Happy Monday, everyone. Last week was a bit interesting for sports betting news so let’s jump right into it.
There’s no denying the top story last week: the Vegas Golden Knights shocked the sports betting world with a tout partnership. That led to a lively discussion on the LSR Podcast as the team tried to wrap their heads around the many questions created by the deal.
If you follow @LSPReport on Twitter then you’re already privy to the not-shocking update in that story from Saturday afternoon.
Top sports betting news: Golden Knights end tout partnership
It took about 72 hours for the Golden Knights to reverse course and end the partnership with Upicktrade:
“The Vegas Golden Knights have ended their sponsorship agreement with UpickTrade. The organization will not have additional comments on the matter at this time.”
That was probably 71 hours more than the team and its officials needed to realize they messed up, though. The social media reaction to a professional team signing an agreement with a pick-selling service was quick and strong.
So the good news is that sanity prevailed. The disappointing side is we still don’t know why the deal was signed or how much research was done around such a deal. Either way, this situation will likely make teams think a bit harder when it comes to what kind of gambling partnerships they sign.
DraftKings spent a ton of cash in 2020
In the latest example of “stocks only go up,” DraftKings‘ stock rose more than 6% and approached its 52-week high after reporting a net loss of $266 million in the fourth quarter alone.
Top-line numbers were plenty strong though. Pro-forma fourth-quarter revenue jumped 98% to $332 million compared to last year. The company raised its 2021 revenue forecast to between $900 million and $1 billion from $750-$850 million previously.
Monthly unique players jumped 44% to 1.5 million in the quarter with revenue per player up 55% to $65. That was far from free, of course, as sales and marketing costs hit $192 million.
Elsewhere, it sounds like bettors in Oregon will get the DraftKings brand for its current Scoreboard-branded sportsbook. The lottery-regulated platform will likely still be based on SBTech’s technology, though.
Sports betting legislative roundup: AZ, GA, MD, MA
There was news from four states last week concerning legislation to legalize sports betting:
- Arizona sports betting was unexpectedly amended into a historic horse racing bill in the Senate, which could be a bad sign. Historic horse racing is seen by some as a violation of a 2002 compact with gaming tribes.
- Georgia also had some cold water thrown on its sports betting hopes. First, a House bill is being blocked by Democrats over voter access bills supported by Republicans. The Senate, meanwhile, contemplated whether it would be best to go with a constitutional amendment, which couldn’t be voted on until next year.
- HB 940 to legalize sports betting in Maryland received a lot of positive testimony aside from one aspect: mobile betting licenses. There were multiple calls to increase the available mobile licenses to ensure the minority-owned business participation the state wants to see.
- There are too many bills to legalize Massachusetts sports betting. We took a look at why most of them will likely fail and where the best prospects lie.
Barstool Sportsbook angles for NY access
Penn National set up a two-way deal with Rush Street that could bring the Barstool Sportsbook brand to the NY sports betting market.
That will depend on what the enabling legislation for mobile sports betting ultimately is, of course. The agreement with Rush Street gives Barstool Sportsbook second-skin access to the market. There’s no guarantee New York legislators will agree on more than one skin per casino, though.
Rush Street’s BetRivers, meanwhile, gets access to Ohio, Maryland and Missouri on second-skin access. It also gets the right to bid first for a Penn-owned skin in Texas.
Score Media now trading in US
Score Media finally has a US listing for its media and sports betting brand theScore, which should open the company up to a larger investor pool.
The company upsized its offering to 6 million shares priced at US$27 each from 5 million originally.
“We believe a U.S. listing would benefit our business and shareholders as we seek to further execute on the growing opportunity in the rapidly developing North American sports betting market,” theScore founder and CEO John Levy said in a statement. “As the only fully integrated mobile sports media and gaming company in North America, theScore is uniquely positioned to grow our footprint and capitalize on the expansion of legalized sports betting and iGaming across the U.S. and Canada.”
Colorado, Nevada report January results
Colorado’s market is dominated by mobile with 97% of handle bet online. That’s a stark contrast to Nevada sports betting, which saw just 56.3% of its January handle bet online.
Still, the state’s sportsbooks had its second-highest handle and revenue marks in January. Basketball just barely edged football with $293.1 million bet on basketball compared to $288.3 million on football.