A bid by DraftKings to get the sole rights to sports betting in New Hampshire has succeeded. It has also upset some stake-holders of the sports betting industry
Earlier this year when the Granite State legalized sports betting, its administrators made provision for five sportsbooks. Monday’s news that it had overlooked this decision has been met with some strong criticism.
Some critics fear the lack of competitive odds and promotional offers will cause legal punters to look offshore. Others are concerned that its lottery-controlled-monopoly will prove to be as unsuccessful as they have been in states like Rhode Island and Delaware.
Compared to the NJ sports betting industry where 18 sportsbooks are in operation, wagering in these two states has been underwhelming.
New Hampshire will not be as hamstrung as Delaware which has no online betting. It will also be better off than Rhode Island where punters can wager online but cannot register this way. They can only do it in-person at land-based Casinos.
No other choice
Answering these concerns Daniel Wallach told Gambling.com Monday that there really” was no other choice”
Wallach is the co-founding director of the University Of New Hampshire School Of Law’s sports wagering and integrity program. He added, “It would have been shocking if the lottery went in any other direction.”
Wallach explained that DraftKings had offered 51% of its gross gaming revenue (GGR). In exchange it had asked for the exclusive rights to all mobile and retail sportsbook wagering in the state.
Kambi and ROAR Digital were the two other major contenders for a sportsbook contract. They had offered 12% of net gaming revenue and 20% of GGR, respectively.
In all, DraftKings was preferred to 12 sportsbook applications – and not only because of its GGR offer. It is reported to have also headed the other bidders with the best overall score in the application process.
One of the US’s sports gaming giants
DraftKings is a highly accomplished sports gaming operator. It is the giant of the US’s sports fantasy giants. It is currently sitting at number two behind FanDuel in the New Jersey, currently the US’s most exciting sports betting market. And there are some clear-cut factors that should keep it competitive and on its toes
One is its limited-time contract with New Hampshire. It will operate exclusively under contract until 2026 with a two-year extension option. This means it will need to perform to hold onto its sole rights advantage long-term.
Also, beside wanting to maintain the best-possible image in a US industry that still has huge spaces to fill, there is a third factor. And that is the New Hampshire Lottery itself.
Although DraftKings has been given exclusive rights, technically it won’t in fact be New Hampshire’s only sports betting option.
The lottery has partnered with gaming titan Intralot to run its own sportsbook. Punters will be able to place sports bets at all locations where they buy their lottery tickets.
Lottery betting should not be a problem
With online betting already up to or heading for the 80% mark in betting intake in most states, lottery betting should not worry DraftKings over much.
This is especially so as a high percentage of its online bets are likely to come from residents of surrounding New England states.
Bills to have sports betting legalized in Maine, Massachusetts and Vermont are nowhere in sight.
Add to this the fact that the Wire Act makes betting across state lines illegal and what do we see? There could be a repeat of the New York factor. Some 25% of New Jersey’s handle comes out of the Big Apple which is just a bridge or tunnel away.
Taking all this into account, I can’t see DraftKings losing its competitive edge in New Hampshire. Not with the chance of using its latest foothold to extend its national reach in New England.
Yes the same New England that is home to the NFL’s famed Patriots. Right now football is the US betting game’s biggest seller and the Patriots one of its best-backed teams.
