Monthly Archives: September 2021

Revenue from legalized sports betting in D.C. has fallen short of expectations, in part because gamblers dont have a lot of options when it comes to placing those bets, according to a Sept. 9 report by the Office of the District of Columbia Auditor.

Revenue from legalized sports betting in D.C. has fallen short of expectations, in part because gamblers dont have a lot of options when it comes to placing those bets, according to a Sept. 9 report by the Office of the District of Columbia Auditor (ODCA).

ODCA found that sports gambling in D.C. is largely confined to the citys GambetDC mobile app. At the time of the audit, the only physical location to place bets was the privately owned William Hill Sportsbook at Capital One Arena, though bettors can also place wagers within two blocks of the arena through the William Hill mobile app.

After sports betting was legalized in May 2019, city officials predicted a tax windfall of tens of millions of dollars.

But between May 2020 and March 2021, when ODCA conducted its audit, the GambetDC app generated just over $440,000 in sports wagering revenue for the city. Meanwhile, the William Hill Sportsbook, despite only being present in one location, netted the city $1.38 million in tax revenue.

The main take-away, according to ODCA, is that the District should build more physical sports betting locations to boost revenue.

GambetDC is run by the Office of Lottery and Gaming (OLG), which is both the regulator and sole operator of sports wagering in D.C.

In its regulator role, OLG grants licenses to private sports betting operators. Up until recently, William Hill was the only licensed operator in the city. The audit recommends that OLG grant additional licenses while also expanding its own retail presence beyond the digital realm, which would likely increase revenue and benefit the city.

ODCA also blamed the disappointing revenues on the pandemic, which not only canceled major sporting events, but also deprived the city of commuters and tourists.

This in turn decreased the number of potential betters, as wagers can only be placed via GambetDC within the Districts boundaries, the report said.

In its response to the report, OLG also blamed the pandemic for its lackluster performance but said it has implemented significant enhancements to the sports betting landscape, many of which align with the reports recommendations.

That includes creating a stronger retail presence, which OLG said was always the plan but was sidelined by pandemic-related health restrictions.

In July 2021, OLG launched self-service kiosks that allow sports bettors to gamble at small businesses such as Bens Next Door, Lous City Bar, Takoma Station Tavern and Dirty Water, with plans to expand the kiosks to other establishments.

OLG also said it is granting additional licenses to privately run operators, including BetMGM, which now operates around Nationals Park. FanDuel also has an application pending to open a sportsbook at Audi Field.

But OLG claims that issuing too many licenses doesnt make fiscal sense, because the costs of regulating private sportsbooks exceeds the licensing fees that the agency gets from those sportsbooks. The District collects 10% of gross gaming revenue from private operators, although that money goes straight to the city, not to OLG.

The agency said it has collected just over $2 million in licensing fees since 2020 but has spent about $3.6 million to regulate the industry.

OLG said it uses the revenue from GambetDC to make up for the shortfall, which is why the citys payout is much less than what many had expected. During the audit period, GambetDC generated $5.5 million in gross gaming revenue (the money left over after payouts to winners), but only $440,000 of that ultimately went to the city.

OLG has also come under fire for its arrangement with Intralot, the company that won a no-bid contract in 2019 to be the sole provider of the citys GambetDC app.

Under the arrangement, Intralot gets 42.5% of GambetDCs gross gaming revenue. Thats actually less than what Intralot gets from other states it works with, including New Hampshire and Rhode Island, but the District also pays Intralot other direct operating costs such as marketing and advertising.

The audit suggests OLG renegotiate those terms so that it doesnt have to pay those costs; OLG said it is reviewing the contract.

The agency has also been criticized for not aggressively incentivizing wagers to lure bettors and for various technical glitches with its app, which rates a dismal 1.6 out of 5 stars on Apples app store.

OLG said it is taking steps to improve its app, adding features such as:

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Revenue from legalized sports betting in DC produces more bust than boom - WTOP

A recent journey up the mid-Atlantic seaboard where sports betting operations are already running provided a wealth of options for Massachusetts to consider. The main takeaway is that while placing a winning sports bet remains both an art and a science mastered by few, the act of placing a sports bet could not be much simpler.

