The NFL is Back and Sports Bettors Are Following
September 14 2020 - 4:15PM
Dow Jones News
By Katherine Sayre
Sports betting in the U.S. is surging with the return of the
National Football League and other major professional sports, and
gambling operators are vying for fans' attention.
Sports betting has been on the rise as more states legalize the
industry, and the recent return of the biggest sports leagues has
helped satisfy demand that built up during Covid-19 shutdowns.
In New Jersey, the biggest market for sports betting outside
Nevada, total sports-wagering revenue in August rose nearly 57%
compared with last year, to $39.5 million, according to numbers
released Monday. From January through August, revenue totaled about
$178 million, up 16.5% versus 2019, despite the several-month
sports hiatus earlier in the year. In April, when virtually all
major sports were canceled and casinos shut down, sports-betting
revenue plummeted to $2.6 million, an 88% drop from the previous
year.
This autumn marks the third NFL season since a 2018 U.S. Supreme
Court ruling paved the way for states outside Nevada to allow
sports betting. Twenty-two states and the District of Columbia now
have legalized sports wagering. Sports books got a boost this past
weekend as leagues staging games or matches included the NFL, Major
League Baseball, the National Basketball Association, the National
Hockey League and the U.S. Tennis Association.
"In a word, it was monstrous," said Johnny Aitken, chief
executive of mobile sports-betting app PointsBet USA, referring to
last weekend's betting activity. "Since Covid[-19] and the pausing
of headline U.S. sports, there was this momentous pent-up
demand."
About 13% of American adults, or 33 million people, plan to
gamble on the NFL this year, down from about 38 million people the
previous year, according to surveys by the American Gaming
Association, a gambling-industry trade group. About half of those
bettors said they would wager casually among family, friends and
co-workers. About one-third said they planned to bet online, either
legally or illegally, and 20% said they would place bets at a
retail sportsbook.
With U.S. sports closed down this past spring, dedicated bettors
threw down money on the few options available, such as Russian
table tennis and Belarusian soccer.
The sports-betting industry's performance for the remainder of
the year depends on how well the biggest sports can stave off and
manage Covid-19 infections among players and staff, which could
derail seasons. Before the pandemic, the U.S. sports betting market
was expected to bring in $1.6 billion in gross revenue this year.
That figure will likely shrink to $650 million to $950 million,
depending on whether college football and Major League Baseball
proceed as planned, according to a report by Eilers & Krejcik
Gaming.
Meanwhile, competition for bettors is fierce. Casino operators
and big online brands such as FanDuel Group, owned by Flutter
Entertainment PLC, and DraftKings Inc. are spending huge sums to
acquire U.S. customers and expand beyond hard-core bettors this
year.
On Monday, Walt Disney Co.'s ESPN said it struck a deal with
DraftKings and Caesars Entertainment Inc. to connect viewers to the
gambling operators' sportsbooks across the network's digital
platforms. The sportsbook of Caesars is operated by William Hill
US. ESPN declined to say how much the deal is worth.
Companies are offering free-to-play games and other promotions
to reach new customers. DraftKings said this month that Michael
Jordan, the NBA legend and avid gambler, joined the company as a
special adviser to the board. Mr. Jordan is taking an equity
interest in DraftKings in exchange for strategic advice, the
company said.
--Benjamin Mullin contributed to this article.
Write to Katherine Sayre at katherine.sayre@wsj.com
(END) Dow Jones Newswires
September 14, 2020 16:00 ET (20:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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