Connect with us

Hi, what are you looking for?

Business

As meme stocks fall, sports betting apps are angling for customers

As battered-down meme stocks fall out of fashion a year after the craze began, some gaming industry analysts say online sports betting apps could see a flood of new wagers. Over the past 12 months, mentions of GameStop on the Reddit board WallStreetBets have fallen slightly, by 1.45%, according to numbers crunched for On the Money by data firm Thinknum. Mentions of Caesars Entertainment, meanwhile, are up nearly 1,000%. Betting app DraftKings is up nearly 560%. Yes — that’s probably because FanDuel and DraftKings, which together control a majority share of the online sports-betting market, have lately dangled credits as high as $1,000 to sign up new members. Caesars has likewise staged aggressive promotions in New York despite a high state tax rate of 51% on online gaming revenues. Nevertheless, Chris Grove — a gaming analyst who is also head of a lead-generation company focused on the US gambling market — says these apps have good reason for optimism that their promotions will yield fruit. “Betting on stocks and [gambling] in an app is the same thing,” Grove told On The Money. “There’s a common thread through these activities — and a fair amount of overlap in demographic and skillset between meme stocks and sports betting.” Last week, the New York Gaming Commission said mobile sports betting was off to a brisk start in its first week, with more than $600 million in bets taken by Caesar’s, FanDuel, DraftKings and BetRivers. Gaming analysts said that the massive haul was partly the result of “heavy promotion from the operators.” “Unlike Uber or Doordash, there is no debate about whether this will work once that initial phase of jostling for market share subsides,” Grove contends. “The underlying business is profitable.” Nevertheless, one gaming operator is looking to cash out early. Las Vegas-based casino giant Wynn is quietly shopping its Wynn Interactive unit — operator of the WynnBet online gaming app — and has slashed the asking price to $500 million after floating a $3 billion valuation less than a year ago, The Post was first to report.

Click to comment

Leave a Reply

Your email address will not be published.




Advertisement

You May Also Like

Business

Contact The Author Female employees at CNN are furious that chief spokesperson Allison Gollust is keeping her job after lying about her affair with...

Business

Katie Couric dished on Jeff Zucker and Allison Gollust’s relationship in her tell-all memoir last fall, saying it struck staffers as “super strange” when...

Business

North Korean hackers managed to steal a fortune in cryptocurrency in 2021, according to the results of a recent study. Cybercriminals based in North...

Finance

THE COUNTRIES of East and South-East Asia are renowned, even envied, for reshaping global supply chains. Less well appreciated is the extent to which...