Circa Sports Surprisingly Beats FanDuel in Missouri License Bid

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00:00But Circa Sports beats out FanDuel for that.

00:04And I wonder, Sam, what that means and how that happened.

00:08Yeah, it's pretty surprising, like you mentioned, Craig,

00:11that there was these two untethered licenses up for grabs.

00:15And FanDuel, Circa, and DraftKings were all competing for two of the three.

00:19Like you said, everyone assumed that FanDuel,

00:21the market leader in sports betting, would get one.

00:24Everyone assumed DraftKings would get one.

00:26So DraftKings got one, and FanDuel actually missed out to Circa Sports,

00:29which is a much smaller sports betting company.

00:32They're only active in a handful of states.

00:34Their whole model is taking bigger bets and having a higher limit.

00:38So while the big dogs of the world, the FanDuel and the DraftKings,

00:41focus on the $5 parlays, and if you're a really good bettor,

00:46they might limit you, Circa's whole model is we'll take your action.

00:49And it's a much different kind of business

00:51where they're working on different margins.

00:52But I would say them being awarded a license in Missouri

00:55is a big win for the Missouri bettors,

00:57is the ones who do complain online,

00:59you know, I've been winning too many bets,

01:01and I'm getting limited,

01:03and the sportsbook doesn't want to take my action.

01:05They claim that their average bet size is about $50

01:07versus about $5 to $10 for the other guys.

01:10So the big surprise is because it's not as big a company as the others.

01:15They, you know, don't make as much revenue,

01:17nearly as much revenue as FanDuel or DraftKings.

01:20And this leaves FanDuel, they still have the option to join in in the state

01:24to get a Missouri license.

01:25But like you mentioned, now they have to partner with a pro sports team

01:29or a casino in the state,

01:31which really probably will be no problem for FanDuel.

01:34Again, it's a huge company,

01:35but it means they're going to have to shell over a little money

01:37in order to do so.

01:38This is bigger for Circa

01:40because it allows the smaller brand

01:42to not have to partner with one of those casinos,

01:45not have to partner with one of those sports teams,

01:47and essentially save money and try to grow their brands.

01:49So they made their cases to the Missouri gaming regulators this week.

01:55You know, FanDuel talked about, you know,

01:57we already have Daily Fantasy Sports in the state.

01:59DraftKings are the same thing.

02:00They both have, you know,

02:02about 100,000 existing customers in Missouri already.

02:05So for them, it's very easy to just turn on.

02:07So if you're in Missouri,

02:08you have to be excited that one of these kind of newer apps

02:11that really isn't active in as many states,

02:13maybe you've crossed state lines before

02:14and already have FanDuel or DraftKings downloaded

02:17and already have their bonuses in,

02:19but excited to see what Circa does

02:21kind of ahead of football season

02:22or rather during football season

02:24when Missouri launches around their promos and bonuses.

02:28You know, the founder even acknowledged

02:29during the presentation that we're small potatoes

02:32compared to these other companies.

02:33And I guess that that resonated with regulators.

02:36It's really cool to see a smaller brand

02:39able to kind of have the success like this.

02:41And of course, there's other brands on the way as well.

02:43You have BetMGM and Bet365 already have licenses.

02:47And FanDuel has until the middle of September

02:49to secure their license.

02:50So they're definitely not going to call it quits on Missouri

02:53before they launch sports betting in December, as we know.

02:57Do you think, Sam, would you categorize this as a loss?

03:03Yeah, it's really not a major loss for them.

03:08It's, I would say, a small pothole bump in the road.

03:11It's going to really make no difference to their bottom line.

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