As the NFL season begins, DraftKings and BetMGM anticipate unprecedented betting figures, with sportsbook leaders noting a surge in customer engagement despite ongoing economic challenges.
Jason Robins, CEO of DraftKings, stated that betting activity has been climbing consistently leading into the NFL kickoff. “The figures are escalating right up to kickoff, and they will continue through Sunday,” he shared with CNBC during the Bank of America Gaming and Lodging Conference. “We are witnessing impressive, record-breaking numbers, and we are thrilled about the excitement as the season unfolds.”
The American Gaming Association (AGA) forecasts that legal sports betting in the U.S. will increase by 8.5%, reaching $30 billion this season.
CEO Adam Greenblatt of BetMGM, which is collaboratively owned by MGM Resorts and Entain, also highlighted positive trends. He told CNBC that last week was the sportsbook’s most profitable to date, with a 30% rise in preseason activity. “There’s absolutely no decline in average bet size or the frequency of active sessions per week and month. Our engagement remains strong,” he noted.
Greenblatt further mentioned that 60% of sports bettors also engage with online casino games, or iGaming, which typically provide higher profit margins. “I am pleased to report that our sector appears to be counter-trending positively,” he added.
This year, both operators have delivered stronger-than-anticipated financial outcomes. DraftKings surpassed Wall Street expectations in its second quarter, while BetMGM has revised its earnings forecast upward on two occasions. Executives indicate that customer acquisition costs are declining as more states legalize sports betting.
Simultaneously, prediction markets are emerging as a competitor but also as an opportunity. These markets enable users to trade event contracts with prices fluctuating like stocks, and they are overseen by the Commodity Futures Trading Commission (CFTC).
Front Office Sports disclosed in July that DraftKings is exploring an acquisition of Railbird, a CFTC-approved exchange. While Robins refrained from discussing the specifics of the report, he mentioned, “We’re regulated in various states, and while some states adopt a confrontational approach, we must tread carefully and engage with the regulators.”
FanDuel has teamed up with the Chicago Mercantile Exchange for financial event contracts, while companies like Underdog, Robinhood, Kalshi, and Polymarket are also entering the sports trading space.
Nevertheless, some industry figures remain cautious. “Our perspective is that it invites federal oversight into a domain that has been relatively untouched, and we would prefer not to see the market move in that direction,” stated MGM Resorts CEO Bill Hornbuckle.
The NFL has also restricted its employees from engaging in prediction markets, due to integrity concerns stemming from potential price manipulation and distortions.