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Thanks to its partnership with the St. Louis Cardinals, Bet365 is expected to secure one of Missouri’s sports betting licenses ahead of the Dec. 1 launch.
The United Kingdom-based sportsbook has now solidified that claim by joining the Sports Betting Alliance.
Founded in 2021 by the biggest brands in American sports betting and gaming, the SBA “believes customers in all 50 states should enjoy the benefits of transparent and legal sports betting and online casino gaming with consumer protections and responsible gaming tools that do not exist on the unregulated market,” according to its website.
Bet365 joins an elite force that could make it a significant player in the Missouri sports betting market.
Fighting tax hikes in Illinois
FanDuel, DraftKings, BetMGM, and Fanatics Sportsbook formed the alliance to combat illegal sports betting while opposing what it perceives as barriers to legal sports betting, including reluctant lawmakers and higher taxes.
Cardinals fans who cross the Mississippi River to bet in Illinois may already be aware of the SBA and its efforts to protect sports bettors in the Land of Lincoln. It led what turned out to be an unsuccessful campaign last year against Illinois’ proposed hike in its sports betting tax rate.
Illinois has further bumped up its 20% to 40% tax rate by recently enacting a per-bet tax, which will charge 25 cents to 50 cents on every sports wager in the state. Missouri’s low tax rate of 10% on sports betting could reverse the commute between the neighboring states, as Illinois bettors might be visiting Missouri to bet on sports after Dec. 1.
FanDuel is offsetting the 40% it is taxed and the new per-bet charge in Illinois with a 50-cent surcharge on all wagers, according to a report by CNBC. The top US sportsbook said it will remove the surcharge if Illinois reverses course.
The state sets its highest tax rate of 40% on only FanDuel and DraftKings, the two leading sportsbooks in the state. Together, they account for about 75% of legal sports betting in Illinois.
DraftKings has promised a response but has not said what it will do.
Partnerships could help secure a license
While 31 of the available 33 sports wagering licenses require an operator to be “tethered” to a riverboat casino or professional sports team, the remaining two are “untethered” licenses that don’t require an operator to partner with a team or casino. The deadline to apply for an untethered license is just over a month away, July 15.
Sportsbooks, like bet365, that have a relationship with sports teams in Missouri will probably have a leg up on the competition for a sports betting license.
According to the Missouri Gaming Commission, the final tally of licenses (unless the state decides to expand the number of licenses) will include:
- 19 retail licenses, one for each of 13 excursion gambling boats and one for each of the six professional sports teams
- 14 mobile licenses, one for each owner of an excursion gambling boat (six), one for each sports team (six) and two untethered licenses
The MGC recently acknowledged that an operator could hold both types of licenses. Those applying for tethered licenses must meet a Sept. 12 deadline to be considered.