Thanks to technology that can pinpoint your location within the boundaries of a state with legal sports betting, you can just as easily place a bet on your smartphone or laptop as you can by stepping into a brick-and-mortar sports book. Whether it was from a phone at a Washington, D.C., ramen shop, on a train moving through Pennsylvania, on the George Washington Bridge, or dealing in-person with tellers in a D.C. sports arena or the swamps of New Jersey, this reporter never lacked for options.

The starting point

Given its innovative setup, Washington was the best place to start. Our nations capital legalized sports betting in May of 2019; the D.C. Lottery oversees the operation and has its own online app that covers the district, except in four niches for the citys pro sports teams.

The teams have done, or expect to do, deals with gaming companies to conduct betting on sports with their app or at a sports book within a two-block perimeter of their venues. Capital One Arena (NBAs Wizards, NHLs Capitals) has a deal with Caesars-William Hill for both online betting and an actual sports book.

As of last month, bets can be placed in and outside Nationals Park (MLBs Nationals) with the BetMGM app, with a BetMGM sports book located just outside the ballpark expected to open later this year.

Audi Field (MLSs D.C. United) is completing a deal with FanDuel for both a sports book and mobile app. St. Elizabeths East Entertainment and Sports Arena (WNBAs Mystics, G Leagues Capital City Go-Go) has yet to ink any licenses.

Capital One Arena is next to the National Portrait Gallery and Chinatown. Like TD Garden, it hosts two pro teams and concerts on non-game days in non-pandemic years and is atop a train stop.

The big difference, for now, is that within Capital Ones walls sits the first sports book inside a US sports arena or stadium.

The space encompasses nearly 20,000 square feet over two floors, with a spiral staircase into the middle. Theres a bar with a standard sports bar feel to it on the first floor. Upstairs theres more seating space, conference rooms, a restaurant with food designed by a Michelin-rated chef, plus another bar and more betting kiosks, with the doors to the arena concourse.

The Caesars-William Hill sports book runs the betting operation, which includes an app that can be used within a couple of blocks of the building.

The landlord is the arenas owner, Monumental Sports & Entertainment, which also owns the Wizards, Capitals, Mystics, Go-Go, e-sports properties, and broadcasting outlets. Monumental drove the pioneering deal with Caesars-William Hill, but Monumental never touches the betting money. It derives its revenue from rent, food and beverage, media and sponsorship deals, and ticket sales.

With the sports book open 365 days a year, Monumental is trying to make it a destination on dark days for the arena.

NFL Sundays are going to be phenomenal, hopefully, if well be able to flex games into our arena and maybe broadcast games inside on the jumbo boards so people can sit and watch, said Jim Van Stone, Monumentals president of business operations and chief commerce officer, who also envisions drawing patrons to enjoy brunch from arena seats for Premier League soccer games.

This is a flagship operation. Weve had teams from the NBA and NHL come and visit, and their reaction is, first, that they see this is a game-changing experience. Then they want to see if they can get it legalized in their own home markets.

State by state on the train

Just four stops from Capital Ones subway stop is the Navy Yard-Ballpark stop. Its hard to miss; its the one where nearly every square inch of every pillar and wall in the station is emblazoned with BetMGMs black-and-gold ads.

A BetMGM sports book built within a parking garage adjacent to the Nationals stadium is coming soon, say company officials. MLB rules do not currently allow sports books within stadium property, but if you seat yourself in a ramen joint, or just lean against a wall near the ballpark, you can bet with your phone.

Registration for the BetMGM app, the first tethered to an MLB team, requires, like all other sports-betting apps, divulging a lot of personal data: birth date, address, proof of age, and last four digits of your Social Security number. Verification takes half a minute, tops. The last step is transferring funds from your credit card, bank, PayPal, or similar account into the apps account, an even more frictionless act.

Then, you can explore the apps extensive list of straight bets, parlays, prop bets, or futures bets, decide what youre going to bet and how much and then wait it out wherever youd like.

A New York-bound train out of Washington passes through five states with legal sports betting.

First is Maryland, which legalized it in May after voters approved a 2020 referendum. Its not up and running yet, but when it is as soon as this fall, its going to be a big deal. Sixty online licenses will be granted, with the Orioles, Ravens, and Washington Football Team each getting licenses at their stadiums, plus six casinos, eight horse racing tracks, and a couple of bingo halls.

