The fight to acquire Ohio sports betting customers is already underway, with at least one operator unveiling a pre-launch bonus well before legal wagering begins in the Buckeye State early next year.
FanDuel announced recently that it is offering new customers in Ohio $100 in free bets if they sign up between now and New Year’s Day, which is when legal sports betting is scheduled to begin in the state. Those wagers can then be used when online sportsbooks launch in Ohio on January 1.
The offer comes as FanDuel and its parent company, Flutter Entertainment PLC, are apparently trying to lock up a chunk of the Ohio market before the betting even begins. The operator has already laid claim to around half of the revenue thrown off by the online sports betting market in the U.S., and the bookmaker says its approach to new state launches is getting even better.
“In the four years since launch, FanDuel has refined its state launch ‘play book’, converting customers from our daily fantasy sports database at a faster rate with each new state,” Flutter said in a financial update in August. “Combined with a disciplined and efficient approach to marketing investment, FanDuel’s cost per acquisition has remained attractive at under $300.”
So it begins
But FanDuel’s Ohio efforts are likely indicative of how valued the state’s upcoming launch is for online sportsbook operators.
There are only so many territories of consequence left for companies to break into in the U.S., and Ohio is the seventh-most populous state in the country, teeing it up as a major battleground for operators.
Furthermore, the Buckeye State’s framework for legal sports betting will provide plenty of licenses for major operators to claim, including FanDuel, which already has a market-access partnership lined up with the Belterra Park racino near Cincinnati. Ohio’s sports-betting law initially allows for up to 25 online sports betting licenses to be awarded to “proprietors,” such as a casino or sports team, who can partner with up to two mobile management services providers, such as FanDuel.
FanDuel is beginning its customer-acquisition efforts at a pretty common time of year for operators as well: the National Football League’s regular season. NFL football remains the top draw for U.S. bettors, including those in a state like Ohio that is on the cusp of launching.
Saving room for Ohio
Caesars Entertainment CEO Tom Reeg noted in August that the cost of acquiring new customers and keeping existing ones is much higher, setting up this year’s NFL season to be another costly one for operators, including Caesars Sportsbook.
This year is also the first football season with legal online sports betting in Kansas, Louisiana, and New York, which will require a bit more splurging for the books — with full knowledge that the Ohio launch will prompt additional spending.
“You're going to have some natural acquisition activity, but you don't have a new state of scale coming online until Ohio in January,” Reeg said during a conference call for analysts and investors.
