As the World Cup hosted across the United States, Mexico, and Canada approaches its conclusion, gambling operators are beginning to evaluate the financial impact of the tournament. Of particular interest is the extent to which such prestigious sporting events contribute to annual operator revenue. Macquarie Bank had anticipated global wagers reaching an impressive $50 billion, yet during a March earnings call for fiscal year 2025, Entain’s CEO Stella David alluded to modest revenue expectations, citing the World Cup’s contribution to the company’s annual turnover as approximately 1%. This has sparked a broader conversation about the economic value of such international events in the gambling sector.
While the World Cup’s contribution might seem minimal, Ed Birkin, Managing Director of H2 Gambling Capital, views these events as strategic customer acquisition opportunities rather than immediate substantial revenue drivers. Birkin pointed out that while the World Cup accounts for roughly 7% of sports turnover in reporting markets, the actual financial benefits can vary significantly depending on the outcomes of the matches. Operators with a stronger focus on sports might see a larger benefit, yet those like Entain, with substantial gaming brand presence, experience a more measured impact.
The expansion of the tournament to 48 teams resulted in numerous matches between football giants and debuting teams, leading to unexpected results which have affected operators’ revenues. For instance, surprising draws involving Cape Verde against Spain and Uruguay illustrate how underdog performances can influence betting outcomes. Chad Beynon, a senior analyst at Macquarie Group, emphasized the importance of these results, suggesting that if major teams like England progressed further, it could significantly alter revenue trajectories.
The conversation around the World Cup also includes its potential for cross-selling opportunities, particularly into casino gaming. Neal Menashe of Super Group claimed significant potential for sports betting to lead into casino engagement, estimating a 60%-70% cross-sell rate. However, Birkin notes that in the United States, the expansion of iGaming remains limited to a few states, posing challenges to achieving forecasted cross-sell rates.
For operators, the World Cup is more about capturing a long-term customer base than short-term revenue spikes. Robeson Reeves, CEO of Bally’s Intralot, indicated the company’s strategy during the event was not to invest heavily in marketing but rather to acquire competitors’ customers post-World Cup, when advertising costs decline. This strategy aligns with Bally’s focus on maintaining profit margins over engaging in costly marketing blitzes.
DraftKings, along with FanDuel, stands to gain from the World Cup being hosted in North America for the first time since 1994. Greg Karamitis of DraftKings emphasized the tournament’s role in customer acquisition and engagement, particularly targeting Spanish-speaking populations as Mexico co-hosts the event.
Despite escalating marketing costs during the World Cup, Birkin argues that operators have little choice but to increase their expenditure to maintain market visibility. Karamitis acknowledged the heightened costs but highlighted the long-term customer value and engagement scale as justifications for such investments. For larger operators like DraftKings, maintaining a visible presence is crucial to acquiring new customers and engaging existing ones effectively.
The rise of prediction markets presents a new competitive dynamic, especially in jurisdictions where sports betting is less prevalent. Beynon noted Kalshi’s significant wager volumes, indicating a burgeoning interest in prediction markets that could potentially rival traditional betting revenue. However, Birkin downplayed their impact on European markets, where legal constraints are more stringent.
As the World Cup draws to a close, the focus for operators shifts toward converting the month-long fan engagement into sustained customer loyalty and revenue streams. Beynon noted the profitability timeline for sportsbooks typically materializes between 12 to 18 months post-acquisition, highlighting the importance of strategic long-term planning.
DraftKings’ Karamitis stressed that the success of the World Cup lies in the successful execution of technology, operations, and marketing strategies throughout the event, ensuring a seamless customer experience and satisfying stakeholder expectations. The tournament’s conclusion marks the beginning of assessing and capitalizing on the newly acquired customer base.
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