FanDuel turns to St. Louis City SC for Missouri market entry after untethered license setback

FanDuel has entered into an agreement with Major League Soccer’s St. Louis City SC to access Missouri’s newly regulated sports betting market, just hours after being denied an untethered digital license by the state’s regulators.

Missouri’s digital sports betting is scheduled to launch Dec. 1, making it the 25th US jurisdiction in which FanDuel operates. The Missouri Gaming Commission (MGC) awarded on Friday its two untethered online-only licenses to DraftKings and Circa Sports. 

It was surprising that FanDuel was shut out, given its status as the national leader in digital sports betting by market share. Its vast reach and resources made it appear to be a shoo-in, creating quite the upset that Circa landed the other untethered license. 

“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,” Mike Raffensperger, FanDuel’s President of Sports, said. “We look forward to supporting the team and engaging with the community as we bring America’s #1 Sportsbook to fans across Missouri.”

License structure and market access

The MGC said up to 21 mobile sports betting licenses are available; two awarded Friday were untethered. State officials have named professional teams and the state’s 13 casinos as potential license holders. The two stand-alone permits, which cost $500,000 each, were claimed by DraftKings and Circa.

Other operators seeking entry may pursue tethered licenses, which carry a $250,000 application fee. Market-access agreements with local partners — often structured as a percentage of revenue or a set payment — are negotiated separately.

Terms of FanDuel’s agreement with St. Louis City SC were not disclosed. The company projected $400 million in annual revenue at its licensing presentation last week. 

Circa Sports, which currently operates in five states, enters Missouri by obtaining one of the two stand-alone licenses. “Winning one of Missouri’s first two untethered mobile betting licenses is a great honor,” Circa Sports CEO Derek Stevens told Covers. “We came in as the long shot against national giants like DraftKings and FanDuel, but our licensure approval today proves there’s room for a different kind of operator. Circa Sports is built for bettors, with sharp odds, high limits, and a low hold.”

Competition and partnerships

St. Louis City SC is one of six professional teams in the state eligible to hold a license. In addition, Missouri’s 13 casinos can apply. Several partnerships have already been announced: BetMGM with Century Casinos, bet365 with the St. Louis Cardinals, and ESPN BET, Bally Bet, and Caesars through their land-based casinos.

Fanatics Sportsbook and Underdog have also applied but have yet to disclose partners. The deadline for tethered license applications is Sept. 12, after which the MGC is expected to issue temporary approvals to allow operators and suppliers to prepare for the December launch.

FanDuel’s move into Missouri adds to its growing US portfolio. The Flutter-owned operator is already active in neighboring Iowa, Illinois, and Kansas. In the second quarter of 2025, FanDuel generated $1.79 billion in revenue, maintaining its position as the top sportsbook by market share in the country.