Sutad Watthanakul
Sports betting volume is reported to have been strong once again for the third weekend of the NFL season, although there has also been an uptick in promotions.
Analysis from Wells Fargo showed a step-up in promotions on September 25 from September 18 with FanDuel (OTCPK:PDYPY) changing its promotions in most states to "second chance bet up to $1,000" from the prior offer of “Bet $5, get $150 in free bets.” BetRivers (RSI) also changed its previous $250 deposit match to a second chance bet up to $500, according to analyst Daniel Politzer.
Politzer noted that Caesars Sportsbook (CZR), DraftKings (NASDAQ:DKNG), and BetMGM (MGM) (OTCPK:GMVHF) had been the online sports betting operators offering the highest promotions in general. That means the moves by FanDuel and BetRivers (RSI) could be an early indication of the OSB market moving toward the leaders and becoming promotional in general as the football season heats up. That would run counter to some of the stated goals of the companies to rationalize marketing costs in Q3 with eyes on profitability.
Sector watch: NFL football proves another jolt to sports betting sector