Draft kings, Underdog Fantasy, Fanduel, Bet MGM and Barstool Sportsbook.  These are just some of the many sports betting apps that are being advertised to millions across the nation.

Over this past year sports betting apps have become advertised heavily, whether it’s a commercial, pop up ads or YouTube ads.  No matter what it is, companies are trying to get users to see their apps and websites. 

In 2021 the sports betting industry generated $4.3 billion in revenue.  In 2020 it was $1.5 billion and then in 2019 it didn’t crack the billions.  

Obviously sports betting has seen a major increase in the past year.  But why has it generated so much more revenue recently?

Part of it is because many states have legalized sports betting like Arizona, Colorado, Nevada and so much more.  30 states have legalized it and 21 of them allow online betting.

As you’ve heard, seen and read, there is a battle over legalizing Sports betting in California.  Prop 26 legalized sports betting at racetracks and tribal casinos.  

Prop 27, however, allows online sports betting on non-tribal land.  The prop, if passed, would mandate those who are offering the services to pay a share of the sports bets made.

These proceeds would go to things like homelessness programs and regulatory costs.  Not passing this proposition would keep online sports betting illegal in California. 

Another reason why it has become so popular is because of how much advertising is put into these apps.  Apps like Fanduel and Draftkings invested more than $1 billion in marketing and advertising in 2021.

“I notice two or three ads every half, and it’s mostly Draftkings,” Sriyesh Senthil said.

Draftkings is usually the sports betting app that is heavily advertised during NFL and MLB games.  Especially if they put out two or three ads every half, that’s at most six times seeing their logo and app.

The billions of dollars that these companies put into advertising pays off because people end up seeing them almost anywhere, which could convince people into trying it.

“Not really, I’m not 18 so it doesn’t apply to me,” Sriyesh Senthil said.

Although these major companies like Drafking put out a lot of these ads it doesn’t seem to convince younger audiences into wanting to try it.  They don’t try to target teenagers but when you’re watching a football or baseball game, you will most likely see them.

Last year DraftKings had a revenue of $1.3 billion and Fanduel had a revenue of $2 billion. 

This year in April Fanduel made $63.5 million and then in July they made $38.9 million.  That’s over a billion dollars of revenue from just 2 months out of the year.

Draftkings has made over $2 billion this year when last year they made just over $1 billion.  Which is a huge increase in revenue in just a year.

Statbet is a new start up company that was created by Chase and Cole Claussen, two former Granite Bay residents. They launched their website with a little different twist. There are no actual bets made, just tips on what to bet on.

The Claussen’s now only have about 70 members on their site but grow daily. 

“The main marketing tactic here (is) marketing towards college kids,” Cole said.

Their goal is to create a better way to make money instead of people day trading and ecommerce. They believe that sports betting is more profitable and less risky.

“There’s no money to be made except for the top guys in ecommerce. There’s only money to be made for people that you know actually have good ideas, you know, certain things, certain niche things,” Claussen said.

The other thing that separates Statbet from any other company is that all ages can use their site. Since no bets are made, miners can go on to see the latest updates about fantasy. 

“Keeping a clean track record looking, you know, looking good, being professional, growing your social media, scrolling in person, relationships and building the community,” Cole said.

All of this is helping them climb to the top of sports gambling and making it as great as possible for all ages.