Us Betting
Sports betting business and industry news 10 hours ago Super Bowl LV injury report and practice report Super Bowl odds, lines, spread, picks and predictions 12 hours ago. One of the top sports betting sites for the US right now is BetNow. This online sportsbook is licensed in Curacao, so you know it’s legit. As you’d expect from any of the best sports betting sites, BetNow offers an intuitive user interface that will help you easily browse through the large number of sports and events covered. Horse Racing Betting in the USA Online horse racing betting is legal in most US states. In fact, licensed horse racing betting sites in the USA have agreements in place with local tracks that allow fans across.
- Us Betting Odds On Presidential Election
- Best Us Betting Sites
- Us Betting Odds Explained
- Us Betting Online
The US sports betting market is still in its early days but has already played host to some spectacular deals since 2018.
- Penn National’s acquisition of Barstool has received praise for the way it transformed the company.
- Flutter has seen the value of FanDuel increase 20-fold since its initial investment (although that first valuation is being disputed in court.)
- DraftKings’ acquisition of SBTech paved the way for aspectacular stock market run.
The deal-making in the sports betting industry shows no sign of slowing down.
“Everyone is talking to everyone” said Simon French, the co-founder of advisory firm BixtethPartners. “There’s a lot of motivation to do deals, from valuation arbitrage to technology plays. There are still a lot of big guns yet to fire bullets.”
So what sort of transactions could we see in 2021?
SPAC attack in US sports betting
For starters, more companies are likely to going public. Jefferies analyst David Katz said demand for sports betting opportunities among institutional investors was “unbelievable.”
“The volume of calls we get, the readership of notes, it’s been amazing,” Katz said. “There is certainly a gold rush feeling here.”
At present that demand is seemingly funneled into two high-profile sports betting stocks: Penn and DraftKings. But the markets have a way of leveling themselves, and more supply is on the way via SPACs.
More opportunities coming?
It helps that SPACs involving DraftKings, Golden Nugget,Rush Street andGenius Sports have all been well received. And there are several more funded SPACs looking for targets within gaming.
Like any gold rush, there’s plenty of money available for those providing the picks and shovels. As one Wall Street source put it:
“If you provide anything to this industry and you’re not trying to take advantage of the multiples available in public markets, you’re not doing your job. If people are willing to hand out money at astronomical valuations, why wouldn’t you take advantage of it?”
SPACs are a simple solution to speed up that passage to the public markets, so expect more of the same in 2021. The impact of that glut of supply on valuations? Well, that is its own question.
Another deal for DraftKings?
Aside from the external interest in the sector, there’s plenty of appetite for deal-making within it. DraftKings is an obvious candidate to be at the heart of any wheeling and dealing. At its recentQ3 results, DK had $1.3 billion on the balance sheet, which CEO Jason Robins said could be earmarked for M&A.
The company has been linked in the past with media outlets likeBleacher Report, but could feasibly have a bigger target in mind.
“DraftKings acquiring a European operator in stock would make sense in theory,” said WillHershey, CEO of RoundHill Investments. “That would be immediately accretive to earnings.”
Such a deal would make the most of DKNG’s lofty valuation, especially if a similar multiple were applied to any European revenues it acquired.
Bolt-on M&A options
Content is also still highly sought after, according to the banker. To that end, operators are looking at names like The Athletic, Bleacher Report, Sports Illustrated and Action Network.
Companies are also looking at daily fantasy sports. We saw two sportsbook investments in fantasy companies in one day this week, and expect more of the same.
Fantasy operators can build customer databases in not-yet legal betting states like California, and take sign-ups three years earlier than sportsbooks with a legal age of 18 years old. (Of course, DraftKings and FanDuel are already doing this as well.)
Why DFS makes sense
For a sportsbook, having a fantasy option in-house helps capture a higher share of a player’s wallet. At present, a William Hill customer (for example) needs to go to FanDuel/DraftKings to play fantasy, from where they might never return.
Or how about a deal focused on in-play betting? In-play is one of the fastest-growing areas of US sports betting, but the product is certainly not perfect yet. In fact, some argue it is “broken” thanks to delays, heavy vig and not enough uptime.
It’s the type of niche technology problem that could be solved by a startup rather than a legacy operator. A company like SimpleBet has made some progress on this front with a free-to-play micro-prediction game gaining tractionover at FanDuel.
Best opportunities outside US sports betting?
In fact, B2B technology as a whole is a hot sector given the success of DraftKings/SBTech and more recentlyBally’s and Bet.Works.
“We’ve been surprised by the number of US betting operators wanting their own tech stack,” French said.
That could make privately-owned software names like FSB and Amelco attractive for US casino chains.
iGaming as well
It’s a similar story in online casino; a relatively unloved market at present, but one with more value still to be unlocked.
French noted Playtech as an option for US operators looking to own their casino technology. Indeed, earlier this year Playtech shareholder Jason Ader argued the company would be an ideal target for DraftKings.
