For the sports betting industry, 2020 was supposed to be one for the books.
The timing for the coronavirus outbreak, however, could not have been worse for the wide-eyed casinos and online sportsbooks operators expecting to capitalize on legal sports wagering expanding across the U.S.
“Timing is really bad because it happened right before March Madness, one of the signature sporting events on the calendar and that was canceled. Obviously the hiatus of NBA and NHL seasons. We should be talking about the first week of Major League Baseball season right about now.” said Joe Asher, CEO of betting site William Hill US in an interview with Cheddar. The company furloughed more than 600 workers amid fallout from the pandemic.
March Madness was expected to be a major revenue driver for sportsbooks. In 2019, Nevada set a new monthly handle record with basketball during March Madness accounting for $495 million. Without the NCAA basketball tournament and the suspension of major sporting events, Nevada’s economy will be hit especially hard, Asher added.
”It's hard to see a complete recovery in Las Vegas until you start to get into 2021, and then you can debate from there when it’s going to be,” Asher said.
While some bettors are getting their gambling fix by wagering on obscure events including eSports, Madden simulations, Russian table tennis, and sumo wrestling, the volume of betting pales in comparison to what William Hill is used to and does not help fill the revenue gap the sportsbook is experiencing.
“Historically our Nevada business last year made about $45 million in EBIT and that was funding the expansion across the country. [I was] expecting something similar to that for this year until about a month ago.”
A return by major sports leagues including the NBA and MLB would be an important first-step for the sports betting industry to regain its footing, even if fans are unable to attend.
“When sports resume I happen to think it’s most likely going to be in an empty arena. Hopefully we can salvage the NBA and NHL seasons and play in empty arenas but be able to broadcast and of course that'll allow people to bet on them,” said Asher.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
