USA
TLDR: a Bite-sized Overview:
- The US sports betting market consolidated further as more operators exited Colorado in September. In the span of 30 days, four sportsbooks have ceased operations in Colorado: BetFred, Betsafe (Betsson), SI Sportsbook, and ClutchBet.
- Sportsbooks are potentially missing out on $220 million in revenue from NFL wagering due to poor suspension technology for in-play markets. Quantitative odds analytics company Bettormetrics analyzed data from US sportsbooks during the NFL 2023/24 season and found that several top-tier sportsbooks are missing out on revenue due to inadequate live betting products.
- Partnerships between college sports and betting companies are likely to receive limitations in New Jersey as a new bill was passed through an assembly committee for further consideration. While The Garden State is liberal when it comes to betting on college sports, with the availability of wagering on out-of-state teams and matches, legislators are now limiting the influence of sportsbooks on institutes of higher education and college athletes.
- Based on FY2023, research by AGA revealed that iGaming companies are investing $471.8 million annually in responsible gambling, up from $275 million six years earlier. Key areas of RG investments include customer service interactions, developing and maintaining responsible gaming programs, consumer-facing responsible gaming education, responsible gaming research, other non-profit RG organizations, and problem gambling supportive services.
- Massachusetts becomes the 15th state to push back against Bovada operations in the US. Bovada is now blocking players from Colorado, Connecticut, Delaware, Kansas, Louisiana, Maryland, Michigan, Nevada, New Jersey, New York, Ohio, Pennsylvania, Washington, DC, and West Virginia.
Further Consolidation of the US Sports Betting Market
September saw the exit of another three sportsbooks from the Colorado market. First, Betsson reported that it would cease its Betsafe operations and exit the market at the end of the month. Shortly after, ClutchBet reported that it is exiting the Centennial State along with Iowa and Indiana.
Later, Sports Illustrated announced that it would cease operations of the SI Sportsbook, stop accepting deposits, and shut down the site on September 16, 2024.
Counting BetFred, which closed its operations on August 31, 2024, four sports betting operators exited the Colorado market in 30 days.
We’re seeing further consolidation of the sports betting market, with leading sportsbook operators like FanDuel, DraftKings, and BetMGM making it impossible for smaller brands to compete.
Bad In-Play Suspension Technology in NFL Matches Potentially Costs Sportsbooks $220 This Season
Research conducted by Bettormetrics, a company providing quantitative sports odds analytics, has found data suggesting that sportsbooks are potentially losing hundreds of millions in revenue due to poor suspension technology.
The findings were based on Bettormetrics’ Trading Analytics Platform (TAP), which aggregates sports trading performance data to leverage insights from sportsbooks. Sportsbook brands can use TAP for product development purchases and competitor analysis.
The report specifically concerned in-play betting, where sportsbooks suspend betting options during critical events inside the game. Uptime of betting options is key to allowing bettors to make as many wagers as possible. The analysis was made on the NFL during the 2023/24 season.
The main takeaway were:
- DraftKings has the highest uptime of in-play markets at 96.1%.
- Live betting pioneer Bet365 had a lower uptime of in-play markets at 85.5%.
Low uptime results in fewer bets placed; Bettormetrics estimates that Bet365, with an uptime of only 85.5% on the NFL, could potentially miss out on $4.6 million in revenue.
Bettormetrics estimates that tier 1 sportsbook operators could potentially lose $220 this NFL season. It’s worth noting that it’s an opportunity cost, and the numbers may be inflated, considering that bettors are likely to place their wagers once markets are unsuspended again. While such revenue projects are difficult to make, what’s certain is that uptime and high bet acceptance rates are key to providing a great user experience. What I can conclude is that this is another indicator that both DraftKings and FanDuel have superior sportsbooks.
College Sports Betting Hitting Legal Headwinds in New Jersey
Bettors in New Jersey have been able to bet on out-of-state college games since 2018. Still, restrictions were made in 2021 when legislators passed a bill limiting wagering on college matches in New Jersey or involving a New Jersey school, including out-of-state teams playing in New Jersey. Further restrictions relating to college sports and betting are expected as a bill prohibiting partnerships between sportsbooks and universities was passed through an assembly committee in September.
