“With such a thirst for sports betting in the US, early mover advantage was always going to be important.”
As the first state to go online following the repeal of PASPA, all eyes have been on New Jersey and its burgeoning legal sports betting industry.
Last week, the New Jersey regulator released its latest monthly revenue report, for October, and as the below graph shows, Kambi’s New Jersey operators held more than 60% of the state’s online market.
In total, New Jersey’s online revenues for October were $8.8m, bringing the year-to-date – which began on 1 August when Kambi and partner DraftKings processed the first legal online wager post-PASPA – to $24.4m.
According to the report and Kambi estimates, the DraftKings Sportsbook dominated with more than 50% market share. Meanwhile, the Kambi-powered SugarHouse brand, operated by Rush Street Interactive, has also been faring well and in October held a 6% share of the market, putting it in third place out of eight brands and ahead of every online book released by an Atlantic City casino. By way of comparison, SugarHouse’s online sports betting revenues for October exceeded those of the Borgata, Ocean Resort and Bally’s combined, this comes despite SugarHouse having no physical property to leverage in the state.
With such a thirst for sports betting in the US, particularly in New Jersey where the state led the legal efforts to strike down PASPA over many years, early mover advantage was always going to be more important than usual.
As a result of its focus on all matters concerned with integrity and corporate probity, Kambi was able to navigate the regulator’s licensing process quickly and without issue. Furthermore, Kambi’s scalable and powerful compliance technology ensures it can adhere to any local regulations and specifications at pace, ensuring customers a quick and speedy launch.
The Kambi-powered DraftKings Sportsbook was first out of the gate in August, creating history when processing the first legal online bet post-PASPA. Furthermore, the partnership has continued to set the pace – by the end of October it had generated more than twice as much revenue as its nearest competitor.
DraftKings has taken full advantage of the freedom Kambi offers all operators, utilising Kambi’s market-leading APIs and open platform to build a bespoke frontend client on top of the Kambi Sportsbook core. This ensured DraftKings’ existing customers would see a sportsbook that looked and felt familiar to its popular DFS site.
“Kambi’s New Jersey operators held more than 60% of the state’s online market”
Meanwhile, Rush Street Interactive’s SugarHouse brand has assumed a top-three positon in the market with its version of a Kambi Sportsbook. Despite not having an existing sports-specific customer database, the deep integration between the Rush Street and Kambi platforms has enabled SugarHouse to leverage Kambi’s empowerment tools to offer an altogether differentiated experience in an increasingly competitive market.
Thanks to the tools offered by Kambi, its operators have been able to apply different strategies to the New Jersey market. By way of example, Kambi’s price differentiation tool enables operators to scale up or down the margins applied to the most important sports and leagues, ensuring it’s the operators’ decision on how competitive they’d like to be in the market.
In short, Kambi has given its operators both the speed to launch and the agility to execute – taken together, this has given Kambi and its operators the freedom to assume leading positions in the New Jersey market.
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