Category
🥇
SportsTranscript
00:00A record-breaking year in sports betting, despite the fact that very few states went
00:08online, it didn't stop the people who are out there from betting quite a bit, did it?
00:15No, to your point, Craig, usually when we've talked in the past about new records being
00:20broken and more money bet than ever before every year, it's kind of a no-brainer.
00:25You turn a state like New York on, of course you're going to have, you have more states
00:29now than you did then, it's going to be up.
00:31But this year we only really had North Carolina, yet total betting is expected to exceed last
00:36year by about 20%, which is just a huge jump considering we didn't really have many new
00:42states.
00:43We're expecting about $150 billion bet total this year.
00:48And a lot of that is because of operators just frankly making more money and pushing
00:53the higher margin bets.
00:54We talk about it all the time with parlays and the same game parlays, at LSR our projections
00:59have that most operators are going to finish with an average of 9.5% hold, which historically
01:06is record-breaking.
01:09Nevada has held about 6% to 7% ever since it legalized sports betting.
01:13So you see operators are making more money and getting people to bet more frequently,
01:18getting people to reinvest their bets as well, which is really driving up this hold.
01:23So you even have a state like Nevada where online sports betting isn't so big because
01:29of the presence of casinos and because the laws are written in a way that makes it hard
01:34to register and they want people betting in person.
01:37But this is going to be the first year Nevada finishes outside of the top five in total
01:41dollars bet since the 1940s when it first legalized gambling.
01:45So used to obviously talk about Nevada as the king of sports betting, but it's not even
01:50in the top five anymore.
01:51You have states like New York making a billion dollars in taxes in just one year, which is
01:57much more than lawmakers really could ever have conceived when this industry first became
02:02legal.
02:03You know, we've talked a lot about sportsbooks raising their expectations for the total addressable
02:07market in the next couple of years.
02:09It seems like this industry is just growing at a much faster pace than we ever imagined.
02:15And with that, I'd also expect some other players to get squeezed out.
02:18I think if you took the over on over 0.5 sportsbooks exiting the space every year,
02:24you'd be a pretty rich, a pretty rich person.
02:27And we saw points bet drop out.
02:28We saw, you know, Maxim bet.
02:30We've seen SI sportsbook.
02:32We've seen all these Fox bet.
02:33We've seen all these guys, you know, try and fail.
02:36So I would expect probably at least one more next year, especially as a lot of them feel
02:40pressure, especially, you know, from investors and the market continues to go towards Fandula
02:45DraftKings at the top.
02:47Yeah, I would agree on that.
02:49OK, so a lot of scandals in the first half of the year, not as many in the second half
02:53of the year.
02:54Is that fair to say?
02:55Yeah, that's definitely fair to say.
02:57I think a lot of it, I don't know if it was timing.
02:59It all came to a head in January through March.
03:01You obviously had the Shogayetani interpreter.
03:03You had John T Porter later than that.
03:06But we've seen the industry recover and move on from it.
03:09Hopefully no more scandals next year.
03:11But you never really know.
03:12Sometimes it's just a product of the legal industry working the way it's supposed to.