Both DraftKings and FanDuel can make some changes to sports betting odds and cover tax increases while maintaining its “product superiority,” according to HoldCrunch CEO Tom Johnson.
Barry Jonas of Truist discussed Week 1 of NFL betting prices with Johnson in a Thursday note. Should both FanDuel and DraftKings raise prices nationwide, they could both add about $240 million in revenue, which is more than double the expect tax increases.
Johnson does not expect a quick change if that is the response, though. A “more gradual” increase with both operators “likely moving in tandem to one another” is most likely, he said.
Johnson noted that HoldCrunch, which predicts US sports betting market share, will be keeping a close eye on NBA odds this year. FanDuel offered “significantly more favorable odds” throughout the 2023-24 season. That lost DraftKings some handle share, he said.
ESPN Bet debuts ‘competitively’
Jonas said Penn Entertainment has stressed in meetings with management that it will not overly rely on promotions to attract customers.
The fact that ESPN Bet had the most favorable prices in Week 1 is “critical” for the stock, which Jonas rates as buy.
“We continue to like PENN’s shares here, seeing multiple levers to share price upside – most notably, a successful inflection of ESPN Bet,” Jonas said.
Other sports betting operators
Jonas pointed out the “best of the rest” with quick notes on BetMGM, Caesars and Fanatics.
BetMGM remained “largely consistent and competitive on odds for a year now” and is only slightly behind the market leaders.
Caesars “returned to the pack” after taking a higher hold margin over the past few quarters. That came at the expense of handle share, Jonas said.
Fanatics earned the title of “least favorable odds,” Jonas said, operating with the highest hold since June.
Flutter investor day next week
Flutter will hold an investor day at 1 pm Eastern on Sept. 25 in New York City.
Registration is available online for all interested. Institutional investors and research analysts can also request an invitation to the live event.
FanDuel’s parent company will focus on “the future growth potential for the Flutter Group and the capital allocation opportunities that will unlock.” Management will also take questions following the presentation.
Flutter buys into Brazil sports betting
Part of that investor day presentation will likely include details about the 56% stake Flutter bought in NSX Group.
The cash payment of $350 million buys Flutter into the fourth-ranked operator in Brazil, which is expected to be fully regulated in early 2025. NSX should generate $256 million in revenue and $34 million in adjusted EBITDA this month.
Flutter, which already operates Betfair in Brazil, can increase its stake through put/call arrangements in the fifth and 10th years of the deal.
BetMGM partners with Gannett
BetMGM signed a deal with Gannett to be the preferred online sportsbook and casino partner for USA TODAY Sports.
The operator will provide sports betting odds throughout the USA TODAY Network, which includes more than 200 local markets and more than 300 digital news and media brands across 43 states.
Fanatics launches in DC
Fanatics launched its mobile sportsbook in Washington DC on Thursday.
The sportsbook went live through a partnership with the National Women’s Soccer League‘s Washington Spirit.
Fanatics is joining a revamped sports betting market in DC that now allows mobile sportsbooks partnered with sports teams to be accessed across the District. The old market, which geofenced those sportsbooks to a two-block radius while GambetDC was available throughout the district, ended in July.
FanDuel details Olympic sports betting
Handle on the Olympic’s 2024 Summer Games was more than triple the handle from the Tokyo Olympics in 2021, FanDuel said in an Olympic betting report.
A lot of that is due to market growth, FanDuel said, but an increase in betting on women’s sports also contributed. Betting on women’s sports accounted for 24% of all Olympic handle.
More than half of all bets, 55%, were parlays, compared to 20% from Tokyo.
Basketball betting also surged. It accounted for 63% of total Olympic handle for Flutter vs. 40% from Tokyo.
Caesars takes first in-person Maine bets
Caesars took the first retail bets in Maine at the Oddfellahs sports entertainment venue on Friday.
The book is partnered with First Tracks Investments.
Caesars first launched sports betting in Maine last November through a partnership with three of the Wabanaki Nations.
DraftKings opens KY sportsbook
DraftKings opened its sportsbook at The Mint Gaming Hall Bowling Green in Kentucky on Thursday.
The sportsbook will have six kiosks and two betting windows in the sports lounge.
Another two kiosks can be found on the main casino floor and a betting window is available at the Player’s Club.
