How Does the World Cup Impact Operator Revenue?

As the conclusion of the World Cup in the USA, Mexico, and Canada approaches, operators will soon assess whether the event has lived up to its commercial promises. This topic is relevant not only for sports betting but also for potential cross-selling in casinos.

Contribution to Annual Operator Revenue

According to investment bank Macquarie, the global sports betting market could reach $50 billion. However, Entain's CEO Stella David stated at a conference that the World Cup may only contribute about 1% of annual revenue: “It’s bigger than the Euros, but not as dramatic as one might think.”

Team Participation and Match Outcomes

The expanded World Cup includes 48 teams, increasing the number of matches by over 60%. This leads to unexpected match outcomes, with newcomers like Cape Verde defeating favorites. As noted by Macquarie Group’s Chad Bannon, results on the field can significantly impact operator revenues: “If England makes it to the final, those numbers may be higher than our expectations.”

Cross-Selling Opportunities

For companies like Super Group, the true value of the World Cup lies in cross-selling services—from sports betting to casino games. Super Group’s CEO Neil Menashe believes this constitutes 60-70%. Ed Birkin from H2 Gambling Capital suggests this process is not as successful in the U.S., where casinos are only available in five states.

Focus on Customer Acquisition

Robeson Reeves, CEO of Bally’s Intralot, noted that the company is focused on customer acquisition after the championship. As practice has shown, advertising expenses significantly decrease after major sporting events, making it a great time to increase market share.

Prospects in the U.S. Market

Chad Bannon claims the championship presents huge commercial opportunities in North America. DraftKings and Flutter Entertainment’s FanDuel are primed to leverage this event for attracting new customers. As Greg Karamitis from DraftKings notes, this event is particularly important as it takes place during a less active time on the sports calendar.

Impact of Predictive Markets

Predictive markets, such as Kalshi, may pressure traditional betting operators. Bannon notes that Kalshi processed around $15 billion in betting in May, primarily in states where sports betting is prohibited. However, Ed Birkin suggests their impact in Europe will be limited due to legal restrictions.

The World Cup is not only a moment of great competition but also a starting point for long-term customer engagement and increasing loyalty.