In-Arena Sportsbook About Branding – Not Revenue – for William Hill

Capital One Arena

Monumental Sports & Entertainment (MSE) has announced that William Hill (WIMHY) is set to become its official sports betting partner. The British gaming operator plans (pending an existing lawsuit and licensure from the state lottery) to open an “all-purpose sports betting complex” at Capital One Arena before the end of 2019 (William Hill CEO Joe Asher says early ’20 is more likely). The D.C. venue hopes to be the first professional sports arena in North America with a retail sportsbook on its premises. Illinois has also passed legislation that will grant venues within the state the rights to host a sportsbook.

Howie Long-Short: For as much media attention as this story has gotten, the partnership is relatively inconsequential to William Hill’s bottom line. Phillip de Winter, Head of Business Development at FanHub, said to “look at the international markets. 90% of sports betting revenues come from mobile. The money and future is in mobile.”

That’s not to say the deal is insignificant to the English bookmaker. de Winter explained that “retail stores are as much about branding as anything else. [William Hill] is a big player in Europe and in other markets, but they lack brand equity in the U.S. Having 20,000 people walk past their store in a stadium is great marketing for the company.” For that reason, de Winter believes we’ll continue to see WIMHY open new stores in the U.S. As it currently stands, William Hill operates 143 locations across ten states.

The U.S. market has become increasingly important to European-based gaming operators. Sara Slane, founder of Slane Advisory, explained that “stringent [domestic] regulatory changes have forced [U.K. based] gaming operators to close down thousands of storefront shops. In addition, recent restrictions on advertising and higher gaming tax rates in numerous European countries have compelled global operators to diversify [their business] and double down in growth markets.”

It’s important to point out that Monumental Sports & Entertainment is not a direct stakeholder in the on-premises betting operation. The company will not take bets, share in the book’s profits or set lines; it will simply serve as the landlord to the gaming co. MSE presumably will profit from the in-stadium advertising spend William Hill has committed to as part of the deal.

The addition of a retail sportsbook could change the pre-game, post-game and half-time (at least for Capitals ticket holders) experience, but those concerned it will draw fans away from the game and potentially impact the home-court/ice experience can relax. de Winter reminds, “to place a bet in-person at a stadium means that the fan must get out of their seat. If the action is happening in real-time, that fan is missing plays. During game play, fans are much more inclined to log-on to an app and place a bet from their seat as opposed to potentially missing the highlight of the day.

D.C. CFO Jeffrey DeWitt said the plan is to have mobile sports betting in place by early 2020. A lawsuit stemming from the D.C. Lottery’s decision to award the gaming contract to a single operator (Intralot) without a competitive bidding process is holding up the roll-out. Once sorted out (and licensed), William Hill will be able to introduce a mobile sports betting application to fans within a two-block radius of the arena.

Fan Marino: NBA bylaws prevent teams from offering retail sports betting inside of the arena, so every entrance to the William Hill sportsbook – from within the building – will be closed during Wizards games. Ticket holders who wish to place a bet can do so via a mobile application. The alternative will be to exit the arena and enter the sportsbook from the street. It’s unclear if Capital One Arena intends on permitting re-entry for those leaving the game to place an in-person wager.

Capitals fans should be able to place bets in-person without exiting the building. The NHL has not voiced opposition to the idea.

The in-stadium sportsbook will be busiest on days the building is hosting games, but MSE hopes the place turns into a destination when the home teams aren’t playing. The book will be open from 9a-1a, with the public able to enter from the arena’s exterior.

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U.K. Sportsbooks Agree to “Whistle to Whistle” Ban on T.V. Betting Advertisements


The Remote Gambling Association announced its members have agreed (under political pressure) to abide by a “whistle to whistle” ban on television betting advertisements during live sporting events (save horse racing), that begin prior to the 9p watershed hour. The 35-member collective made the difficult, but necessary, decision in a pre-emptive attempt to stave off industry crippling government legislation (see: Italy). British authorities (along with the public) have become concerned with the onslaught of betting adverts during sporting events, as the number of problem gambling cases continues to rise (to 430,000) within the United Kingdom. The ban is expected to go into effect prior to the start of the ’19-’20 football season.

