Super Bowl to Generate $1.25B in Regulated Bets, Nevada, New York Seen Leading
Posted on: February 5, 2024, 12:37h.
Last updated on: February 5, 2024, 12:37h.
It’s Super Bowl week and that means the betting forecasts are coming in hot and heavy. It’s expected that bettors in the US will plunk down $1.25 billion in regulated wagers on the game.
That according to Eilers & Krejeck Gaming (EKG), which noted that the Super Bowl is the most wagered on sporting event in the US, accounting for 1% of total handle in this country. In highlighting its $1.25 billion forecast, the research firm said it’s not making a revenue projection because there is lumpiness in such forecasts.
Interestingly, the EKG also observed that the primary objective for sportsbook operators with the Super Bowl isn’t so much to make money as it is to acquire new customers and cross-sell other products to those bettors and/or “reactivate” them when the next football season commences. EKG added that in-game or live betting will be a significant contributor at 10% to 15% of Super Bowl handle this year.
That mark is below broader industry averages,” noted the firm. “FanDuel, for example, has previously disclosed that around 44% of handle comes from in-play. However on in-play football skews lower and the Super Bowl even lower still due to the high number of recreational customers who overwhelmingly favor pre-match betting.”
The online sports wagering industry has endured some well-documented technological snafus over the past several years, and righting that ship is essential in fostering customer confidence and gaining share in high-growth niches, such as same-game parlays (SGPs) and live betting.
Nevada, New York to Lead State-Level Handle
With Las Vegas playing host to the Super Bowl and the city’s status as the casino hub of the US, it’s not surprising that Nevada is expected to be the state-level handle leader.
EKG sees the state accounting for 12.8% of Super Bowl handle, followed by New York at 12.4%. The New York projection isn’t surprising, either, because the state is the largest with a multi-operator sports wagering market. Those two states are the only ones EKG expects will command double-digit handle share on the big game.
New Jersey, Pennsylvania, and Illinois round out the top five. There are some other interesting state-level observations. For example, EKG estimates about 3% of Super Bowl handle will come from Michigan, putting the state behind Arizona, Maryland, Colorado, Virginia, and Massachusetts by that metric despite the fact that Michigan has lager population than that quintet.
As of last Friday, the AFC Champion Kansas City Chiefs were attracting the bulk of pre-game Super Bowl bets in a vast majority of states in the major online sportsbook operators do business.
Same-Game Parlays Could Be Huge
EKG estimated that same-game parlays could account for up to 25% of Super Bowl handle this year.
“We think the number will be even higher at FanDuel and a tick below at DraftKings,” EKG noted.
The firm added that while 50% of revenue for those operators during conference championship weekend was derived from same-game parlays, but that percentage is volatile on a week-to-week basis.
Source: casino.org
