Why DraftKings made $8 million and BetMGM misplaced practically $5 million on Super Bowl bets in New York

The greatest sportsbooks had the San Francisco 49ers profitable the sport in opposition to the Kansas City Chiefs; the 49ers misplaced the sport in additional time.

Despite having famous person quarterback Patrick Mahomes, the reigning Super Bowl-champion Chiefs had been underdogs at practically all sportsbooks, albeit solely barely, giving informal bettors the attract of getting favorable odds and likewise the most effective participant within the sport on their aspect.

“It was a bad Super Bowl for the sportsbook. Many bettors had the Chiefs winning and overs on popular player props,” Tristan Davis, senior dealer at BetMGM, instructed MarketWatch. An particular person participant prop is, for instance, betting that Mahomes will throw for over or underneath 250 yards within the sport. Typically, bettors disproportionately wager on the “over” somewhat than the “under” participant props, as a result of they’re extra thrilling to root for.

The sport going to additional time damage particularly as a result of it prolonged the Super Bowl, permitting a number of in style prop bets, like a participant’s receiving yards, to get even greater.

In addition to BetMGM, Caesars additionally misplaced cash on the sport. According to Caesars, it misplaced out on some huge cash when the sport went to additional time – a well-liked prop wager that paid about 9-1 odds. Entering this yr’s massive sport, solely one of many 56 earlier Super Bowls had gone into additional time.

“The game was good for the customers,” Caesars Sportsbook vice chairman of buying and selling Craig Mucklow instructed MarketWatch. “The sharps were on the 49ers, and the public was on the Chiefs. It was a great comeback by the public on the game.” Sharps is a time period used to explain skilled or skilled bettors.

So why did DraftKings say it made a lot cash on the sport?

“I think this speaks to the power of our work that we’ve done over the last few years to build out the Same Game Parlay product and improve player props and really diversify the bets, that despite the fact that the game outcome did not go our way at all, with the Chiefs winning, we ended up actually holding right in line with what we thought we would from a hold-rate perspective,” DraftKings CEO Jason Robins stated in the course of the firm’s earnings name final week.

Of the 9 sportsbooks working in New York, together with Bally Bet, DraftKings, FanDuel
FLUT,
-3.23%,
FactorsBet, RWB, RSI and WynnBET
WYNN,
-1.81%,
BetMGM and Caesars
CZR,
-2.02%
had been the one two that misplaced cash on the sport. New York’s Caesars sportsbook misplaced $970,404 off $12.5 million wagered, in line with new knowledge from the New York Gaming Commission.

In New York in the course of the 2023 Super Bowl, BetMGM took in $5.4 million in Super Bowl bets and made $157,872 in gross gaming income, whereas Caesars took in $19.7 million and made $334,638 in gross gaming income.

The $4.8 million loss for BetMGM this yr is the largest recorded Super Bowl loss for a New York sportsbook since betting was legalized in New York state in January 2022.

Over $162 million was wagered on the 9 authorized U.S. sportsbooks in New York on Super Bowl LVIII, together with retail sportsbooks, resulting in a complete of $12.4 million in income. That’s a rise from $123.8 million in wagers and $6.9 million in income in 2023.

Several U.S. sportsbooks contacted by MarketWatch didn’t want to disclose particularly how a lot cash they gained or misplaced on this yr’s Super Bowl throughout their different working states. At sportsbooks nationwide, 69% of bettors had been backing the Chiefs to win the Super Bowl, in line with Action Network’s public betting knowledge, organising a giant legal responsibility for sportsbooks if the Chiefs gained the sport. Which they did, in a 25-22 thriller.

See additionally: A six pack of beer for $340? How a lot issues would value in the event that they elevated as a lot as the worth of a Super Bowl business.

DraftKings swung to a shock quarterly loss when it reported earnings final week, however bulls nonetheless cheered. As MoffettNathanson’s Robert Fishman put it, “it is not really an exaggeration to say almost everything went right for DraftKings” in 2023, and the largest stumbling block for the corporate was possible adversarial outcomes for some sporting occasions.

A document 67.8 million Americans had been estimated to wager on Super Bowl LVIII, a 35% enhance from 2023, in line with knowledge from the American Gaming Association. And Americans had been anticipated to wager an estimated document of $23.1 billion on this yr’s Super Bowl, up from $16 billion on final yr’s sport.

Sports betting generated $10.92 billion in income in 2023, up 44.5% from 2022. Americans legally wagered $119.84 billion on sports activities, up 27.8% from the earlier yr, in line with the AGA.

Thirty-eight states — plus Washington, D.C. — now supply some type of authorized sports activities betting, representing 67% of the American grownup inhabitants. The Roundhill Sports Betting & iGaming ETF,
BETZ
a tier-weighted index of world sports activities betting & iGaming corporations, decreased 1.56% throughout Tuesday’s buying and selling, however is up 6.33% over the previous 12 months.

Read on: Will a Super Bowl solely be out there on a streaming service? ‘That’s the place that is all headed.’