Howie Long-Short: Expect all of this (advertising crisis, problem gambling, public outrage, restrictions on gambling adverts) to play out in the U.S. too, as the availability of sports betting expands. There’s far too much money at stake and far too little corporate restraint to otherwise prevent it.

Many suspect the ban will result in an earnings decline for Europe’s largest gaming companies, which is why Ladbrokes (GMVHF), Paddy Power (PDYPY) and William Hill (WIMHY) are down -10.5%, -8% and -7% since the news was reported on 12.6, but I believe the market is overreacting; gaming companies spend 5x the amount on online advertising as they do on television ads and will simply re-allocate their resources accordingly. Until the ban includes shirt sponsorships, stadium naming rights agreements and digital advertisements visible on television, fan behaviors seem unlikely to change.

95% of the English soccer matches during the 2017 season had advertisements for gaming companies, so many assume a whistle to whistle ban means “tens of millions in lost revenue” for broadcasters like Sky and BT Sport; but this is English soccer, both companies will find there are no shortage of advertisers interested in the valuable spots (and Sky had already announced plans to limit in-game sports betting ads anyway). If there’s a real concern for broadcasters, it’s the possibility that the ban could cause the value of future television contracts to “fall dramatically”.

Chris Lencheski is an experienced global sports, media, and private equity executive with c-suite stops at Comcast-Spectacor, TPG Specialty Lending, IRG Sports and Entertainment, SKI & Company and currently an adjunct professor at Columbia University. I asked Chris, if a decline in media rights values is on the horizon or if the broadcasters are simply posturing as the measure still requires ratification from Industry Group for Responsible Gambling?

Chris: I don’t think that the media rights are going to go down any time soon – and we’re talking Premier League here – by the RGA self-administering a ban on adverts on television. If you’re suggesting the broadcasters are posturing, I would say they’re closer to doing that than they are truly panicked because nearly 80 percent of the current ad-mix budget for these gaming organizations across Europe is sitting on social and digital; and it’s not just in football, but in Formula One, Rugby and Handball too. Putting it in perspective, it (the ban) only amounts to about 15% of the tv adverts and there’s plenty of available opportunity to bring in new partners or to extend with current ones in both real-time television coverage and in virtual television coverage.

Fan Marino: While on the international soccer kick (pun intended), Barcelona announced it won’t be traveling to Miami (as planned) for La Liga’s first game on U.S. soil. The match against Girona, scheduled to be played Jan. 27, 2019 in Miami, is off (at least temporarily) as the clubs failed to gain the support of the Spanish Football Association, FIFA or UEFA; Reuters has since reported that the game could be played in North America late next year. Back in August, La Liga announced plans to play at least one game/year in the United States, after agreeing to a 15-year agreement with Relevant Sports to promote the league in country.

I should mention that horse racing is exempt from the RGA ban due to the sports’ reliance on the participation of sports bettors.

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U.K. Sportsbooks Exploring Self-Regulation to Stave Off Crippling Government Legislation


The board of the Remote Gambling Association (European trade organization) will meet later today to discuss self-regulation, a pre-emptive attempt to stave off industry crippling Government legislation within the U.K. The proliferation of mobile/digital gambling has spurred an onslaught of sports betting advertisements during sporting events, with bookmakers aggressively competing for market share. Bans on pre-watershed (see: prior to 9p) advertising and in-play ads, and a hard limit on the number of gambling ads permitted within a single commercial break (1) are amongst the most solutions that will be explored. The meeting is not expected to produce a consensus on recommended changes to the industry’s voluntary advertising code.

Howie Long-Short: The implementation of (or change to) any bylaw(s) restricting Remote Gambling Association member advertising would have widespread impact on the industry. Their membership base includes some of Europe’s largest gaming companies including; Bet365, Ladbrokes (GMVHF), Paddy Power (PDYPY) and William Hill (WIMHY).

