Category Archives: In The Biz

Colorado’s Sports Betting Market Could Generate $6B in Annual Wagers After Games Are Back on, According to PlayColorado

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Colorado’s sports betting industry will eventually generate billions of dollars in bets annually, hundreds of millions in operator revenue, and millions in tax revenue, according to estimates by PlayColorado.com, which analyzes the state’s newly regulated sports betting market.

Despite the sports world being indefinitely shuttered in response to the COVID-19 pandemic, regulators are preparing for a May 1 launch of online and retail sports betting. When it does, Colorado will become the 18th state to have some form of legal sports betting. And the Centennial State has a bright future, capable at maturity of annually generating as much as $6 billion in bets, $400 million in gross operator revenue, and $40 million in tax revenue, according to PlayColorado projections.

“With a significant base of existing land-based casinos, a regulatory framework that will be attractive to operators, and one of the largest metropolitan markets in the country to draw from, Colorado is well-positioned to capitalize on sports betting,” said Dustin Gouker, chief analyst for PlayColorado.com. “But assuming the industry does launch on May 1, it will be doing so in unprecedented circumstances with almost no sports to wager on. There are some advantages to a forced soft opening, but it also means that it will be some time before we learn with confidence just how Colorado’s bettors will respond to legal sports betting.”

Colorado regulators have been deliberate, opting for a later start date to ensure it gets its regulatory framework right. Its 10% tax on net revenue is comparable to some of the most successful sports betting markets. New Jersey, which is neck and neck with Nevada as the nation’s largest sports betting market, levies a 9.75% tax on revenue from retail sportsbooks and 13% on online sports betting revenue. Indiana, the No. 4 sports betting market in the U.S., taxes sports betting at 9.5%.

In addition, Colorado has avoided some of the pitfalls of earlier adopters, such as imposing maximum bet limits, a decision regulators left to operators.

“Colorado legislators and regulators have made many smart, measured decisions based on input from casinos, operators, and bettors, and that has led to the adoption of an excellent collection of rules and restrictions,” Gouker said. “They have also had the undeniable benefit of seeing what has worked in other states. Colorado’s methodical approach might have been frustrating to bettors by slowing the launch, but there is plenty to be encouraged about. Sports betting operators have inked partnerships and regulators are listening to stakeholders. That will serve Colorado well.”

Until the COVID-19 pandemic subsides, bettors will be limited to futures bets on pro sports and some international sports.

In other states, legal online casino and poker wagering has meant millions in additional revenue for operators and states, helping to bolster bottom lines during a difficult time in the gaming industry.

“There is no question that the revenue from online casinos and poker rooms has helped operators in states such as New Jersey and Pennsylvania weather the shutdowns of land-based casinos and essentially all sports,” Gouker said. “Coloradoans will likely someday decide if and when the time is right to legalize online casino wagering. In the meantime, it has put the right framework in place for its sports betting industry to thrive once sports are played again.”

College Sports Challenges, Uncertainty Make NIL Debate Even More Front And Center

Wikimedia Commons/Phil Roeder

We continue in unchartered waters in sports as many enter week four of the pandemic, and the college landscape remains as fluid as any. There is no shortage of opinion and conjecture, from spring sports eligibility to moving football to the 2022 are all on the table and the angst and viability of student athletes remains in flux.

Against all of that backdrop is the ongoing and vital debate about Name, Image and Likeness (NIL) and how that will factor into the business of college athletics going forward. How have things changed or adapted, and what would the opportunities be for athletes today if NIL as in place? One of the key advocates in NIL remains Zach Segal, who founded StudentPlayer.com last year as a platform to assist and recognize college athletes for their achievements on the field while tying them to brand opportunities, or in some cases, causes.  

We had some time to connect with Segal on how NIL is evolving, and how Student Player’s business platform has changed and adapted as well.

Does the opportunity for spring sports to add eligibility positively or negatively affect the NIL debate?

