NFL season expected to spur record $35 billion in legal sports wagers
Joe Milton III #19 of the New England Patriots scrambles from the pressure of Kyu Blu Kelly #36 of the Washington Commanders during the third quarter of a preseason game at Commanders Field on August 25, 2024 in Landover, Maryland.
Scott Taetsch | Getty Images Sport | Getty Images
Football is back, and it’s expected to bring with it record-breaking betting.
U.S. adults will wager $35 billion this NFL season, according to projections from the American Gaming Association.
That would mark more than 30% growth over the $26.7 billion Americans wagered over the course of last year’s season of the National Football League, according to the AGA, and would set a fresh record. Since last NFL season, Maine, North Carolina and Vermont have allowed sports betting operators to launch in their states. And court decisions have permitted Hard Rock International to relaunch sports betting in Florida.
Today, sports betting is live and legal in 38 states and Washington, D.C.
And yet stocks in the gambling companies aren’t following the same growth trajectory. Shares of DraftKings, Penn, Caesars, MGM Resorts and Entain, which jointly own BetMGM, are all negative year to date. Flutter, owner of FanDuel, is up 19%, after listing on the New York Stock Exchange this year. It posted second-quarter earnings that trounced expectations for revenue and profit, giving shares a lift.
Churchill Downs is positive on the year and Rush Street Interactive has posted notable gains of 109% year to date.
Competition heating up
Each of the licensed sportsbooks is working on strategies to claim a bigger share of the action, trying to attract new customers and convince established players to show more brand loyalty.
NFL kickoff is an opportunity to launch new and improved technology or innovative wagers that entice players. Sportsbooks tailor their promotions to reach new customers.
“The NFL season is our biggest acquisition period of the year,” said Christian Genetski, president of FanDuel, the nation’s leading sportsbook.
FanDuel is the only one to partner with YouTube to roll out a “Sunday Ticket” offer. Players who wager $5 get a three-week trial to watch out-of-market NFL games with “Sunday Ticket.” FanDuel hopes allowing fans to watch their favorite teams will lead to more wagering.
FanDuel also said it has tweaked its app design and added more bets to its Same Game Parlay. It’s upgraded features so fans can wager at “the speed of sports,” the company said.
With more than 95% of sports wagers now happening online, speed matters. That’s especially true when it comes to micro-betting: wagers made on specific plays as the game unfolds.
Fanatics, Michael Rubin’s e-commerce empire that includes sports merchandise and memorabilia, launched its sportsbook last year in four markets. Since then, Fanatics Sportsbook acquired PointsBet’s U.S. operations and technology, which is now fully integrated. And its sportsbook is now live in 22 states.
It’s a pretty impressive ramp for a newcomer to the industry.