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20-minute Webinar: "5 Lessons Learned Integrating a Sportsbook Into a Land Based Casino"
Presented by Chalkline CEO Daniel Kustelski
Thursday, February 21st at 12:00pm EST / 9:00am PST
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The sports betting industry reached a critical turning point over the last twelve months. Here’s what 2018 brought us:
1.The year the federal ban on sports betting was removed. PASPA was overturned in May, causing the floodgates to open in the sports betting industry.
2. Mobile sports betting shines. Legalized in Delaware, NJ, WV, PA, on site in Mississippi, mobile sports betting has emerged as a leading player in the increasingly popular sports betting market.
3. The first U.S based partnerships among professional sports teams and betting operators were established. Teams in 3 of the 4 major professional sports leagues have struck deals with betting companies such as MGM, William Hill and more.
4. Sports gambling content has hit the scene. Outlets such as Fox News and ESPN have developed programming and resources for sports bettors to gain valuable insights and knowledge on the sports betting world.
5. “The Match,” featuring Tiger Woods and Phil Mickelson, brought us the first made-for-tv event where betting information was integrated throughout the broadcast and competition. We expect this model to continue into 2019, with the emergence of E-Sports as a potential outlet for this style of programming.
6. We needed more than just a PHD to keep track of the all the deals in the sports betting industry. 2018 was a major year for gaming companies (software suppliers, European operators, US land based-casinos, horse racing operators) to find suitors for their business. We had to up our game to monitor all of these new partnerships.
What can we expect in 2019? Even more hype in the global sports betting world, we guess. With the continued effects of the removal of PASPA, let’s just say 2019 is going to be one for the books!
Our Predictions for 2019:
1. 2019 US Sports Betting Handle will double 2018’s with online betting driving the growth
In 2018, Nevada and New Jersey made up over 90% of the U.S. sports betting handle. With our prediction that Nevada’s handle will continue to increase, and the continued efforts across the nation to promote sports betting, you shouldn’t be surprised if the 2019 sports betting handle exceeds $12 billion.
2. A dozen new states legalize sports betting
With seven states already legalized, and over fifteen states having introduced bills, it seems likely that 2019 is the year we see states in all regions of the U.S. joining the legal sports betting world. A few notables we expect to pass legislation include New York, California, Connecticut, Illinois, and and Michigan.
3. A state without land-based gambling sites will pass a bill, showing us that mobile-only sports betting is an increasingly viable option
So far, the states with legal sports betting all contain land-based casinos; however, this is not entirely necessary to create a successful sports gambling market. States such as Tennessee, which does not have land-based gaming establishments, will be working with mobile sports betting legislation in 2019.
Bill HB0001, which is also known as the Tennessee Sports Gaming Act, was formally filed in the first week of the 2019 legislative session. We’re hoping our home state will help our prediction become a reality.
4. A major South African sports betting operator acquires a large retail and online book
South African sports gambling GGR has increased by almost 120% over the last five years. With the continued growth of the sports betting market, we expect at least one major sports betting operator to make the move to become the first to acquire a large retail and online book, stimulating even more growth in the market.
A Look Back: Our Predictions for 2018
For what it’s worth, here’s what we predicted for 2018:
1. The US Supreme Court will fully repeal PASPA.
2. A European operator will make a $500M+ US acquisition.
3. South African sports betting GGR will grow 25%.
4. Nevada legal handle will grow 10%.
5. US live-in-play handle will double.
6. US operators will reverse the declining hold trend.
Looking back, we did a pretty good job. #1, #2, #4, #5 and #6 worked out pretty well, while number 3 was just off. South African sports betting GGR grew 21% in 2018, and has grown 117% over the past five years. Better luck to us next year!
Side note: Our 2017 prediction that one major professional sports team will sign a sponsorship with a sports betting company was only one year off. Take a look at some of the deals these pro teams signed in 2018:
|New York Jets (NFL)||MGM Resorts, 888 Casino|
|Philadelphia 76ers (NBA)||Caesars|
|Vegas Golden Knights (NHL)||William Hill|
|New Jersey Devils (NHL)||William Hill, Caesars, FanDuel|
|Dallas Cowboys (NFL)||WinStar Casino|
|Baltimore Ravens (NFL)||Horseshoe Baltimore (Caesars)|
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