Dave Briggs’ Post

Why am I Seeing So Many Sportsbook Ads during the NBA Playoffs? 💰 While I was watching the NBA Playoffs, I was bombarded with ads from sportsbooks and wanted to better understand why they are so aggressive in their marketing. I did some research and found that, in the highly competitive world of sports betting, low switching costs for consumers have made sportsbooks adopt increasingly predatory promotional tactics to attract and retain users. These companies invest tens of millions of $$ into eye-catching, entertaining ads designed to hook viewers with promises of "free bets" and other seemingly irresistible offers. One of the key reasons sportsbooks resort to such tactics is the low switching cost for consumers. Unlike traditional gambling venues, online sportsbooks can be accessed from anywhere, allowing users to easily switch from one platform to another. Additionally, there is little value in staying loyal to one sportsbook throughout your betting lifecycle. To counteract this, sportsbooks use high-value promotions, such as "risk-free" or "no sweat" bets, to lure in new customers and discourage them from trying out competing services. These promotional strategies often disguise the true nature of the offers. For example, "risk-free" bets usually require users to wager their own money first, with the promise of a refund in the form of site credits if they lose. This practice encourages repeated gambling and increases the likelihood of users becoming habitual bettors. The industry’s relentless pursuit of customers through these tactics has led to a constant barrage of advertisements, making it nearly impossible for everyday Americans to avoid.

A fun question to ask Penn Entertainment’s quarterly earnings call last Thursday is how to read the tea leaves of Penn’s disappointing first two quarters with ESPN Bet. Penn is struggling with sports betting: Last February, it closed an acquisition of media company Barstool Sports for around $500 million to build a sports betting service. It soon sold it back to Barstool founder Dave Portnoy for $1 and a long list of contractual covenants because regulatory obstacles related to Portnoy had become too expensive to resolve. Last August, Penn signed a 10-year licensing deal with Disney and ESPN to rebrand the sports betting app “ESPN Bet.” Penn is licensing the ESPN brand, ESPN will promote the sportsbook to its massive audience across platforms and both parties are projecting market share scenarios of between 10% and 20% for online sports betting in the U.S. in 2027. The cost to Penn is a $1.5 billion annual licensing fee paid per year to Disney/ESPN. ESPN will also get $500 million of warrants to purchase 31.8 million Penn common shares that vest over the same decade-long period, bringing the deal total up to around $2 billion. The app launched in November and quickly rose to the top spot in Apple’s iOS app store. More than one million customers signed up through the first two months, many driven by a promotional signup offer of $200 bonus bets (later reduced to $100 ahead of Super Bowl LVIII). In recent earnings calls, the substance has not matched the optics. In February, Penn Entertainment reported its interactive gambling division lost $333.8 million in the fourth quarter of 2023 due to costs related to ESPN Bet’s Nov. 14 launch. The losses were higher than investors had expected and the stock dipped 15%. On Thursday, it reported the division posted an adjusted EBITDA loss of $196 million. It substantially missed its goal of a hold of 7 to 8%—a margin that sportsbooks take on both sides of a bet—and reported a 4.4% hold in Q1. The divination question here for our figurative tea leaves is, is this news ominous for ESPN's direct-to-consumer future? [click on the link in the comment below to read the full essay] ****Key Takeaway**** Wall Street has plenty of reasons to perk up and pay closer attention to whether Penn Entertainment's struggles with ESPN Bet are a barometer of success for ESPN’s future pivot to direct-to-consumer. #espnbet PENN Entertainment, Inc ESPN

