In the dynamic world of sports betting, Nevada has been a stalwart with its in-person registration requirement for mobile wagering accounts. This requirement has kept major operators such as FanDuel, DraftKings, Fanatics Betting and Gaming, and ESPN Bet at bay, limiting their operations within the state.
Expansion Plans of Major Operators
Fanatics Betting and Gaming has successfully launched a sports betting app in five states, showing promise in the industry. The company is not resting on its laurels, however, with plans to expand into eight more states. This ambitious expansion strategy underscores the company's commitment to capturing a significant share of the market.
ESPN Bet, another significant player, is also making strategic moves. It will commence operations in 16 states in November, following a $1.5 billion deal with Penn Entertainment. This massive investment signals ESPN Bet's determination to carve out a substantial market share.
Nevada's Unique Betting Landscape
Nevada's sports betting landscape is unique, requiring sports betting to be tied to a sportsbook inside a casino, which also serves as the sign-up location for mobile wagering accounts. This regulation makes it challenging for online-only operators to penetrate the market.
Currently, 35 states along with Washington, D.C., offer legal sports betting. Yet, Nevada's top two sports betting operators are BetMGM and Caesars Sportsbook, traditional brick-and-mortar establishments, due to the absence of DraftKings or FanDuel.
Presence of FanDuel and DraftKings in Nevada
Despite these hurdles, FanDuel and DraftKings do have a presence in Nevada, albeit not as traditional sports betting operators. Boyd Gaming owns a 5 percent stake in FanDuel and operates retail and mobile sports betting at 15 of its regional casinos in eight states. This partnership allows FanDuel to maintain a footprint in the Nevada market.
DraftKings, on the other hand, has established a significant presence in Southern Nevada through its local headquarters, employing more than 1,000 individuals. This strategic positioning allows DraftKings to keep a pulse on the Nevada market while focusing on its broader national operations.
Quotes from Key Industry Figures
Chris Krafcik, an industry analyst, noted that "Nevada, which accounts for a little more than 1 percent of the U.S. online gambling revenue, is not a must — not even close — for FanDuel and DraftKings." This sentiment was echoed by Kevin Hennessy, who stated it's "way too soon to even contemplate [Nevada] at this point in our evolution."
Jason Robins, CEO of DraftKings, emphasized the competitiveness of the market, stating, "We're in one of the most competitive markets in the world. Anyone who thinks that it's over in the first inning is just foolish."
The future of sports betting in Nevada remains uncertain, but what is clear is that major operators are keen to expand their operations across the country, with or without Nevada in their portfolios.