NFL and media attention could lead to further legalization of sports betting
The continued investment in the NFL by bettors and fans, as well as increased media attention, may be among the factors leading to further legalization of sports betting in the United States.
That's the view of Macquarie analyst Chad Beynon, who said in a new client note that the upcoming Super Bowl in Las Vegas could become a more widely legalized event in the U.S. Another driving force for change. Currently, sports are open in 38 states and Washington, D.C. Bets are allowed, but not all allow mobile betting.
“NFL viewership is higher than ever, and the legalization of sports betting may have contributed significantly to this success,” Beynon wrote. “With Super Bowl 58 taking place in Las Vegas (February 11), we expect there will be even more attention on the sports and sports betting industry.”
As has been the case in recent years, the highly anticipated Super Bowl ads are expected to include some from sports betting operators, which will draw more attention to the event. On the other hand, some industry observers are worried about the potential impact of a "60 Minutes" sports betting report scheduled to air this Sunday. There was speculation that the clip portrayed sports betting in an unfavorable light.
"We believe increased media attention, including an increase in ESPN Bet advertising, may ultimately generate further interest/legitimization in the coming years," Beynon added.
2024 Legislative Outlook
As Beynon points out, the current regulated sports betting landscape in the United States means that only half of adults have access to mobile betting.
Active and legal states such as Arkansas, Mississippi, North and South Dakota, and Washington do not allow mobile betting for various reasons. There is only one online sportsbook in Washington, D.C., and access is prohibited inside federal buildings.
What's more, much to the chagrin of the industry, neither California nor Texas has come close to legalizing sports betting. It will be even more important for the industry and investors to have Texas join the legal camp. That's because the state would allow commercial operators to obtain sports betting licenses, something California tribal groups and many voters oppose.
Currently, only four states — Georgia, Hawaii, Missouri and Oklahoma — have pending sports betting legislation. Of the four, Georgia appears to be the one likely to approve mobile sports betting this year, with Hawaii leading the pack.
Flutter’s listing on the New York Stock Exchange may also help
Another catalyst for expanding U.S. sports betting's presence, Beynon said, is the recent listing of FanDuel parent company Flutter Entertainment (NYSE: FLUT) on the New York Stock Exchange (NYSE).
The long-predicted move took place on Monday, instantly making Flutter the second-largest U.S. gaming company by market capitalization, behind only Las Vegas Sands (NYSE: LVS ).
As more institutional investors adopt Flutter and stocks are likely to follow widely followed domestic equity metrics, the resulting attention could have a positive impact on legitimation.
Read also:
- Football 101: What is relegation in football?
- Tried to break into Merkur casino, suspect is Lin
- The oldest room on the Las Vegas Strip has been permanently closed since November
- Las Vegas approves pedestrian bridge across North Boulevard
Source: www.casino.org
