Industry News of the Day for August 10, 2023

By iDEA | August 10, 2023

iDEA Growth Member News

  • Gaming Today: Fanduel In ‘Clear No. 1 Position’ Of US Sportsbook Market In Q2, Flutter Says
    • FanDuel has reportedly carved out 47 percent of the US online sportsbook market share in the second quarter of 2023, cementing its leading sportsbook position. The news came Wednesday during Flutter Entertainment’s earnings call for the first half (H1) of 2023 ending June 30. Flutter — FanDuel’s parent company — remains focused on player acquisition in 2023 and 2024. Interim results for the first half of the year released by Flutter on Wednesday show FanDuel generated $100 million adjusted EBITDA in the first six months, driving 63 percent of Flutter’s US revenue growth and allowing the company to reach US profitability for the first time.
  • Gambling News: Sportradar Sees Revenue Growth Along With Profits Decrease In Q2
    • The leading sports technology company delivering unique experiences for sports fans and bettors, Sportradar Group AG, released its latest financial results, revealing details regarding its performance for the second quarter of 2023. Results emerged Wednesday, revealing strong revenue growth and an increase in adjusted EBITDA for the quarter ended June 30, 2023. Overall, Sportradar’s revenue in Q2 2023 hit €216.4 million ($237.8 million). A year-over-year comparison to the €177.2 million ($194.7 million) in revenue reported for the same period in 2022, shows that this year, the revenue grew by 22%.

Industry News

  • Legal Sports Report: ESPN Bet Deal Leads To Portnoy Paying $1 To Buy Back Barstool From Penn
    • As expected, Penn Entertainment‘s second-quarter earnings call was almost entirely about its new partnership for ESPN Bet. One of the more interesting notes was found in Penn’s 10-Q, filed after the market closed Wednesday afternoon: Penn sold Barstool Sports back to Dave Portnoy for $1. Barstool agreed to certain non-compete terms and must share 50% of gross proceeds with ESPN if Portnoy sells it. Portnoy said he will never sell Barstool again.
  • TheLines: Conflict Of Interest? Insiders Will Move Odds On ESPN Bet
    • PENN Entertainment dropped a bombshell on the sports betting industry when financial markets closed Tuesday, forking over $2 billion in cash and stock to ESPN. In turn, PENN announced the launch of ESPN Bet — the soon-to-be exclusive online sportsbook of the “Worldwide Leader in Sports” — while axing its agreement with Barstool in the process. Now, ESPN and PENN must navigate a climate where sports media insiders already get accused of conflicts of interest with partner sportsbooks, especially after the Shams Charania backlash for his market-moving tweets during the NBA Draft.
  • PlayUSA: Penn Entertainment Q2 Highlights Include More Than $1.6 Billion In Revenue
    • Penn Entertainment (PENN) reported its second-quarter earnings Wednesday and highlighted the presentation with the new ESPN partnership. For the quarter which ended on June 30, Penn reported $1.67 billion in revenue, up 2.9% year-over-year.  In addition to the profitable quarter, Penn announced it would divest Barstool Sports after signing a $1.5 billion deal with Walt Disney’s ESPN to use the ESPN Bet name.
  • SBC Americas: Underdog Founder Bites Back At Campaign Against Props-Style DFS
    • The gloves are coming off in the battle between regulated sportsbooks and DFS sites like Underdog Fantasy, Prize Picks, and the upstart Betr Picks. Last month, FanDuel’s Senior Director of State Government Relations Cesar Fernandez minced no words about how he felt about these companies during a panel at the National Council of Legislators from Gaming States (NCLGS) summer meeting. “There are companies today posing as fantasy sports operators, and they are running illegal sportsbooks,” he said.

Maryland

  • NottinghamMD.com: Maryland Casinos Generate $174.3 Million In Gaming Revenue In July
    • Maryland’s six casinos combined to generate $174,323,087 in revenue from slot machines and table games during July 2023, down $7,180,139 (-4.0%) from July 2022. The July 2022 gaming revenue total of $181,503,226 was the second-best month in the 13-year history of the state’s casino program. Casino gaming contributions to the state in July 2023 totaled $73,184,177, a decrease of $2,890,247 (-3.8%) compared to July 2022.

North Carolina

  • NC Sharp: Player-Prop Fantasy Sites Create Challenge For NC Sports Betting Regulators
    • Two daily fantasy sports (DFS) operators receiving attention in several states for offering player prop-style games have waded into the North Carolina DFS market. The NC Courage and daily fantasy sports operator PrizePicks announced a partnership last week. Betr sportsbook, founded by Jake Paul and Joel Levy, launched a DFS product called Betr Picks in North Carolina, among other states. Since May, four states have cracked down on fantasy sites offering games mimicking player prop-style bets, New York being the most recent.

Ohio

  • Cleveland.com: How Much Money Do Ohioans Bet At Slot Machines? More Than They Do On Sports
    • Newly legalized sports betting has been the hot topic in Ohio since its launch in January. But slot machines are the more popular way to gamble in the Buckeye State in terms of the amount being wagered, spin after spin. While Ohioans have bet $3.8 billion on sports in six months, they’ve made $12.4 billion worth of bets on slot machines at Ohio’s 11 casinos and racinos, according to reports from Ohio’s Casino Control and Lottery commissions. Slot machines haven’t seen a slow down, as betting at the machines is up 4.8% year-over-year.
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