50 million Americans spent over $16 BILLION gambling on the Super Bowl yesterday!

Americans spent over $16 BILLION gambling on the Super Bowl yesterday!

With more states legalizing gambling on sports, Super Bowl LVII will probably be the biggest event for the industry ever. The American Gaming Association is predicting that more than 50 million people will bet about $16 billion on the National Football League championship game between the Kansas City Chiefs and Philadelphia Eagles.

But how will casino and online/mobile sports betting companies stand out in an increasingly crowded field?

Gambling leaders such as DraftKings, FanDuel owner Flutter Entertainment (PDYPF), MGM, Caesars and Wynn (WYNN), are all in a land grab for customers.

The high stakes competition is having an impact on the stocks of the sports betting giants. They have all surged so far this year as the broader market has rebounded. But many of these stocks are merely recovering from prior steep losses.

DraftKings is down about 30% in the past 12 months and nearly 75% over the past two years. Caesars (CZR) and Penn Entertainment (PENN), which has a stake in Barstool Sports, have both plummeted 40% in the previous year. Rush Street Interactive, the parent company of BetRivers, has slid nearly 65% during the same time frame.

Sports betting companies are going to have to pull out all the stops to both gain new customers and restore some confidence among investors.

MGM might have a leg up on the competition. The company’s BetMGM unit, a 50-50 joint venture between the Las Vegas casino giant and Entain, a UK-based gaming company, has the only physical sportsbook at the Super Bowl. It opened last September in Phoenix and is just outside State Farm Stadium where the game is being played Sunday.

With the expansion of legal sports betting, traditional Super Bowl wagers are expected to pass casual wagers for the first time ever:

30 million American adults plan to place a traditional sports wager online, at a retail sportsbook or with a bookie, up 66 percent from 2022.

28 million plan to bet casually with friends or as part of a pool or squares contest, up 50 percent from 2022.

Sports betting legalization is also driving fan interest in the NFL, as more than a third (34%) of NFL fans say that the expansion of legal sports betting has made watching an NFL game more exciting.

“Every year, the Super Bowl serves to highlight the benefits of legal sports betting: bettors are transitioning to the protections of the regulated market, leagues and sports media are seeing increased engagement, and legal operators are driving needed tax revenue to states across the country,” said AGA President and CEO Bill Miller.

Industry investments in responsible gaming continue to resonate. The majority of traditional Super Bowl bettors (71%) report seeing a responsible gaming message in the last year. Importantly, younger Americans (under 35 years old) are more likely to recall seeing a responsible gaming message and younger bettors are more likely to say it is important to only wager legally.

“As interest in legal sports betting continues to expand, the gaming industry remains committed to responsibly delivering world class entertainment, educating consumers about how to bet responsibly, and combating illegal gambling as we work to build a safe, competitive and sustainable legal market for all,” Miller continued.

Bettors are evenly split on the outcome of the game with 44 percent each planning to bet on the Philadelphia Eagles and Kansas City Chiefs.