It is unknown whether the Kansas City Chiefs or Tampa Bay Buccaneers will win the Super Bowl LV, but one thing is for sure – big sports betting and fantasy firms are already the champions.
American Gaming Association Estimates Super Bowl to Generate $4.3 billion in Bets
The shares of companies that offer online sports gambling have surged ahead of Sunday’s Super Bowl, which is expected to generate a record sports betting handle. According to the American Gaming Association (AGA), Sunday’s contest between the Kansas City Chiefs and Tampa Bay Buccaneers will likely book $4.3 billion in bets. Bill Miller, president and CEO of AGA, said in press release:
“This year’s Super Bowl is expected to generate the largest single-event legal handle in American sports betting history. With a robust legal market, Americans are abandoning illegal bookies and taking their action into the regulated marketplace in record numbers.”
Bill Miller, AGA President and CEO
Pandemic Leads to Quicker Expansion of US Sports Betting Segment
Despite the pandemic-related restrictions, operators have quickly adapted to the new normal to expand e-sports offerings and make e-sports products more prominent on websites and apps.
DraftKings and Penn National Gaming have been on the rise as Americans look to bet on sports as a distraction and an element of social interaction at home. They have each climbed more than 35% this year, while the S&P 500 Index has been up only 3.5%. The stock of DraftKings has soared nearly 260% since it went public last April following a merger with a special purpose acquisition company (SPAC).
However, not only household US companies are on the rise, but foreign operators have jumped on the trend as well. Dublin-based Flutter Entertainment Plc, owner of DraftKings rival FanDuel, has increased more than 60%, while Toronto-based Score Media and Gaming Inc., which operates via its U.S. betting app the Score Bet, has grown more than 400%.
Bookies have unique bets for this year’s Super Bowl, such as a prop bet on rushing yards or whether the opening kickoff will be returned for a touchdown. Some of the most interesting wagers include a Texas man flying to Colorado to make a $3.46 million bet with DraftKings on the Bucs.
Sports betting is legal in more than two dozen states, as well as Washington, DC, and players are allowed to place bets via mobile apps or in person at licensed sportsbooks. According to FanDuel CEO Matt King, Sunday’s Super Bowl will be the company’s biggest event in history.