NFL Season Set to Drive Record $35 Billion in Legal Sports Bets, Despite Mixed Performance in Betting Stocks
As the NFL season kicks off, it’s set to break records with an estimated $35 billion in legal sports wagers projected for the season, according to the American Gaming Association (AGA). This figure represents a significant increase of over 30% from the $26.7 billion wagered during the previous NFL season, highlighting the growing popularity of sports betting in the U.S.
The surge in sports betting is largely driven by the expansion of legal betting markets. Since last NFL season, states such as Maine, North Carolina, and Vermont have legalized sports betting, and recent court decisions have allowed Hard Rock International to relaunch sports betting in Florida. Currently, sports betting is legal in 38 states and Washington, D.C., providing a broad and diverse market for wagering.
Despite this booming market, the stock performance of major gambling companies has not mirrored the growth in betting activity. Shares of prominent gambling operators like DraftKings, Penn Entertainment, Caesars Entertainment, MGM Resorts, and Entain (which co-owns BetMGM) have all experienced declines this year. Conversely, Flutter, which owns FanDuel, has seen a 19% increase in its share price, boosted by strong second-quarter earnings and its recent listing on the New York Stock Exchange.
Churchill Downs and Rush Street Interactive are notable exceptions, with Rush Street Interactive posting impressive gains of 109% year-to-date. The competition among sportsbooks is intensifying as they seek to capture a larger share of the market. Many companies are using the NFL season as an opportunity to launch new technologies and innovative betting options to attract customers.
FanDuel, the leading sportsbook, has partnered with YouTube to offer a “Sunday Ticket” promotion, allowing users to watch out-of-market NFL games with a three-week trial when they place a $5 wager. FanDuel has also updated its app with new features and additional betting options, aiming to enhance the user experience and drive engagement.
Fanatics Sportsbook, which launched last year and acquired PointsBet’s U.S. operations, is capitalizing on its extensive database of sports fans. The company has integrated PointsBet’s technology and launched its sportsbook in 22 states. Fanatics recently hosted Fanatics Fest NYC, an event that allowed fans to meet athletes and celebrities, further boosting its visibility and customer engagement.
DraftKings remains a major player, emphasizing the NFL as its most popular league. The company has introduced a “No Touchdown” prop bet this season, enabling bettors to wager on whether a top player will score a touchdown.
Penn Entertainment, which has seen its shares drop by 28% this year, is focusing on its $2 billion investment in ESPN Bet. This rebranded sportsbook, launched in November, has grown its customer base by 80% to 31 million members. Penn’s CEO, Jay Snowden, expressed optimism about the platform’s integration with ESPN and its potential to drive higher loyalty and retention.
BetMGM has introduced a single wallet feature in Nevada, allowing users to manage their accounts seamlessly across different states. This innovation aims to enhance the user experience by eliminating the need for multiple transactions and providing a more integrated betting experience.
While the overall market for sports betting continues to grow, with NFL season fueling record-breaking wagers, individual company performances and stock values present a mixed picture. The industry’s landscape remains dynamic, with sportsbooks continuously adapting and innovating to capture the attention and loyalty of bettors.