For the sports betting industry, 2020 was supposed to be one for the books.
The timing for the coronavirus outbreak, however, could not have been worse for the wide-eyed casinos and online sportsbooks operators expecting to capitalize on legal sports wagering expanding across the U.S.
“Timing is really bad because it happened right before March Madness, one of the signature sporting events on the calendar and that was canceled. Obviously the hiatus of NBA and NHL seasons. We should be talking about the first week of Major League Baseball season right about now.” said Joe Asher, CEO of betting site William Hill US in an interview with Cheddar. The company furloughed more than 600 workers amid fallout from the pandemic.
March Madness was expected to be a major revenue driver for sportsbooks. In 2019, Nevada set a new monthly handle record with basketball during March Madness accounting for $495 million. Without the NCAA basketball tournament and the suspension of major sporting events, Nevada’s economy will be hit especially hard, Asher added.
”It's hard to see a complete recovery in Las Vegas until you start to get into 2021, and then you can debate from there when it’s going to be,” Asher said.
While some bettors are getting their gambling fix by wagering on obscure events including eSports, Madden simulations, Russian table tennis, and sumo wrestling, the volume of betting pales in comparison to what William Hill is used to and does not help fill the revenue gap the sportsbook is experiencing.
“Historically our Nevada business last year made about $45 million in EBIT and that was funding the expansion across the country. [I was] expecting something similar to that for this year until about a month ago.”
A return by major sports leagues including the NBA and MLB would be an important first-step for the sports betting industry to regain its footing, even if fans are unable to attend.
“When sports resume I happen to think it’s most likely going to be in an empty arena. Hopefully we can salvage the NBA and NHL seasons and play in empty arenas but be able to broadcast and of course that'll allow people to bet on them,” said Asher.
Dave Long, CEO and Co-Founder of Orangetheory Fitness joins Cheddar to chat trends in the industry for 2024. He updates us on the company's plans to expand and what the state of the economy has meant for business.
One of the world's largest renewable energy developers will be getting hundreds of wind turbines from General Electric spinoff GE Vernova as part of a record equipment order and long-term service deal.
A moon landing attempt by a private US company appears doomed because of a fuel leak on the newly launched spacecraft. Astrobotic Technology managed to orient the lander toward the sun Monday so its solar panel could capture sunlight and charge its onboard battery.
Treasury Secretary Janet Yellen has announced that 100,000 businesses have signed up for a new database that collects ownership information intended to help unmask shell company owners. Yellen says the database will send the message that “the United States is not a haven for dirty money.”
A new version of the federal student aid application known as the FAFSA is available for the 2024-2025 school year, but only on a limited basis as the U.S. Department of Education works on a redesign meant to make it easier to apply.
A steep budget deficit caused by plummeting tax revenues and escalating school voucher costs will be in focus Monday as Democratic Gov. Katie Hobbs and the Republican-controlled Arizona Legislature return for a new session at the state Capitol.
The first U.S. lunar lander in more than 50 years is on its way to the moon. The private lander from Astrobotic Technology blasted off Monday from Cape Canaveral, Florida, catching a ride on United Launch Alliance's brand new rocket Vulcan.
Global prices for food commodities like grain and vegetable oil fell last year from record highs in 2022, when Russia’s war in Ukraine, drought and other factors helped worsen hunger worldwide, the U.N. Food and Agriculture Organization said Friday.
Wall Street is drifting higher after reports showed the job market remains solid, but key parts of the economy still don’t look like they’re overheating.
