FanDuel is securing a market access deal in Missouri with an MLS club after failing to be awarded one of the two untethered sports betting licenses offered by state regulators.
The Flutter-owned sports betting and online casino brand reached a market access agreement with St. Louis CITY SC ahead of Missouri’s launch of online sports wagering in December. The deal provides FanDuel with access to 25 regulated U.S. gaming markets.
“Missouri is home to some of the most passionate sports fans in the country, and we are thrilled to partner with St. Louis CITY SC to introduce our industry-leading product to the Show-Me State,” said FanDuel President of Sports Mike Raffensperger.
Circa Sports beats out FanDuel in Missouri
FanDuel landed a deal with St. Louis City SC after losing out on the two untethered licenses to DraftKings and an unexpected underdog, Circa Sports. As a result of being awarded the untethered licenses, DraftKings and Circa are not required to partner with an in-state casino or pro sports team to offer online sports wagering in Missouri beginning Dec. 1.
FanDuel’s inability to obtain an untethered license has financial ramifications.
FanDuel is required to pay $250,000 for its tethered license. By comparison, untethered licenses cost operators $500,000 but are more costly due to no revenue-sharing requirements. In Missouri, FanDuel will be required to share revenue with St. Louis City SC through a percentage of gaming revenue or annual guaranteed payments. Market access agreements may also include exclusivity fees, sponsorship fees and actual launch fees.
According to FanDuel’s Senior Director of Strategic Growth and Innovation Stephen Higgins, the operator projects to generate $400 million in annual gross gaming revenue from sports wagering in Missouri by the time the market reaches maturity in 2034.
Under Missouri’s 10% tax rate, the 2034 estimate amounts to $40 million in tax revenue.
FanDuel’s effort to bring sports betting to Missouri
FanDuel spent millions along with DraftKings to campaign for the approval of online sports wagering in Missouri. In 2024, FanDuel contributed over $3 million to the Winning for Missouri Education campaign.
The campaign, spearheaded by six pro sports teams, led the effort to bring online sports wagering to Missouri through a ballot referendum that was eventually approved by voters.
DraftKings contributed more than $10 million to Winning for Missouri Education. Collectively, the campaign raised more than $16.5 million to support online wagering.
Missouri’s tethered licenses
FanDuel joins other operators seeking a tethered license in the Show-Me State.
Missouri can issue up to 14 online sports betting licenses with bet365 expected to be an operator after the British brand secured a market access deal in March with the St. Louis Cardinals. The pact makes bet365 the Cardinals’ first official sports betting partner.
BetMGM landed a market access agreement in May with Century Casino & Hotel Cape Girardeau and will pay the gaming facility a percentage of its net gaming revenue from online sports betting. The agreement also includes a guaranteed minimum for Century.
The casino also has the option to launch retail wagering in partnership with BetMGM.
Underdog and Fanatics have also applied to receive tethered licenses in Missouri. Caesars, Bally’s and PENN may also explore a market entry with retail casinos in Missouri. Regulators in the Show-Me State can issue up to 19 retail sports betting licenses.
