Super Bowl will attract about 16 billion for betting

02/12/2023

3 minutes read

2023.02.12 12:41

By Tiffany Smith

Budrigannews.com – As more states legalize sports betting, Super Bowl LVII will probably be the industry’s biggest event ever. The National Football League championship matchup between the Philadelphia Eagles and Kansas City Chiefs is expected to attract approximately $16 billion in wagers, according to the American Gaming Association.

However, in a market that is becoming increasingly crowded, how will casino and mobile/online sports betting companies stand out?

The high stakes competition is having an effect on the stocks of the sports betting giants, including DraftKings and FanDuel owner Flutter Entertainment. As the overall market has recovered, they have all surged so far this year. However, a lot of these stocks are just coming back from previous severe losses.

DraftKings is down around 30% in the beyond a year and almost 75% throughout recent years. Barstool Sports and Caesars (PENN), which owns a stake in the company, both experienced 40% declines in the previous year. BetRivers’ parent company, Rush Street Interactive, has lost nearly 65 percent in the same time period.

Splashy advertising campaigns cost each of these businesses a significant amount of money. During the commercial breaks of NFL games, you can’t miss Jamie Foxx in MGM ads, Kevin Hart promoting DraftKings and JB Smoove, and the Manning family promoting Caesars. In addition, the businesses are spending a lot of money on advertising strategies like “free bets.”

To regain investor trust and attract new customers, sports betting businesses will need to do everything in their power.

It’s possible that MGM is ahead of the competition. The only physical sportsbook at the Super Bowl is owned by the company’s BetMGM unit, a 50/50 partnership between Entain, a UK-based gaming company, and the giant Las Vegas casino. It opened in September of last year in Phoenix and is located close to State Farm Stadium, where the Sunday game will be played.

Naturally, a lot of gamblers will be busy placing bets on their mobile devices. But BetMGM CEO Adam Greenblatt said that the sportsbook should be busy before and during the game.

Greenblatt stated, “We have prepared like never before for this Super Bowl.” We are filling positions to meet the high demand.

According to Greenblatt, the 17,000-square-foot sportsbook near State Farm has 38 HD TVs and a massive video wall so that customers can watch the Super Bowl. In addition, there are 25 betting kiosks. After all, the objective is to encourage wagering on the game.

Greenblatt stated that having a physical location at the Super Bowl should be a great marketing opportunity given the competition with DraftKings, FanDuel, and other casino companies. Sunday’s primary objective is to encourage sportsbook customers to download the BetMGM app so they can open accounts.

Greenblatt added that MGM’s marketing is important because it can remind gamblers that it is a traditional casino brand rather than a newcomer like DraftKings, FanDuel, or Barstool.

We have both fun and sophistication. Eleven in Ocean. He said it was an MGM experience because the MGM Grand on the Las Vegas Strip was prominently featured in the 2001 remake of the 1960 heist movie. We want to be both aspirational and approachable at the same time.

However, the casino owners are of little concern to the newcomers to the industry.

FanDuel CEO Amy Howe stated that there is ample room for expansion, particularly since sports betting was legalized in Ohio, Maryland, and Kansas last year.

Howe stated, “This should be the single biggest day in FanDuel’s history,” and added that the business anticipates placing approximately 17 million wagers on the game. That’s more than twice as many bets as there were on the Super Bowl the year before.

According to Howe, FanDuel is also projecting that it could acquire approximately 500,000 new customers who place wagers on the game, including a greater number of female customers.

However, DraftKings CEO Jason Robins stated that he believes sports betting companies are aware that costly promotions are no longer an option.

Robins stated, “The competition is actually less intense now than it was last year.” The peak was last year. It seemed a little irrational.

Going after market share at any cost is no longer a smart strategy, and DraftKings is one of the businesses that Wall Street has already punished for doing so in the past.

According to Robins, “investor tolerance for the types of undisciplined spending that occurred during the NFL season last year has waned.” Investors are looking for a way to become profitable. That is distinct from the situation in 2021, when customer growth was rewarded.

However, DraftKings and FanDuel still intend to advertise during the Super Bowl this year. While FanDuel has recruited Rob Gronkowski, a former NFL great who was not a kicker, to attempt to make a field goal “kick of destiny” live on television, DraftKings will have another advertisement with Hart. According to Howe, the commercial will air in the third quarter.

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