While the focus of the annual meeting (i.e. this was not called as an emergency summit) indicates that European bookmakers understand what’s at stake (see: Italian ban on all gambling advertising), with membership divided on corporate social responsibility it’s likely that only Government regulation (or broadcaster intervention) can curb the volume and frequency of sports betting ads. That’s because unanimous participation (35 member companies) is unlikely and no one is willing to operate at a competitive disadvantage (i.e. if one continues as is, they all will). Expect this exact scenario to playout in the U.S. as the availability of sports betting expands, there’s far too much money at stake and far too little corporate restraint.

If the gaming companies won’t self-govern, perhaps the media companies selling the spots will follow Sky’s (SKYAY) lead and do it for them. SKYAY announced that beginning with the ’19-’20 season it will limit gambling ads per commercial break (1 spot/per) and as of June 2020, the company will offer technology that enables viewers to avoid gambling advertising all together. While it’s been estimated that the company earns +/- $262 million in advertising money from licensed sportsbooks and some suspect a “self-imposed limitation will cost it tens of millions in lost revenue”, I think the loss will be negligible; SKYAY will find another advertiser to take the valuable slot (remember: this is English soccer, no shortage of demand) and increase the price of their now more limited gambling inventory.

Fan Marino: Howie referenced the U.S. gambling market, so it would seem like an opportune time to mention that New Jersey issued its October sports betting report. The state’s gamblers bet 41% ($260 million) more last month than they did in September, but only took in half the revenue ($11.7 million). Why? The public side came in “at a heavier than average clip” (on NFL games) and both MLB and World Series futures were paid out during the month. DraftKings (+ Betstars NJ) once again took in more revenue ($5 million+) than any other licensee in the state, as online/mobile platforms outperformed retail sportsbooks; +/- 2/3 ($175 million) of the state’s October handle originated from a computer or handheld device.

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NHL Signs 1st Sports Betting Partnership, Caesars and William Hill In-Arena at Prudential Center


The NHL has signed its first sports betting partnership, a multi-year pact with MGM Resorts International (MGM) that gives the global hospitality and entertainment company access to the “advanced game data” needed to create in-game prop bets on league games; MGM will also gain use of NHL intellectual property (think: logos, consumer data) for use in marketing/promotions. Beginning with the ‘19-’20 season, the NHL will track player positioning and the puck’s movement on the ice; real-time data proprietary to the league, but not exclusive to MGM Resorts. No financial terms were released, but the NHL will not receive a share of sports betting profits or an “integrity fee” as part of the deal.

HBSE (owner of NJ Devils, Prudential Center and Philadelphia 76ers) announced a pair of sports betting partnerships within the last week. It was first revealed that William Hill (WIMHY) is set to open a sports betting lounge (20+ screens) at Prudential Center (no betting terminals, mobile only); as part of the agreement the Devils will show William Hill odds on the world’s largest, in arena, center-hung digital scoreboard during intermissions. Most recently, HBSE publicized a pact with Caesars Entertainment (CZR) for both the Devils and 76ers. Caesars too will have a premium restaurant and bar (aka lounge) at Prudential Center to introduce fans (premium seat holders have access during Devils games) to their “sports betting experience”; the company will promote their “non-sportsbook elements” in Philadelphia, until sports gambling legislation is passed in the state of PA. The deal includes extensive branding for Caesars at both the Prudential Center and Wells Fargo Center (home of the 76ers).

Howie had the chance to meet with Michael Grodsky (VP of Marketing & PR, William Hill) and Michael Marino (SVP Customer Loyalty & Chief Experience Officer, Caesars Entertainment) to discuss data rights, in-arena sports betting, the sport(s) likely to see the biggest boost from widespread sports gambling and what (if anything) the gaming companies can do to self-regulate themselves so fans aren’t inundated with sports wagering ads during games.

