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In November, industry leaders in the gambling sector conducted their investor calls for the third quarter.
The calls serve the purpose of updating investors on the companies’ performance and also include forecasts of future revenue for upcoming time periods.
Given that online sports betting and online casinos are already legalized in Michigan, it is rare for breaking news within the state to be discussed during these quarterly calls.
However, it is important to note that the calls did have some significant moments related to the state.
Hollywood Casino at Greektown a lead example for Penn
There was much commendation during Penn Entertainment’s Q3 investor call for the successful transition of Hollywood Casino at Greektown.
The rebranding became effective as of May 1st of the current year.
Jay Snowden, Chief Executive Officer of Penn Entertainment, stated that the newly rebranded Hollywood Casino at Greektown in Detroit exemplifies their strategy of reimagining their properties. He mentioned that the hotel had been closed for almost two years due to water damage, which allowed them to completely renovate the standard rooms and hotel lobby by introducing modern amenities and new food and beverage concepts. With the renovations coming to an end, Snowden believes that Greektown is in a favorable position to enhance its performance as downtown Detroit continues its recovery.
The retail Barstool Sportsbook located within the Greektown casino property stands out as an exceptional area of excellence.
In 2022, the retail sportsbook in Detroit has consistently ranked as the highest performer in terms of handle each month. Throughout the year, it has accumulated an impressive handle of over $113.5 million, resulting in revenue of $5.7 million.
Penn National operates a total of 25 retail sportsbooks across 11 states in the US. Excluding Nevada, it holds an 18% share of the retail handle market from January to August 2022.
Growth remains for Rush Street in Michigan
Rush Street Interactive, the proud owner of BetRivers Sportsbook and BetRivers Casino, has successfully established its presence in Michigan.
Rush Street views Michigan as a valuable asset due to BetRivers’ online casino product being ranked fourth in all-time online revenue for the state.
In its Q3 investors call, Rush Street emphasized the lucrative nature of Michigan’s market, attributing this success to the presence of both online sportsbooks and iGaming.
Because of this, RSI is still targeting a retention audience in Michigan instead of prioritizing new acquisitions in Ontario, a more recent market.
RSI Development CEO Richard Swartz mentioned that there are existing markets like Michigan where strong growth is still being observed. Additionally, he expressed enthusiasm about the growth potential in Ontario.
BetRivers ranks seventh in Michigan’s historical online handle race for sports betting, accumulating a significant sum of $96.1 million.
The Detroit Pistons have recently teamed up with BetRivers to launch the BetRivers Backcourt Club, an exclusive and all-inclusive floor level experience for its members. Situated behind the visiting baseline during Pistons’ home games, this partnership aims to offer a top-notch experience to its patrons.
Mattress Mack impacting Q4 projections
Jim “Mattress Mack” McIngvale, a well-known gambler in the country, is exerting influence on the anticipated revenue of certain companies for the fourth quarter.
In May, McIngvale placed a $3 million bet on the Houston Astros to win the World Series at Caesars Sportsbook, with odds set at +1000.
“Before the conclusion of the World Series, Tom Reeg, CEO of Caesars Entertainment, acknowledged that we are all likely aware of the Astros’ significant liability, which carries a high-profile impact. This factor will play a crucial role in determining whether the fourth quarter as a whole will yield positive outcomes.”
Last week, the Astros emerged victorious in the World Series after six games, resulting in McIngvale securing a $30 million payout from his bet.
However, that wasn’t the only thing. McIngvale also placed a $2 million bet with a Penn National sportsbook, which resulted in a $10 million payout.
Penn is predicting that the outcome of that bet will determine its profitability in Q4.
Snowden stated that they are involved in the Mattress Mack World Series bet, where there is a substantial amount of money at stake. If Mattress Mack wins, they stand to gain $10 million. With that in mind, Snowden expressed support for the Phillies. However, if Mattress Mack’s bet doesn’t pan out, they believe their Q4 profits will be in good shape. On the other hand, if Mattress Mack succeeds, they anticipate breaking even or coming close to it.
In total, McIngvale earned approximately $75 million through his wagers on the Astros triumphing over the Phillies. He cleverly leveraged these high-profile bets to effectively promote his Gallery Furniture store.
In this scenario, he proposed increasing the refund amount by two times for customers who spent $3,000 or higher on furniture, provided that the Astros emerged victorious in the World Series.
In a recent profile with ESPN, McIngvale expressed his belief that the promotions are undeniably advantageous. He explained that these campaigns not only breathe life into the brand but also generate significant brand value that would not be possible otherwise. The enthusiastic response from customers ensures their complete engagement, leading them to discuss and remember these promotions for years to come. Additionally, since these promotions continue throughout the season, it is highly likely that they attract a larger fan base for the Astros. McIngvale suggested that this is because people now have a genuine stake in the team.
