The Friday Line: Super Bowl Betting; BetMGM, X Announce Deal
Here’s today’s quick rundown in the world of US gambling.
A final word on the Super Bowl and sportsbooks
With the Super Bowl two days away, here’s my two cents from a sports betting perspective. There’s a lot of data and reporting on how much money will be wagered on the Super Bowl at legal US sportsbooks, between $1 and $2 billion by estimates I have seen. That data is interesting and the game generates more handle and revenue for sportsbooks than any other game. But the day is just as important to sportsbooks, if not more so, from the standpoint of customer acquisition, branding, and user experience. Some people may not think about betting any other time of year, and this is their entry point. FanDuel and BetMGM, in particular, are betting that the cost of a commercial during the game is a long-term value in driving new users and staying in existing and prospective bettors’ minds. And finally, if your product doesn’t work perfectly on the biggest betting day of the year (whether that’s a fair expectation), you’re risking losing users in the short and long term to competitors.
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BetMGM + X Is Official
The reported deal between BetMGM and Twitter (now X) became official with an MGM press release this morning. Twitter is now integrating MGM odds into its sports functionality on the platform; you can see the odds board if you navigate to the Super Bowl via search. More from the release: “X users in the United States can explore BetMGM's latest betting odds on pro football, with each of the major professional and college sports expected to follow in the coming weeks. The odds interface provides an easy clickthrough for each game to BetMGM's app or website, creating a seamless user experience. The integration will continue to evolve and grow in its functionality over the coming months.” Again, so much of how effective this is depends on execution and the ease of discovery of the odds. I am bearish on this driving a meaningful amount of direct betting activity from Twitter to MGM for a variety of reasons. I am more bullish on the deal’s ability to give MGM a significant lift in terms of branding and user retention. Twitter is indisputably the place where the most discussion about sports and sports betting takes place, and being an integrated sportsbook partner can carry a lot of value.
Michigan’s governor budgets for gambling initiatives
Michigan Gov. Gretchen Whitmer is doing something that would be a good idea in a lot of jurisdictions. In her budget, she is earmarking money for problem gambling and combatting illegal gambling operations. Both of those things have not gotten enough money, attention, or support, historically. The enforcement piece is particularly interesting; states should want to funnel gamblers to legal and regulated operators in any way they can. One of those avenues is by trying to stop unregulated operators from serving the state’s inhabitants.
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