FanDuel Forced to Seek Tethered License as Missouri Chooses Betting Operators
The Missouri Gaming Commission (MGC) granted its first two independent mobile sports betting licenses Friday morning, selecting Circa Sports and DraftKings. These represent the first of as many as 21 licenses available statewide, with Missouri targeting a December 1 launch for online wagering. The move marked an important step in the state's regulated betting rollout and pushed leading operators like FanDuel to explore alternative entry strategies.
LISTEN TO THIS ARTICLE:Within hours of missing out on an untethered license, FanDuel announced it had secured access to Missouri's market through a partnership with Major League Soccer franchise St. Louis City SC. Company officials highlighted Missouri's passionate sports environment, calling the deal a strong cultural and business fit. The agreement guarantees FanDuel's presence in the state from launch day, albeit under a tethered arrangement rather than the more autonomous untethered model.
Related: Missouri's Sports Betting Market Starting to Attract Attention from SportsbooksThe key difference between license types comes down to fees and structure. Untethered licenses require a $500,000 payment upfront, while tethered licenses cost $250,000 and typically involve an access deal with a team or casino. These agreements often include revenue-sharing or fixed payments. FanDuel has not disclosed the specifics of its contract with St. Louis City SC. Still, such partnerships are often more expensive over time than the initial untethered license fee.
Under Missouri law, six professional sports organizations and the state's 13 casinos are eligible to apply for betting licenses. With Circa Sports, DraftKings, and FanDuel's new tie to St. Louis City SC, four licenses are effectively claimed. Another was spoken for earlier in the year when Century Casinos partnered with BetMGM, providing the operator market access through Century's two Missouri casinos.
FanDuel's alignment with St. Louis City SC raised eyebrows since the operator already had a pathway into Missouri via Boyd Gaming. That arrangement shifted after FanDuel's parent company, Flutter Entertainment, purchased Boyd's ownership stake. The MLS partnership now offers FanDuel a more direct relationship in Missouri while the company continues managing broader national collaborations.
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Operators Not Yet Ready to Begin
Any operator pursuing Missouri access must still complete the licensing process. The MGC has set a September 12 deadline for tethered applications, but has not confirmed when final approvals will be issued. Other companies, such as Underdog Sports and Fanatics Betting & Gaming, have already applied for tethered or retail licenses but have yet to reveal which local partners are backing their bids.
Missouri's expansion of legalized wagering also opens the door to new marketing opportunities. On August 15, Google updated its gambling ad policies to allow certified, state-licensed sportsbooks in Missouri to advertise through Google Ads. The change took effect immediately, enabling approved operators to launch promotional campaigns online as soon as their platforms go live, giving them a fresh avenue to reach bettors ahead of December's debut.
With Circa Sports and DraftKings licensed, FanDuel entering through a team partnership, and additional applicants waiting in line, Missouri is on track to become the 25th US market where FanDuel operates. Already active in nearby Iowa, Illinois, and Kansas, the brand will face a highly competitive Midwest landscape. Between the MGC's licensing framework, casino and franchise deals, and expanded ad permissions, Missouri's sports betting industry is rapidly taking shape.
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