Welcome to iGB’s State of the Union: Your Weekly Rundown on North American Sports Betting
In the fast-paced world of North American sports betting, staying updated is crucial for enthusiasts and stakeholders alike. This week, we delve into some of the most significant stories that have emerged, shedding light on the evolving landscape of sports gambling. From economic impact studies and new gambling platforms to industry partnerships and historical perspectives, our coverage highlights the intricate web connecting betting, regulation, and culture.
iDEA Report Refutes Previous NJ Economic Impact Study
The iDevelopment and Economic Association (iDEA Growth) has released a compelling report challenging the findings of a 2023 economic impact study on online gambling in New Jersey conducted by the NERA Consulting Group. The crux of the debate lies in understanding the actual economic benefits derived from online gambling in the Garden State, particularly following claims of significant cannibalization effects.
iDEA’s report scrutinized the methodological approach taken by NERA, highlighting the original 2019 study by Meister Economic Consulting and Victor Strategies, which claimed online gambling contributed approximately $2 billion (£1.5 billion/€1.84 billion) to New Jersey’s economy between 2013 and 2018. NERA’s 2023 analysis, however, downplayed these figures and suggested cannibalization of the market.
The iDEA team revisited the methodologies employed in the NERA report, noting the significant oversight of using data from only two operators. They advocate that a broader spectrum of data would offer a more accurate representation of the market dynamics. Contrarily, iDEA points to numerous studies suggesting that regulated online gambling performs better by curbing black market activities, ultimately leading to enhanced revenues.
$13 Million and Counting in Arkansas
In an intriguing turn of events regarding casino initiatives in Arkansas, tribes from opposing sides have collectively raised $13 million (£9.97 million/€11.96 million) to either support or contest a measure that will let voters decide on the establishment of a Pope County casino. The proposal also includes provisions for the Cherokee Nation to operate the casino.
The situation has been fraught with competitive lobbying, particularly from Oklahoma’s Choctaw Tribe, which fears that a Cherokee casino could siphon off customers from its existing operations in Oklahoma. A legal tussle ensued over the initiative’s legitimacy; however, the Arkansas state supreme court ruled that the signature gathering for the proposal was lawful, allowing it to remain on the ballot.
Bally Bet Now Live in Tennessee
This week, Bally Bet expanded its reach, launching in Tennessee — its tenth state. The rollout marks the third expansion since July, following successful launches in Massachusetts and Maryland. Partnered with the NHL’s Nashville Predators, Bally Bet has effectively engaged local communities through social promotions with the team, enhancing its brand’s visibility.
Tennessee, known for its digital-only approach to sports betting, has given rise to 11 platforms since legalizing online wagering in November 2021. Bally Bet’s introduction of its Parlay Zone is set to enhance user experience by allowing bettors to customize their own daily pre-built parlays, further enriching the state’s betting landscape.
Penn Entertainment Holds Steady
In other noteworthy corporate news, Penn Entertainment’s recent Investor Day has led to a cautious optimism reflected in market analysis. Jefferies Equity Research has maintained its target stock price at $20, even as the company’s shares settled at $18.78. Notably, Penn’s introduction of ESPN Bet in New York has significantly boosted daily wagering figures, with average daily handle reported to have tripled.
Approximately half of ESPN Bet users attributed their selection of the platform to familiarity with the ESPN brand. However, a substantial 87% of participants indicated that they also hold accounts with other betting platforms, suggesting a competitive marketplace and diverse consumer preferences.
In Other News…
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Hard Rock Bet announced a significant partnership with Kambi’s “Odds Feed+,” which promises to introduce a wide range of markets before year-end. This partnership is poised to enhance Hard Rock Bet’s offerings across its eight-state presence.
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NFL Owners approved Tom Brady’s minority ownership stake in the Las Vegas Raiders, marking a historic moment as the football icon takes control of 5% of the franchise, solidifying his presence in the sport beyond his playing days.
- Diamond Sports Group and FanDuel forged a notable partnership, granting FanDuel rights to rename Diamond’s regional sports networks. This collaboration seeks to integrate FanDuel’s branding into Diamond’s digital offerings, further blurring the lines between sports media and betting.
Worth the Read
Reflecting on the evolution of sports betting attitudes, NBA Commissioner Adam Silver’s 2014 op-ed in the New York Times advocating for legal sports betting is a pivotal read, particularly as he reiterated his support for a federal framework in a recent interview. With nearly a decade of growth in the betting landscape, Silver’s foresight has proven prescient. For more insights, check out the Associated Press article summarizing his thoughts and the original New York Times piece.
ICYMI on iGB
In case you missed it, here are a few noteworthy articles from our recent coverage:
- Tribes Ready to Fight Rise of Sweepstakes
- Kalshi Explodes with Political Event Futures
- New York Sports Betting Handle Up, but September Revenue Down
- Star Sydney Fined, but Keeps License
- New Jersey Sets Another iGaming Revenue Record
This week’s developments underscore the dynamic nature of the sports betting industry in North America, highlighting opportunities and challenges that continue to shape the market. Stay tuned to iGB for ongoing coverage and insights into this rapidly evolving sector.
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