Update on the US Online Sports Betting IndustryLegal
The sports industry as a whole is a standstill at the current time, but all hope is not lost in the US sports betting industry.
Jason Robins, CEO of DraftKings, stated three potential upsides from the pandemic on Friday through a webinar. He also announced he will participate in the following investor conferences:
- The Cowen 48th Annual Technology, Media and Telecom Conference on May 28, 2020
- The Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference on June 1, 2020
The presentations will be available via webcast over the internet to the public.
Added Revenue for States
Holes in state budgets will most likely initiate legislatures to adopt more mobile sports betting and gaming legislation. Analysts predict 38 states to have legalized sports betting by 2025 and 11 of those states to have legalized online gaming. Jason stated:
“We think that being a digital-first company has some pluses, in addition to the general migration to online channels. Younger bettors like sports and prefer to wager on their phones."
Additional interest in Niche Betting
Robins also predicted interest in non-core sports will carry over once major sports resume play. He went on to say DraftKings has seen increased interest in free-to-play DFS contests on Madden NFL sims and television shows such as "The Bachelor".
The betting community will be the deciding factor whether or not this will be a successful endeavor, but the Madden sim currently trending will most likely fade rather than show long-term success once sports resume.
Sports Betting Channel Shift
Robins sees a future bump in online betting as America scour to find different ways to replace land-based opportunities for social events and gatherings. Online gambling will continue to grow and build the community during the coronavirus shutdown.
Robins stated: “If you’re not allowed large gatherings, that goes for sports, but it goes for other social events too… and we expect to see a lot of that activity move online.”
We will see whether or not this data becomes a reality once Pennsylvania reopens its land-based casinos.
About 90% of betting was handled on online platforms in February and March. We will see whether or not people switch back to normalcy and go back to land-based options of bet online instead because of the convenience.