Football Returns, California Sports Betting Showdown, and More Gaming Titles

The NFL debut is also the unofficial start of the sports betting season in the United States. Summers are largely devoid of major sports to bet on. Major League Baseball, golf, and tennis are all modest revenue producers, but they’re not quite the needle movers football is for the game.

For operators, football represents the most important touchpoint for customer acquisition. That’s why, despite all the talk of a “rollback” in advertising and marketing spending this NFL season, it’s hard to see much real evidence of it (at least anecdotally). There is always lots of ads and activations both domestically and, in particular, in markets with a legal online casino.

Other than that, endless money was spent on ads for a different purpose – both proposals in California it would legalize a kind of sports betting, either only retail sports betting or a wider expansion including online betting.

Right now, conventional wisdom, polls, and handicaps all say that California will not legalize online sports betting in November. This would be particularly frustrating given the hundreds of millions of dollars which was spent lobbying the electorate on both proposals. Residents will be the first to tell you how they’ve been bombarded with ads in recent weeks.

California also brings up the idea of ​​the sports betting map and where different states are. Maryland, after years of shutdowns and starts, it looks like some online sports betting should be up and running by the end of the year. The Massachusetts launch is yet to be determined (likely early next year), while Ohio is moving toward its planned January 1 launch.

Once these markets are active, sports betting will be legally and locally accessible to approximately 60% of all adults in the country.

October sports betting headlines

An indication that the US sports betting market beginning to mature is reflected in the main talking points, which have become more interesting and nuanced over time. Operator power ratings are stable for the most part for now, and we’ve finally stopped ooh-ing and ahh-ing along the way. FanDuel and DraftKings occur in this space.

Responsible gambling has thankfully become a big topic of conversation this fall, including a new 12 point platform endorsed by many of America’s top brands. Operators now have a unified set of standards related to detecting and resolving problematic behavior, including underage and beyond your means gambling. It’s probably partly lip service and good public relations, but it really is in everyone’s interest to make a serious commitment to responsible gambling.

This engagement becomes even more crucial as marketing moves to another level. Gone are the days of cookie-cutter TV commercials and cheap billboards at seedy NJ transit stations. DraftKings is now the sponsor of Thursday Night Football on Amazon Primewhich in itself is an indication of how times have changed in these sports-adjacent industries. BetMGM also has a new role as official ratings provider for NBC’s weekly coverage of Football night in Americareplacing PointsBet on the Sunday show in another coveted (and very expensive) deal.

It may seem contradictory, then, to say that profitability has become another big topic of conversation around the sports betting water cooler. Absurd promotional spending, especially in New York, seems to have reminded everyone that the biggest operators continue to hemorrhage money as they earn hundreds of millions of dollars from their customers every month. The path to profitability is a critical journey for these national brands and for the long-term sustainability of the industry as it exists today.

The United States still has a long way to go before it can be considered a mature sports betting market, but these types of conversations are an apparent indication that we are headed in that direction.

United States Gambling Financial Report

Football is back, baby!

The arrival of the most popular sport in the United States is a gift for bookmakers, signaling the start of a months-long increase in betting activity. Weekly reports in New York and West Virginia show modest annual growth so far, although we are still waiting for most of the September numbers to arrive.

The 31 states with legal sports betting rush together towards a record 100 billion dollars of management for calendar year 2022. Our current target has fallen just short of this milestone ($97.1 billion), although the rate of growth (or decline) of maturing markets may alter this figure over time. season.

After Massachusetts delays are partly responsible for the adjustment, but August reports were also a little weaker than expected in some key markets. And the early numbers for September aren’t exactly mind-blowing either. The remaining financials from last month will tell us a lot about what to expect for the rest of the year.

We remind you again that the data reporting cycle for sports betting is about a month behind schedule. This means that we only receive the latest reports from August to the beginning of October. We are also still awaiting August numbers from Arizona, Colorado, Illinois and Wyoming, while the other states without data do not publish regular financial reports.

Here’s what August looks like with the numbers available so far:

The total volume is up to 50% from August 2021, even without the missing states, mainly due to the launch of online betting in New York earlier this year. Arkansas’ big increase stems from the same reason, and the overall picture is one of phenomenal growth.

It’s the isolated annual trends of a few mature markets that give us pause.

New Jersey is clearly feeling the effects of its neighbor’s expansion, falling 18% compared to the same month last year. The same can be said for the effect of Louisianais launched on Mississippiretail market only. And Delaware just struggles to stay relevant as its neighbors continue to implement large-scale online betting. Nevada is even feeling the heat of the launch in Arizona, as well as the general increase in the number of US jurisdictions in which sports betting is legally available.

Oregon however, deserves a rare positive mention, up almost 60% compared to last year. The big difference for Oregon in 2022 is the replacement of the old scorecard platform with the superior DraftKings product (and the marketing mechanisms that come with it). It remains the only state not to bet on college games, but Oregon regulators have at least managed to address one of the issues that has been hampering the local industry.

You can find a complete sports betting revenue timeline for all US markets at playusa.com/revenue.

what we watch

Launched in Massachusetts, Ohio

Rumors of a possible September retail launch in Massachusetts proved premature. In fact, it looks like we’re still months away from the starting line.

There is also a new problem, or rather a new confusion on the mechanics of the permit. Ryan Hagen describe the problem for PlayMA:

The sports betting law allows the Massachusetts Gaming Commission (MGC) to issue licenses to casinos, simulcast centers and slot machine rooms in the state to take bets in person. These facilities can then partner with mobile operators. MGC can also award mobile licenses to up to seven independent companies – and that’s where problems have arisen.

At least 30 operators are expected to apply for the seven independent licenses available. While operators wait for the seven permanent licenses to be awarded, they can qualify for a temporary license that could last up to a year and come with a $1 million fee. Officials fear that potentially dozens of temporary licenses will then be closed when the seven officials are chosen, causing chaos for the regulator, licensees and the public.

The MA Gaming Commission met weekly, and it’s fair to assume they’ll iron out that wrinkle before launch. But the fact that we’re having this type of major licensure conversation doesn’t bode well for the calendar. We tentatively expect Massachusetts to launch in Q1 2023, although the exact timing and composition of the rollout is yet to be determined. very indeterminate.

Meanwhile, the timeline of Ohio has been set in stone for a while. New Year’s Day will be the opening hell or hangover day, and regulators seem to be on the right track for an on-time departure. More than two dozen brands and hundreds of physical installations are lined up to participate in the largest and most comprehensive rollout yet. Hard Rock already has one pre-launch offer available, in fact, in hopes of getting a leg up on what appears to be a fiercely competitive market.

Keep a bookmark on Play Ohio for updates on progress towards launch.

California Sports Betting Showdown

It seems fitting to put an end once again to the approaching sports betting referendums in California. The two proposals are either concurrent or complementary, depending on who you ask. And interested parties on both sides have so far invested more than $400 million in the lobbying effort.

For most tribal leaders and other Proponents of Proposition 26, defeating the opposing cadre is as much a victory as passing their own measure. The tribes are looking to tighten their grip on gambling in the state with a retail measure that would allow betting only on their native lands. Prop 27 supporters hope to open up the nation’s largest online marketplace by allowing statewide participation from the industry’s biggest brands. A breakdown of the two proposals can be found here.

As with all gambling issues in California, the battle is particularly fierce. The chatter around the Golden State is not favorable for either measure though the two have garnered over a million signatures in preliminary support. A recent poll shows approval below 35% approval for Proposition 27 and considerably less for the Tribal Measure.

At least for now, it doesn’t look like New York is in any danger of giving up its top spot in the US sports betting rankings.

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