Missouri Sports Betting Licensing Attracts Top Platforms for 2025

the narrow approval of Amendment 2 by voters on November 5, 2024. The Missouri Gaming Commission (MGC) is actively developing regulations to facilitate the market’s debut, mandated to occur by December 1, 2025. Chair Jan Zimmerman stated, “Our folks are writing the rules and regulations as we speak.”

Licensing Structure and Opportunities

The new legislation outlines the distribution of up to 21 digital sports betting licenses:

• Professional Sports Teams: Six licenses are allocated to Missouri’s professional sports franchises, including the Kansas City Chiefs, St. Louis Cardinals, and Kansas City Royals.
• Casino Operators: Thirteen licenses are designated for the state’s casinos, such as those operated by Caesars Entertainment and Penn Entertainment.
• Untethered Licenses: Two licenses are reserved for operators without existing partnerships in the state, providing opportunities for new entrants.

This framework not only accommodates established entities but also opens the market to emerging operators, fostering a competitive environment.

Market Access for Major Operators

Several prominent sports betting platforms have established or potential market access in Missouri:

• Bally Bet: Bally’s owns a Kansas City casino, entitling it to apply for both digital and retail sports betting licenses.
• Bet365: While no Missouri-specific deal has been announced, Bet365’s existing relationship with Century Casinos in Colorado suggests potential market entry, as Century owns two casinos in Missouri.
• BetMGM: BetMGM has a partnership with the Kansas City Chiefs, positioning it favorably for market access.
• Caesars Sportsbook: Caesars Entertainment operates three casinos in Missouri, each eligible for digital and retail sportsbook licenses.
• DraftKings: DraftKings holds a “first” skin agreement with Penn Entertainment and has partnerships with the Kansas City Chiefs and St. Louis Cardinals.
• ESPN Bet: Through a partnership with Penn Entertainment, which owns three Missouri casinos, ESPN Bet has potential market access.
• Fanatics: Fanatics acquired market access rights through its purchase of PointsBet’s U.S. businesses, including a “first” skin agreement with Penn Entertainment.
• FanDuel: FanDuel’s national partnership with Boyd Gaming, which operates two Missouri casinos, and its relationship with the St. Louis Cardinals, provide avenues for market entry.
• Kambi: Kambi’s partnership with Affinity Casinos, which owns two Missouri properties, offers potential market access.
• Underdog Sports: While no formal agreement exists, Underdog Fantasy’s presence in Kauffman Stadium suggests a business relationship with the Kansas City Royals.

Implications for New Entrants

The availability of untethered licenses presents opportunities for emerging operators to enter Missouri’s sports betting market. Platforms like Betrand Sporttrade, known for innovative betting models, could establish a presence, enhancing consumer choice and stimulating market growth.

Regulatory Considerations

The MGC is tasked with developing a regulatory framework that ensures a fair and competitive market. The legislation sets a 10% tax rate on sports betting revenue and mandates that 10% of tax revenues, or $5 million—whichever is greater—be allocated to a compulsive gambling fund. Licensing fees are capped at $250,000 for retail licenses and $500,000 for digital licenses.

As Missouri prepares to launch its sports betting market, the inclusive licensing structure and regulatory framework aim to create a dynamic environment that benefits both operators and consumers.

Source:

“Here are the sports betting platforms that already have Missouri market access“, igamingbusiness.com, November 15, 2024.