Comcast and DraftKings Bring Enhanced Sports Betting Experience to Xfinity X1: With Xfinity Odds Zone, X1 customers can view live odds from DraftKings directly on the TV while watching major live sports games and events. Additionally, the company announced a new immersive viewing experience, launching for the first time with THE PLAYERS Championship, that makes finding, interacting with, and watching live sports easier than ever. Comcast Business is a Proud Partner of THE PLAYERS Championship, where the strongest field in golf will meet the famed Stadium Course at TPC Sawgrass from March 12 – 17. Xfinity Odds Zone on X1 Xfinity Odds Zone on X1 will be a seamless on-screen companion experience for sports fans, making it quick and easy for customers to find betting information and initiate wagers on the DraftKings Sportsbook app without having to take their eyes off the action on the main screen. Xfinity Odds Zone will debut on March 12 for the start of THE PLAYERS Championship, with additional sporting events to follow including the men’s and women’s NCAA tournaments and NBA & NHL Playoffs. Xfinity Odds Zone will also be available for the start of the MLB and NFL regular seasons. “For sports fans, there is no better way to track in-play odds than right next to the live event, so we’re working with DraftKings to bring customers a transformative experience that makes it easy to follow the action and initiate bets while the event unfolds,” said John Dixon, Senior Vice President, Entertainment, Comcast. With Xfinity Odds Zone, sports fan can view odds directly on the TV, side-by-side with the live coverage. Bets can be quickly initiated by scanning a QR code that will add the wager to a DraftKings bet slip on their mobile device, where they can complete the transaction. Odds Zone will live within the existing Sports Zone app on X1, a popular companion experience used by millions of X1 customers that provides a quick way to find and watch live sports and view real-time scores and stats while watching any show or program. To access the Sports Zone app, customers can say “sports app” into their voice remote, or simply press the “c” button. Xfinity Odds Zone will be available to X1 customers in most markets; placing bets is limited to customers living in states where sports betting is legal and DraftKings Sportsbook operates. New Interactive Sports Experience Also debuting on March 12, a new interactive sports experience on X1 will bring golf fans an easy way to follow every pivotal moment of THE PLAYERS Championship, aggregating all live coverage from NBC, Golf Channel, Peacock, PGA TOUR LIVE on ESPN+ and the TOUR’s free ad-supported streaming TV (FAST) channel in one place alongside new interactive features. “With Comcast Business as a Proud Partner, THE PLAYERS Championship is a perfect opportunity to showcase the power of our platform to help customers find, watch and enjoy events…

🏆North Carolina Sports Betting Hits Second-Highest Monthly Handle in November!💰 North Carolina’s sports betting industry witnessed its second-best month since its March launch, with a handle of $657.7 million in November. The North Carolina State Lottery Commission reported that the November handle narrowly trailed the all-time high of $659.3 million achieved in March, the first month of legal wagering in the state. Of the total bets placed in November, $638.7 million came from real-money wagers, while $19 million were attributed to promotional credits offered by operators. This marks a significant increase compared to October, when real-money bets amounted to $589 million. The upward trend reflects a robust betting market bolstered by overlapping college basketball and football seasons. November’s gross gaming revenue (GGR) in North Carolina reached a record $78.1 million, surpassing the $70.1 million recorded in September. This impressive figure represents the second-highest monthly GGR since mobile wagering was introduced. The state collected $14.1 million in taxes from the November handle, calculated based on North Carolina’s 18% tax rate on GGR. Since March, the state has amassed $98.6 million in tax revenue from online sports betting. A portion of this income is allocated to support athletic programs across 13 public universities in North Carolina. In comparison to similarly sized states, North Carolina’s sports betting market is holding its own. With a population of approximately 10.8 million, North Carolina has been competitive with Michigan, which has around 10 million residents. In October, North Carolina reported a handle of $612 million, surpassing Michigan’s $560.4 million handle for the same period. The North Carolina sports betting market currently supports eight online sportsbooks: FanDuel, DraftKings, BetMGM, Caesars, Fanatics Sportsbook, ESPN BET, bet365, and Underdog. In November, these operators collectively distributed $19 million in promotional credits, the lowest since the start of football season in September. November’s results were a marked improvement from October, a month characterized by bettor-friendly outcomes due to NFL favorites. Revenue in November climbed 60.4% month-over-month, buoyed by high volumes and the start of the college basketball season. #NorthCarolina #SportsBetting 🏆🔥💰 https://lnkd.in/gNphZ-AT

