USA Betting Industry News: The sports betting industry in theUnited States is taking big leaps for long-term success. For example, DraftKings partnered up with the UFC for five years as legal sportsbooks look to capitalize on as many opportunities as possible. However, just like any industry or sector, there will be some bad quarters and some good quarters for the companies, states, and the market as a whole.
DRAFTKINGS STOCK VALUE NOW
As of Thursday, May 13, 2021, Draftkings is currently trading at $41.30. It is down over 40 percent from its all-time high in March after a great fourth-quarter earnings report. Many hedge funds have raised DraftKings’ price target as Loop Capital analyst Daniel Adams put the price target at $105.
The fundamentals about the company are great but the decline may be a result of technical issues. The Technology sector has struggled as of late and has affected a bunch of companies in the sector. DraftKings losses reached 346 million and are going to continue as NFL is a huge part of the sports betting industry in the United States.
This may have a negative effect on potential IPO candidates like rival FanDuel in the short-term aspect. In the long-term, these companies should find success as customers and fans in numerous states will be allowed to wager in arenas and stadiums.
INDIANA REVENUE DROP IN THE MONTH OF APRIL
Indiana is a state that has much competition in terms of getting new customers as neighboring states like Illinois attract a lot more tourists and new customers. Also, the NCAA Tournament is in the rearview mirror as the event was one of the main attractions to get new customers to sign up and make numerous wagers.
The mainstream sports like NBA, MLB, and NHL do not compare to what the NFL can bring to many fans. Lead analyst Jessica Welman stated, “Even a high volume of regular season baseball and NBA basketball games can’t make up for a calendar devoid of NFL and college football games, or a major betting event like the NCAA Tournament.”
Sportsbooks in the state collected $236.4 million in April which is a bit more than a 25 percent decline when comparing the number of wagers from March.
The gross revenue also dropped 23.8 percent which only yielded 1.9 million dollars in taxes for the state. Many sportsbooks in the state are partnering up with many sponsors and casinos should help the state long-term and the NFL will be back again shortly.
THE SAME CAN’T BE SAID TENNESSEE
On the other hand, Tennessee just set a new record by reaching the one billion benchmark within six months. The state hosts a bunch of popular sportsbooks like DraftKings, FanDuel, BetMGM, William Hill, Tennessee Action 24/7, TwinSpires, and WynnBET. The state surpassed the record of what New Jersey did in a shorter time frame when it comes to the amount of money wagered.
Even without the NFL for the last few months, Tennessee has had crazy revenue. Sportsbooks in the state 92 million in sports betting revenue and 18.3 million in taxes for the state. The sports betting industry may be struggling a bit now as a whole, but more states should legalize and sign a bill within the next year.