Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on sports betting
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- Figure 1: Record betting numbers in August 2020
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on sports betting, October 2020
- Opportunities and Challenges
- The pandemic stymied growth and cost revenue
- Bring sports betting front and center; help to educate consumers
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- Figure 3: Sports betting integrated into score bugs
- Stand out and drive more betting with streaming options
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- Figure 4: In-app game streams for online sportsbooks
- Reach the growing betting audience through dedicated content
- Fierce competition creates the need to drive awareness
- Increase state revenue through sports betting legalization
The Market – Key Takeaways
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- Post shutdown sports betting reaches record highs
- Legalized sports betting continues to sweep across the country
- Sports betting partnerships grow in popularity
- New betting offerings will continue to infiltrate the world of sports
The Sports Betting Market
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- Legalization has dramatically enhanced the growth of sports betting
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- Figure 5: Estimated total amount bet in Nevada during calendar year, 2007-19
- Figure 6: 2019 sports betting handle
- Macroeconomic factors
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- Figure 7: Unemployment rate, January 2007-September 2020
- Figure 8: Consumer confidence, January 2007-August 2020
- Impact of COVID-19 on sports betting
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- Figure 9: Record betting numbers in August 2020
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- Figure 10: Short-, medium- and long- term impact of COVID-19 on sports betting, October 2020
- Lockdown
- Re-emergence
- Recovery
- COVID-19: US context
- Learnings from the last recession
Market Factors
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- Sports bettors wagering on (state) lines
- Sports betting also faces the court of public opinion
- Real time betting is the differentiator in a crowded marketplace
- Sports betting legalization is an easy win for states
Market Opportunities
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- Integrate betting into professional sports coverage
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- Figure 11: Sports betting integrated into score bugs
- Pave the way for greater in-game betting with streaming offerings
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- Figure 12: In-app game streams for online sportsbooks
- Evolve the fan experience with in-stadium betting
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- Figure 13: Sportsbook at Capital One Arena rendering
- Explore partnership opportunities across the sports industry
- Team partnerships – provide connection to individual teams
- League partnerships – offer access to league-level data feed
- Network partnerships – offer greater integration and content opportunities
Companies and Brands – Key Takeaways
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- FanDuel and DraftKings further awareness advantage through heavy advertising spending
- Strategic acquisition offers new method to attract customers
- Greater content integration a must for future partnerships
Market Share
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- Daily fantasy and heavy ad spend boost awareness of sportsbooks
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- Figure 14: Betting platform awareness, July 2020
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- Figure 15: Sportsbooks Digital Marketing and paid Facebook spending, January – October 2020
Competitive Strategies
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- Penn National Gaming targets customers through Barstool Sports acquisition
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- Figure 16: Competing sportsbook strategies
- ESPN and Caesars Entertainment demonstrate value of digital integration
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- Figure 17: Bad Beats SportsCenter potential for integration
The Consumer – Key Takeaways
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- Sports betting is growing and will soon become commonplace
- Bettors say their primary motivation is to win money, but it really is the experience
- Promotions and rewards attract and retain customers
- Online betting is the future of the industry
Consumer Trends Impacting Sponsorships and Sports Marketing
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- Experiences
- Technology
- Value
Exploring Sports Bettors
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- Types of betting and frequency
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- Figure 18: Types of betting participation, July 2020
- Betting frequency
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- Figure 19: Betting frequency, July 2020
- Figure 20: FanDuel NFL regular season promotion
- Heavy sports betting skews male
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- Figure 21: Types of betting participation, by gender, July 2020
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- Figure 22: Betting frequency, July 2020
- Sports betting is becoming a young person’s game
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- Figure 23: Types of betting participation, by generation, July 2020
- Bettors wager on the sports they are fans of
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- Figure 24: The Ringer FanDuel contest
- Figure 25: Betting participation and interest in betting, by sport, July 2020
Motivators and Barriers to Sports Betting
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- Reasons for betting
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- Figure 26: Betting celebrations
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- Figure 27: Reasons for sports betting, July 2020
- Reasons against betting
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- Figure 28: Reasons against sports betting, July 2020
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- Figure 29: Odds boost DraftKings promotion
- Figure 30: Branded free to play betting contests
- Helping consumers understand the world of sports betting
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- Figure 31: Factors contributing to sports betting decisions, July 2020
Online Sports Betting
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- The rise of online betting
- Promotions and rewards help attract and retain consumers for online sportsbooks
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- Figure 32: Sign up promotion
The Sports Betting Experience
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- “The Experience” is the key to the sustained growth of sports betting
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- Figure 33: Enhancing the sportsbook experience
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Consumer Data
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- Figure 34: Betting platform awareness, by generation, July 2020
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- Figure 35: Betting behaviors, July 2020
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