#Massachusetts sees sports betting revenue hit calendar year low in August, despite seeing year-on-year growth in both revenue and handle.   💰 $33.3M in combined taxable online and retail revenue for the month, a 51.4% increase compared to last year, but down 19.2% from July.   📊 $447.3M in total handle across online and retail, up 42.1% year-on-year, and an 8.6% rise from July’s total.   🏆 DraftKings Inc. continues to lead the pack, generating $16.2M in revenue off $229.4M in bets, while FanDuel follows with $10.7M and a higher hold of 9.26%.

Sports Betting News & Updates! 🤝 North Carolina Seeks Public Input on Sports Betting Rules The Sports Betting Committee of the North Carolina State Lottery Commission has approved the start of a rule making process for the fourth set of sports wagering regulations. The public comment period for these proposed rules is open until October 18, 2024. This development comes after North Carolina officially launched online sports betting on March 11, 2024, with eight operators receiving licenses to begin accepting bets: - bet365 partnered with the Charlotte Hornets - BetMGM with Charlotte Motor Speedway - DraftKings Inc. with NASCAR - Fanatics with the Carolina Hurricanes 🎸 Hard Rock Bet Partners with Jacksonville Jaguars Hard Rock Bet has become the official sportsbook of the NFL's Jacksonville Jaguars. This partnership includes: Special rewards for fans, in-stadium advertising, integrated marketing campaigns. Such partnerships between sportsbooks and professional sports teams have become increasingly common as the sports betting industry expands, providing mutual benefits in terms of brand exposure and fan engagement. 🕹️ American Gaming Association Projects Record NFL Betting The American Gaming Association has released projections expecting record amounts to be wagered during the 2024 NFL season. This forecast underscores the continued growth of sports betting in the United States, particularly around popular leagues like the NFL. 💰 September Revenue Reports Show Mixed Results - Iowa: Iowa's casino revenue experienced a year-over-year decline in September. However, the state's sports betting handle saw an increase during the same period. This contrasting performance highlights the growing popularity of sports betting even as traditional casino gaming faces challenges. - Indiana: Indiana reported a substantial 57% increase in its sports betting handle for September compared to August. This surge likely coincides with the start of the NFL season, which typically drives increased betting activity across many states. - Vermont: Vermont, a relatively new entrant to the legal sports betting market, recorded over $11 million in sports betting handle. This figure indicates a strong start for the state's nascent industry and suggests potential for growth as the market matures. If you want to join the world of sports betting, check out the link for open roles below!👇

🎉 Record-Breaking Month in MA Sports Betting! 🎉 October was phenomenal for Massachusetts sports betting enthusiasts, with a staggering $748M in bets placed! 📈 But here's the twist: while the handle soared, the revenue took a hit with a 6.8% hold. 🥇 FanDuel & DraftKings Inc. Reign Supreme 🥇 Dominated with over 80% of the market share! BetMGM, Fanatics, and Caesars are neck-and-neck for the third spot. Fanatics, despite a slight dip, still boasts a massive year-over-year growth of 137%! 🏈 What's Next? 🏈 November promises even more action with: Five Saturdays of college football Thanksgiving weekend is packed with NFL and college games Potentially higher hold rates if the betting trends follow suit from New York Will November bring the revenue back up? Keep your eyes peeled for the next big betting month in MA! #MassachusettsBetting #SportsBetting #NFL #CollegeFootball #BettingTrends https://lnkd.in/d5s4mNxY

