Not long ago, the NJ online casino Betfair and FanDuel Sportsbook merged wallets so players can transition their funds from casino games to sports betting without a hitch. This essentially gives Betfair Casino the ability to offer NJ sports betting through FanDuel, allowing them to be involved in the sports betting market. How this impacts the company's future remains to be seen.
After sharing the good news that Paddy Power Betfair, which operates Betfair Casino as one of its NJ online casinos, saw a nine percent increase in revenue worldwide, a heavy loss was reported for 2018 under their US operations division. Blasting its way into the US online sports betting market is proving costly initially, as PPB stated a loss of $19.75 million in the US. While its partnership between TVG and FanDuel for daily fantasy sports in the US earned $13 million, NJ online sports betting, as well as other locations, saw FanDuel Sportsbook lose a total of $31.6 million.
What Is Causing The Substantial Loss For Betfair Casino In The US Sports Betting Market?
Getting new customers, even in a fruitful environment like NJ online sportsbooks and the US sports betting market, is a difficult and costly endeavor. It's no different for Betfair Casino, as they've spent massive amounts of money on promotional pushes within the US as well as marketing strategies.
Paddy Power Betfair CEO Peter Jackson has stated that he expects FanDuel Sportsbook to become profitable within 1 1/2 to 2 1/2 years of the initial launch. And while their penetration into the NJ online sports betting market has been strong with a 35% market share, they're hoping that as more states legalize online sports betting like PA online sports betting, NY online sports betting and others, they'll be able to invest in those markets as well. Those will initially take a hit to their bottom line as they continue to market to new customers, but ultimately they envision the endeavor as a profitable one.
Betfair Casino Wants To Establish Itself As A Premier US Online Sports Betting Brand
Paddy Power Betfair took in a total sports betting handle of $557 million in 2018; a number that could grow exponentially as more states legalize online sports betting. Paddy Power Betfair already has operations in 46 states and allows players to play for real money in 33 of those states thanks to FanDuel daily fantasy sports and horse race betting via TVG. So with the desire to market and promote to new US sports betting customers as legal online sports betting in the US continues to expand, look for online gambling revenues to increase as Betfair Casino establishes itself as a top US online sports betting brand.