Fanatics Partners with Boyd for Missouri Sports Betting License

Fanatics Betting and Gaming said on Monday that it is partnering with local casino Boyd Gaming (NYSE: BYD) to enter the sports betting market in Missouri.

The Missouri Gaming Commission (MGC) granted DraftKings and Circa Sports its two untethered online sportsbook licenses earlier this month. As a result, other gaming companies that want to provide sports betting in the Show Me State must collaborate with local land-based casinos or professional sports teams. Fanatics must therefore locate a Missouri partner.

"Under the terms of their multi-year agreement, Fanatics Sportsbook will operate mobile sports betting under Boyd’s sports betting license in Missouri,” said Fanatics in a statement. “The companies will open Fanatics-branded retail sportsbooks at Boyd’s Ameristar Casino Hotel Kansas City and Ameristar Casino Resort and Spa St. Charles, located near St. Louis. Fanatics plans to launch its online and retail betting products with the debut of regulated sports wagering in Missouri this December, contingent upon receipt of all required regulatory approvals.”

The Boyd/Fanatics deal's financial details were kept a secret. In December, Missouri is anticipated to have live online sports betting.

 

Boyd's Interesting Move

In terms of Boyd, the Missouri relationship with Fanatics is noteworthy since it is the first sports betting agreement the casino operator has signed since selling Flutter Entertainment (NYSE: FLUT) a 5% share in FanDuel.

After the transaction was finalized in late July, Boyd received $1.758 billion in proceeds, which the seller stated would be used to pay down debt. Boyd and Flutter extended other aspects of their relationship to 2038 as part of that deal.

It could be argued that this makes it even more intriguing that Fanatics, rather than FanDuel, is collaborating with Boyd to enter Missouri. FanDuel, the biggest online sportsbook operator in the US, was forced to collaborate with St. Louis City SC of Major League Soccer (MLS) after Circa unexpectedly secured one of the state's gambling licenses.

 

Enthusiasts Providing Missouri Benefits

Although FanDuel and DraftKings are by far the biggest online sportsbook providers in the US, Fanatics has made remarkable progress in a few areas, and some experts believe that part of that growth might be attributed to promotional spending.

That shouldn't hinder Fanatics' advancement in a fiercely competitive market, and it's a strategy that might help the business draw clients from Missouri.

“Upon launching this December, sports fans across Missouri will be able to download the Fanatics Sportsbook on iOS and Android and begin their Fanatics experience. Winning Hits Different in Missouri on Fanatics Sportsbook with up to 10% FanCash back on every bet, win or lose; Fair Play™ injury protection; and events and experiences that only Fanatics can pull off,” according to the statement.