Delaware is next. Notable for being the first state to legalize sports betting after a 2018 Supreme Court ruling gave states not named Nevada the ability to have sports gambling, Delaware so far allows only single-game bets at its three casinos and parlay bets at its lottery outlets. Curiously, online betting isnt on the table for the foreseeable future.

It doesnt take long to pass through Delaware and enter Pennsylvania, an up-and-comer in legal sports betting. The bulk of its $8.1 billion in total money wagered has come in the one year since it allowed mobile sports betting.

Before hopping aboard the train, I had picked Fox Bet, one of the half-dozen online sports books often called a skin in industry parlance approved for use in Pennsylvania. When I attempted to place my bets before crossing the Pennsylvania border, a message of apology flashed. The app did not object to me loading $50 onto it via a PayPal transfer before I reached the border.

About 30 seconds after my Google Maps app showed me I was in Pennsylvania rail space, I successfully placed three bets.

Although I could have, I didnt bet from the train when it entered New Jersey. Instead, with a Yankees-Red Sox series beginning, I chose FanDuel Sportsbook at Meadowlands Racing in East Rutherford as the place to be for the game.

New Jersey hot spot

Less than a 10-mile drive from the Lincoln Tunnel entrance in Manhattan, its the closest New Jersey sports book to New York City. Including the FanDuel app its tethered to, Meadowlands dominates the states retail sports-betting landscape, accounting for nearly 60 percent of the revenue.

FanDuel estimates that one of four visitors to East Rutherford lives in New York, so I thought the game would draw a sizable and rowdy crowd of Red Sox-hating fans in their Derek Jeter pinstripes, the same kind of crowd youd see in the streets and stands at Yankee Stadium.

My assumption was way off-base. All night, there was an average of 30-40 people in the sports book, and while the Yankees-Red Sox game drew prime real estate on an array of 55 TV screens, attention was scattered and rooting strictly bet-related Rays-Indians, Padres-Marlins, Braves-Phillies, didnt matter.

With its black walls and towering 45-foot black ceilings, 34 betting windows, 55 self-service kiosks, a VIP area for those who wish to make $500 minimum bets with a private teller, and a sizable squad of sullen security and other staff keeping an eye over everyone, the place has the feel of a Dr. Evil lair.

The relatively sedate crowd and low-key atmosphere were a reminder of why teams like the Red Sox, Bruins, Celtics, Patriots, and Revolution want any Massachusetts sports betting legislation to afford them the opportunity to build a sports book in or near their stadium/arena. Proximity to the action, especially for casual bettors who may not have a ticket but would still try to get near the games, seems as if it will draw a crowd that would drive a lot of business to a retail sports book.

Casinos and racetracks would prefer that not to happen.

Mobile betting has been central to New Jerseys rise to becoming the leading sports-betting market in the country. More than 90 percent of every dollar wagered in New Jersey is bet over a phone (more than 20 skins are available), spurring New Jerseys leap over Nevada.

Since New Jersey launched sports betting three years ago and through the end of June, more than $17.3 billion has been wagered, more than a quarter of the $64.7 billion wagered nationwide since the Supreme Court ruling.

New Jerseys success is largely responsible for the quickening momentum in New York to complete an online sports-betting operation as soon as possible. Combined with Pennsylvanias online growth, the New York online betting market should begin to deflate New Jerseys numbers, but until then, New Yorkers can and do drive or take a train to New Jersey to wager.

Another option is to walk into New Jersey via the George Washington Bridge, which is pretty easy after taking the A train to 175th Street on the west side of Manhattan.

There is no New York/New Jersey border marked on the pedestrian path that stretches 212 feet above the Hudson River. My FanDuel and Google Maps apps initially disagreed when I was in New Jersey, but they eventually worked it out and I received permission to bet about 5 yards from the midpoint, where the massive suspension cables dip to their lowest point

The wisdom of betting on sports from any bridge is debatable.

Except in Massachusetts, where that debate cant be had at all.

Michael Silverman can be reached at michael.silverman@globe.com. Follow him on Twitter: @MikeSilvermanBB.

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What I learned from visiting states that have sports betting up and running - The Boston Globe

Al Michaels no longer has to subtly refer to the point spread if a game comes down to the wire on NBCs Sunday Night Football.

