Missouri voters have opened the door to legalized sports betting, approving Amendment 2 by a narrow margin on November 5, 2024. This decision paves the way for regulated digital and retail sports wagering, with the Missouri Gaming Commission (MGC) tasked to launch the market by December 1, 2025. As Chair Jan Zimmerman confirmed, “Our folks are writing the rules and regulations as we speak.”
Opportunities and Structure of Licensing
The new legislation in this US State establishes a detailed licensing framework, offering up to 21 licenses for digital sports betting. This includes six licenses allocated to Missouri’s professional sports franchises—such as the Kansas City Chiefs, St. Louis Cardinals, and Kansas City Royals—13 for casino operators, and two untethered licenses for entities without in-state partnerships. This inclusive approach balances opportunities for established operators while encouraging competition from new market players.
Many prominent sports betting platforms are poised for Missouri market access:
- Bally Bet: Owning a Kansas City casino, Bally’s is eligible for both retail and digital licenses.
- Bet365: While no local deal is confirmed, Bet365’s partnership with Century Casinos in Colorado positions it for entry through Century’s Missouri properties.
- DraftKings: Partnering with Penn Entertainment and two professional teams, DraftKings has a strong foundation.
- FanDuel: With ties to Boyd Gaming and the St. Louis Cardinals, FanDuel has multiple pathways to launch.
- Fanatics: Recently acquiring PointsBet’s U.S. operations, Fanatics inherits key market access agreements.
Additional players like Caesars, ESPN Bet, and Kambi are similarly well-positioned, reflecting the growing interest in Missouri’s upcoming market.
Regulatory Landscape and Tax Allocation
Missouri’s legislation imposes a 10% tax rate on sports betting revenue. A unique provision ensures that 10% of this revenue—or a minimum of $5 million—is dedicated to a compulsive gambling fund. License fees are capped at $250,000 for retail operations and $500,000 for digital operators, ensuring manageable entry costs for participants.
While the pro teams that spearheaded this initiative stand to benefit from direct licensing, experts suggest the current licensing landscape might dilute the exclusivity that once added premium value to team-sponsored deals. Consultant Sara Slane noted, “There are more access points than competitive brands… Operators are getting pressured on customer acquisition costs, and they have to be able to show that there is real value in these deals.”
The untethered licenses, reserved for operators without prior state partnerships, represent a unique opportunity for innovative platforms like Betrand Sporttrade to test their models. This provision fosters consumer choice and potentially drives market innovation.
Despite some compromises in market access exclusivity, pro teams like the St. Louis Cardinals are optimistic. President Bill DeWitt III emphasized their goal of creating value for sportsbook operators: “We want to be a good partner… and try to tailor our ability to reach our fans accordingly.”
Missouri’s approach to legalized sports betting combines inclusivity, competition, and consumer protection, setting the stage for a dynamic and engaging market when it launches in 2025.
Source:
”Missouri Sports Betting Licensing Attracts Top Platforms for 2025”, Real Money Action, November 15, 2024.
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2024-11-16 19:40:00