Catena Media analysis of how we expect sports betting to roll out across the United States of America.
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Catena Media analysis of how we
expect sports betting to roll out across
the United States of America.
The impacts of this ruling on sports betting in the United States
• The state of New Jersey can now move forward • Pennsylvania is also prepared, which legalized
with its plans to legalize wagering. Some gaming sports wagering in 2017. A PA sports betting
facilities in the state have indicated it could be rollout there is up in the air but could come
just a matter of weeks until sportsbooks are later this year or early next year.
operations.
• Sports betting legislation advancing, but not yet
• The proposed NJ law also permits internet and passed, in a number of states can take effect
mobile sports betting. Some casinos have already immediately upon passage. These states include
put software partnerships in place, and regulators Connecticut, Illinois, Oregon and New York,
will be approving those platforms along the way, among others.
as well.
• West Virginia sports betting and Mississippi sports
betting are also prepared to move forward with
laws on the books.
2The impact for Catena Media
NEXT 6 MONTHS: NEXT 12-18 MONTHS: NEXT 5 YEARS:
• Catena is well positioned in the U.S. with lead • Sport Gambling, now legal in Pennsylvania • Many states have had and will restart
generation sites already active in numerous under a previously passed gaming expansion Sports gambling legislation in their next
states with high volumes of Sports related bill, is anticipated to go live in Q1 or Q2 of few sessions. The expectation is that by
traffic daily. 2019. There is possibility of it occurring late 2022 more than 60% of the U.S. market
• Catena expects to see increased traffic to 2018 but unlikely due to the necessity could be targetable for Sports Gambling
its current New Jersey customers and also the for the State’s gaming regulatory body to advertising.
potential for a number of additional CPA deals publish regulations and approve sports
to be signed in the state for new, Sports platforms, while also pushing through • There are some uncertainties in the US
focused, market entrants. This will happen general iGaming regulations and testing particularly around how the various sports
in the next few months as those customers’ platforms for its iGaming business launch leagues approach their “integrity fee”
online sports products are approved by the expected later in 2018. Catena has top argument and this could impact either the
regulatory body, the Division of Gaming traffic sites in PA, such as PlayPA.com and timing of state regulations passing, or the
Enforcement (DGE) in New Jersey. will be well positioned with casino custo- revenues expected by operators and thus
• West Virginia and Mississippi have indicated mers for lead generation deals when both their CPA deals with Catena.
they could have Sports betting sites live iGaming and sports betting go live in PA.
within 2018 and would be expected to be Q3 • Should Sports Gambling be received excep-
or Q4 events. Both would be new markets for • It is anticipated that 4 other states are tionally well by players and operators in the
Catena to leverage its market leading expe- likely to pass Sports gambling regulations first few states: New Jersey, Pennsylvania,
rience in New Jersey and Europe in. in 2019 and Catena is in good position in all etc., we could see an acceleration by other
• With these added states, current operations of of them. This would add another 11% of the states to join in on the lucrative taxable
Nevada Sports, and the now expanded opera- U.S. population for the targetable Sports business.
tions in Delaware, this will account for about gambling market.
6% of the US market being served in Sports
Gambling by the end of 2018.
3Regulated U.S. Sports Betting
On the next slide, we provide our outlook for the five
waves of U.S. sports betting regulation in a post-PAPSA world.
OUR ASSUMPTIONS INCLUDE: SOME PLAUSIBLE TAILWINDS THAT COULD SOME PLAUSIBLE HEADWINDS THAT
ACCELERATE THE PROCESS INCLUDE: COULD SLOW THE PROCESS INCLUDE:
1. Supreme Court returns a decision that 1. A rapid, overwhelmingly successful 1. Any sort of federal intervention.
leads to the immediate unwinding of PASPA. (in revenue terms) sports betting launch in
New Jersey. 2. The removal of any lingering questions
2. Leagues and gambling interests reach raised by the Wire Act.
some sort of agreement that allows them to 2. The removal of any lingering questions
move forward in unison. raised by the Wire Act. 3. Court challenges over player data rights.
3. Tribal gaming interests reach a deeper and 3. Advocacy from the NFL. 4. Legal challenges from the NCAA or other
broader level of comfort with sports betting. college sports interests.
4. Tax rates / license fees stay within the 5. Regulatory inflexibility (e.g., unwillingness
10% to 20% / sub $3mm range. to accommodate non-endemic stakeholders
like media companies, inefficient regulations
for online sports betting, regulations that limit
iterative products)
Source: Eilers & Krejcik Gaming LLC
4Regulated U.S. Sports Betting state by state
The map below displays
our projections for when
a given state is likely to
go live with sports betting
(given assumptions from
previous slide)
Source: Eilers & Krejcik Gaming LLC
5Regulated U.S. Sports Betting: Five Waves
WAVE 1 WAVE 2 WAVE 3 WAVE 4 WAVE 5
(LIVE IN 2018) (LIVE IN 2019-20) (LIVE IN 2021-22) (LIVE AFTER 2022) (UNLIKELY TO PASS)
• Delaware • Connecticut • Arizona • Alabama • Alaska
• Mississippi • Illinois • Colorado • Arkansas • Hawaii
• Nevada • Oregon • Florida • California • South Carolina
• New Jersey • Pennsylvania • Indiana • Georgia
• Tennessee
• Iowa • Idaho
• West Virginia • Rhode Island
• Kansas • Louisiana • Utah
• Kentucky • Maine • Wyoming
• Maryland • Montana
• Massachusetts • Nebraska
• Michigan • New Hampshire
• Minnesota • New Mexico
• Missouri • North Carolina
• New York • North Dakota
• Ohio • South Dakota
• Oklahoma • Texas
• Wisconsin • Vermont
• Virginia
• Washington
6% * 11%* 39%* 39%* 5%*
Source: Eilers & Krejcik Gaming LLC *Est percentage of the US adult population
6Catena Medias sports-ready
portfolio includes: Catena Media has Play domains
waiting to be developed in another
dozen states.
• LegalSportsReport.com • PlayMA.com
• TheLines.com • PlayMichigan.com
• NJBetting.com • PlayNJ.com
• NJGamblingSites.com • PlayNY.com
• PlayUSA.com • PlayNY.com
• PlayCA.com
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