First to Market
A few well-positioned companies were ready for the legalization of sports betting
By Dave Bontempo
Celebrate one blockbuster , await another . That ’ s how IGT and Kambi can assess milestones in the suddenly-booming sports-betting industry . The well-positioned companies not only enjoyed a prosperous 2021 — marked by the launch of online betting in several new states — but they began 2022 with another major score . They participated in the start of online betting in New York , finding another major market to use their products just one week into the new year .
These companies , among others , reap the rewards of significant foresight . By investing ahead of sports-betting legalization in recent years , they ascend along with this gaming-market sector .
Precise Timing
Legalized sports markets blossom throughout the United States , expanding the marketplace for International Game Technology . Two states positioned near each other are set to blow the roof off of revenue projections .
New Jersey has been the online sports-betting bellwether , from launching the bid to topple the federal sports-betting ban in 2018 to subsequent quick deployment throughout the casino industry and racetracks .
The Garden State shattered industry records , becoming the first to surpass $ 1 billion monthly handle in September . It exceeded the total again in October and November . December ’ s numbers were expected to make it four straight , and year-long handle will be finalized in the vicinity of $ 10 billion .
That forecast would have shocked proponents of legalized sports wagering when they fought for its acceptance in the United States . But that ’ s the vicinity Joe Asher , the IGT president of sports betting , projected for it several years ago .
As CEO at William Hill U . S ., now part of Caesars Entertainment , Asher directed his company ’ s efforts to install brick-and-mortar books in Atlantic City ahead of competition , in 2018 . The surge of mobile betting amplified the importance of being in position to take legalized sports bets .
“ I ’ ve been saying for years that I think New Jersey is a $ 10 billion sports
betting market in terms of handle , based on the population and the sports culture in the area ,” he says . “ The fact that New Jersey is on track to achieve that is not at all surprising . We ’ ve seen that the customer demand for sports and sports betting is very strong and it will continue to be strong for the foreseeable future .”
It is a testament to sports betting that New York operators lined up for the privilege of doing business despite a staggering 51 percent tax rate . This increases the need to open one ’ s doors quickly , especially before the lucrative NFL and college football seasons .
A casino must turn to a network of well-connected partners in order to hit the ground running .
IGT has secured major commercial sports betting technology agreements with top B2C sports betting brands such as FanDuel Group , PointsBet , Boyd Gaming and Circa , as well as regional , stand-alone casinos in Arkansas , Mississippi , Colorado , Michigan , Oregon and beyond .
The synergy between IGT and these outfits facilitates entries into new markets . It has already worked magic in New York . Major bets and sevenfigure daily handles were reported as the state launched in time to capture the end of the NFL regular season , the college football national championship and the NFL playoffs .
The impact of an entire NFL and college football campaign starting in late August will be monumental .
“ The introduction of mobile sports betting will bring an avalanche of customers to the four mobile operators there ,” Asher says . “ We ’ ll see what sort of impact it has on the New Jersey numbers .”
New York represents one of the major states recently launched for mobile sports betting in the United States . Some industry estimates place the sports-betting boom near the halfway point . Asher believes the heyday is far younger than that .
“ We have not yet arrived at the halfway point of the U . S . sports betting expansion ,” he says . “ We ’ re still in the early innings — probably the second inning . Many major states such as California , Texas , Florida and
40 Global Gaming Business FEBRUARY 2022