Howie Long-Short: The NHL’s announcement of their first sports betting partnership focused heavily on the data rights MGM will assume rights to. How valuable is proprietary league data?

Marino (Caesars): In the long run, if you have a mobile device in everybody’s hand that is betting sports, then the real-time data becomes more interesting. That’s not the case today. In the United States, it’s still a brick and mortar play and mobile is only relevant in one state (New Jersey). So, for now, I don’t think it’s as big of a deal and that’s really the approach we’ve taken at Caesars; we’ll eventually partner with different legal entities too, it’s just a matter of how. So far, local makes a lot more sense for us than (league-wide) national scale (partnerships) does. 

Howie: While it’ll be new for Devils fans, Las Vegas Golden Knights fans got to place bets from inside the arena during their inaugural season last year. William Hill is a sports betting partner of T-Mobile Arena. How did having the ability to place bets during live NHL games impact business?

Grodsky (William Hill): We saw growth (in Nevada) in ice hockey, last year. The Golden Knights strong start helped as they were making our customers a lot of money, but when looked at the data from T-Mobile Arena (home of Golden Knights), folks weren’t just wagering on the event they were attending; they were betting on games across the league.

Howie: What sport is going to experience the biggest positive impact, in terms of viewership/engagement, from widespread legalized sports betting?

Marino (Caesars): I think the one that will benefit most is golf. Golf is a series of micro events; every hole can be its own unique bet. Inside of the big four sports, baseball fits that same description; it’s perfectly set up for betting on 18 micro games. I don’t think you see that in football, basketball is too fluid. Hockey saw an increase in betting because the town (Las Vegas) supported the team, but nothing changed other than the team showing up.

Howie: There are 3 gaming companies referenced in this story alone and it’s safe to assume more will be partnering with teams/leagues; each will be focused on consumer acquisition. Is there anything Caesars and the rest of the gaming companies can do to regulate themselves so that the fans aren’t inundated with ads during games (see: Labour Party’s proposed ban in U.K.)?

Marino (Caesars): DraftKings and Fanduel really upset the industry because every single TV ad during NFL Games was for those two companies; it just got to the point where people didn’t want to see them anymore. For us, it’s about targeting. If you put your brand in a place like Prudential Center, where the fans attending are more likely to be interested in your product, that will work a lot better than buying a bunch of TV ads. We’ve always been much more targeted marketers. We try to be smart about where we spend our dollars to get a return and we try to put our ads as close to the customer that we want, as possible; as opposed to putting it out there for the masses.

Fan Marino: A study commissioned by the American Gaming Association estimated that a “widely available, legal, regulated” sports betting market could be worth $216 million/year in newfound revenue to NHL franchises. Nielsen Sports projected that the increased viewership and fan engagement associated with sports betting could boost the value of media rights, sponsorships, merchandise and ticket sales +3.5% (worth $151 million), the remaining $65 million was attributed to gaming company expenditures; advertising ($24 million), sponsorships ($35 million) and data rights ($6 million).

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NJ Sports Betting Licensees Report “Stunning” September Handle, Revenue

New Jersey

The New Jersey Division of Gaming Enforcement reported that the state’s 8 licensed sportsbooks took in a “stunning” (depending on who you ask) $183.9 million in bets during the month of September, nearly double (+92%) the amount wagered in August; the start of the NFL season ($90 million wagered on league games) and the launch of several new mobile sportsbooks (see: Caesers/Bally’s, Paddy Power/FanDuel, SugarHouse/Golden Nugget) are responsible for driving the growth. Online/mobile wagering has already surpassed the state’s retail business, as 56.5% ($104 million) of all sports bets placed were made through those channels. The $23.9 million (+166% MoM) held by the state’s bookmakers, after bets were paid out (except for futures), represented just shy of 8% of the total handle. The state was entitled to keep $2.6 million in tax revenue from sports betting operations.

