The Missouri Gaming Commission (MGC) announced that Underdog, a fantasy sports operator, has pulled out from participating in the upcoming sports betting launch set to begin on December 1. The decision marks a significant shift in the dynamics of Missouri’s emerging sports betting market.
Underdog, which had recently entered a multiyear marketing agreement with the St. Louis Blues, decided to withdraw its temporary sports betting license. This unexpected move was first reported by Fox 2, and according to Mike Leara, the executive director of the MGC, Underdog is redirecting its focus towards prediction markets. Unlike traditional sports betting, prediction markets are not subject to the same regulatory scrutiny or taxation.
The Missouri sports betting market will now proceed with eight licensed operators, including prominent names such as DraftKings, Circa Sports, Caesars Sportsbook, BetMGM, Bet365, theScore Bet, Fanatics, and FanDuel. These operators commenced user registrations earlier this month and are poised to compete in what is expected to be a thriving market.
The decision by Underdog to pull out comes as a surprise, particularly given its recent partnership with the St. Louis Blues, a move that suggested a strong commitment to the Missouri market. Some industry insiders speculate that Underdog’s pivot to prediction markets could be an attempt to capitalize on an emerging trend that offers potentially higher margins due to the lack of regulation.
Missouri’s foray into sports betting is part of a broader national trend, with states across the US legalizing and launching sports wagering operations in response to consumer demand and the potential for significant tax revenues. The inclusion of major operators in Missouri’s market is expected to attract considerable interest, especially with the NFL season in full swing and other major sports events on the horizon.
However, the absence of Underdog could also impact the market dynamics. Underdog’s innovative approach to fantasy sports, which blends traditional fantasy games with more predictive elements, has carved out a unique niche that could have brought a different flavor to Missouri’s sports betting offerings. “Shifting focus to prediction markets could be seen as a strategic move in diversifying offerings in an increasingly competitive landscape,” an industry analyst suggested.
Despite Underdog’s withdrawal, the remaining operators are gearing up for a successful launch. Each brings a distinct set of strengths to the table, from DraftKings’ robust platform and fan base to FanDuel’s expansive market reach. BetMGM and Caesars Sportsbook are expected to leverage their significant brand recognition and existing customer networks, while newcomers like theScore Bet aim to capitalize on their innovative technology and niche markets.
There is, however, a counterpoint to consider. While prediction markets are an exciting frontier, they are not without their challenges. These markets often face legal ambiguities and could potentially be subject to future regulations as lawmakers catch up with these new forms of wagering. Additionally, the lack of taxation might initially attract operators but could also lead to increased scrutiny from regulatory bodies in the long run.
The launch of sports betting in Missouri has been eagerly anticipated by both operators and bettors alike. With a population keen on sports and a regulatory framework now in place, the market is ripe for growth. As the December 1 launch date approaches, the state will be closely watched as a bellwether for future developments in sports wagering across the US.
In conclusion, while Underdog’s withdrawal introduces an unexpected twist, it also highlights the dynamic nature of the sports betting industry. Operators must continuously adapt to regulatory changes, consumer preferences, and technological advancements. As Missouri prepares to join the ranks of states offering legal sports betting, the market’s evolution will surely provide valuable insights for stakeholders nationwide.