On that note, Ader told LSR he expected to see more US land-based giants acquiring European online operators like the Caesars/William Hill deal.
“If they don’t, they risk going out of business,” Ader said. “If you’re a retailer that didn’t move online, you don’t exist anymore. Who’s thriving against Amazon? Wal-Mart. They built an amazing online business to complement their stores. MGM, Caesars, Wynn. They have a choice to be like Wal-Mart or disappear.”
In short, there’s a palpable sense of an ongoing gold rush for US betting sites, and 2021 looks set be a year of blockbusters.
The US sports betting market continues to grow with more and more states drawing up new legislation to accommodate for legalised betting.
Most recently, Washington joined the list of states which have legalised sports betting in some way taking the current total to 21.
But where does that leave online gambling and specifically betting exchanges?
Let’s find out.
Betting exchanges in the US
If you’re in the US, you’re probably wondering what a betting exchange is…
Betting exchanges are online betting sites which match players together. They are essentially eBay for gambling.
Instead of betting against the bookmaker, at an exchange you bet against other gamblers. The exchange simply provides the marketplace and technology to match punters looking to place opposite bets.
Whilst this might be a new concept, betting exchanges are fairly straightforward once you’ve got your head around them.
Betting exchanges are very popular in Europe for several reasons.
- Better value odds
- Option to lay bets
Exchanges typically provide better value odds for punters meaning you’ll make more money from a winning bet.
Another benefit of the exchange model is the option of laying bets. This is a more advanced method of placing bets which we’ll cover in another article.
Challenges of the US betting exchange market
Due to the patchwork nature of current betting legislation in the US, there are various challenges that exchange platforms face.
With online gambling, punters can place their bets remotely. However, exchanges face an extra challenge in that exchanges need to be ring-fenced around each state.
Punters in New Jersey can’t place wagers with those in Indiana for example. Exchanges can’t match wagers across state lines.
This is one of the main reasons betting exchanges aren’t already up and running in some US states. Operators need to ensure their platforms meet the required security.
When will betting exchanges open in the US?
So when are we likely to see the first betting exchange open in the US?
There’s good news on the horizon. Various betting exchanges are taking steps towards opening their platforms in US states.
Betfair exchange in New Jersey
The world’s most popular exchange, Betfair is currently trialling a beta version of their horse betting exchange in New Jersey. This is a safe, legal and regulated platform where you can play horse racing online.
Check out this infomercial for more information.
To access the platform, you need to have a 4NJBETS or New Jersey Exchange Account. If the software deems you’re outside New Jersey, it won’t let you connect.
This is the technology that Betfair and other exchange platforms will be required to use as the betting exchange market moves forward in the US.
Once Betfair is confident about its strategy and platform in New Jersey, the next step is to look to other states.
Americans can also place their bets via TVG, owned by Betfair. This platform is available in various US states making it a great option for those not based in New Jersey.
Smarkets exchange
Another popular platform in the European market, Smarkets is also moving towards a US betting exchange launch.
Back in late 2019, Smarkets reached a deal with Full House Resorts in the US which gives it access to sports betting in Indiana and Colorado.
To start with, Smarkets is just providing a traditional sportsbook platform. However, it hopes to bring its popular exchange model across the pond in the near future.
Here’s what Jason Trost, CEO and founder of Smarkets said:
Us Betting Odds On Presidential Election
“As an American myself, I’m thrilled to bring our world-leading technology to Indiana and Colorado, as well as more states across the country.”
“I truly believe that an agile company like ours can make a huge impact against some of the bigger players thanks to our superior technology and focus on providing the best prices.”
The future for Smarkets in the US looks very bright.
Tradesports
Various other betting exchanges are starting to pop up in the US betting exchange market. Tradesports is a great example.
Founder Ron Bernstein believes that Americans are ready to gamble on sports like they trade stocks. This is exactly what the betting exchange model offers.
He said, “As long as we can create an offering that isn’t too intimidating, we think there’s a really big niche in the professional trader market.”
I expect to see more and more new companies like Tradesports in the coming years as people look to maximise their share of the up and coming betting exchange market in the US.
Matched betting in the US
One of the great things about betting exchanges is that they provide the opportunity to make money with matched betting.
I’ve written about matched betting in the US before and this market is certainly going to take off once exchanges are more widely available.
Americans will be able to make a guaranteed profit from bookmakers free bets and promotions all from the comfort of your own home.
Matched betting has become incredibly popular in the UK with thousands of people using this strategy to make money online.
I doubt it will be long before Americans can do the same.
Best Us Betting Sites
Betting exchanges in the US
The sports betting market in the US is gaining momentum daily. Whilst there are further challenges for betting exchanges to overcome, operators are already taking the required steps to test the water.
Us Betting Odds Explained
All in all, betting exchanges are slowly making their way into the US market. It won’t be long before you can place bets at an exchange like Betfair or Smarkets in states with the required legislation.
Us Betting Online
What are your thoughts of betting exchanges in the US? Let me know by leaving a comment below right now.