Fanduel’s stock has been on the rise in the weeks leading to Sunday’s Super Bowl and expects the contest to generate the company’s biggest sports betting handle ever.
Sports Betting and iGaming Yet to Reach its Full Potential
In an interview with MarketWatch, FanDuel CEO Matt King commented on the impact of the pandemic on sports betting, the consequences for the business after sports betting was legalized in New York, as well as the company’s plans to go public.
King anticipates this year’s Super Bowl contest to generate a record sports betting handle for FanDuel. In the first 28 days of 2021, FanDuel reported $1 billion in handle on the sportsbook, while compared to last year this amount was not reached before the last quarter of 2020, King said.
According to the American Gaming Association (AGA), Sunday’s event featuring the Kansas City Chiefs and Tampa Bay Buccaneers is expected to book $4.3 billion in bets. In another interview for Bloomberg, FanDuel’s CEO said the company’s business had been booming ahead of the Super Bowl and the New York-based bookmaker is expecting its biggest single-game wagering activity ever.
Regarding the legal sports-betting trend within the context of the pandemic, King said that individual states are experiencing strong pressure to fill the fiscal holes created by Covid-19. On the other hand, sports betting and iGaming laws are already in place across various states and the results show it is a win–win common sense legislation. While players are able to enjoy this form of entertainment, the illegal market is put out of business, King told MarketWatch.
FanDuel’s Top priority is Developing the Best Product on the Market
King said to Bloomerg that between five and seven states are expected to authorize sports betting by this time next year, while the industry is about to unleash its full potential in states, where it has already been legalized, such as Pennsylvania and New Jersey. In terms of the increasing competition, FanDuel is confident it will maintain its leadership position by sustaining its fan-based strategy, large product offering and innovative solutions.
To the question whether FanDuel sees Robinhood as competition, King added that the company sees itself as competing against any form of entertainment, but its primary objective is to create engaging customer experiences from an entertainment perspective rather than to present itself as an investment product.
Matt King said the company is trying to build the best business possible and innovate its product instead of going public. King added that FanDuel is well-funded by Flutter and has all the resources it needs. King highlighted that looking at market share reports, the company has the number one business without being publicly traded, and the real prize is delivering the best fan experience on the market.