Posted on: September 11, 2023, 04:31h.
Last updated on: September 11, 2023, 04:31h.
Pending Monday Night Football tonight, the first week of the 2023 NFL season has concluded, revealing Caesars Entertainment’s (NASDAQ: CZR) potential technological advantage over its competitors.
In a note to clients on Monday, Wells Fargo analyst Daniel Politzer highlighted Caesars Sportsbook’s reduced latency during a livestream of Sunday Night Football on their sports wagering app. This is significant because lower latency allows bettors to place more in-game wagers. Latency refers to the delay between camera footage and video relay to viewers.
During week 1 of the NFL season, Caesars Sportsbook app had a livestream of NFL SNF. Latency was better than live TV (20-30 seconds), an incremental development in the online sports betting/media ecosystem that could potentially increase in-game betting,” wrote Politzer.
Reduced latency is crucial technology for sportsbook operators seeking to maximize in-game wagering opportunities. This technology operates faster than traditional broadcasts, enabling gaming companies to accurately set live betting odds.
Why Latency Matters for Caesars Sportsbook, Rivals
As technology continues to infiltrate the world of sports betting, speed becomes essential in expanding the range of live wagers offered by sportsbook operators.
In almost all major team sports, in-game odds can fluctuate on a play-by-play basis — such as a touchdown or a home run. Sluggish technology can limit operators to refreshing odds only during breaks in the action, depriving bettors of the best possible odds. Therefore, reduced latency can lead to increased live wagers placed, potentially boosting sportsbooks’ profits.
Caesars could be a potential investment winner, as well as sports wagering data provider Genius Sports (NYSE: GENI), which partners with Caesars on low latency digital NFL feeds.
A recent survey by research firm Eilers & Krejcik Gaming (EKG) identified FanDuel, DraftKings, and Bet365 as the top mobile wagering apps for in-game betting. However, this poll was conducted prior to the start of the football season.
Low Latency: A Significant Factor
While consumers still prefer watching football games on television rather than smaller mobile devices, Politzer emphasized that the long-term impact of improved latency speeds should not be overlooked.
“Overall, we don’t expect consumers’ preference for watching football games on big screens to change. However, the ability to stream live NFL games and place bets on a single screen without noticeable latency issues is a major development in the sports betting/media ecosystem, and over time, could potentially influence negotiations for sports media rights,” the Wells Fargo analyst added.
Considering that in-game betting is viewed as a long-term growth driver for the sports wagering industry, it is likely that more operators will make technological investments related to this in the years to come.