The Cashout: A Bad December Continues For US Sportsbooks
While FanDuel clearly had a bad month, the US leader has actually increased its market share by GGR. Plus a roundup of gambling news.
TCL will offer market analysis in the US gambling space in The Cashout every Friday to paid subscribers, along with a news roundup for free subscribers.
US sportsbooks continue to struggle as December metrics start to trickle in. However, FanDuel is outperforming other operators in December despite a reported shortfall for full-year 2024.
But first, here’s the Friday roundup:
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Gambling news roundup
I covered a lot of news yesterday in The Takeaway: Check it out!
Miami Heat Roll with Hard Rock Bet as Official Sportsbook (NBA.com): “‘Hard Rock Bet is the preeminent sportsbook on the market,’ said Glen Oskin, Vice President of Corporate Partnerships for the Miami HEAT. ‘This is a perfect union of two well established Florida brands coming together to deliver fans a new level of fun and excitement through some truly innovative experiences.’
The multi-faceted partnership includes a variety of co-marketing elements with marquee signage, digital campaigns, in-game entertainment, and the launch of the Hard Rock Bet Heat Club – a free, opt-in club for fans to receive special promotions and engage with their favorite team. In addition, Hard Rock Bet players will enjoy ‘money can’t buy’ experiences at Kaseya Center and exclusive VIP access to HEAT off-site events.”
DraftKings stops betting on next Cowboys coach, for now (NBC Sports): “DraftKings has removed the Cowboys’ coaching job from the menu of things on which wagers can be placed. As we understand it, the betting ended because some sharps were wagering on one specific candidate. We assume, based on the way the odds were going yesterday, that it was Eagles offensive coordinator Kellen Moore.”
Illegal gambling operations shut down in Palm Beach County (WPBF in Florida): “Authorities have shut down illegal gambling operations at arcades across Palm Beach County and the Treasure Coast after a major investigation.
The arcades — VIP Sweepstakes in West Palm Beach, Prestige Sweepstakes in Fort Pierce, and Pharaoh’s Treasure Arcade in Vero Beach — are accused of running illegal gambling games and laundering money.”
MGM Grand announces $300 million remodel (PR): “MGM Grand Hotel & Casino is revealing details surrounding its $300 million remodel encompassing all of the hotel's 4,212 rooms and suites within its main tower. The transformation, which is slated for completion in December 2025, is set to enhance the overall guest experience with modern, sophisticated design elements inspired by the flair of the disco era. The remodeled rooms will join a vibrant lineup of new dining and entertainment experiences set to open at MGM Grand later this year.”
SCOTUSblog Publisher Tom Goldstein Diverted Millions from Law Firm To Pay Gambling Debts and Evaded Taxes for Years, Federal Indictment Alleges (Free Beacon): Wild story here. “Prosecutors accused Goldstein of funneling millions from his boutique law firm, Goldstein & Russell PC, to cover gambling losses and other personal debts, and failing to report his poker winnings on his tax forms.” The blog is extremely influential in covering the Supreme Court.
Meet up with Closing Line Consulting in March!
I’ll be in New York City the week of March 10, when I’ll be speaking on panels both the Geocomply/Citi Challenger Series event and the Next.io summit. If you want to meet up or schedule some time, you can reply to this email (if that’s how you’re reading The Closing Line), or email me at dustin@closinglineconsulting.com. More about my consultancy here.
Gambling legislation updates
Mississippi bill will once again tackle online sports betting issue (SBC Americas): “Democratic Rep. Cedric Burnett introduced HB 682 in the state House this week in a bid to legalize state-wide online sports betting. Sports wagering in Mississippi is currently legal only on the physical grounds of casinos in the state.”
South Carolina will try again on sports betting (The Berkeley Independent): “After failing to pass in the 2024 session, lawmakers at the statehouse will try again to make online sports betting legal in South Carolina. If passed, Bill H. 3625 would allow people 18 and older to place bets online or with phone apps on sites like Draft Kings and FanDuel.”
Iowa looks at making proxy betting in the state a criminal act: Bill here, context here.
North Dakota to consider legalizing sports betting (InForum): “A resolution that would put sports betting on the ballot for the 2026 general election in North Dakota saw considerable opposition from legislators on the House Judiciary Committee.”
Gambling newsletter corner
Going to the Mat: Penn to face a fight over board nominees - Earnings + More
How Sharps are Betting NFL Divisional Round (January 18-19) - Figure It Out
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More of the December fallout for sportsbooks
Last week I covered that Q4 is not looking like a particularly strong quarter for US sportsbooks (paywall). That’s in part to a rough October, and it’s been exacerbated by bettors doing better than usual in December. FanDuel recently signaled to investors that Q4’s “customer-friendly results” are dragging down its full-year numbers; it’s become evident that’s not isolated to the US market leader.
In reporting states for December:
We’re seeing a drastic decrease in hold and revenue almost across the board.
FanDuel revenue is down drastically for the month, but it is outperforming the competition. Its share of GGR so far in December is 48%, up from 43% in November.
Here is a graphical look at November to December performance for the “Big 6” that operate in most states:
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