Circa, DraftKings and FanDuel all pitched to state regulators on Wednesday why they should get one of the two untethered Missouri sports betting licenses.
The Missouri Gaming Commission gave each operator 30 minutes to sell why they would benefit the state the most based on seven key guidelines.
DraftKings and FanDuel did what they have done time and time again in front of regulators and broke down why they each have one of the best sports betting products in the country. Circa CEO Derek Stevens did not shy away from acknowledging that – “I realize, we are small potato compared to what was just presented” – and instead used his time to show how Circa is different than the betting giants with mass appeal.
It will not take long to find out who wins. The commission meets again at 9 am Central Friday to select the two winners.
Criteria for Missouri sports betting untethered license
After approving sports betting rules that will go into effect a day before the Missouri sports betting market launches on Dec. 1, Chairwoman Jan Zimmerman outlined what the commissioners would consider when selecting its untethered licensees:
- Expertise in online sports betting
- Integrity, safety and sustainability of the platform
- Past relevant experience
- Advertising and promotional plans to increase and sustain revenue
- Ability to generate, maximize and sustain revenue for Missouri
- Commitment to and plans for promotion of responsible gaming
- Capacity to increase the number of bettors on the platform
Circa swings for the fences
Stevens followed the presentations from DraftKings and FanDuel by praising both companies for what they have achieved since the two entered US sports betting following the end of PASPA in May 2018.
“I’d like to start by saying that I think the two presentations that occurred before Circa Sports came up here were commendable and I actually want to make a point on the record to both DraftKings and FanDuel because they are the leaders in the industry,” Stevens said.
“And they’ve done a great job, and being able to see the professionalism they put together here for the presentation to the state of Missouri, as well as the leadership in the industry, is very commendable.”
He quickly pivoted to what will make Circa valuable to the state of Missouri: attracting bettors that likely will not bet within the legal industry without a sportsbook like his. Stevens suggested just 25% of sports betting is done legally, and Circa offers the kind of product that will pull offshore bettors into the legal industry.
What Circa would give Missouri sports betting
Stevens categorized his business model as “far, far different” than his fellow presenters. While large sportsbooks focus on high hold percentages and many customers that make many smaller bets, Stevens said Circa’s advantage is having the “most respected betting line” in the industry.
Instead of a hold as high as 16%, Stevens noted that Circa shoots for 3.5% and finished 2024 at 3.1%. Instead of wanting mass-market customers that bet smaller amounts on parlays, Circa focuses on the customers that want to make bigger bets without being limited, he continued, noting that 95% of the bets at Circa are for $50 or more.
If it comes down to who can bring in the most taxable revenue, Stevens admitted that he “can’t compete here today,” but he jumped into what he can do:
“But what I can tell you is that we will attract a different style bettor. We will attract conquest customers that currently the state of Missouri is missing out on. We’re going to attract people that own businesses, we’re going to attract farmers, we’re going to attract real estate people, we’re going to attract bankers, lawyers, accountants, people that are currently betting offshore that are not going to go and bet into a 14% or 16% hold market.
“We’re going to attract people that want to bet legally and want to do this from an American perspective, they would prefer to bet within the United States, within a legal jurisdiction.”
Circa would make local impact
Stevens mentioned the more than 100 activation events Circa has done in Illinois, noting that he would like to do the same in Missouri to benefit local bars and restaurants. He has spoken with the major sports teams in the states and would be open to sponsorship deals like Circa has with the NHL‘s Vegas Golden Knights and Chicago Blackhawks.
He also pointed out Circa would be advertising locally and noted how the company has sponsored little league sports.
Perhaps most importantly, Stevens told regulators that Circa would not be starting out fresh in the state. Its Club One loyalty program has more than 81,000 active members from Missouri in its database that have played with the company within the last 13 months.
DraftKings, FanDuel hammer home strengths
The presentations for both DraftKings and FanDuel had plenty of points that the regulator likely wanted to hear.
DraftKings said in the next five years it would anticipate reaching $175 million in annual gross gaming revenue in the state from about 900,000 customers, about 18.8% of the state’s adult population.
DraftKings also noted how it helps fund 34 state responsible gambling programs, dishing out $15 million to each since 2022.
FanDuel, meanwhile, estimates $400 million in annual gross revenue when the market hits maturity in 2034. The company did not give specific customer numbers for that figure but said it already has 110,000 customers in Missouri, or 2.3% of the 21+ population, that have bet with FanDuel in another market.
FanDuel representatives also pointed out that the company has a margin advantage that has allowed it to deliver 35% more revenue per dollar wagered than the market as a whole over the past five years.
