Sports betting has caught on like wildfire in the seven years since the Supreme Court struck down the federal ban on sports betting with its decision Murphy v. National Collegiate Athletic Association.
Currently, 38 states have legalized sports betting, with Missouri, the 39th state, expected to come online by December.
Diving into the numbers, it's easy to see why sports gambling has become so popular so quickly.
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“At least $20 billion will be wagered on football between now and the end of the year, plus a similar amount rolled up into the parlays that have become so popular among casual bettors,” according to Legal Sports Report.
However, each state regulates gambling differently, and Missouri only has a limited number of licenses.
There are 14 sports betting licenses up for grabs in Missouri, and licensees must be tied to an existing casino or sports book.
But Missouri is also offering a limited number of independent licenses, and DraftKings (DKNG) just secured one of them.
Missouri grants DraftKings and Circa independent sports gambling licenses
Missouri currently allows six companies to operate casinos in the state:
- Affinity Interactive
- Bally's Corp.
- Boyd Gaming
- Caesars Entertainment
- Century Casinos
- PENN Entertainment
Most sports betting licensees must operate their sportsbooks under the auspices of one of those companies, unless they apply for one of the state's two available Sports Wagering Direct Mobile Licenses.
Those licensees don't need to partner with a casino, and thus don't need to share any of their profits with them.
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Last month, representatives from DraftKings, Circa, and FanDuel Sportsbooks made presentations to the Missouri Gaming Commission to garner one of those licenses.
The Commission chose DraftKings and Circa for the honors after two days of deliberation, according to National Football Post.
DraftKings and Circa will be able to offer mobile sports betting throughout the state independently, once the rules take effect on December 1.
DraftKings shares were down 0.9% at last check on Sept. 2.
While FanDuel missed out on the independent license, it can still operate in the state with a casino partner. The company has not yet revealed which one it has picked.
Sports gambling is entering its “busy season”
Currently, 39 states, the District of Columbia, and Puerto Rico have legalized sports betting.
The NFL is the “end-all, be-all” of U.S. sports gambling, according to Ryan Butler, a senior analyst at Covers.com.
But September isn’t the “busy season” just because of NFL football. College football also generates big sports handles and increased activity.
Last year, Missourians attempted to place more than $11 million in bets between the start of the football season and the end of October, according to media reports. The problem was that Missouri didn’t officially legalize sports betting until November, and the program still hasn’t gone live.
Last week, sports apparel and merchandise company Fanatics announced that Fanatics Betting and Games is teaming up with Boyd Gaming Corp. for a sports betting venture in Missouri.
In addition to an online presence, Fanatics will also have a brick-and-mortar presence in the state at Ameristar casinos in Kansas City and St. Charles.
Missouri will become the 39th state with legal sports betting and the 31st with online sports betting when it comes online in December.
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