Howie Long-Short: DraftKings and FanDuel sportsbooks are taking in 2/3 of all New Jersey sports betting revenue and nearly 90% of all the revenue generated from online/mobile applications. Resorts Digital (DraftKings’ license holder, privately held) reported 35% ($8.5 million) of the state’s Sept. revenue, while competitor Paddy Power (FanDuel’s license holder, PDYPY) posted 30% ($7.2 million); no other licensee did more than 10.5%. It’s worth noting that while most DraftKings revenue comes from its online/mobile applications, just 39% ($2.8 million) of FanDuel’s comes from those channels; the majority of their revenue ($4.4 million) comes from their Meadowlands retail location.

As for the state’s other retail locations, The Borgata (a MGM Resorts International property) reported the most sports betting revenue ($2.39 million) amongst all land based casinos; while the William Hill (WIMHY) sportsbook at Monmouth Park racetrack kept $2.2 million, up from $900K in August (+144%).

Fan Marino: Expect October’s handle to exceed September’s strong result. In addition to a full slate of NFL and CFB games (as we had in September), the MLB postseason began on October 1st, the NHL season started on October 3rd and the NBA season will get started this evening.

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Sports Betting Could Grow NFL Revenues by $2.3 Billion Annually

NFL 200x200

Nielsen projects (based on a fan survey) that a fully mature (i.e. nationwide) U.S. sports gambling market could be worth up to $2.3 billion annually in new revenue to NFL teams. The report (commissioned by the American Gaming Association) assumes media rights fees continue to rise (projected: +18%) because of increased fan interest/engagement, that sponsorship (think: team-casino partnerships) and ancillary advertising revenues will grow (projected: +7%) and that the league will be successful in striking “official data partnerships” with sports betting operators (projected: worth $30 million/year); it’s also assumes ticket sales will increase (projected: +6%). It’s important to point out that “integrity fees” were not included the projections.

Howie Long-Short: The American Gaming Association has called the $2.3 billion projection “conservative” and they’re not the only ones who believe that. Morgan Stanley analyst Ben Swinburne pegged the potential for new advertising and sponsorship revenue alone at nearly $2 billion.

While it’s fun to talk about a nationwide, legal sports betting market, the reality is that we’re years away from realizing it; if ever. As it stands today, just NV, NJ, DE, WV and MS are taking bets on individual sporting events. Even the most aggressive of estimates have just 35 states legalizing sports betting within 3 years.

Regardless which of those 35 states NFL fans reside in, it’s likely they’ll have the opportunity to place a bet at a William Hill (WIMHY) sportsbook; the company already operates in NJ, MS & WV and maintains 31% of the Nevada sports betting market share. It’s now being reported that the company has established a partnership with Eldorado Resorts (ERI) and two have plans for an online JV. The deal gives William Hill distribution in the 13 states where ERI maintains brick and mortar casinos, in exchange for 20% off WIMHY’s U.S. business; ERI will also receive $64.5 million in restricted stock (vests over 5 years) in the U.K. based parent company. WIMHY shares rose 6% on Wednesday, closing at $13.70; ERI was up 1% (to $47.35).

The English bookmaker’s aggressive approach to entering the U.S. market has been motivated by a government crackdown on gambling in the U.K. New regulations on FOBTs (fixed odds betting terminals) has resulted in company shares treading water over the last 12 months. GVC Holdings (another U.K. company, owns Ladbrokes) announced a similar partnership with MGM back in late July. U.S. gaming companies with brick and mortar properties in multiple states, which offer the access and reach new players to the space require, are well positioned in the current sports betting market.

Fan Marino: The NFL has reversed a long-standing ban on casino advertising, opening the door for teams to ink deals with local casinos (it’s unclear if casino partners be required to purchase the league’s official data). Don’t expect to hear of team-casino partnerships spreading across the league this season though, New Jersey remains the only state home to NFL teams and with legalized sports betting legislation on the books. Expect both the Jets and Giants to take advantage of this newfound revenue stream before the end of the ’18 season.

