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DraftKing thrives with Super Bowl, other betting companies also flourish

DraftKings Today, gambling is legal in many states, particularly involving sports.

Possibly the biggest event for the gambling industry today is Super Bowl LVII.

High stakes

The American Gaming Association anticipated that the Philadelphia Eagles vs. Kansas City Chiefs NFL game will draw more than 50 million wagers worth more than $16 billion in advance.

Due to the importance of the game, the following giants of the gambling industry had an opportunity to attract more customers:

  • DraftKings
  • FanDuel owner Flutter Entertainment (PDYPF)
  • MGM
  • Caesars (CZR)
  • Wynn (WYNN)

The event also had an impact on the stock prices of various sports betting firms, with some of their shares rising in 2023 and the market as a whole rebounding.

However, a few of the equities are still making up for their large losses.

Stock progress

DraftKings had dips of 30% and 75% over the past year and the two years earlier, respectively.

Caesars and Penn Entertainment (PENN), respectively, own shares of Barstool Sports despite a 40% value decline in the prior year.

Rush Street Interactive, the parent firm of BetRivers, had a decline of more than 65% over that time.

Each business invested a considerable sum in pricey advertising initiatives.

While Jamie Foxx has been appearing in MGM advertising, Kevin Hart has been seen endorsing DraftKings.

Caesars has received endorsements from JB Smoove and the Manning family in television commercials.

Sportsbooks have also started to spend money on marketing campaigns like “free bets.”

Two birds and one stone

Providers of sports gambling must now use strategies that kill two birds with one stone:

  • Gain new customers
  • Restore investors’ confidence

But MGM presently has the advantage in this conflict.

Only one physical sportsbook is operated by its BetMGM division at the NFL game. BetMGM is a 50/50 joint venture between the large Las Vegas casino and UK gambling provider Entain.

The Phoenix stadium opened in 2022, taking the area beside State Farm Stadium, where the Chiefs and Eagles played.

There is no denying that gamblers have used mobile devices to place wagers.

The CEO of BetMGM, Adam Greenblatt, emphasized that business should flow quickly at the sportsbook both before and during the game.

“We have prepared for this Super Bowl like never before, said Greenblatt.

“We are staffing up for a lot of demand.”

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Marketing opportunity

According to Greenblatt, the 17,000 square foot sportsbook next to the stadium has 38 HD TVs and a huge display wall so that bettors can watch the game.

To encourage fans to wager on the game, there are 25 betting incentives.

According to Adam Greenblatt, having a real presence at the Super Bowl offers great marketing potential in a market that is competitive with sites like DraftKings, FanDuel, and other bookmakers.

He wants to get customers to download the BetMGM app on Sunday, create an account, and place wagers at the sportsbook.

By reminding players that MGM is a respected casino brand rather than a start-up like DraftKings, FanDuel, or Barsteel, Greenblatt underlined the importance of marketing.

“We’re fun and sophisticated. Ocean’s Eleven. That was an MGM experience,” he said, reminding people it was the MGM Grand in the 2001 film.

“We want to be both aspirational but also accessible.”

Sports betting companies vs. casino companies

Despite the rivalry, newcomers to the business are not unduly concerned about casino operators.

After sports betting became legal in Ohio, Maryland, and Kansas in 2022, there’s a lot of room for expansion, according to FanDuel CEO Amy Howe.

“This should be the single biggest day in FanDuel’s history,” Howe said.

She mentioned that 17 million bets, or more than twice as many as those put on the Super Bowl in 2022, are what FanDuel anticipates for Super Bowl LVI.

Howe claims that FanDuel expects the wagering to attract over 500,000 new clients who will wager on the game, particularly as more women do so.

Jason Robins, the CEO of DraftKings, thinks that bookmakers have realized they can no longer afford to invest in costly promos.

“If anything, the competition now is less intense than last year,” said Robins.

“Last year was the peak. It was somewhat irrational.”

Companies like DraftKings used to face sanctions from Wall Street for striving to increase their market share at any costs.

“Investor tolerance for the types of undisciplined spending during the NFL season last year has waned,” said Robins. “Investors want to see a path to profitability.”

“That’s different from 2021 when customer growth was being rewarded.”

More Super Bowl LVII advertising is still anticipated from both FanDuel and DraftKings.

NFL star Rob Gronkowski hit a field goal “kick of destiny” for FanDuel, while Kevin Hart is the subject of a different DraftKings commercial.

Image source: CNBC

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