Now he can refer to it directly without worrying about drawing a comment from NFL officials in New York.

Three years after the Supreme Court overturned the Professional and Amateur Sports Protection Act and allowed states to legalize sports betting, the NFL has embraced gambling as part of the landscape.

Nowhere will that be more apparent than during pregame shows, the occasional mention during games and commercials as the point spread is no longer a taboo subject.

Were in a brave new world of sorts. Ive always had fun by being the guy who could play a little bit of the rascal role because the perception of the fan was that the league didnt want any references to gambling, Michaels said.

So what I would do through the years is I would come in the back door, sometimes I would come in the side door, and now I guess theyre allowing me to come in the front door, which is not as much fun as doing it subtly.

It also brings a smile to the face of Brent Musburger, who did prediction segments with the late Jimmy The Greek Snyder on CBS The NFL Today for 12 years. Musburger left ESPN in 2017 to help launch the Vegas Stats & Information Network.

I guess I am a little bit surprised at how quickly the leagues transition from being completely anti-gambling, at least publicly, to being now complete partners with the entire operation, he said.

Much like discussions of analytics and Next Gen Stats, gambling topics during pregame shows or even games will be in moderation.

Christopher Halpin, the NFLs Executive Vice President, Chief Strategy and Growth Officer, said networks can reference betting lines in pregame shows, but only to help contextualize game analysis or a broader storyline. There can also be limited displays of lines during pregame in graphics and the bottom scoreboard updates.

The NFL was the last of the four major U.S. professional sports leagues to partner with sportsbooks even though it commands the most interest and dollars.

According to Play USA, estimates are nearly $12 billion will be wagered this season on NFL games at legal sportsbooks.

The league has also partnered with seven sportsbooks, including Caesars Entertainment, which has a partnership with ESPN, NBC partner PointsBet and FOX Bet.

DraftKings, FanDuel, MGM and WynnBet are also among those who can advertise during games and other league media platforms.

The biggest change viewers will see is during commercials. NBC, CBS, FOX, and ESPN will be allowed to make up to six spots available for sportsbooks during each game one during pregame, one per quarter, and one at halftime.

Halpin said there is a limit because the league doesnt want to see games oversaturated with legal sportsbook ads as they saw six years ago with daily fantasy sports games.

Marc Ganis, the co-founder of Chicago-based consulting group Sportscorp, projects sportsbooks will join automobile companies, fast food, beer, and soft drinks among the large advertising spenders.

The people watching the games make up the market, a very targeted market, that the sports gambling companies need to recruit. So this becomes just a cost of customer acquisition, Ganis said.

FOX, NBC, and ESPN have all experimented with gambling-oriented features the past couple of seasons. FOX and NBC have run free-to-play prediction games offering cash prizes, while ESPN had a gambling spin during one of its MegaCast presentations of a playoff game last season.

ESPN Daily Wager host Doug Kezirian said the betting aspect on last years MegaCast shows that the NFL has come a long way in a short amount of time in changing its stance.

So far, 31 states and the District of Columbia have approved sports gambling. Arizona is on track to be the 24th state to accept bets when their approved sportsbooks plan to go live on Thursday.

I give them a lot of credit, how open-minded theyd been and how progressive theyve been in just a short time window, he said. So in three years, theyve gone from something thats, you know, against the law, embraced it understood it, kept an open mind about it.

Of all the networks, CBS remains an outlier as it has not partnered with a sportsbook. CBS Sports chairman Sean McManus said gambling information will not be a part of game broadcasts for various reasons.

Were trying to thread the needle with respect to how much gambling information that we should put in our studio shows. What is useful to the gambler but not obtrusive to the non-gambler. And I think thats a delicate balance right now, he said. When we think its appropriate, and it makes the telecast more enjoyable and more informative for our viewing audience, we will add more information when we think thats important.

Not everyone is happy, though, with the leagues new relationship with sportsbooks. During an NBC Sports conference call last week, Hall of Fame coach Tony Dungy said that the NFL shouldnt be in a position where it promotes gambling, especially among young people.

Its a great game. I know people gamble. I know its legal. I dont want to see the NFL promoting it, he said. I understand times change, but again, for me, its just a personal opinion.

