FanDuel Sportsbook Takes First Step To Join Missouri Market

A sports betting giant has set its sights on the Show-Me State.

FanDuel Sportsbook has officially submitted an application to join Missouri’s upcoming sports betting market, which launches December 1. The industry leader applied for one of the state’s two direct mobile licenses, joining DraftKings, which applied last month. These mobile-only permits do not require an in-state partnership, meaning operators don’t have to share their profits.

As of today, no other sportsbooks have sought to challenge the two industry giants for the coveted licenses.

FanDuel and DraftKings Set to Dominate

The US sports betting market continues to be dominated by DraftKings and FanDuel. They combine to own the vast majority of the market share, but they’ll have an extra advantage in Missouri if their application is approved.

The lack of a partnership means that the two sports betting powerhouses will keep more of the revenue they generate in the state. It also means they won’t want to worry about negotiations or managing relations with a third party. That extra cushion will allow DraftKings and FanDuel to offer even better odds and promotions, making it hard for the rest of the market to compete.

DraftKings and FanDuel both financed the effort to legalize sports betting in the state, making these exclusive licenses feel like a well-earned reward for their support.

FanDuel Finds Friendlier Midwest Market

No one is more excited for the launch of Missouri’s sports betting market than FanDuel. The sportsbooks recently suffered a blow in Illinois, where a new “per-bet” tax was added one year after a significant tax hike was passed. The company, along with DraftKings, announced a new per-bet surcharge to recoup losses from the tax, which went into effect on July 1.

FanDuel’s frustration with Illinois lawmakers has them threatening to limit investments in the market. Missouri is the perfect candidate to take over as FanDuel’s leading Midwest market. With a large population, many pro and college sports teams, a low tax rate, and no partnership required, the state represents a safe haven for FanDuel.

Missouri Market Taking Shape

FanDuel is the latest of several sportsbooks to begin pursuing the new Missouri market. DraftKings has applied for a direct mobile license, while bet365, Underdog, and BetMGM have all established in-state partnerships to gain market access.

The Missouri Gaming Commission will be accepting applications throughout the summer, meaning many more may still be coming. That includes Caesar, which has already established a foothold with three large casinos in the state.