NCAA tournament could help DraftKings, FanDuel put New Jersey over $ 1 billion in sportsbook
New Jersey remains the sports betting capital from the country. He cashed nearly $ 743 million in bets in February, an increase of 244% from the previous year and well ahead of Nevada’s $ 544 million, second.
But March could be even bigger as the National Collegiate Athletic Association March Madness basketball tournaments are underway. Because only football outperforms basketball in the number of bets placed in New Jersey, FanDuel (owned by Flutter Entertainment (OTC: PDYPF)) and DraftKings (NASDAQ: DKNG) – the state’s two largest sports betting companies – could reap a windfall as New Jersey potentially becomes the first state to deposit $ 1 billion in sports betting in a single month.
A sports betting duopoly
The secret to New Jersey’s phenomenal growth and the dominance of FanDuel and DraftKings has been the state’s adoption of online betting. This has made it easy for players to bet where and how they want, including in neighboring states, as the only requirement is essentially to be physically present in the state to place a bet.
NCAA tournaments, however, could be New Jersey’s last hurray. Competition from Pennsylvania is intensifying, and New York is considering legislation that would allow mobile betting. If passed, it could divert a significant chunk of New Jersey revenue, as around 25% of the state’s betting revenue comes from New York players. Once again, New Jersey may find itself at the height of Benjamin Franklin’s criticism that the state is a barrel exploited at both ends.
Investors in DraftKings or Flutter Entertainment have no such concerns. They will be the leaders in sports betting, regardless of where the betting comes from.
DraftKings, which is in partnership with the Casino Resorts, generated combined retail and online revenue of $ 7.9 million in February and $ 23.5 million year-to-date. This makes him a second best behind FanDuel, which is partnered with Meadowlands Racecourse a few miles outside of New York City.
The racetrack’s retail bookie generated $ 2.3 million in revenue in February and $ 7.3 million year-to-date, but it also generated $ 24 million in online revenue in the month. last, or $ 66.7 million since the start of the year, mostly thanks to the FanDuel app.
Because this year’s March Madness games were the most streamed games of all time, punters may be tuned in more than ever since fans were hungry enough for the sport during the pandemic.
Data from video analytics firm Conviva shows that over a billion minutes were broadcast over 32 games in just two days, with TV handily beating the computer, 68% to 18% (the Roku platform also largely outdated Amazon.comFire TV as preferred viewing option, 40% to 26%).
Billion dollar baby
Dustin Gouker, senior analyst for industry site PlayNJ.com, says that while MGM ResortsThe BetMGM app is growing, it still has a long way to go to close the gap with industry leaders: “FanDuel and DraftKings have dominated the market since launch, and there really isn’t much. there has been a major change in this dynamic since 2018. ”
March Madness is “the biggest sportsbook party of the year,” according to PlayNJ’s Eric Ramsey, “and in New Jersey, basketball in general tends to get a lot of action. , it is possible that New Jersey will become the country’s first state to generate more than $ 1 billion in sports betting in a single month. “
This puts the state’s biggest sportsbook in full press for generating the best returns this month through this effort, making them championship stocks to invest in.
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