The bill was introduced during the last session but wasn’t passed until the amended version. The specifics are that:
- Make it illegal for sportsbooks and intermediaries such as iGaming affiliates to partner with public institutions of higher education.
- Private universities would still be allowed to partner with sportsbooks and affiliates.
- Partnerships that don’t allow direct marketing or advertising to students would be allowed.
Democrats Introduce the SAFE Bet Act
Democratic legislators passed a new bill on September 12, 2024, aiming to protect consumers by banning in-play betting and player props in college sports. The legislation, dubbed Supporting Affordability and Fairness with Every Bet” (SAFE Bet) Act, will require states that legalized sports betting to comply with new federal standards.
If the SAFE Bet Act passes, it’ll hinder the growth and adaption of sports betting in the United States and likely incentivize Americans to seek out offshore options that offer a complete sportsbook product. In-play or live betting is pivotal for the product and bettors. Americans are yet to fully embrace in-play betting, and it’s likely a key growth factor for sports betting in the states.
In Europe, where online sports betting has been available since the late 1990s, bettors prefer live betting over pre-match options. A pattern will likely emerge in the US as the market matures. As of 2021, according to market data from H2 Gambling Capital, based on activity in Oregon sportsbooks, in-play wagering accounted for less than 50% of the total sports betting handle. This means that the market's growth potential relating to in-play betting would be blocked if the SAFE Bet Act is passed into law.
Neither Kamala Harris nor Donald Trump has spoken about sports betting, and there is no mention of betting or gambling in Trump’s extensive policies. But given that Democrats introduced the act, it’s likely that the bill get more traction if Harris wins. And if I speculate, I’d say that sports betting would be in better shape in the next four years if Donald Trump wins the election on November 5, 2024. He has spoken about the need for general deregulation as it would open up American companies to do business more freely. With that in mind, I think it’s unlikely that the Republican party will work towards introducing more sports betting regulations.
Responsible Gambling Investment Reached New Highs in 2023
Research from the American Gaming Association (AGA) shows that iGaming operators have increased their spending in responsible gambling, primarily in the following areas, as highlighted in the report:
- Customer Service Interactions: $135.4 million.
- Developing and Maintaining Responsible Gaming Programs: $122.4 million.
- Consumer-Facing Responsible Gaming Education: $107.7 million.
- Responsible Gaming Research and Other Non-Profit RG Organizations: $31.8 million.
- Problem Gambling Supportive Services: $26.1 million.
Total spending amounts to $471.8 million annually, up from around $275 million in 2017, an increase of 72% in six years where we’ve seen an aggressive expansion of online gambling in the United States.
Earlier in September, AGa, together with Bally’s, BetMGM, and FanDuel, released a first-of-its-kind Responsible Gaming Intervention Effectiveness Scale aimed at providing academics, industry members, policymakers, and other interested parties with a research-based tool to evaluate responsible gambling practices and help improve the tools and education provided to players.
More State Agencies Are Pushing Back on Bovada Operations in the US
Earlier this week, we reported that sweepstakes company VGW Holdings Limited (Chumba Casino, Luckyland Slots, Global Poker) was being targeted by state agencies in their battle to limit sweepstakes casinos to operate in the US.
Similarly, cease-and-desist letters have been raining down on Bovada (Harp Media B.V. and Hove Media). Only in the past couple of months has Bovada been served in Massachusetts, Ohio, West Virginia, and Michigan. The operator has already blocked players from the following state:
- Colorado
- Connecticut
- Delaware
- Kansas
- Louisiana
- Maryland
- Michigan
- Nevada
- New Jersey
- New York
- Ohio
- Pennsylvania
- Washington DC
- West Virginia
That’s 14 states, or 28% of the United States, with Massachusetts yet to be added to the blocked list. Concerning this, all bettors should be aware that using a VPN or proxy server to bypass state restrictions for Bovada goes against the site’s terms of use. If a player deposits and later tries to withdraw the money when having registered with a fake out-of-state address, they won’t be able to clear the KYC; instead, they’re likely to lose their account and funds with no legal recourse since they broke the terms and conditions.