Sports betting is on the Supreme Court docket, and that’s a big deal for many sports technology companies. On the surface, the case is around New Jersey’s appeal to legalize sports betting – which could bring significant revenue to the state – as part of a drawn out legal battle that has involved the four majors and the NCAA. More broadly, the case could set wheels in motion for sports betting throughout the US and impact tech companies in the fantasy, live statistics, and gambling markets.
Now, we’re not stating that daily or ‘real-time’ fantasy are gambling. Rather, that argument becomes moot with widespread legalized sports betting.
There’s considerable momentum from sports stakeholders to legalize betting – and for good reason, it’s a potentially massive new revenue stream. Adam Silver famously wrote his op-ed in defense of sports betting three years ago, Rob Manfred is ‘reconsidering’ the issue, the NHL and NFL are moving teams to Vegas, live data has become increasingly important (see Sportradar below), and some of the major leagues have backed DraftKings and FanDuel. And from an investment perspective, we certainly see many pitch decks that highlight the large size of a potential sports gambling market.
While we wait for next steps later this year, it’s worth noting that the sports gambling debate is an old one – older than the Supreme Court. Thomas Jefferson was barred from horse races and betting as a student. Happy Fourth everyone.