ShareDraftKings' CEO, Jason Robins, has revealed that most wagers were made illegally in the United States despite Super Bowl LVI betting breaking records.
Legalized sports wagering is currently available in 30 states. Nonetheless, Robins added that the three most populous US states – California, Texas, and Florida – with approximately 90 million people combined, do not permit legal sports gambling. Robins asserts that around 30 million individuals are regularly betting illegally throughout the country, illustrating the desire for sports betting in places that do not already have licensed bookmakers.
He also believes that mega-events like the Super Bowl are ideal for driving engagement and attracting new clients. States that have legalized sports betting have reported substantial overall handle numbers for the Super Bowl.
Impressive Super Bowl Stats
According to the Nevada Gaming Control Board, the country's handle for the massive game was at $179 million, up from $136.1 million in 2021. The total in New Jersey exceeded $140 million. Mississippi had a handle of $6.4 million, whereas Montana had about $700,000. Over the Super Bowl weekend, GeoComply reported that 80.1 million US betting transactions transpired.
The Los Angeles Rams were the overwhelming favorites to beat the Cincinnati Bengals. Even though they won, 23-20, the Rams fell short of covering the 4.5-point spread. A few punters won a pretty penny, while others lost a great deal.
As per the American Gaming Association (AGA), over 31 million people in the United States wagered on the Super Bowl this year. It is up 31.5 percent year on year because more states have legalized gambling now than in 2021.
Competitive Industry
DraftKings is still competing for market share in the United States. There is stiff competition in the sports betting industry, and operators frequently spend a lot of resources on marketing and client recruiting. On Friday, DraftKings released its fourth-quarter numbers, revealing more than double the previous year's sales but suffering a net loss of $1.52 billion. The revelation caused a 17 percent drop in the company's stock price. DraftKings had a somewhat successful 2021, but the firm anticipates that its loss per share will rise by 15%. Wall Street analysts predict that DraftKings' loss per share will be $0.78, up from $0.68 the previous year.
Its final quarter results exceeded analysts' expectations, but its adjusted EBITDA loss outlook for 2022 is much higher. DraftKings expects to earn between $1.85 billion and $2 billion in revenue this year. According to chief financial officer Jason Park, "our key performance measures revealed great player retention, acquisition, and cross-selling throughout the quarter."
DraftKings invested more than $10 million in incentives and free bets for gamblers who solely used the DraftKings app to wager on the Super Bowl. Because of these incentives, the company has been losing more money, but as the number of regular players grows, the firm will become more stable.
