Posted on: January 4, 2024, 02:38h.
Last updated on: January 4, 2024, 02:38h.
Internet casinos are seen as the next frontier for the gaming industry and offer better long-term prospects than online sports betting. This suggests potential opportunities for new market entrants in this space.
In a recent report, EKG Gaming highlights the entries of Fanatics and Jackpocket into select iGaming markets, assessing their potential as competitive threats to established players like BetMGM, DraftKings, and FanDuel.
The Jackpocket Casino app is closer to minimum viable than the finished article (e.g., we note the absence of cross-sell paths between Jackpocket’s lottery and casino apps, though depositing casino players can earn a $10 lottery credit),” according to EKG.
Jackpocket recently launched its online casino offering in New Jersey, and Fanatics launched its iGaming platform in West Virginia.
Fanatics, Jackpocket Could Be iGaming Contenders
iGaming is currently legal in only six states, allowing for long-term industry growth. Positive legislative developments in 2024 could provide a further boost as more states seek new sources of tax revenue.
Market expansions could benefit newcomers like Fanatics and Jackpocket, catering to casual bettors. Both operators have the potential to gain market share over the long term, with strong mobile applications being crucial to their success – a key factor for all competitors in the space.
“The U.S. market, from an app quality perspective, remains homogeneous and largely uncontested. In 2024, we expect market leaders to strengthen their product advantages, but there is still room for smaller brands to make noise in the market, in our view,” explained the research firm.
Developing superior technology is crucial for operators looking to fully capitalize on the internet casino opportunity set. Analysts and operators are optimistic about the outlook for internet casinos due to the potential for state-level legalization, higher margins compared to sports betting, and increased player engagement and spending.
Penn Dealing with iGaming Issues
While Penn Entertainment’s ESPN Bet sports wagering mobile app is performing well, the same cannot be said of the operator’s new Hollywood Casino offering, which was relaunched in conjunction with ESPN Bet.
“Although early OSB results for ESPN Bet have been impressive, the same cannot be said of Hollywood, for which GGR performance during a partial November appeared to be in line with Barstool historicals. At this early stage, however, we caution against reading much, if anything, into that delta,” cautioned EKG.
The research firm also noted that Hollywood Casino is running on the same tech stack as predecessor Barstool, which previously scored well in evaluations.