Online fantasy gaming company DraftKings hit the jackpot in New Hampshire this week as it became the first and only sports betting operator in the state. The company will launch its mobile betting products in January 2020.
A monopoly market
New Hampshire Governor Chris Sununu signed sports betting legislation for the state in July 2019. The law allowed the creation of 10 brick-and-mortar sportsbook alongside five mobile betting services. Until the state finds another operator, DraftKings will hold a monopoly on the sports betting market. The company has agreed to pay half its betting revenue to the state. The state chose the company after finding them the “best financial package.”
Apart from high turnover, DraftKings also offered the shortest implementation time. After the approval, it has barely two months to get its operations started. The two factors helped the company win over intense competition. According to the company, the state’s first brick-and-mortar sportsbooks could be live by the spring of 2020. Governor Sununu commented, “We moved fast to get this done, and the deal is a win for New Hampshire. We are partnering with a world-class company to provide a first-rate customer service experience”
A partnership with NH Lottery
DraftKings will be working in tandem with the New Hampshire Lottery to create the perfect betting product for the residents of the state. The Lottery will also be useful in putting adequate regulatory safeguards in place and help players gamble responsibly. This is also a time of extreme pressure for the company because its actions as a sole sports betting operator will be under extensive scrutiny around the state. The brand has given performed exceptionally in other markets- specially Pennsylvania and New Jersey.
Co-founder Matt Kalish said that their sportsbooks would definitely be a hit with all customers as the legalized sports betting continues to grow. The problem, however, is with New Hampshire. By offering a monopoly to DraftKings on a platter, the state could shoot itself in the foot. At the beginning of the legalized market, providing more choices to the customers would have been a far better idea.
As the markets are tilted heavily in the company’s favor, a second sportsbook operator will have a hard time winning over clients if and when it is granted a license to operate. The good news is that punters in the state will not miss next year’s Super Bowl.