Industry News of the Day for November 3, 2023

By iDEA | November 3, 2023

Industry News

  • PlayUSA: Rush Street Interactive Nears Elusive Profitable Quarter
    • For most online gambling companies operating in the United States, straws are too tangible to accurately describe how immaterial turning a profit over a three-month period has been. A more accurate analogy would be trying to hold vapor in your hands. Rush Street Interactive (RSI), which offers online casino play and online sportsbooks in several US states, came closer than ever to pulling off that feat during the third quarter of this year. Three factors are behind the improvement according to the company’s financials.
  • CNBC: DraftKings Revenue Jumps 57% As Sportsbook Leader Grows Customer Base
    • Sports betting company DraftKings on Thursday posted quarterly revenue that came in ahead of analysts’ expectations as the company rises to the top of the highly competitive online gambling industry. Shares for DraftKings gained about 7% in extended trading Thursday after rising 6% during the regular session. It wasn’t immediately clear whether the company’s reported loss per share was comparable to the 69 cent loss expected by analysts, according to LSEG. DraftKings reported a net loss of $283.1 million, or 61 cents per share, compared to a loss of $450.5 million, or $1 per share, in the same period a year earlier.
  • SBC Americas: More States Question Fantasy Pick’em Games
    • Mississippi and Arizona are the latest regulators to revisit what kinds of fantasy contests are offered in the state. The two states join a growing list of regulators scrutinizing fantasy vs. the house games offered by operators likeUnderdog and PrizePicks. The Mississippi Gaming Commission confirmed Executive Director Jay McDaniel sent a letter to all fantasy operators in the state clarifying the rules. In the letter, McDaniel wrote that the state does not allow fantasy contests vs. the house. Additionally, fantasy contests must consist of the accumulated statistics of multiple players instead of pitting one athlete’s performance against another athlete. Finally, “a contest must not be determined by one factor of an athlete’s performance.”
  • SBC News: Kambi Rebalances Network In Q3 As New Deals Brighten Future Prospects
    • Kambi Group Plc has reaffirmed its long-term commercial prospects following strong Q3 trading in which it has secured transformative agreements with Svenska Spel and LiveScore Group. Publishing its Q3 2023 trading update, the Stockholm-listed sports betting technology group achieved corporate revenues of €42m, up 15% on Q3 2022 comparatives of €37m.  Headline growth was achieved despite Kambi registering a lower operator turnover index of 602 during Q3 (down 6% YoY), following the exit of US partner Penn’s online business in July.
  • Sports Handle: ESPN BET Will Be Harvesting ESPN Fantasy’s Database, But Some Question The Upside
    • Before the U.S. Supreme Court overturned PASPA — but after the buzz about that possibility began — FanDuel and DraftKings were hardly the companies pegged to emerge as the unquestioned leaders in mobile sports betting. Now, more than five years later — and with hindsight being what it is — their dominance seemed pre-ordained. Of course they would rise to the top. After all, they had a massive database of daily fantasy players, and it doesn’t take a brain surgeon — or sharp bettor — to realize the value of a list like that. Clearly, FanDuel and DraftKings’ lists of DFS players trumped the lists BetMGM, Caesars, and other casino-tied operators had of slot slingers and roulette wagerers.
  • American Gaming Association: Gaming Industry Delivers $329 Billion Annual Economic Impact To U.S. Economy
    • The American Gaming Association (AGA) today released a new study quantifying the expansive annual impact the casino gaming industry has on the U.S. economy. Conducted by Oxford economics, findings show the U.S. commercial and tribal gaming industry: Contributes $328.6 billion to the U.S. economy, supports 1.8 million jobs and $104 billion of wages and salaries across the country, and generates $52.7 billion in tax revenue to federal, state and local governments.

Michigan

  • PlayMichigan: ESPN BET To Launch In Michigan Nov. 14 Pending MGCB Approval
    • If all goes as planned for PENN Entertainment, ESPN BET will launch in Michigan on Tuesday, Nov. 14. After making a deal with the sports media giant worth about $1.5 billion in August, PENN announced its intentions to launch its new online sportsbook in Michigan during its Q3 investors call on Thursday. The only thing standing in the way is Michigan Gaming Control Board approval, which PENN feels confident it will have by that date. PENN announced that ESPN BET plans to launch simultaneously in 17 states where PENN has access to sports betting platforms. ESPN BET will replace PENN’s previous partner, Barstool Sports.

Oklahoma

  • KOCO: Gov. Kevin Stitt Announces New Plan To Bring Sports Betting To Oklahoma
    • Gov. Kevin Stitt now supports sports betting in the state – but under certain terms and conditions. Stitt’s office released its sports betting plan on Thursday. For in-person betting, Stitt wants to see bets taxed at 15%. According to details obtained by KOCO, that’s the rate used by Illinois, Maryland, Massachusetts and Virginia. The governor’s plan for in-person betting — or “retail event wagering” — must be conducted by federally recognized Indian tribes “pursuant to a state-tribal compact.” KOCO reached out to the Oklahoma Indian Gaming Association to see if it believes Stitt and the tribes represented by the association are any closer to an agreement. Several larger tribes and the governor continue to be at odds over the compacting process.

Ohio

  • Legal Sports Report: Promotions Flow As Ohio Sports Betting Operators Fight For Customers
    • The first full month of football betting in Ohio saw plenty of promotions handed out as sports betting operators old and new fight to protect or grow their slice of the customer pie. Promotions as a percentage of revenue hit 66.1%, with $52.5 million in free money given out during September, the official start of the NFL betting season. Seven of the state’s 20 online Ohio sportsbooks drew at least $20 million in handle, including two operators in growth mode: bet365 and Fanatics.

Texas

  • PlayTexas: More Than 1 Million Texans Attempt To Bet On Sports In A Month And A Half
    • The Texas Sports Betting Alliance recently announced that 1.14 million attempts to bet on sports occurred in The Lone Star State between Sept. 1 and Oct. 23. This number is up 68.5% from the same timeframe a year ago. The Alliance’s data comes from GeoComply, which collects statistics showing how many Texans attempted to bet at legal sportsbooks in other states. Over 20,000 came on Oct. 20, 22 and 23, during Games 5 through 7 of the American League Championship Series between the Texas Rangers and Houston Astros. All attempts were blocked.
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