{"id":864000,"date":"2024-08-14T12:59:35","date_gmt":"2024-08-14T19:59:35","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/shop\/?p=864000"},"modified":"2024-08-14T16:14:29","modified_gmt":"2024-08-14T23:14:29","slug":"you-win-draftkings-loses","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/blog\/you-win-draftkings-loses\/","title":{"rendered":"You win, DraftKings loses"},"content":{"rendered":"\n

That didn’t take long<\/strong>. After playing tough guy for 12 whole days, DraftKings<\/strong> CEO Jason Robins <\/strong>folded his hand and announced that his much-ballyhooed surcharge on winning bets had been called off. Why? Because he couldn’t tempt<\/a> FanDuel<\/strong> off the sidelines and into the fray on his behalf. Punishing one’s customers for the sins of politicians never made much sense and even less who when comparative small fry like BetMGM<\/strong> and BetRivers <\/strong>eschewed the loyalty-killing surcharge. ESPN Bet<\/strong> boss Jay Snowden<\/strong> weaseled on the issue<\/a>, ruling out a (suicidal) surcharge for now but holding open the possibility of sticking it to players in the future. It’s another example of the keen business acumen that has got Snowden where he is today … besieged.<\/p>\n\n\n\n\n\n\n\n

Yesterday’s Flutter Entertainment<\/strong> earnings call, where the FanDuel decision was announced, was the final nail in the surcharge’s coffin. Unless DraftKings and FanDuel colluded to squeeze players, it didn’t stand a chance. Wall Street<\/strong> was already sour on the idea, as witnessed by DraftKings’ declining stock price, which rebounded as soon as Robins did his about-face. He claimed that the intense negative feedback<\/a> from customers motivated his decision, and perhaps it did, but he was clearly waiting for Flutter CEO Peter Jackso<\/strong>n to follow him over the precipice and Jackson wasn’t having any of it.<\/p>\n\n\n

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For now, the consumer is the winner in this imbroglio, having cowed Big Gaming into maintaining the status quo. However, Jackson had some ominous rumblings about doing less marketing and “moderating levels of generosity<\/em>.” Most took that as an indication of fewer promotional offerings to come (not an area in which the OSB industry has shown overmuch discipline), although it sounded to us like a euphemism for tighter holds. Mind you, FanDuel already holds at the tightest rate in the industry, so it may not have much room to be ungenerous in that respect. Anyway, it’s not just sports bettors in Illinois<\/strong>, New York State<\/strong>, Vermont<\/strong> and Pennsylvania<\/strong> who dodged a surcharge bullet: Once that particular, odious practice had been insinuated into a few states, you knew damn well it was going to spread nationwide, much like the pestilence known as “resort fees.” Eternal vigilance is the price of a good bargain.<\/p>\n\n\n

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One casino market<\/strong> that’s all but certain never to fully recover from the Covid-19<\/strong> pandemic is Detroit<\/strong>. Last month it was 11% down from 2019, while flat with last year. Its three casinos combined for $106 million. The lion’s share of that ($51 million) went to MGM Grand Detroit<\/strong>. The category killer was up 2.5% from 2023 and only 1% off its 2019 pace. MotorCity<\/strong> was flat at $31 million and Hollywood Greektown<\/strong>, its momentum blunted, fell 6% to $24 million. Too bad. They had a good thing going for a while.<\/p>\n\n\n\n

Super-tight hold<\/strong> of 13% was the friend of sports books in Maryland<\/strong>, where handle grew 37% to $325 million but revenue vaulted 60%, to $42.5 million. FanDuel<\/strong> bested DraftKings<\/strong>, $21.5 million to $12.5 million. Fighting for scraps were BetMGM<\/strong> ($3 million), Caesars Sportsbook<\/strong> and Fanatics<\/strong> ($1.5 million each) and ESPN Bet<\/strong> ($1 million). BetRivers<\/strong> was well below our cutoff point. Even in such a relatively new market, the narrative is uncannily like it is everywhere else\u2014unfriendly to the little guy (and some of the big guys too).<\/p>\n\n\n\n

In the more<\/strong> mature market that is Illinois<\/strong>, the disparities were in some ways even more pronounced in June. Revenue rocketed 73% to $94.5 million, despite hold that was ‘only’ 11% and handle that increased but 27% (to $848 million). In their last lower-tax month, DraftKings<\/strong> and FanDuel<\/strong> made hay. The former reigned supreme with $39.5 million, trailed by FanDuel’s $36.5 million of win. Both of these behemoths held 12% or higher. A sign of things to come? From there it was a long way down to BetRivers<\/strong> ($6 million), Fanatics<\/strong> ($4.5 million), ESPN Bet<\/strong> ($3.5 million), BetMGM<\/strong> ($2.5 million) and hard-luck Caesars Sportsbook<\/strong> ($1 million).<\/p>\n\n\n

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Last month’s casino revenues<\/strong> in Indiana <\/strong>slipped 2% from 2023 but remained a healthy 11% ahead of 2019. Perhaps the real story was that Hard Rock Northern Indiana<\/strong> accounted for 18% of the Hoosier State tally, a sobering statistic. This was the casino that Lori Lightfoot<\/strong> painted a target upon and aimed Bally’s Casino<\/strong> in Chicago<\/strong> toward, to no effect. Not only is Hard Rock dominating its state (in Gary<\/strong>, no less) it has shown Lightfoot’s use of a casino as a tool of public policy to be an abject failure. Lesson learned?<\/p>\n\n\n\n

