuel’s presentations on Wednesday focused largely on the tax revenue these operators will be able to deliver to the state and their commitment to responsible gaming.
They are unquestionably the market leaders in every jurisdiction they operate. While they do invest substantially in responsible gaming, many industry observers question if their practices always match their ostensible commitment.
“We are currently the top one or two in each state in which we operate by gross gaming revenue,” Krista Thomas, Business Development and Partnerships at DraftKings, told Missouri commissioners. “Responsible gaming is really embedded in everything that we do for our customers.”
Added Tim Murphy, Senior Advisor, “Responsible gaming is part of our product, our people, and our partnerships.”
DraftKings also impressed upon the Gaming Commission that the more revenue an operator generates, the more tax dollars flow into state coffers.
“We believe that over the next five years, we can get up somewhere near $175 million of gross gaming revenue,” DraftKings CFO Alan Ellingson forecasted. The company projects an average annual customer base of about 900,000, accounting for nearly 20% of Missouri’s adult population of about 4.8 million.
“We’ve seen this in other states, and we believe that Missouri will be very consistent with what we’re observing from the neighbors,” Ellingson said.
FanDuel sings similar verse
FanDuel followed DraftKings on Wednesday with similar selling points. The message: Our heft will translate into tax revenue for Missouri, and we take responsible gaming very seriously.
“FanDuel is committed to growing the industry in a responsible and sustainable way,” Rich Cooper, Vice President, Regulatory, said in his opening remarks.
FanDuel owned a 44% share of online revenue across its jurisdictions in Q1 2025, greater than that of the two next largest operators combined, and the company has delivered 35% more in revenue per dollar wagered than the market as a whole, per Stephen Higgins, Senior Director, Strategic Growth and Innovation.
“We estimate that we hold the No. 1 revenue share position in 18 jurisdictions and No. 2 share position in the remaining five,” Higgins said.
FanDuel estimates that when the Missouri sports betting market matures in 2024, it will generate $400 million in annual gross revenue in the state, translating to almost $40 million in annual tax for Missouri.
Where does Circa stand on RG?
At the conclusion of Stevens’ presentation, MGC Chair Jan Zimmerman wondered why responsible gaming was glossed over.
“I didn’t hear any mention programs within Circa that address responsible gaming,” Zimmerman probed, “You’ve heard your two competitors’ earlier presentations talking about the things that they have in place to address problem betting or problem gambling.”
Responded Stevens, “I was counseled to make sure I kept it short, and I tried to make sure I provided elements that differentiate us from the others.
“But from my perspective, we’ve been in the casino business – my brother and I – for 20 years. We’re heavily involved in responsible gaming, both on a physical location, as well as in our apps. I didn’t really want to be redundant because there [are] many things that we’re all really doing, and frankly, the big guys have really kind of led the way in that. But I would say we’re all kind of in the same position [regarding RG].”
FanDuel likely to find way into Missouri
While it missed out on an untethered license, there’s still ample opportunity for FanDuel to gain market access in Missouri.
Bet365 announced in March a market access agreement with the St. Louis Cardinals. Deals with the state’s other pro sports franchises – the Kansas City Chiefs, KC Royals, St. Louis Blues, St. Louis City SC, and KC Current – have yet to be announced.
Missouri has several licensed casinos eligible for tethered sports betting licenses, too. BetMGM is partnering with Century Casino properties, Caesars Sportsbook is likely to partner with casinos operated by its parent company, and ESPNBet figures to be the choice of PENN Entertainment’s River City Casino.
FanDuel has a strategic national partnership with Boyd Gaming, which operates two Ameristar casinos in the state, giving the sportsbook a logical path to market access. The company has already applied for a tethered license.