Equity research specialist JMP Securities has published its US sports betting report for May, outlining slight market changes. According to the firm, DraftKings Inc.’s market share soared that month, although the company was still unable to surpass FanDuel. As data from Indiana, Iowa, Maine, Maryland, New Jersey, New York and Kansas shows, operators recorded a 72% year-on-year increase in sports betting handle. The rise was attributed to the seasonal increase in betting around the National Hockey League (NHL) and National Basketball Association (NBA) playoffs. In the meantime, DraftKings and FanDuel continued to dominate the betting market and were collectively responsible for approximately 81% of all GGR. This marks a slight decline from the 84% recorded in April. Read the full story ➡ https://lnkd.in/dtNtrvf2 #business #gambling #gamblingnews #usa #finance #sports

📈 North Carolina Sports Betting Hits $200 Million Mark in First Week 💸 According to recent sports betting figures released by the North Carolina State Lottery Commission, the Tar Heel State shows a total handle approaching almost a quarter of a billion dollars! 💰 The Lottery Commission revealed that the state’s first week of legal sports betting, starting Monday, March 11, saw $198.1 million in total wagers. The organization’s inaugural sports betting report provides a more detailed breakdown, pointing to payouts totaling $141.6 million from the $198.1 million wagered, yielding $42.7 million in gross gaming revenue. 💵 A closer examination reveals that bets amounted to $23.9 million on the NC sports betting market’s first day, with nearly $12.4 million attributed to promotional bets. Players received $12.2 million in winnings within the first 12 hours. Furthermore, GeoComply, the prominent geolocation solution provider, revealed a 46% surge in online sports wagering activity on March 19, the first day of March Madness, accompanied by a 46% increase in active accounts. 🏈 In a recent press release, GeoComply’s SVP of compliance, Lindsay Slader, said, “It’s early, but North Carolina is already delivering on lawmaker expectations when they legalized online sports betting last year. The state’s well-structured approach to mobile sports betting safeguards consumers and opens up significant revenue streams.” To date, the North Carolina State Lottery Commission has granted eight interactive sports betting licenses to operators, including Bet365, BetMGM, Caesars Entertainment, DraftKings, ESPN Bet, Fanatics, FanDuel, and Underdog. 🏅 To offer legal sports betting in the Tar Heel State, operators must partner with NC sprots teams, leagues, or venues across the state. All license recipients have successfully secured such deals, including: ·      🏀 Back in November 2023, Bet365 signed a partnership with the NBA’s Charlotte Hornets. ·      🏁 BetMGM teamed up with the Charlotte Motor Speedway. ·      🏎 DraftKings partnered with NASCAR. ·      🏒 Fanatics Betting and Gaming has become the NHL’s Carolina Hurricanes official sports betting partner. ·      ⛳ ESPN Bet revealed golf’s PGA Tour and its Wells Fargo Championship as partners. ·      🏌️♂️ Partnering with McConnell Golf, Underdog has extended its standing as a paid fantasy sports operator. As we head into the second month of legal sports betting in North Carolina, only time will tell how the Tar Heel State compares to other leading US sports wagering markets. But if its first month of legal sports wagering is anything to go by, we can expect great things from NC’s legal sports betting market. 🌟 #NorthCarolinaGambling #NorthCarolinaSportsBetting #NCGambling #NCSportsBetting

WynnBET has officially ceased operations in New York, marking a significant shift in the state's sports betting market. Existing customers are required to withdraw their funds by August 29. This strategic move clears the way for ESPN BET, which is expected to launch in time for the NFL season. WynnBET's departure follows a trend of consolidation in the US mobile sports betting industry, as smaller operations struggle to compete against dominant players like FanDuel and DraftKings. Over its two-and-a-half years in New York, WynnBET accepted $233 million in bets but only generated $11.3 million in revenue, leading to its decision to exit the market. The introduction of ESPN BET, operated by Penn Entertainment, promises to bring new energy and competition to New York's sports betting scene. As one of the world's largest sports broadcasters, ESPN BET is poised to make a significant impact. With the NFL season around the corner, the timing couldn't be better for bettors in the Empire State. Stay tuned for more updates on this exciting development. #SportsBetting #BusinessUpdate #ESPNBet #WynnBET #NewYork #NFL https://lnkd.in/dgY9g6VK