Wyoming’s sports betting market was off to a slow start in its first month of launch in the state. DraftKings and BetMGM recorded slightly over $6 million in wagers combined which was far less than the $37 million per month both companies initially predicted. However, another sportsbook giant will be entering the state and could help jumpstart the sports betting industry in Wyoming.
Fanduel joins the Wyoming sports betting market late
The Wyoming Pari-Mutuel Commission has been licensed and approved for immediate operation in the state in the next few weeks. FanDuel will just be the third sportsbook to enter Wyoming as it will have a late start compared to DraftKings and BetMGM in terms of establishing a consumer base.
DraftKings and BetMGM had just a gross revenue of $954,416 for the two companies. Promotional spending turned the gross revenue into a net loss as the total went to -$124,969. However, this is not something sportsbooks have to worry about as these companies have a well-established marketing team and strategy.
Promotions cost sportsbooks a lot of money as they try to attract the first bettors in the state while using their platform. Wyoming is doing things the opposite way when compared to other states as it became the second state after Tennessee to offer online sports betting only in the month of September. Both states do not have state-regulated gaming facilities, but allow sportsbooks to accept wagers online.
Sports betting in Wyoming launches and notes a net loss
As the sports betting market enters the early months since its inception, sportsbooks have a hard time getting people to place wagers. Football summed up more than half of the first month’s handle in the state which garnered around $3.6 million in wagers. October’s report will come out in the next few weeks.
Wyoming’s legal betting age was set to 18, which is different from many other states as most are slated for 21. The first legal wager was University of Alabama-Birmingham Blazers versus the Jacksonville State Gamecocks. The Blazers were 16.5 point favorites and won 31-0.
Wyoming is home to the smallest population across the United States as it is the only state with less than 600,000 residents. Still, more sportsbooks have applied to get a license to operate in the state. Wyoming Pari-Mutuel Commission Sports Wagering Project Manager David Carpenter expects there to be a positive report for October.
The state will also put no cap on how many sportsbooks can enter the state. Carpenter stated,
I would expect by the end of the year or early in 2022, we’ll be upwards of five to six operators,” he said. “And then I would expect by the end of 2022 we’ll be closer to 10.
Penn National Gaming is expected to be on the Commission’s radar in the foreseeable future, likely with the Barstool Sportsbook brand. In the third quarter of 2021, FanDuel held onto the position as the largest sports betting operator in the United States. From July through September, FanDuel had a 42 percent market share in the sports betting industry, and 18 percent in online gaming.