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.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