Any steps taken to promote fairness given these unprecedented times are good for the NIL debate. Afterall, allowing student athletes to benefit from their name, image, and likeness is not about giving student athletes an advantage relative to other students it is about treating them the equally! We hope that the longstanding inequity will be remedied soon!

How does a platform like student player impact a player prepping for the NFL Draft? once his eligibility end could he access funds if the system was up and running in say a year from now?

Student Player will offer sponsorship deals to student athletes when they are student athletes, but only after it is legal/permissible to do so. In our view, fans must have a voice and we give them the chance to be heard. Prospective athletes will want to know what kind of opportunities are available at each school, fans can make a difference by contributing! A player prepping for the NFL draft would still benefit from fan contributions while they are in college.

If NIL is in effect now how do you think athletes currently sidelined could use their rights for something like social good?

Yes, 100%. And we bet that many would! Today’s restrictions are essentially prohibiting that which is sad. Particularly so in a time when huge numbers of Americans (and others) are struggling to cope with Covid-19. This is just one reason why we hope school/legislatures/the NCAA won’t pause the momentum that NIL is having.

Without NIL in place this spring, have those athletes who missed March Madness suffered a loss of opportunity to capitalize on brand value? Can you think of a specific example?

Yes, March Madness shines a big spotlight on the athletes that play in it and the schools that they play for. There are missed opportunities across the board. Who would have hit a buzzer beater to help a double digit seed advance to the final four? We will never know, but that individual would have become a nationally recognized star. Who knows what would have happened next!

How do you see the debate moving in the fall when some normalcy returns; should we be looking for next steps?

We hope that it will pick up with as much momentum as it previously had. NIL is a bipartisan issue and a simple one.  In our view, the next step is for the NCAA to adopt California’s Fair Pay To Play Act. The NCAA and its member schools have long held that student athletes are “students first.” We agree! Given that, the solution is simple: treat student athletes like students. There are often mentions of “guardrails” and other safeguards, but we see all of those things as unnecessary. The goal should be to afford student athletes the same opportunities that every other student already has. Guardrails and safeguards should only be included if they are applied equally to all students (athlete or not).

DRL, FanDuel Announce First-Ever Fantasy Sports Partnership

The Drone Racing League (DRL), the global, professional drone racing circuit, and FanDuel today announced a fantasy partnership for the 2020 DRL SIM Tryouts Finals, the world’s only player-to-pilot esports tournament. As DRL’s first-ever partnership with a fantasy sports provider, FanDuel will have access to official DRL SIM data, along with league marks and logos to create official daily fantasy contests for the 2020 DRL SIM Tryouts Finals.

The virtual drone racing showdown live-streams tonight at 9pm ET on DRL’sTwitter,Twitch andYouTube. Thousands of FPV (First Person View) pilot hopefuls from 75 countries entered the fourth annual DRL SIM Tryouts, battling it out across more than 136,000 heats during twelve qualifying tournaments on the DRL Simulator, the true-to-life drone racing sim on Steam — all for the chance to compete tonight and go pro. Tryouts participation skyrocketed by 90% since last year and nearly 2 million fans have already watched the online competitions.

Fans tuning into the 2020 DRL SIM Tryouts Finals can enter a free contest on FanDuel for the chance to win a share of $3,000 in FanDuel site credit. The contest follows FanDuel’s standard daily fantasy format, and racers will earn points for winning, finishing second or finishing third in each heat as they navigate virtual DRL drones on a supercharged, 3D track. The champion will earn a professional contract in the league and fly as the DRL SIM Pilot in the 2020 DRL Allianz World Championship Season, as watched by tens of millions of fans on NBC, Twitter, Sky and other leading sports networks around the world.

“At a time when fans want access to sports competition more than ever, we’re thrilled to live stream the 2020 DRL SIM Tryouts, a unique esport that transforms gamers into pro drone pilots overnight, and reward fans with prizes through our exciting new partnership with FanDuel,” said DRL CEO and Founder, Nicholas Horbaczewski.

