DraftKing to bag a win with Super Bowl’s betting scene
DraftKings – Nowadays, gambling is legal in many places, especially when it includes sports.
Super Bowl LVII is conceivably the biggest event now occurring in the gambling industry.
The American Gaming Association predicts that more than 50 million wagers totalling more than $16 billion will be placed before the Philadelphia Eagles vs. Kansas City Chiefs NFL game.
Because of the importance of the game, the following giants of the gambling industry had the possibility to bring in more customers:
- FanDuel owner Flutter Entertainment (PDYPF)
- Caesars (CZR)
- Wynn (WYNN)
The event also had an impact on various sports betting businesses’ stock valuations, with some of their shares improving in 2023 as the market as a whole rallied.
However, a few of the shares are still recouping some of their big losses.
Over the past year and the previous, DraftKings experienced declines of 30% and 75%, respectively.
Barstool Sports is still owned by Caesars and Penn Entertainment (PENN), despite a 40% value decline from the prior year.
Rush Street Interactive, the parent firm of BetRivers, had a decline of more than 65% over that time.
Each business invested significantly in pricey advertising initiatives.
While Jamie Foxx has been 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 promotional initiatives like “free bets.”
Two birds and one stone
Providers of sports betting now have to use strategies that achieve two objectives at once:
- Gain new customers
- Restore investors’ confidence
But MGM presently has the upper hand over its competitors.
Only one physical sportsbook is staffed at its BetMGM location for the NFL game. BetMGM is a 50/50 joint venture between the major Las Vegas casino and UK gambling provider Entain.
The Phoenix Stadium relocated there in 2022, taking over the area next to State Farm Stadium, the previous home of the Chiefs and Eagles.
There is no denying that gamblers have placed wagers using mobile devices.
The CEO of BetMGM, Adam Greenblatt, emphasized that activity at the sportsbook should move quickly 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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In the 17,000 square foot sportsbook next to the stadium, according to Greenblatt, there are 38 HD TVs and a sizable display wall where 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 presents a significant marketing opportunity in a market where websites like DraftKings, FanDuel, and other bookmakers compete.
He wants people to download the BetMGM app, create an account, and place bets at the sportsbook on Sunday.
By reminding participants that MGM is a respected casino brand rather than a start-up like DraftKings, FanDuel, or Barsteel, Greenblatt emphasized the significance 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
Even if there is competition, people who are new to the sector are not excessively concerned about casino operators.
Amy Howe, CEO of FanDuel, asserts that with sports betting being permitted in Ohio, Maryland, and Kansas in 2022, there will be lots of room for expansion.
“This should be the single biggest day in FanDuel’s history,” Howe said.
She said that for Super Bowl LVII, FanDuel expected 17 million bets, or more than twice as much as those made on the Super Bowl in 2022.
Howe claims that FanDuel expects the betting to attract over 500,000 new clients who will gamble on the game, particularly as more women do so.
Jason Robins, the CEO of DraftKings, thinks that bookmakers have realized they cannot continue to invest in expensive promos.
“If anything, the competition now is less intense than last year,” said Robins.
“Last year was the peak. It was somewhat irrational.”
Businesses 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 FanDuel and DraftKings.
NFL player Rob Gronkowski’s field goal for the FanDuel ad was touted the “kick of destiny,” while Kevin Hart is the subject of another DraftKings commercial.
Image source: Financial Times