Happy Monday, everyone. There should be no shortage of sports betting news this week with multiple key investor calls scheduled.
The LSR Podcast talked earnings as well on the latest podcast with details from both the Caesars and DraftKings calls. DraftKings is one of the three to present again this week with its investor day.
As always, follow @LSPReport for the latest news and updates as they happen.
This week’s top sports betting news: Investor call schedule
Here are the details on five earnings calls worth the time of anyone interested in the US sports betting market (times Eastern when noted:)
- Flutter, Tuesday morning
- Scientific Games, 4:30 pm Tuesday
- Rush Street Interactive, 5 pm Wednesday
- Entain, Thursday morning
- DraftKings Investor Day, 9 am Thursday
Scientific Games is worth a listen because it is not just an earnings call, but a business strategy update as well. Remember, the company sold its OpenBet business to Endeavor for $1.2 billion in September.
DraftKings stock did not perform the best after its fourth-quarter earnings call, so the investor presentation will be closely watched for a positive catalyst.
Will there be more earnings surprises?
There have been some significant details to come out of earnings calls lately.
The biggest is Caesars saying it is basically done with traditional media marketing for Caesars Sportsbook for now. The company’s Digital segment lost $305 million in adjusted EBITDA on $116 million in net revenue in the fourth quarter alone.
Churchill Downs also made the surprising announcement that it is pulling out of US sports betting and online casino businesses. Those operations through the TwinSpires brand will taper off over the next six months.
Churchill Downs CEO Bill Carstanjen said the company did not see a path to profit.
“However, the online betting and casino space is highly competitive with an ever-increasing number of participants. Many are pursuing maximum market share in every state with little regard for short-term or potentially even long-term profitability.”
NY sports betting handle beyond $1B for February
New York looks to be on pace to be the top US market for February after a monster launch in January.
The seven mobile NY sportsbooks took $1.14 billion in bets through the first 20 days of February. The report for the week of the Feb. 27 will drop Friday for a mostly complete picture of the full month.
One interesting storyline to watch is Caesars’ market share. The brand led out of the gate after offering the richest promo package but both FanDuel and DraftKings are gaining ground.
Last week was a particularly busy week for legislative news:
- Arkansas sports betting received final approval to move online. At least one app, Bet Saracen, expects to be live for March Madness betting.
- Minnesota sports betting could launch by the fall of 2023 if a bill is passed this year, according to a senator that said legalization has momentum this year.
- Missouri would see up to 39 online MO sportsbooks through a proposal backed by the state’s professional sports teams and all but one casino owner.
- South Dakota sports betting will not move online this year after one state employee put mobile betting on the same level as murder and theft.
- Virginia sportsbooks will not be taking bets on in-state colleges this year after a Senate proposal failed in the House. It might take a few years, or longer, to see similar legislation proposed again after some House delegates made it clear they were against the proposal.