More people are using sportsbook apps than ever before. Just look at the latest news out of New York. That doesn’t mean that those businesses are printing money right now. in fact, according to Axios, the opposite is true.
The site reports that many of the top mobile sportsbook operators have seen their stocks take a major hit as the industry reevaluates how it does business. Previously, sportsbooks spent major money on advertising and offered incentives to open accounts that included promotional bets that didn’t require players to use their own money. It was a cost the books were willing to eat as they focused on customer acquisition.
During that time, the stock prices of sports gaming operators Penn National and DraftKings were outperforming the S&P 500.
In recent months, a spotlight has been shined on just how much that is eating into potential profits. As a result, the industry is shifting to a focus on customers’ lifetime value. According to Axios, that means a lot of the advertising money is drying up.
Last month, Caesars CEO Tom Reeg said that ads for his company’s sportsbook app will “largely disappear from screens”. The comments were met favorably and the price for Caesars rose 6%.
It should be noted that several industry analysts think unsustainable inflation is coming for some of these companies. March Madness is expected to drive the use of apps and investment in sportsbooks over the months of March and April.
No one doubts that there is still massive growth potential for mobile sports betting. In order to reach that potential though, the companies have to show some profit. That means cutting costs, and it seems like advertising and promotions are the first areas to take hits.
Dave Portnoy Tells Business Insider CEO He Is ‘Piece Of S*** Coward’
“Despite objections from the moderator, Dave Portnoy got out his entire question before his mic was muted.”
Dave Portnoy is not going to move on from his hate of Business Insider. The Barstool founder joined a Twitter Spaces session on Thursday night where the public had a chance to talk to Business Insider CEO Henry Blodget.
The event was hosted by the New York Times. Blodget was part of a panel discussing issues facing the business community.
“So yeah, I saw that piece of shit Henry Blodget’s on there,” Portnoy said when his mic went live. “My first question’s why would a piece of shit who’s been banned by the SEC from talking about stocks be on there. My second question is hey Henry, you f***ing coward, you know everything you wrote about me was bullshit. Why don’t you ever sit down with me you f***ing piece of shit coward. That’s my question.”
Despite objections from the moderator, Dave Portnoy got out his entire question before his mic was muted. No answer came. The moderator apologized to Blodget and ended the event.
The accusations of Blodget being banned by the SEC from discussing financial advice are true. Portnoy was referncing fraud charges that Blodget settled in 2003 when he was a Wall Street analyst.
Business Insider has ran a salacious piece about Portnoy’s sex life in November. It included accusations of misconduct from three women that claimed consensual sexual encounters with Portnoy took a dark turn without their consent.
Dave Portnoy has maintained the story is not true. He has also threatened to sue Blodget, Business Insider and the story’s author Julia Black.
Mile High Sports Acquires Colorado Preps
“Mile High Sports adds Colorado Preps to a portfolio that includes a radio brand broadcasting on 98.1 FM and 107.5 FM HD-3 in Denver, a magazine, and MileHighSports.com.”
Mile High Sports has acquired the Colorado Preps brand, including ColoradoPreps.com and the company’s radio and podcast networks. The deal is effective immediately.
“I am proud of what we’ve accomplished through 19 years of the Colorado Preps Network and very excited about the future with Mile High Sports,” said Kevin Shaffer, owner and founder of Colorado Preps. “The MHS crew is poised to bring additional and expanded coverage to high school sports across the state and we’re honored to stay involved with the network and help its growth.”
He will remain on the staff and continue hosting and producing radio and digital shows.
“With the elimination of the Rocky Mountain News, and shrinking budgets across most news outlets, local high school sports coverage has often and unfortunately become the casualty,” said Mile High Sports Editor-in-Chief Doug Ottewill. “But there will always be kids playing sports and parents wanting to read about those kids playing sports. I think ColoradoPreps.com fills a need and a niche that will never go away, no matter what’s happening on the bigger sports landscape in Colorado.”
Mile High Sports adds Colorado Preps to a portfolio that includes a radio brand broadcasting on 98.1 FM and 107.5 FM HD-3 in Denver, a magazine, and MileHighSports.com.
Barstool Sports To Eliminate Some Podcasts
“We almost created a model where we started with all the resources, we didn’t start with the idea or the people and as a result, we have a lot of things that weren’t necessarily going in the right places.”
Barstool Sports is doing some internal re-organizing. As a result, some shows are being cancelled.
Talking on her podcast Token CEO, Barstool Sports CEO Erika Nardini said the company has looked under the hood the past few months and are trying to clean things up.
Nardini also stated that the company’s spending needs to be reined in. She feels like too much has been invested in content that hasn’t been delivered, and creative freedom has become more of a curse than a blessing.
“We almost created a model where we started with all the resources, we didn’t start with the idea or the people and as a result, we have a lot of things that weren’t necessarily going in the right places,” she said.
In the podcast space, Barstool has 94 different offerings to choose from. Nardini said it’s just become too much, and they’re going to have to scale things back.
“No company of our size should have 94 shows,” she said. “What was my mistake and our mistake? We treated all 94 shows equal.”
Nardini realizes that means tough decisions are going to have to be made. Good, talented people will either have to move on or their jobs will be re-purposed.
“I’m bummed that it impacts people’s jobs,” she said. “I think that is a really, really serious thing when a role gets impacted and things change. You have to take that with a little bit of a heavy heart.”
Erika didn’t specify which shows, in particular, would be getting the ax, but it’s believed that the show Podfathers will be among them.
Show co-hosts Michael McCarthy aka “Large” and Justin Clemenza aka “Clem” took to Twitter and to the Barstool blog to announce the parenting podcast was no more.
Jordan Demcher aka “Jordie” tweeted a couple of thoughts on the situation but then clarified his podcast would carry on.
Keep your eyes on social media over the next few days for more details on this situation from Barstool’s personalities.