Super Bowl Betting Shakeup: DraftKings Triumphs as BetMGM Faces Losses in New York’s Betting Arena

The recent Super Bowl has unveiled intriguing outcomes for New York-based sports betting companies, with DraftKings and BetMGM showcasing starkly different financial performances. According to the New York Gaming Commission, DraftKings managed to secure $8.8 million in revenue from a total of $52.3 million in bets placed on the game. In contrast, BetMGM faced a loss of $4.8 million, despite taking in $10.8 million in bets. These figures highlight the unpredictable nature of sports betting, particularly in high-stakes events like the Super Bowl.

This year’s Super Bowl, featuring the San Francisco 49ers against the Kansas City Chiefs, concluded with the Chiefs’ victory in overtime, an outcome that was not widely anticipated by the major sportsbooks, including DraftKings and BetMGM, which had favored the 49ers. The Chiefs’ win, led by superstar quarterback Patrick Mahomes, came as a surprise, especially since they were slight underdogs at the outset, attracting a significant amount of casual betting due to the appealing odds and Mahomes’ stellar reputation.

BetMGM’s senior trader, Tristan Davis, expressed that the Super Bowl was challenging for the sportsbook, noting a high volume of bets placed on the Chiefs to win and on the ‘over’ for popular player props. The extension of the game into overtime exacerbated losses, particularly with prop bets such as a player’s receiving yards, which became more profitable for bettors as the game lasted longer.

Additionally, Caesars Sportsbook also reported losses, attributing them to the unexpected overtime that favored bets at approximately 9-1 odds. This marked a rare occurrence, as only one out of the previous 56 Super Bowls had gone into overtime, indicating the high stakes and unpredictability of betting outcomes on such a major event.

DraftKings’ success, according to CEO Jason Robins, is attributed to the company’s diversified betting options, such as the Same Game Parlay product and improved player props, which helped sustain its revenue despite the game’s outcome. This strategy highlights the importance of innovation and variety in sports betting offerings to navigate the uncertainties of game outcomes.

The overall betting landscape in New York saw only BetMGM and Caesars report losses among the nine sportsbooks, with BetMGM’s loss marking the largest Super Bowl loss for a New York sportsbook since the legalization of sports betting in the state in January 2022. The total amount wagered on Super Bowl LVIII across all legal U.S. sportsbooks in New York was over $162 million, generating $12.4 million in revenue, a notable increase from the previous year’s $123.8 million in wagers and $6.9 million in revenue.

The broader impact of the Super Bowl on the sports betting industry is significant, with a record 67.8 million Americans estimated to have wagered on the event, representing a 35% increase from 2023. The American Gaming Association (AGA) reported an estimated $23.1 billion bet on this year’s Super Bowl, marking a record for the event. This surge in betting activity is part of a larger trend, with sports betting revenue reaching $10.92 billion in 2023, up 44.5% from 2022, as legal sports wagering continues to expand across the United States.

The fluctuating fortunes of sportsbooks like DraftKings and BetMGM in the context of the Super Bowl underscore the complexities and challenges of the sports betting industry, where outcomes can be as unpredictable as the games themselves.