Expected Value: This Week’s Top 5 Sports Betting Industry Developments
It’s official the state of Massachusetts has thrown their hat into the wagering ring as Governor James Baker signed the betting bill into law this week.
The bill was signed just before the imposed deadline and required House and Senate members to work together and agree to terms on the complexion of the sports betting legislation.
“We appreciate the dedication and compromise that the Legislature demonstrated on this issue, and we look forward to supporting the work of the Massachusetts Gaming Commission on the responsible implementation of the law over the next several months,” Baker said in a statement.
This marks the first step in what will likely be a long journey to the first bet being placed legally in the state.
The Massachusetts Gaming Commission has yet to develop and implement regulations to govern the space.
The lines continue to be drawn in the battle over betting in the state of California as one major sports wagering company watches the battle from the stands.
Caesars Entertainment (NASDAQ:CZR) has announced that they will be taking a neutral stance while both sides wage a bitter war leading up to the November referendum on wagering.
According the L.A Times this week, the two sides have spent a combined $350m on their respective campaigns and estimated spending could eclipse the half a billion mark when voting is done.
Proposition 26, would authorize retail sportsbooks and is backed by a coalition of tribal casinos. Proposition 27, a mobile sports betting-only referendum is funded by sports betting operators.
“Caesars may be the only winner of the election regardless of what passes,” Caesar’s CEO Tom Reeg told analysts.
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In Other News…
FuboTv (NYSE: FUBO) is looking for a partner when it comes to sports betting. The company sent a letter to shareholders advising them that they are looking to ‘de-risk’ the sports betting side of their business by looking for another company to operate their wagering arm.
Originally known as a live sports streaming service, Fubo launched the Fubo Sportsbook and Fubo Gaming Inc. last year.
The shareholder letter shared FuboTv’s continued belief in their model.
“We continue to believe that an integrated wagering platform, offering both live video and a sportsbook, will result in the best viewing and gaming experience for customers,” the company said. “We have evaluated how best to scale these capabilities in today’s market, we have concluded that we will no longer pursue this opportunity on our own.”
The news comes as the company this week launched SportsGrid, a platform related to sports wagering content.
Fanduel is about to become part of the Fremont Street experience.
The Nevada Gaming Control Board recommended this week that the company be permitted to have a Fanduel sports book at the Fremont Casino in Las Vegas.
The book will be operated by Boyd gaming and the personnel working at the book will continue to be Boyd employees, Fanduel would be responsible for setting betting odds, assisting with any line movements and use the opportunity to brand itself on Fremont Street.
Boyd currently operates FanDuel branded sportsbooks in several other states and owns five percent of the company.
Penn (NASDAQ: PENN) CEO Jay Snowden was bursting with confidence this week as he told investors that the company expects to be profitable before its major opponents in the space.
“We feel very good about being profitable in the fourth quarter and not just in online casino,” Snowden said. “It’s not going to be a real significant profit, but being profitable in the fourth quarter when the rest of the market isn’t is a big accomplishment.”
The statement comes a week after Penn released second-quarter adjusted earnings of $504.5 million, down from the $586.6 million in adjusted earnings for the same quarter in 2021.
The company has also recently announced a change to the Penn National Gaming brand and will now be known as PENN Entertainment going forward.