iGaming Weekly Recap (November 4 – 10): Sports Betting in Missouri Approved by Voters
This week in iGaming, Missouri was in the spotlight as voters passed Amendment 2 by a hair, legalizing sports betting in the state. 22 online sportsbooks will be allowed, with tax revenue going to education. Meanwhile, PENN Entertainment’s ESPN BET is still growing despite some bumps, introducing account linking across platforms. Check out what else made headlines in the iGaming world this week!
PENN Entertainment released its financial results for the third quarter of 2024, reporting steady revenue growth alongside challenges in certain segments. ESPN BET, the sports betting platform, exceeded expectations, generating $244.6 million in revenue in the third quarter despite an EBITDA loss of $90.9 million. The rise in popularity of parlay bets and the launch of ESPN BET in New York contributed to these positive results. However, the high percentage of parlay bets carries risks that have impacted the full-year financial forecast. Despite the challenges, PENN Entertainment remains optimistic about the future of ESPN BET.
In Missouri, voters approved Amendment 2, which legalized sports betting in the state. The vote was extremely close, with the amendment passing by a narrow margin. Amendment 2 allows for the launch of up to 22 online sports betting platforms, with licenses granted to casinos and sports teams. The law also introduces a 10% tax on gaming revenue, which is intended to support the education budget. The campaign for sports betting legalization was the most expensive in the state’s history, with supporters arguing that Missouri was losing sports betting revenue to neighboring states. Opponents, on the other hand, claimed that legalizing sports betting would lead to increased credit card debt and gambling addiction.
ESPN and ESPN Bet have merged their platforms to provide users with personalized offers and promotions. Account integration enables users to track bets, tailor offers, and receive promotions based on favorite sports, teams, players, and fantasy settings. This integration aims to create a cohesive media-betting ecosystem, optimizing the user experience. While ESPN Bet is still catching up to market leaders like DraftKings and FanDuel, the account merging is designed to reduce friction between apps, making it easier for users to track bets and access content. ESPN Bet is currently available in 19 U.S. states and has seen rising popularity, particularly in New York, where it captured a 1.8% market share within the first four weeks of launch.
DraftKings has lowered its revenue and profit forecasts for 2024, citing unfavorable sports outcomes in the fourth quarter. The company noted that in the first five weeks of the quarter, favorites frequently won, which negatively impacted betting results. Despite the lowered forecast, DraftKings reported improvements in some key areas, such as identifying lower-value customers and enhancing marketing efficiency.
The challenges for affiliate companies continue… Catena Media reported a decline in revenue for the third quarter of 2024. The primary causes were weaker results in online sports betting and shifts in the company’s business model. Despite the revenue decrease, Catena Media saw an improvement in profitability and a growth in online casino revenue in North America. The company has taken measures to reduce costs, including laying off 29 employees.
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