Eilers & Krejcik Gaming, a leading gambling industry analyst and research firm stated that as the expansion of sports betting looks set to take off over the next five years, there is a greater chance for daily fantasy sports (DFS) operators like FanDuel and DraftKings to capitalize on the rapidly growing industry.
More competition is also on its way to the sports betting market and existing bookmakers should now consider expanding their betting offers.
Massive Competition Expected In Sports Betting
In May, the US Supreme Court overturned the federal ban on sports betting which paved the way for more states to add sports betting to their offerings. Christopher Grove, managing director of sports and emerging markets with Eilers & Krejcik Gaming said that the industry can now expect major changes to happen in the coming years.
Grove, speaking at the recent Global Gaming Expo (G2E) in Las Vegas said the repeal of the sports betting ban will bring about a competitive pressure to the market. He cited the current betting scenario in New Jersey where up to 40 online sports betting brands are set to compete and cater to a market of at least six million adults.
Grove said that pressure will reshape the sports betting landscape as demands increase for more sports betting variety which would not go well with policy makers and regulators.
Bets Could Include Politics & Entertainment
As politics and entertainment continue to capture a major global audience, new bets could likely expand to the Oscars and the Presidential elections. This would create a new recipe for betting markets that would surely capture massive attention and bring in a flurry of new betting activities.
In a statement, Grove said “I think the product universe that we’re going to be looking at for sports betting is going to be something closer to what I call sports gaming. I think it will be a broader selection of products that that can truly speak to the mass market as opposed to the narrow slice of the market that traditional sports betting speaks to now.”
DFS Firms Have More Advantage
FanDuel and DraftKings have already established their own market with a core competency that sets them apart from existing regulated casino operators. In five years, these fantasy gaming firms would likely grow a lot stronger and bigger as they aim to acquire potential customers through digitization.
Grove said today’s casino operators have a narrow focus and offer very specific skills which would not help when it comes to achieving sustainability in a fast-evolving industry. DraftKings and FanDuel’s potential to embrace new opportunities is expected to give them significant advantage in the long term. Aside from fantasy sports, they also have pick-em-style games and bracket-style games, bordering between fantasy and sports betting.
Grove said that the key for gaming operators is finding that spot where sports, entertainment and money intersect and create engaging experiences within that intersection, and that’s what fantasy gaming firms are doing right now. This will give them a meaningful competitive advantage over other operators as they offer opportunities to win a prize and not focus all of their offering on just wagering.
Significant Implications For Regulators
The fact that sports betting and gambling operators are likely to expand their offerings and introduce new innovations, will provide a lot more work to gaming regulators. This is because lawmakers will have to amend gaming laws and come up with new regulations and make tough decisions on shaping the betting market.
Betting exchanges which are popular in Europe are yet to make a major impression in America although there are betting exchanges present in New Jersey. Grove does not believe betting exchanges will flourish in the United States because there is too much of regulation and red tape that needs to be addressed. The other reason why betting exchanges could struggle in America is because they required liquidity and that is a difficult proposition in the American market.
What’s clear right now is that there is enormous potential for more sports betting options. Discussions are ongoing and regulators are definitely bracing themselves for major changes in the betting landscape. With new gaming firms looking to enter the US and get a share of the pie, existing operators must now consider enhancing their offerings and adapt to the evolving demands of their bettors.

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