DraftKings and FanDuel could offer worse sports betting odds to help offset cost increases, such as the recently raised tax rate in Illinois.
That is according to Barry Jonas of Truist, who analyzed data from HoldCrunch. The analytics company was founded by former FanDuel VP Tom Johnson and looks at betting odds in relation to the player.
Given their “superior products” and scale, the two top US sports betting operators have room to “tweak pricing,” Jonas said. That could help other operators pick up some handle share, but those books still have “product gaps” that need to be addressed to “truly challenge the leaders,” he added.
Price is a double-edged sword for sportsbooks, Jonas said. Having too low of odds can attract customers but not monetize them as effectively, while overpricing can drive bettors elsewhere despite superior product.
FanDuel noted for sports betting prices
Data indicates Flutter’s FanDuel offered the most competitive pricing in the second quarter of 2024, Jonas said.
Jonas noted the biggest takeaway of the data shows BetMGM and Fanatics are much more competitive and closer to the leaders than they were in the second quarter of 2023.
DraftKings, meanwhile, offered the best pricing based on HoldCrunch’s data last year in the second quarter, though it now trails behind FanDuel, ESPN Bet and BetMGM.
The shift to less competitive pricing is likely accelerating profits while management relies on DraftKings’ strong product to retain customers, Jonas said.
Caesars dropping off
Caesars was in the competitive pricing mix during the third quarter of 2023 but took a dive over the fourth quarter of 2024 and first quarter of this year.
Jonas noted this is possibly because of their digital EBITDA target of $500 million in 2025, raising prices possibly at the expense of losing handle share. Eric Hession, president of digital at Caesars, recently said the product is now competitive enough where bettors who value Caesars Rewards loyalty program are no longer switching platforms based on pricing.
The recent purchase of ZeroFlucs, though, serves as a “timely reminder of pricing capabilities being taken more seriously,” Jonas said.
The HoldCrunch data showed an improvement in pricing from Caesars in the second quarter of 2024.
Apax sells Genius stake
Apax Partners “fully monetized” its equity interest in Genius Sports and no longer owns a stake in the data provider, Genius announced Wednesday.
The investor was the largest shareholder in Genius Sports as of last year. Apax owned 60.2 million shares when it put 20.3 million up for a secondary offering in September.
Apax partner Gabriele Cipparrone stepped down from the Genius board April 8 following another sale to lower its stake on April 1.
The GENI share price is up 9.5% since the sale was announced. Volume hit nearly 7.9 million Wednesday and 7.4 million Thursday compared to the average volume of 1.8 million.
Sportradar, UEFA extend data deal
The governing body of European Football extended its exclusive betting data rights deal with Sportradar.
The multi-year extension now includes non-exclusive rights to distribute data to non-betting media. Sportradar also gets access to “certain advanced tracking” that will let the company “deliver innovative technology solutions to its clients.”
Sportradar can now offer more than 900 matches a season, up almost 33% from the previous cycle. The two also extended their integrity partnership of 15 years.
Sports betting conference this week
The National Council of Legislators from Gaming States will gather this week at Rivers Pittsburgh for its summer meeting.
One of the panels includes hearing from professional bettors with Gadoon “Spanky” Kyrollos and Billy Walters hitting the stage. Kyrollos has been in the news recently as part of a lawsuit against DraftKings.
NCLGS President Shawn Fluharty told LSR last week a discussion including the voice of bettors has been “a long time coming.”
Xpoint hires revenue officer
Geolocation supplier Xpoint hired Ron Braunfield as its chief revenue officer.
He was previously the VP of business development at Mobi Systems. He brings more than 12 years of location tech experience.
Braunfield will be responsible for driving revenue growth through improved customer relationships and identifying new business opportunities.
