00:00I'm seeing this report here that you guys are reporting on the lack of new depositors during March Madness that
00:08are betting on sports.
00:10And so I'm not sure the answer to this.
00:13That's why we have you here is to tell us whether this is just simply because everybody who has who
00:18bets on sports has an account already.
00:21Or is it due to prediction markets being involved in this and some people pivoting over to that?
00:27But why should we be surprised, I guess, at all?
00:30If no new markets are legalizing sports betting, anybody who wants to bet probably already has an account.
00:37Yeah, I think it's a great takeaway, Craig.
00:39The only caveat that I would add to that is obviously more people turn 18 or more people turn 21
00:45every year.
00:46So there's always the opportunity to grab these new bettors.
00:49But to your point, kind of everyone who is going to bet has already bet.
00:53So unless you just turned 18 or 21 during March Madness and you're interested in sports betting, you're probably already
00:59signed up.
01:00We're kind of gone from those days where sports books were doubling and tripling their new user base like every
01:06quarter because you had new states going online.
01:08Now you have 37 states where sports betting has been legal.
01:11So it comes to a point where you run out of states you're adding every year.
01:14But the important takeaway here, I think, from the survey, which showed that just 3% of all betting activity
01:21on March Madness so far has come from these new bettors, these first-time depositors.
01:25I think the important takeaway for sports books is how they view that and how they kind of pivot their
01:30marketing strategy and their acquisition strategy and the promotion strategy around this.
01:35You know, spend less money on these new sign-up offers, often in the past, these events like March Madness
01:41where people are doing brackets, people who might not normally bet, you know, get involved in an office pool, something
01:47like that.
01:47That's been an opportunity for these sports books to then bring in these kind of casual, you know, maybe hesitant
01:53people on the side and usher them in, get them signed up for a sports book.
01:58But the fact that that's only 3% of activity this year, I think, really shows that sports books might
02:03be, you know, better served spending their dollars on retaining customers on their own platforms as opposed to attracting new
02:10ones.
02:11You know, personalized promotions tailored towards the better if you bet a certain way, you know, things that reward you
02:18when you lose or succeed.
02:20You know, we talked about, I think, pretty recently this past NFL season how FanDuel really struggled with not giving
02:26promos back to betters when FanDuel won a lot.
02:29It said it kind of lost a lot of activity because of that.
02:32So I think this is just kind of another symptom of where we are in this stage of legalization in
02:3637 states later.
02:38But definitely interesting for the sports books to think about is, you know, they kind of pivot their marketing strategy
02:42and roll towards the rest of March Madness here now.
Comments