The Bills may have won Thursday’s NFL game opener, but sports betting firms may be the real winners. Data from GeoComply showed sports betting activity jumping 77% on Thursday compared to last year’s opening game.
What’s the big deal? “NFL is the dominant driver of both wagering and user sign-ups,” per Analyst Edward Engel (SA). But this year, sports betting firms have pulled back on growth plans — focusing on profitability first, a popular theme.
Most sports betting companies are still losing money, and high market expenses are to blame. Firms were offering as much as $3,000 in free bets when online sports betting launched in New York.
High roller incoming: ESPN — which is in negotiations with sports betting partners — is exploring launching its own branded sportsbook.
- ESPN considered licensing its brand to other sports betting firms — which could net it as much as $3B over several years (WSJ).
- When reporters asked Bob Chapek, CEO of Disney — which owns ESPN — whether they were developing a sports-betting app, he responded with, “we’re working very hard on that.”
ESPN is a valuable asset to Disney: In August, activist investor Daniel Loeb tried pushing Disney to spin off ESPN into its own company. Chapek reportedly received hundreds of inquiries from interested parties, but he’s not looking to sell:
- “If everyone wants to come in and buy it… that says something about its potential“ — “I think its potential is within the Disney company.”
- Loeb backed off after Chapek’s comment.