Viewers looking for gambling-centric information will find it on other shows besides the noon pregame shows. ESPN and FS1 have daily gambling shows and are also increasing their digital content. VSIN, which started with five hours a day of live shows in 2017, has jumped to 21 hours this season.

Even staunch gambling supporters know that distributing gambling information remains a delicate balance and that the approach of a steady rollout makes the most sense.

Theres still a big percentage of the population that will never put a bet down, and you dont want to tick that crowd off. But you cant put your head in the sand and pretend that there arent billions of dollars at stake based on the outcomes of these games, so its a tricky balance, said VSIN co-founder and Chief Executive Officer Brian Musburger.

I still think that the primary broadcast feeds will remain relatively pure to the sport. You dont need to overdo it with sports betting. There are other ways for that audience to be served.

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Follow Joe Reedy at https://twitter.com/joereedy

___

More AP NFL coverage: https://apnews.com/hub/NFL and https://twitter.com/AP_NFL

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Gambling wave coming to NFL TV screens, but in moderation - Associated Press

In its first national ad campaign, FanDuel promises to Make Every Moment More.

Caesars commercials promise bettors will be treated like royalty.

DraftKings new ads proudly state that its now an official sports betting partner of the NFL while prominently featuring the leagues shield logo.

Here comes the deluge.

With the NFL kicking off Thursday, sports books are poised to spend up to $1 billion in advertising this year, say experts.

The coming ad blitz is welcome news for media companies, which lost billions during the pandemic-driven sports shutdown. Especially when some traditional marketers like movie studios and auto makers are still holding back.

Look for reach, frequency and overall spending to far eclipse 2015 when the newly launched FanDuel and DraftKings seemed to buy up every commercial slot on sports TV.

FanDuel wants to become the next iconic sports brand in America, said Andrew Sneyd, senior vice president of brand marketing, in an interview with Front Office Sports.

Bottom line: The old stigma surrounding sports betting is gone, Sneyd said. The categorys gone mainstream.

For the first time ever, sports books will be able to buy commercial time during NFL games. With second quarter revenue growing 159% to $906 million, FanDuels being welcomed with open arms by TV, radio, and digital media companies hungry for advertising revenue.

We recognize that we are spending when many others are forced not to or choosing to pull back, Sneyd said. Weve become an important part of partnering with regional sports networks and others.

Chris Holdren, co-president of Caesars Digital, confirmed Caesars Sportsbook is also planning wide-reaching branding push for the new NFL season.

As the official casino partner and an exclusive sports betting partner of the NFL, complimented by a full roster of partnerships with individual NFL teams and having the naming rights to the Caesars Superdome, all anchored by a national advertising campaign and new promotions for Caesars Sportsbook, Caesars will have strong visibility with NFL fans this fall, Holdren said in a statement.

In a deal worth a combined $1 billion, the NFL announced FanDuel, Caesars and DraftKings as its first official sports books in April. Last month, the league added FOX Bet, MGM, PointsBet, and WynnBet as approved sportsbook operators. The leagues official TV partners CBS, NBC, Fox, and ESPN are able to sell up to six gambling-driven spots per game telecast to those seven brands.

FanDuel, Caesars, and DraftKings spent a combined $314.6 million on advertising last year vs. only $84 million in 2019, according to Kantar Media. With live sports returning in full this year, the three spent a combined $109 million in the first quarter of 2021 vs. $18 million during the same period last year.

The increasing legalization of sports betting across the U.S. has created a perfect storm of opportunity for sports betting operators, say sports marketing experts. You aint seen nothing yet, said sports marketing expert Bob Dorfman.

Dorfman predicts sports betting companies will spend between $500 million and $1 billion on football this year.

The ultra-competitive category could turn into the next Cola Wars or Beer Wars, added media consultant Brad Adgate. He expects these companies to spend over $300 million on ads in the fourth quarter alone.

Its no wonder the NFL got a big spike in rights fees that the networks were willing to pay, said Adgate.

While other companies are struggling, betting operators have the money and theyre willing to hire the best.

FanDuels first national brand campaign was created by Wieden+Kennedy: the advertising agency behind Nikes famous Just Do It campaign. FanDuel hired superstar golfer Jordan Spieth to star in its main anthem spot.

