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6 Sports Betting Industry Predictions and Trends to Watch in 2018

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2018 promises considerable excitement for global sports betting. From the SCOTUS review of PASPA, to record sports betting GGR in South Africa, to improved Nevada hold and handle, here's what we're watching in 2018.

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6 Sports Betting Industry Predictions and Trends to Watch in 2018

  1. 1. January 2018 2018 6 Predictions & Trends to Watch Sports Betting and Gaming (and a quick look back at 2017)
  2. 2. 6 Predictions and Trends to Watch in 2018 www.chalklinesports.com 6 Predictions & Trends to Watch in 2018 3 Important Trends from 2017 6 Predictions & Trends to Watch in 2018 The US Supreme Court will fully repeal PASPA. A European operator will make a $500M+ US acquisition. South African sports betting GGR will grow 25%. Nevada legal handle will grow 10%. US live-in-play handle will double. US operators will reverse the declining hold trend. About Chalkline 1 2 3 4 5 Note: with offices in the US and South Africa (and experience operating books in both), we’re far more attuned to the US and African markets. Also, there will be plenty going on in eSports and crypto that we don’t touch on here. 6
  3. 3. 6 Predictions and Trends to Watch in 2018 www.chalklinesports.com Trend: Continued global consolidation One example that summed up 2017: Openbet was acquired by NYX Gaming, which was then acquired by Scientific Games. Plus, GVC – Ladbrokes Coral, Paddy Power - Draft, and more. Highlights from 20172017 Acquired by Acquired by SCOTUS agrees to hear New Jersey’s appeal of PASPA Easily the biggest story of the year, as it potentially opens up one of the largest sports betting markets in the world. Plus, it set off an industry chain reaction as stakeholders started jockeying for position. African sports betting markets continue rapid growth • South African casinos continue to lose market share to sports betting. (Casinos = 80% of GGR in 2011 down to ~65% in 2017. ) • Retail sports betting locations up +10% in 2017. • Multiple gaming conferences in 2017.
  4. 4. 6 Predictions & Trends to Watch in 2018
  5. 5. 6 Predictions and Trends to Watch in 2018 www.chalklinesports.com The US Supreme Court will fully repeal PASPA.1 Our legal friends and advisors have helped inform this opinion. And, if/when SCOTUS does repeal PASPA…it’s gonna get messy as states start pushing forward. We believe there will be a legal (non-DFS) sports bet struck in a new ‘sports betting state’ in 2018. Source: https://www.legalsportsreport.com/sportsbetting-bill-tracker/ (If you don’t read Legal Sports Report, you should.)
  6. 6. 6 Predictions and Trends to Watch in 2018 www.chalklinesports.com A European operator will make a $500M+ US acquisition.2 2017 saw significant industry M&A, and several European operators invested in the US. The reality is this: the quickest path to accessing the US market is through acquisition. We expect to see a >$500M+ deal as global operators acquire licensing opportunities.
  7. 7. 6 Predictions and Trends to Watch in 2018 www.chalklinesports.com South African sports betting GGR will grow 25%.3 The 2018 World Cup will drive growth that exceeds the expectations of PwC and other analysts. Mobile and strong retail will drive 25%+ YOY market expansion. Source: https://www.pwc.co.za/en/assets/pdf/gambling-outlook-2017-2021.pdf R0 R1 R2 R3 R4 R5 R6 2014 2015 2016 2017 Billions South African GGR: 2014-2017 R3.5B +22% YOY R4.4B +29% YOY R5.1B +14% YOY R5.3B +4% YOY
  8. 8. 6 Predictions and Trends to Watch in 2018 www.chalklinesports.com Nevada legal handle will grow 10%.4 With the 2018 World Cup, more live-in-play and better marketing from sports books, we predict double-digit growth in Nevada handle this year. Source: http://gaming.nv.gov/index.aspx?page=149 $3.9B +8% YOY $4.2B +9% YOY $4.6B +6% YOY $4.8B +7% YOY
  9. 9. 6 Predictions and Trends to Watch in 2018 www.chalklinesports.com US live-in-play handle will double.5 Once you try it, you get it. Look for this number to grow dramatically in 2018 as US books offer more live products. Source: https://www.williamhillplc.com/media/11451/wmh-us-update-20170510.pdf p.2 ~70% Percentage of global regulated bets that are live-in-play Data from William Hill US supports strong live-in-play growth The rest of the regulated sports betting world loves live betting.
  10. 10. 6 Predictions and Trends to Watch in 2018 www.chalklinesports.com US operators will reverse the declining hold trend.6 US hold numbers are trending the wrong way. In 2018, operators will invest in data-driven tools to shore up hold and reverse the trend. 5.82% 5.47% 4.86% 4.70% (est.) 0% 1% 2% 3% 4% 5% 6% 7% $- $1 $2 $3 $4 $5 $6 2014 2015 2016 2017 Billions Nevada Handle & Hold: 2014 - 2017 Handle Hold Source: http://gaming.nv.gov/index.aspx?page=149
  11. 11. Connect with Chalkline www.chalklinesports.com hello@chalklinesports.com @ChalkLineSports Read 5 Lessons Learned Integrating a Sports Book Into A Land-based Casino In Their Court: The 9 Best Quotes from Sports Betting Players as SCOTUS Deliberates Chalkline Sports’ mobile-first marketing automation platform drives customer clicks and transactions to sports books, casinos and media companies with data-driven precision. BetAssist | BettorGames | BettorBI

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