“We remain as committed as ever to our fans and we’re currently working to develop new and entertaining games for them to engage with,” said Kip Levin, President, FanDuel. “Partnering up with The Drone Racing League allows us to collaborate with an innovative league as we give our fantasy customers more ways to play.”

Merging the virtual with the real, the Tryouts winner will race against the most elite pilots on earth during the 2020 Season, flying custom-built DRL Racer4 drones at 90 MPH through complex courses in iconic venues around the world. Last year, Minnesota native, Christopher “Phluxy” Spangler, was crowned the Tryouts winner and flew in DRL; he made podium three times and even won a level event, showcasing how DRL bridges the digital with the real.

BetMGM Is Hosting A Free To Play NBA 2K Players Tournament

BetMGM is hosting a free to play NBA 2K Players Tournament bracket on BetMGM NJ, available to all verified New Jersey users. Prizing is $20,000 for a perfect bracket, which will be split in cash amongst all winners. In addition, BetMGM will also be matching the grand prize with a $20K donation to New Jersey Pandemic Relief Fund (NJPRF), which will raise funds and organize and coordinate resources to fight the medical, social and economic impact of COVID-19 on New Jersey’s most vulnerable.

The NBA 2K Players Tournament, an NBA 2K20 gameplay tournament, will pit 16 of the league’s best in a single-elimination, player-only tournament on Xbox One beginning Friday, April 3 on ESPN and ESPN2. NBA players include: Andre Drummond, Kevin Durant, Donovan Mitchell, Trae Young, Hassan Whiteside, Demarcus Cousins, Patrick Beverly, Zach LaVine, Derrick Jones Jr, Devin Booker, Rui Hachimura, Montrezl Harrell, Domantas Sabonis, DeAndre Ayton, Harrison Barnes and Michael Porter Jr. 

To log in, or to sign up, visit https://account.betmgm.com/en/nj/.

Inspired Launches V-Play Basketball With bet365.com

Inspired Entertainment, Inc. (“Inspired”) (NASDAQ: INSE), a world-leading Virtual Sports provider, today announced the launch of its groundbreaking new V-Play Basketball on bet365.com.  The leading online operator with more than 45 million customers launched V-Play Basketball earlier this week and is one of the first operators to host two dedicated streams, a U.S. Basketball and a separate European Basketball variant, with a new event every two minutes. Since its inaugural launch in 2019, V-Play Basketball achieved immediate success, becoming one of the best performing Virtual Sports online and delivering significant incremental revenue for Inspired customers.  

Speaking on the launch, Inspired Chief Commercial Officer Steven Rogers said, “bet365 is a long-time customer and we’ve enjoyed many highly successful product launches with them over the years.  The launch of V-Play Basketball follows a string of popular games that have gone live with bet365.com since the new year, including Virtual Football, Cricket and Virtual Grand National.”

bet365.com will be the first operator to feature the new NFLA Legends Football, an officially licensed product with the NFL Alumni (“NFLA”), which brings all-time favorite NFL legends back to the field.  V-Play NFLA Legends Football features 11 teams of alumni legends from some of the biggest teams going head-to-head in a single game format.  Fast-paced action completes each series of plays in less than 90 seconds. Ultra-realistic player simulations use the latest animation and motion capture techniques and offer “play-by-play” action as the game progresses.  NFLA Legends Football will be added to the two existing football channels on bet365.com, available via the Virtual Sports section of their sportsbook. 

bet365 said, “We haven’t seen any Virtual Sports quite like V-Play Basketball and V-Play NFLA Legends Football.  They are great products, both visually and in the betting opportunities they offer the players.  We are very excited to be launching these products and we have no doubt they will be successful additions to our current Virtual Sports offerings.  Inspired has impressed us with their innovation once again.”

The season never ends online with Inspired Virtual Sports, supporting online and mobile betting 365 days a year, 24 hours a day, 7 days a week. Please see the Inspired website for trailers and demos of the latest Virtual Sports offerings at www.inseinc.com/virtuals/.