Following the launch of the keynote sessions program on Monday and the opening of the exhibition floor on Tuesday, the third day of the Global Gaming Expo (G2E), running through Thursday in Las Vegas, put sports betting at the forefront. Leading executives of the vertical took The Venetian’s main stage to discuss the state of the market and what to expect from it going forward on Wednesday.
The “The Playmakers” keynote session, sponsored by Sportradar and moderated by CNBC’s Contessa Brewer, brought together the chief executives of the two biggest sports betting operators in the US to delve into the state of online gaming five years post-PASPA, trends on the horizon and innovation in technology, and how the adoption of legal wagering has impacted the fan experience.
In conversation with Brewer, Amy Howe (CEO, FanDuel) and Jason Robins (CEO, DraftKings) said they are ready to welcome more competition in the US market. While the two companies currently account for around 80% market share when combined, the executives acknowledged heightened competition could be on the horizon as new entrants, including Fanatics Sportsbook and ESPN Bet, generate buzz in this space.
Eyeing to make an impact on the scene, Fanatics has acquired PointsBet’s US business for $225 million and quickly secured access in 11 US states, currently live in four of them, a strong initial footprint for the wagering ambitions of the sports apparel giant. For its part, ESPN Bet, through a partnership with Penn Entertainment, is slated to launch in November, with Penn expecting that leveraging the recognized brand’s appeal will set it apart from the competition.
“We’re in one of the most competitive markets in the world. And I think that anyone who thinks that it’s over in the first inning, that’s just foolish,” DraftKings’ Jason Robins said Wednesday. “There’s always going to be new companies entering the market. It’s always going to be competitive. But I think that’s great. That’s the purpose of legalization.”
Robins also offered insights on DraftKings’ current strategy, stating the company remains more focused on existing customers making the move from the illegal market to the legal market, rather than attracting new ones. For her part, Howe highlighted scale position and continuous product innovation as two factors to always monitor.
Elsewhere in the panel, the chief executives said that it’s up to states to determine what is a fantasy contest and what is wagering, as more U.S. jurisdictions, including Florida and Michigan, crack down on pick ’em fantasy contests, wherein users choose two or more outcomes to try to win a payout from the operator.
While some regulators have argued such offerings could be considered illegal sports betting, fantasy companies claim they operate within the rules and that they are victim to a pushback fueled by DraftKings and FanDuel. The CEOs responded by saying it’s up to states to decide what to do with these contests.
“There’s a legal and regulatory framework and I think it’s up to the states to adjudicate this,” Howe said in the panel. “I think they will decide whether those offerings are within the legal framework, and there’s a clear distinction between games of skill and games of luck.”
Robins added that the issue boils down to competition and that they are trying to understand the constraints on what can be offered. “What we’re seeking is, ‘Hey, what can we do? What can’t we do?’ In a perfect world, we’d like to be able to offer the same thing that anybody else can, and if we can, then great,” he said. “That’s what maximizes competition and that’s what creates the best environment for consumers.”
Other Wednesday highlights
Day three of G2E also featured the 2023 G2E Innovation Showcase, highlighting five cutting-edge gaming startups: SharpSports, Kero Sports, BetSEQNZR, Pro League Network, and BigBrain. Held at The Lab, Booth #5825, the event provided the companies the opportunity to present their latest products, features, or partnership milestones to an audience of investors and operators.
As for other key discussions, a group of experts discussed the ongoing push for smoking bans on land-based casinos in several U.S. jurisdictions. In the panel, the first-ever on the controversial topic in G2E’s history, advocates argued that there would be minimal impact on casinos that opt to ban indoor smoking – with some suggesting that such a move could even gain properties new customers.
A growing number of gambling venues outside of Nevada are banning smoking altogether, including Parx Casino in the Philadelphia area. Marc Oppenheimer, Chief Marketing Officer for the casino, said they chose to keep their pandemic-era smoke-free plan after the Covid crisis ended. The policy, which directs smokers to a new outdoor patio, boosted employee morale, according to Oppenheimer.
“I believe that the pandemic made us more aware and made it much easier for us to make that decision,” Oppenheimer said. While he acknowledged the casino might have lost some people to competitors, the CMO noted that, in turn, Parx Casino has also attracted a new clientele that prefers the property because they don’t have to smell smoke.
The strategy has worked for Parx thus far, which remains the top-grossing casino in Pennsylvania. However, going smoke-free seems tougher to sell in Nevada, where only one casino on the Strip – Park MGM – is non-smoking. Many others in the state brought non-smoking policies in the past, especially during the pandemic, but have reversed them over the years.
Traci Kennedy, Midwest strategist for Americans for Nonsmokers’ Rights, said Nevada could eventually join the move towards non-smoking policies if the concept is proven elsewhere. For Kennedy, the ongoing push in New Jersey, where advocates are working to close a loophole in the state’s smoke-free air act that exempts casinos, is “changing the conversation everywhere.”
Her group believes the bill banning smoking will be acted on during the lame duck session between the November elections and the end of the year. Given Atlantic City’s status as the largest non-Nevada gaming market, a victory here could prove essential for advocates against indoor casino smoking. “I think what we see is the more momentum in other states, the more pressure there will be to follow suit in Nevada,” said Kennedy.
G2E comes to an end
The 2023 edition of the Global Gaming Expo comes to an end today, Thursday. Day four will present attendees a last chance to check out the latest in gambling innovation at the expo hall, which opens 10 a.m. – 3 p.m.
As for the key events of the day, the PRIDE in Gaming Meetup will be held 11 a.m. – 12 p.m. New for this year, G2E is hosting meetups in the G2E Networking Lounge, Booth #5649 that bring together different groups from across the gaming industry to build high-value relationships. This meetup will focus on pride and LGBTQIA+ in gaming.
Educational sessions taking place on Thursday include Advanced Crisis Communications for Gaming Leaders; Cutting Through the Noise: What You Actually Need to Know About AI; Understanding and Combating Human Trafficking Across the Gaming Industry; and Unlocking Brazil: Understanding the Legislation, Opportunities, and Growth Strategies of this Emerging Landscape. The program can be consulted here.