That’s not to say fans in the NYC market are going to be bombarded with casino advertisements when watching the home teams play. While the league will now allow its teams to take gambling money, regulations are in place to limit casino advertising to pre-and post-game programming; sports gambling ads are also prohibited.

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West Virginia Set to Become 5th State to Offer Legalized Sports Betting


West Virginia will become the 5th state (NV, DE, NJ, MS) to offer legalized sports betting when the sportsbook at Hollywood Casino at Charles Town Races open on September 1st. It appears as if Hollywood Casino at Charles Town Races will be the only sportsbook in operation for the start of college football season (Sept. 1); The Greenbrier, Mardi Gras Casino and Wheeling Island Casino have yet to announce when their sportsbooks will open. Interestingly, the WV sports betting bill became law without the Governor’s signature; Jim Justice insisted the law include an integrity fee for the leagues, 2 of which hold training camps at his family’s The Greenbrier property.

Howie Long-Short: Hollywood Casino is owned and operated by Penn National (PENN), William Hill (WIMHY) will set to run the sportsbook there. As noted, The Greenbrier is family owned; FanDuel (PDYPY) will run their sportsbook operations. Those 2 venues expect to do well with fans from “Virginia, Maryland and Washington D.C.” all likely to make the short drive without legalized sports betting closer to home.

Mardi Gras Casino (Charleston) and Wheeling Island Casino (Wheeling) are under the control of privately-held Delaware North. Wheeling’s location puts it in position to pull out of state clientele from Pennsylvania and Ohio.

Fan Marino: The Action Network CEO Noah Szubski made headlines late last week for proclaiming his company was sitting on a billion-dollar business model, saying, “if I have 8 million qualified users spread around the country and each one can legally bet through a book and there’s an affiliate fee and a percentage of lifetime money, that’s the billion-dollar business.” Sure, except The Action Network’s value proposition is providing content that, in theory, makes bettors more likely to cash in. Why would a casino pay an affiliate fee to acquire a +$ bettor? Szubski may also want to “see the international online gambling market for a clearer sense of how operators define [lifetime] when it comes to affiliate revenue share (spoiler: it’s not lifetime).” – Chris Grove –  gambling industry analyst, Eilers & Krejcik Gaming.

There’s another issue with Szubski’s theory. Sportsbooks in Europe have been refusing to take bets from intelligent bettors and are placing betting limits on others. Once a gambler starts winning, the sportsbook shuts them down; that practice won’t help The Action Network subscriber retention rates and if U.S. sportsbooks are going to use betting limits on heavily restrict sharp money, The Action Network is going to be taking its percentage from a much smaller pie.

Wondering which book has the worst reputation among sports bettors for refusing to take bets? William Hill. One pro sports bettor interviewed by ESPN (among 20 U.S. gamblers banned by the company) said, “they’re by far the worst”. That would be music to my ears, if I’m a William Hill shareholder. It’s worth mentioning that most states do not have laws preventing a casino from turning away a skilled bettor.

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Mississippi Becomes 4th State to Offer Legalized Sports Betting, William Hill Partners with 11 MS Casinos

Seal of Mississippi

Mississippi became the 4th state (NV, NJ, DE) to offer legalized sports betting on Wednesday August 1st, with the opening of sportsbooks at the Beau Rivage Casino in Biloxi and Gold Strike Casino in Tunica; properties owned by MGM Resorts International. The newly passed legislation allows for sports fans in the state to place bets on individual sporting events at land or water-based “legal gambling establishments” (i.e. casinos). MS sports bettors who wish to place in-game bets will be forced to visit their local casino as mobile betting will be restricted to those on the casino’s physical premises.

Howie Long-Short: Mississippi Rep. Richard Bennett believes legalized gambling will be a boon to the state’s tourism business declaring, “Mississippi welcomes you. We hope you’ll come, wager on sports betting and see what we have to offer in the Hospitality State”; and he just might be on to something. No other state in the deep South offers legalized sports betting and neighboring Alabama is responsible for more illegal college football bets per capita than any state. Wondering how long will this advantage last? According to Dustin Gouker of, Mississippi’s advantage (see: no competition) is likely to last “at least a year and feasibly longer”; with Louisiana, Tennessee and Kentucky the states most likely to join the party first.