Besides three national ads, FanDuel will also air five sportsbooks-focused spots featuring the NFL logo in 10 states where it currently offers mobile sports betting: New Jersey, Pennsylvania, Michigan, Illinois, Iowa, Indiana, Colorado, Virginia, Tennessee, and West Virginia.

Said Sneyd: Theres a great opportunity for this to be the galvanizer of how were able to bring our product, and every moment that matters to life, to FanDuel overall.

With most of the legal brakes gone, sports bettors could drop more than $20 billion on single-game NFL/college wagering, according to PlayUSA, which tracks legal sports betting. That breaks down into $12 billion for the NFL and $8 billion for college football.

A record 45.2 million Americans are expected to bet on the upcoming NFL season, according to The American Gaming Association. Thats up 36% from last year.

Dan Lovinger, executive vice president of ad sales for NBC Sports Group, said most of the seven operators have talked about buying ad time on Sunday Night Football, the most-watched show in prime time for 10 years running.

Were seeing significant demand theres no doubt about it, reminiscent to when the fantasy category opened up, Lovinger said on a press call. I think when youre starting a business and trying to establish your brand you are going to look for the highest-rated, broadest reach property as possible. Theres no better place to go than Sunday Night Football.

With the league finally allowing betting commercials in and around its games, operators can now advertise directly to their target audience.

No one is going to be shy, Sneyd said.

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Sports Betting Operators To Spend Up To $1 Billion On Football Ads - Front Office Sports

Legal sports betting is coming to Arizona. Starting Thursday, it will be legal to deposit and bet within the state.

If youre looking for hometown bets to place, a few of the local teams are in position to have good years, and we have three futures bets below you might want to consider. If you want to go bigger, please feel free to peruse our Sports Betting section, which features strategy advice from Jeopardy James Holzhaier, advanced statistical prediction models for the NFL and NCAA football, and everything in between.

Arizona users can register with The Athletics betting partner, BetMGM, and receive up to $200 in free bets. If you sign up for BetMGM and bet $1 you will receive $100 in free bets and a free year-long subscription (or renewal) to The Athletic.

The NFC West is going to be loaded this year. All four of the teams are in the top seven odds to win the NFC this season. The Cardinals are 16-1 to win the conference, but only 6-1 to win the division. Our Distributed Power Rankings (an advanced statistical model developed by Ethan Douglas)has the Cardinals as the second-best team in the NFC West and projects them to be right in the mix in the division.

The Cardinals arent the favorites, but they are good value at 6-1.

The Pac-12 South is a wide-open division on paper and Arizona State appears to be in the mix. The Sun Devils are ranked in both polls with a 1-0 record after beating Southern Utah 41-14 in the opener last weekend.

Arizona State only got four games in last season and lost to both USC and UCLA before beating Arizona and Oregon State. The Sun Devils will have to turn those results around to win the division, but both those were one-score losses. This year, ASU goes to UCLA on Oct. 2 and hosts USC on Nov. 6.

Junior quarterback Jayden Daniels is back with Rachaad White and DeaMonte Trayanum, who were the top two rushers last year. White and Trayanum each had two touchdowns against Southern Utah.

ASU has tricky crossover games at Utah and Washington, but Washington just lost to Montana so maybe the schedule isnt as bad as expected.

The Suns made it to the NBA Finals last year with a (mostly) young team. Yes, Chris Paul is 36, but he didnt show signs of slowing down and Devin Booker and Deandre Ayton are the faces of the franchise.

Phoenix is third in the odds behind the Lakers (+170) and the Warriors (+425). The Warriors might be overvalued a bit. That team hasnt been full strength in two years and is very different from then. Klay Thompson has suffered a torn ACL and an Achilles injury that cost him the past two years. Will he be the same player he was before?

The Lakers may be a justified favorite, but the Suns just knocked them out of the playoffs (with an injury to Anthony Davis helping). The Suns show good value at 7-1 after having the second-best record in the regular season and making it to the Finals.

(Photo of Kyler Murray: Christian Petersen / Getty Images; The Athletic may receive an affiliate commission if you open an account with BetMGM through links contained in the above article.)

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Legal sports betting in Arizona: 3 futures bets you can place on the Suns, Sun Devils and Cardinals - The Athletic