Business is all about growth and business for the sports gambling industry has been good.
Sports betting accounts for between 30% and 40% of the worldwide gambling market, producing a yield (the money casinos receive from bettors minus the payout) higher than $400 billion in 2021, according to Statista.
In June 2018, sports gamblers wagers $310 million for the month. In October 2021, that number jumped to $7 billion, Bloomberg reported.
Online gambling is starting to catch up too.
Goldman Sachs predicts the online sports gambling market could reach $39 billion in annual revenue by 2033, up from less than $1 billion in 2021 as more gamblers turn to the online option instead of placing bets through retail options..
This uptick is directly tied to the 2018 Supreme Court decision to strike down a 1992 federal law that banned commercial sports betting in most states.
That decision allowed the proliferation of online-only sports betting options like DraftKings (DKNG) – Get DraftKings Inc Class A Report and FanDuel and eventually paved the way for Las Vegas casino companies like Caesars (CZR) – Get Caesars Entertainment Inc Report and MGM (MGM) – Get MGM Resorts International Report to build their own online betting platforms.
Now, betting lines scroll across the screen during televised sports games and sports media partners like Walt Disney’s (DIS) – Get Walt Disney Company Report ESPN have programming dedicated to gaming.
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It’s a very competitive market, but Caesars, MGM, DraftKings, and the other market leaders may be going too broad in their marketing. One Las Vegas casino player, Fifth Street Gaming feels like there is more outreach to be done in a key demographic.
Fifth Street Gaming Launches JefeBet.com
Fifth Street recognizes that the Hispanic community is the largest growing demographic in the U.S. and is responding with JefeBet.com – a Spanish language sports betting and media portal.
FSG Digital is the online gambling subsidiary of Fifth Street. Fifth Street reportedly already has deep ties to the Latino community, producing hundreds of concerts with Mexican and Columbian artists, Mexican rodeos, and food festivals.
The company’s Silver Nugget Casino in North Las Vegas and Lucky Club casinos also court Latin patrons and now JefeBet.com will also.
“We intend to build the first online media hub in this country truly dedicated to covering sport, gambling, and entertainment in an authentic way for this highly important, yet previously underserved, audience,” FSG Digital CEO Seth Schorr said.
JefeBet’s content team will be located in Argentina, Mexico, and Chile, but the site’s articles and wagering insights will be focused on American sports leagues.
Sports gambling, while growing in popularity is still legal in only a minority of states. But it is legal in six of the 10 states with the highest Latino populations on a percentage basis including Arizona, Colorado, Illinois, New Jersey, New Mexico, and New York.
In announcing the launch of JefeBet, FSG Digital also said that it recently closed a funding round led by Sharp Alpha Advisors and Acies Investments.
Acies is led by former MGM Resorts CEO Jim Murren and the company currently has stakes in seven betting, esports, and fantasy sports companies.