In addition to MGM, Boyd Gaming (BYD) and Caesars Entertainment (CZR) both own gaming properties in MS. Speaking of BYD, just 2 days after the company announced a market access agreement with MGM Resorts International (MGM), BYD revealed it had aligned with FanDuel Group (PDYPY) to run online and mobile sportsbook operations in the U.S. FanDuel technology will power Boyd Gaming branded online and mobile sportsbook operations, while FanDuel Group will leverage BYD’s 15 state licenses (36% of population) to operate FanDuel branded online and mobile sports betting services in those states; the deal extends to MGM properties in states where mobile sports betting is authorized.

Fan MarinoMGM got out of the gate first in MS, but William Hill has made the greatest inroads, announcing partnership agreements with 11 MS casinos (and another West Virginia). WIMHY, which now operates in all 4 states that offer legalized sports betting, has no intentions of slowing down either; in fact, they recently stated their intentions to add gaming partners in 14 more states, Rhode Island being one of them. The company will offer “operational expertise, risk management and trading data” to support IGT, should their bid be selected in the Ocean State; IGT was the only company to submit a bid to provide sports betting within RI.

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NJ Sportsbooks Post $1.2 Million in June Profits, Meadowlands Sportsbook Opens Tomorrow


The Division of Gaming Enforcement reported that New Jersey sportsbooks took in more than $16.4 million in bets between June 14th-30th, realizing +/- $1.2 million in “clean revenue” (+/-$3.5 million total) over the 17-day span; an impressive figure considering the limited rollout (see Howie below), no mobile/online wagering (due to start July 11th) and just over 2 weeks of operations. The remainder of the +/-$3.5 million revenue total ($2.25 million) accounts for futures bets that have yet to be paid out and winning tickets unclaimed as of June 30th. For comparison purposes, NJ took in over 2x as much money in bets as Delaware ($7 million) did in June – in 3 fewer days.

Howie Long-Short: +/-$1.2 million in “clean revenue” equates to a 7.8% hold, higher than the 5.5% Nevada has averaged dating back to ’92, but significantly below the 14% Delaware reported in June. As Dustin Gouker, Managing Editor of Legal Sports Report, told us earlier in the week, “it’s too early to read too much into the hold. It’s a small sample size and it may simply be lots of bettors that are not terribly savvy, trying to figure out wagering.”

Monmouth Park, operated by William Hill (WIMHY), was responsible for 65% ($2.279 million) of the revenue generated at N.J. sports books in June. The Borgata in Atlantic City brought in just shy of $1 million in profits (28.5%), while Ocean City Resort ($192,000) earned the balance in just 3 days.

The State of New Jersey took in less than $300,000 in taxes, with a land-based casino tax rate of 8.5%; prorated that’s $7.2 million/year. While that figure sounds low (some lawmakers have estimated the state would generate $100 million/annually), consider that just 3 of the state’s 12 potential licensees (9 casinos, 3 horse tracks) are currently operating. Furthermore, licensed operators will soon be able to offer mobile/online betting. It’s expected that “as the market matures”, most of the revenue will come those channels; the state is entitled to a 14.25% tax on those profits.

Fan Marino: The FanDuel Sportsbook at Victory Sports Bar & Club, located at the Meadowlands Racetrack, is holding a soft launch tomorrow morning (July 14th, at 11a). The property should quickly become the state’s most profitable sportsbook, with 15 million people living within 20 miles of the venue and no real competition expected before the end of March Madness ‘19. Remember, Irish bookmaker Paddy Power Betfair (PDYPYacquired majority ownership (61%, grows to 100% in 5 years) in FanDuel back in May; the deal closed earlier this week.

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