iGB’s State of the Union: A Weekly Dive into North American Sports Betting

Welcome to iGB’s State of the Union, where we take a closer look at the most significant developments in the North American sports betting landscape from the past week, along with some intriguing briefs that caught our attention.

iDEA Report Challenges NJ Economic Impact Study

This week, the iDevelopment and Economic Association (iDEA Growth) unveiled a report that refutes claims made in a 2023 study concerning the economic impact of online gambling in New Jersey. Conducted by the NERA Consulting Group, that study itself questioned the findings of an earlier report from 2019. Central to the discussion is the actual contribution online gambling has made to the state’s economy.

The previous report, authored by Meister Economic Consulting and Victor Strategies, estimated that online gambling injected approximately $2 billion (£1.5 billion/€1.84 billion) into New Jersey’s economy between 2013 and 2018. However, the NERA report, commissioned by the Campaign for Fairer Gambling, suggested a markedly reduced economic impact.

In contrast, the iDEA report challenged the methodology used by NERA, emphasizing that it relied on data from only two gaming operators. Given the considerably larger number of operators in the New Jersey market, this narrow selection led to misleading conclusions. Moreover, while the 2023 report insinuated that online gambling cannibalizes retail markets, the iDEA countered this by citing studies supporting the notion that regulated online markets significantly diminish illegal gambling activity, thereby boosting overall revenue. Their findings advocate for a perspective that regulated online and retail options can co-exist beneficially.

$13 Million Fundraising in Arkansas Casino Debate

In Arkansas, a fierce debate around casino development has led to a remarkable $13 million (£9.97 million/€11.96 million) being raised by tribal factions for and against an initiative to build a casino in Pope County. The proposal will give voters the opportunity to decide whether the Cherokee Nation, already licensed, should be permitted to establish the casino in Pope County.

Oklahoma’s Choctaw Tribe has positioned itself against the initiative, fearing that a Cherokee Nation casino could siphon customers from its own establishments in Oklahoma. While a legal challenge sought to remove the initiative from the ballot, the Arkansas Supreme Court ruled that the signature gathering process was legitimate, allowing the proposal to remain up for a vote.

Bally Bet Launches in Tennessee

On October 17, Bally Bet announced its official launch in Tennessee, marking its entry into the 10th state for its sportsbook operations. The launch follows a string of expansions this year, which included rollouts in Massachusetts and Maryland. Partnered with the NHL’s Nashville Predators, Bally Bet has engaged in social media promotions featuring the team, seamlessly melding sports fandom with sportsbook marketing.

The platform introduces the Parlay Zone, where bettors can customize their betting experience by tailoring daily pre-built parlays. It’s important to note that Tennessee operates as a digital-only betting state, having legalized online gambling without retail sportsbooks since November 2021.

Penn Entertainment Maintains ‘Hold’ Status

After Penn Entertainment’s recent Investor Day in Las Vegas, Jefferies Equity Research remains optimistic but has maintained a ‘hold’ rating for the company’s stock, keeping its target price at $20. On October 17, Penn’s stock closed at $18.78. Analysts pointed out that the company’s new ESPN Bet launch in New York has significantly boosted its daily wagering handle, tripling the average rate, while also doubling the average deposit size. An internal poll of ESPN Bet users revealed that while 50% chose the platform due to their familiarity with ESPN, an impressive 87% also hold accounts with competing platforms.

In Other News …

• Hard Rock Bet forged a partnership with Kambi’s Odds Feed+, an independent odds service providing global market coverage. Hard Rock Bet expects to present new betting options before the year’s end, enhancing its offerings in eight states.

• NFL owners have approved Tom Brady’s bid to acquire a minority stake in the Las Vegas Raiders. Brady will hold a 5% ownership interest as part of a deal that has been in the works since May 2023.

• Diamond Sports Group and FanDuel solidified a significant partnership, allowing FanDuel to rename Diamond’s 16 regional sports networks and digital content offerings as the FanDuel Sports Network, further enhancing the symbiosis between media and sports betting.

Worth the Read

Nearly a decade ago, NBA commissioner Adam Silver penned an op-ed in the New York Times advocating for legal sports betting, marking a pivotal moment in the industry’s evolution. Recently, during an interview with AP’s Tim Reynolds, Silver reaffirmed his stance, still endorsing a federal framework for sports betting regulation. You can read more about this full-circle perspective by visiting the Associated Press article and the original op-ed.

ICYMI on iGB

For those who may have missed it, here are some additional noteworthy articles from the iGaming Business:

• 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 licence
• New Jersey sets another igaming revenue record

This week’s State of the Union highlights the complexity and dynamism of the North American sports betting landscape, reflecting ongoing debates, expansion efforts, and partnerships that shape this burgeoning industry. Stay tuned for more updates as the situation evolves!