On Monday, Missouri saw the launch of eight online sportsbooks and various in-person betting locations, marking the end of a prolonged struggle to legalize sports betting in the state. This significant development follows a narrow victory in the 2024 ballot that ended years of legislative gridlock.
This launch represents the first major online gambling expansion since March 2024. Both large and small operators are optimistic about the opportunities this presents for growth within the evolving US sports betting landscape.
For BetMGM, this launch is a milestone. “This is an important launch for BetMGM and the broader industry,” remarked Matt Prevost, BetMGM’s chief revenue officer. Since its inception in 2018, BetMGM has expanded to 30 different markets. With Missouri’s launch, they now reach 50% of the adult population in the United States. The company already had a customer base in Missouri, consisting of individuals who traveled to nearby states like Kansas and Illinois to place bets.
BetMGM’s online operations went live on Monday morning, alongside the opening of the BetMGM Sportsbook at the Century Casino & Hotel Cape Girardeau. This sportsbook is partnered with the Kansas City Chiefs, adding a local sports flavor to its offerings.
While competitors like DraftKings, FanDuel, and Underdog are focusing on prediction markets to gain an edge in regions where sports betting isn’t yet legalized, Prevost remains optimistic about sustainable growth for traditional sports betting. He cited projections from Grand View Research, which estimate the US sports betting market could exceed $33 billion by 2030, with a compound annual growth rate between 10.9% and 12.2%.
He suggested that the introduction of prediction markets could actually accelerate the adoption of legislation promoting regulated gaming across the US.
Circa Sports is embarking on new territory, having received one of Missouri’s two untethered sports betting licenses back in August. The other license was awarded to DraftKings, a leader in the US market. Circa aims to differentiate itself by offering high limits and competitive pricing to attract a different type of bettor. Derek Stevens, Circa’s founder, has stated that their sportsbook’s hold is about 3.5%, significantly lower than the national average of around 10%. This approach focuses on customer attraction rather than immediate revenue.
Jeff Benson, Circa’s Director of Operations, explained that their untethered license allows for entry into the market without needing additional deals with sports teams or casinos. This model enables them to offer more competitive products, benefiting the user with better bonuses and promotions. However, Benson noted that while the untethered license simplifies entry, gaining significant market share will require a user-friendly app and effective marketing strategies.
DraftKings celebrated its Missouri launch with a star-studded event at The Palladium in St. Louis. Prominent Missouri sports figures, including former St. Louis Rams receiver Isaac Bruce and Kansas City Chiefs tight end Tony Gonzalez, participated by placing the first bets. DraftKings’ Chief Revenue Officer, Greg Karamitis, emphasized the company’s connection to passionate sports fans and its excitement about entering Missouri’s vibrant sports culture.
Fanatics also made a splash by involving former Kansas City Royals outfielder Alex Gordon in its launch at the Ameristar Casino Hotel Kansas City. Meanwhile, FanDuel, which did not secure an untethered license, partnered with St Louis City FC and announced significant charitable donations.
Bet365 entered the Missouri market with the support of the St. Louis Cardinals, a key player in the push to legalize sports betting. Trip Stoddard, Bet365’s head of development, expressed excitement about bringing their renowned betting experience to Missouri, collaborating with one of baseball’s historic franchises.
Caesars and Penn Entertainment have also gone live in Missouri, leveraging their existing casino presence. Penn’s transition from ESPN Bet to theScore Bet highlights the dynamic changes within the industry. Caesars celebrated its launch with events featuring former sports stars, showcasing its commitment to providing a premier betting experience.
The path to legal sports betting in Missouri was fraught with challenges, marked by multiple legislative attempts over five years. Senator Denny Hoskins notably opposed the measures in hopes of including video lottery terminal legalization. Ultimately, the initiative gained momentum through a ballot measure spearheaded by professional sports teams, with significant financial backing from FanDuel and DraftKings.
The ballot measure narrowly passed with 50.05% of the vote, overcoming legal challenges and opposition. Despite an initial delay due to the new Secretary of State’s denial of emergency rules, the Missouri Gaming Commission settled on the December 1 launch date.
Missouri’s sports betting framework includes a 10% tax on revenue, which is lower than many states. The revenue generated will primarily support public education, with allocations also directed towards responsible gambling initiatives. This strategic approach aims to balance economic benefits with social responsibility, ensuring a sustainable future for sports betting in Missouri.
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