Hard Rock’s dominance grew along with its revenues (+6%), posting an amazing $37.5 million. By contrast, Horseshoe<\/strong> Hammond<\/strong> plummeted to $20 million, down 24%, while Ameristar East Chicago<\/strong> sank 11% to $14.5 million. Michigan<\/strong>-focused Blue Chip<\/strong> dropped 5.5% to $11 million. Elsewhere in the state, Terre Haute Casino<\/strong> continued to impress with $11.5 million and Horseshoe Indianapolis <\/strong>continued to stumble, down 11% to an otherwise hefty $23.5 million. Harrah’s Hoosier Park<\/strong> was flat at $17.5 million and French Lick Resort <\/strong>slipped 3% to $7.5 million. Down at the southern end of the state, everybody was revenue-negative. Belterra Resort <\/strong>tumbled 22% to $6.5 million, Bally’s<\/strong> Evansville<\/strong> dipped 4.5% to $14.5 million and Rising Star<\/strong> dove 18% to $3 million. Hollywood Lawrenceburg<\/strong> fell 11% to $12.5 million and even Caesars Southern Indiana<\/strong> was down 6.5% to $20 million, as Kentucky<\/strong> players evidently opted for Churchill Downs <\/strong>products closer to home.<\/p>\n\n\n\n

Hoosier sports betting grew 25% for win of $29 million on handle of $261 million (+28%). FanDuel<\/strong> ($10.5 million) vied intensely with DraftKings<\/strong> ($10 million), even though DraftKings had greater handle share. Trouble is, DraftKings has a knack for letting handle slip through its fingers. ESPN Bet<\/strong> fell below the Mendoza Line, while BetMGM<\/strong> ($2.5 million), Caesars Sportsbook<\/strong> ($1.5 million) and Bet365<\/strong> ($1 million) completed the picture.<\/p>\n\n\n

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Which leaves us<\/strong> with Missouri<\/strong>. Gambling revenues fell 8% although remaining 7% above their 2019 level. The gross was $155 million and at least one analyst blamed Hurricane Beryl<\/strong> for much of the declivity. Also getting bad news from Missouri yesterday was Bally’s Corp<\/strong>., whose push for a casino on Lake of the Ozarks<\/strong> came up short in terms of the signatures needed to make the ballot. The point is probably moot for 2024 but Bally’s backers vowed to\u2014What else?\u2014sue the state to get before the electorate. This is the kind of project on which Bally’s ought<\/em> to be focusing, although perhaps not a time when its wits are scattered between Chicago<\/strong>, New York City<\/strong>, Las Vegas<\/strong> and a Standard<\/strong> General<\/strong> buyout, silly ideas every one of them.<\/p>\n\n\n\n

By this time next year we may be talking about sports betting win in Missouri, a question that goes in front of voters this November. For now we’ll have to concentrate upon casinos, no bad thing. Ameristar St. Charles<\/strong> was set back 6% to $24 million but every other St. Louis<\/strong> casino fared worse still. Hollywood St. Louis<\/strong> slipped 7.5% to $20.5 million, River City<\/strong> dipped 7% to $20.5 million and Horseshoe St. Louis<\/strong> stumbled 11% to $12 million. Bally’s Kansas City<\/strong> was one of only two revenue-positive casinos in the Show-Me State (St. Jo Frontier<\/strong> was the other). It grossed $12 million, up 9%, while Harrah’s North Kansas City<\/strong> plunged 17% to $12.5 million. Ameristar Kansas City<\/strong> was relatively continent, down 4.5% to $17 million whilst Argosy Riverside<\/strong> tumbled 11% to $13.5 million. Outstate, Isle of Capri Boonville<\/strong> plunged 18.5% to $6.5 million and Century Casinos<\/strong> didn’t do too badly: It was flat in Caruthersville<\/strong> ($4 million) and but down 7% in Cape Girardeau<\/strong>. Win some, lose some, Herr Hoetzinger.<\/p>\n","protected":false},"excerpt":{"rendered":"

That didn’t take long. After playing tough guy for 12 whole days, DraftKings CEO Jason Robins folded his hand and announced that his much-ballyhooed surcharge on winning bets had been called off. Why? Because he couldn’t tempt FanDuel off the sidelines and into the fray on his behalf. Punishing one’s customers for the sins of […]<\/p>\n","protected":false},"author":83928,"featured_media":845509,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1728],"tags":[],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.lasvegasadvisor.com\/shop\/wp-content\/uploads\/2023\/11\/robins.jpg?fit=349%2C254&ssl=1","_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/posts\/864000"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/users\/83928"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/comments?post=864000"}],"version-history":[{"count":4,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/posts\/864000\/revisions"}],"predecessor-version":[{"id":864024,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/posts\/864000\/revisions\/864024"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/media\/845509"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/media?parent=864000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/categories?post=864000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/tags?post=864000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}