Underdog partners with Kansas City Royals for Missouri sports betting license

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The Backstory

Setting the stage for Missouri’s launch

Missouri’s path to legal sports betting has been deliberate and deadline driven. Regulators in May opened a formal application window and set expectations that sportsbooks would not take bets until winter. That timeline became official when the Missouri Gaming Commission chair said the market would launch on Dec. 1. The agency emphasized a thorough vetting process and fixed bid deadlines for both tethered licenses, which require partnerships with casinos or pro teams, and untethered online licenses that let operators go solo. Lawmakers and local officials framed the rollout as a way to keep gambling revenue from bleeding to Kansas and Illinois and to shore up commitments from marquee franchises, including the Chiefs and Royals, that have been open about the value of a regulated market to their business plans and stadium footprints.

The structure signaled clear priorities: integrity and consumer protections balanced with a competitive field. The commission underscored that applications must meet detailed standards before approval, a posture that shaped every subsequent move by operators and teams. With a firm date on the calendar, national brands and upstarts began locking in access and testing political and commercial strategies tailored to Missouri’s mix of casinos and six pro sports teams.

Fierce competition for scarce untethered slots

The most coveted awards were the state’s two untethered mobile licenses. DraftKings and Circa emerged as winners in August, beating FanDuel in a high-stakes contest built around seven constitutional criteria that included business expertise, responsible gaming and revenue potential. The commission’s decision to grant untethered licenses to DraftKings and Circa validated contrasting playbooks. DraftKings leaned on scale and polished marketing. Circa spotlighted its high-limit brand to grow handle despite questions about relative tax yield. FanDuel, shut out of the solo route, moved quickly to secure local distribution through a team deal, announcing a partnership with MLS club St. Louis City SC to access the market via a tethered license.

The outcome capped months of maneuvering that began when DraftKings and Underdog filed early applications as Missouri’s first movers. The commission’s tight field for standalone online approvals forced the rest of the industry to sharpen their tethering strategies or risk losing first-wave access ahead of Dec. 1. That scarcity has amplified the value of team and casino partnerships across the state.

Teams, casinos and the race to tether

With the untethered path closed to most, the market is knitting together alliances between sportsbooks, franchises and local gaming properties. Even before the August decision, the dealmaking had begun. The St. Louis Cardinals aligned with Bet365 and Century Casinos tied up with BetMGM, leaving a wide board of potential partners among the state’s 12 other casinos and five remaining teams. After the commission named winners for the two solo spots, FanDuel quickly announced its tie-up with St. Louis City SC, positioning itself alongside a growing slate of tethered entrants.

The most notable partnership for a new entrant came from Kansas City. Daily fantasy operator Underdog struck a multi-year deal with the Royals for market access, a move that gives the company a clear lane to launch in Missouri, pending regulatory approval. That agreement builds on prior fan engagement programs with the club and strengthens the team’s role in shaping the local betting ecosystem. It also underscores the practical reality of Missouri’s rules: team relationships are becoming gateways to the market for operators that did not secure untethered licenses.

Underdog’s bid to convert fantasy users

Underdog’s approach in Missouri illustrates how smaller brands are trying to translate fantasy audiences into regulated wagering. The company was among the state’s earliest applicants and targeted mobile entry rather than an untethered license, according to filings and commission disclosures. Its Royals partnership gives it the tether required for statewide online betting while it continues to operate daily fantasy across multiple jurisdictions and a sportsbook in North Carolina. Executives say the aim is to deliver a differentiated product while leveraging team assets to cut through a crowded launch window.

Missouri’s open application phase has also drawn larger multi-state books. Fanatics Sportsbook applied for online and retail licenses, adding to a queue that includes Circa, DraftKings, Underdog and FanDuel. The commission can issue up to 19 retail and 14 online licenses through casinos and teams, leaving room for additional entrants that can secure partnerships and pass suitability checks. Suppliers such as Gaming Labs International, GeoComply and Sportradar have also applied for licenses, signaling that the state’s integrity and compliance stack will resemble those in other mature markets.

The early application surge shows operators expect meaningful demand on day one. Missouri’s sports profile, strong college followings and contiguous states with legal betting create a ready-made customer base that has been waiting for a local option. Underdog’s deal with the Royals is designed to capture that moment and could be a template for other midtier operators that need brand lift and access.

What regulators and consumers are watching

Regulators are threading the needle between growth and guardrails. The commission’s selection criteria for untethered licenses elevated responsible advertising and platform safety alongside revenue. That framework will inform how it evaluates tethered applications and retail books in the coming weeks. The chair’s explanation for the deliberate pace — ensuring complete vetting before launch — suggests a cautious orientation that may set the tone for enforcement after Dec. 1.

Consumer protection groups are already warning of risks that come with rapid expansion. The Better Business Bureau said gambling-related complaints tied to online operators have doubled since 2023 and urged players to verify licensure and read terms closely. Its alert, issued ahead of Missouri’s go-live, highlighted confusion around legal and illegal sites, reports of frozen accounts and misleading promotional terms at unlicensed books. The message anticipates a flood of marketing and new brands and encourages consumers to stick with operators authorized by the commission.

The stakes extend beyond player safety. State leaders view regulated betting as a tax engine and a retention tool for professional teams evaluating long-term investments in stadiums and entertainment districts. As Councilman Wes Rogers said when the commission confirmed the Dec. 1 start, capturing in-state handle and supporting local franchises are core goals. How quickly operators convert gray-market users, how responsibly they market to new bettors and how teams integrate betting into venues will shape whether Missouri hits those marks in its first year.

By the time bets go live, the map will be clearer: two untethered leaders with statewide reach, a growing roster of tethered books linked to teams and casinos, and newcomers like Underdog trying to punch above their weight through strategic partnerships. The next few weeks of approvals and dealmaking will determine who greets Missourians at launch — and who waits on the sideline for a second wave.