iDEA report refutes previous NJ economic impact study
The iDevelopment and Economic Association (iDEA Growth) this week released a report that refutes a 2023 study about the economic impact of online gambling in New Jersey. The previous report, by the NERA Consulting Group, itself questioned findings from a 2019 report on the same topic. At issue is just how much of an economic impact online gambling has had in New Jersey. The studies also explore the level of cannibalisation caused by online markets.
The iDEA study raised questions about the methodology NERA used.
The 2019 report by Meister Economic Consulting and Victor Strategies found that online gambling contributed $2bn (£1.5bn/€1.84bn) to the Garden State’s economy between 2013-18. The 2023 NERA report, commissioned by the Campaign for Fairer Gambling, found that the economic impact was much less.
iDEA hired the original market analysis companies — Meister Economic Consulting and Victor Strategies, as well as Regulus Partners — to revisit the 2019 study. They found that there were key flaws in the NERA methodology, including the use of data from only two operators. There were significantly more than two gaming operators in New Jersey at that time, iDEA notes. Selecting only two, the report says, does not provide an accurate picture of the market or economic impact.
The 2023 report suggests that online gambling creates cannibalisation. But the iDEA report references multiple studies that show the opposite. iDEA study authors wrote that a regulated online market draws consumers away from the black market. They also referred studies that show stronger revenue in markets with both legal retail and online gambling.
$13m and counting in Arkansas
Tribes on opposite sides of a casino issue have raised a combined $13m (£$9.97m/€11.96m) in support and opposition of an Arkansas initiative. The proposal will allow voters to decide if a Pope County casino should be built and if the already licenced Cherokee Nation should be allowed to build it, according to the Arkansas Times. Oklahoma’s Choctaw Tribe is lobbying against the initiative as a Cherokee Nation casino in Pope County could draw customers from its Oklahoma location.
One group has sued to keep the initiative off the ballot, but the state supreme court ruled this week that signature gathering for the proposal was legal and that the wording of the initiative is legal. The initiative will remain on the ballot.
Bally Bet now live in Tennessee
Bally Bet Thursday (17 October) announced it went live in Tennessee, its 10th state. The launch is the third since July, when it launched in Massachusetts and Maryland. Bally Bet is a partner with the NHL Nashville Predators, and has run social promotions with the team.
The company recently launched its Parlay Zone, which allows bettors to “customize daily pre-built parlays.” Tennessee went live with digital wagering 1 November 2021, and there are 11 platforms available in the state. Tennessee was the first state to legalise digital wagering only — there are no brick-and-mortar locations.
Penn still a ‘hold’
Following Penn Entertainment’s Investor Day in Las Vegas last week, Jefferies Equity Research wrote that it sees some positives going forward, and kept its target price at $20. The company’s stock closed at $18.78 Thursday (17 October). Jefferies indicated that Penn’s New York launch of ESPN Bet has tripled the company’s average daily wagering handle and that the average deposit size has doubled. ESPN Bet launched in New York 27 September.
Analysts did a poll of ESPN Bet users and found that about 50% of ESPN Bet users chose the platform because of their familiarity with ESPN. But 87% of respondents have accounts on other platforms.
In Other News …
Hard Rock Bet announced a deal with Kambi’s “Odds Feed+,” a stand-alone odds feed that includes markets around the world. Hard Rock Bet expects new markets to be available before the end of the year. The new markets will include pre-game and in-game options. The platform is available in eight states.
NFL owners this week approved Tom Brady’s bid to become a minority owner of the Las Vegas Raiders, according to the Associated Press. Brady will take 5% ownership. The deal was initially made in May 2023.
Diamond Sports Group and FanDuel Friday (18 October) announced a partnership through which FanDuel will have the right to “name Diamond’s 16 regional sports networks and Diamond’s digital offerings, including the direct to consumer (“DTC”) product, as FanDuel Sports Network.”
Worth the read
Nearly 10 years ago, NBA commissioner Adam Silver wrote an op-ed in the New York Times supporting legal sports betting. Silver was in his first year as commissioner, and you could trace the evolution of the gambling landscape to that article. A decade later, Silver told the Associated Press’ Tim Reynolds that he doesn’t regret his words. He said he is still in favor of a federal framework. Read the story here. And the original op-ed here.
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New Jersey sets another igaming revenue record
Original article: https://igamingbusiness.com/gaming/online-casino/cannibalisation-penn-state-of-the-union/
