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Ahead of the biggest event of the year for the sports betting sector, Morgan Stanley reminded that the Super Bowl remains one of the key periods outside the beginning of the NFL season to acquire customers and more casual bettors. Analyst Stephen Grambling thinks this year could be a boom year, with the Taylor Swift Effect estimated to drive viewership up about 10% and expand sports engagement and/or betting audience as evident already in unique bets outside the U.S. and with the jump in prop bets volume this year. Based on the expectation for an explosion of sports betting, sportbooks have been offering competitive odds this year on the Super Bowl based on the “overrounds” or the difference in the implied hold rates to prior years or other major events. In particular, BetRivers (RSI) and Wynn Bet (WYNN) have been aggressive with overrounds on the moneyline bet closer to 100% (break-even for the sportsbooks). Meanwhile, DraftKings (NASDAQ:DKNG) and FanDuel (FLUT) were slightly more customer-friendly than peers on the point spread.
Just ahead of Super Bowl LVIII, BetMGM announced a strategic partnership with social media site X. The partnership is being described as the first of its kinds between a premier social media brand and a sports betting operator. The initiative will see BetMGM’s odds and branding integrated into X, with each game linking to BetMGM’s website and app. The actual bets will all be made directly off of BetMGM’s platforms in states where sports betting is legal. X users in the United States can already explore BetMGM’s latest betting odds on pro football, with each of the major professional and college sports expected to follow in the coming weeks. BetMGM expects the integration to continue to evolve and grow in its functionality over the coming months.
“X is the center of the sports world’s conversation 24 hours a day, seven days a week,” said BetMGM CEO Adam Greenblatt. “Being directly accessible within that forum is an unprecedented opportunity to expand our reach to a passionate and engaged audience. We look forward to adding intel and content that enhances the platform’s interaction around sports,” he added.
In a recent update, BetMGM repored that it generated revenue of $1.96B in FY23, which was up 36% from a year ago and within the company’s guidance range. BetMGM ended the fiscal year with a U.S. market share position of 14% vs. 19% a year ago. BetMGM will be in the spotlight on Super Bowl Sunday, with a high-profile commercial featuring Tom Brady running and the app expected to set betting records.
BetMGM is owned by MGM Resorts International (NYSE:MGM) and Entain (OTCPK:GMVHF).