Imagine if PGA stars Colin Morakawa, Brooks Koepka, and Bryson DeChambeau were playing a cordial golf match, but let it be known they wanted to beat one another’s brains out.
A similar dynamic was in play Wednesday at the SBC Summit North America’s Leaders Panel, where representatives from three of sports betting’s most prominent companies participated in one of the most attended sessions of the day.
The participants — DraftKings Chief Business Officer Ezra Kucharz, Matt Prevost, chief revenue officer for BetMGM, and Jon Kaplowicz, Head of Penn Interactive – even got mobbed by attendees at session’s end. But despite the collegiality the panelists showed onstage, they are intent on dominating the market, even when it comes to competing for employees.
“I probably spend 60-70 percent of my time trying to hire and retain talent,” Kaplowicz said. “These guys here (Kucharz and Prevost) are not slowing down. They’re fierce competitors. … We are all vying for the same people.”
Noting that there have been a lot of highs and lows in the sports betting markets, along with tremendous growth opportunities, moderator Cathryn Lai, OpenBet Chief Commercial Officer, quizzed the panel about what their companies are doing to ensure a continuous presence in the market.
All three panelists emphasized the importance of building teams that will be able to deliver good experiences to customers. But it’s also important to leverage opportunities. Kucharz noted that DraftKings legacy fantasy sports games are complementary to its sports betting business and both divisions have the same priorities and goals.
“We’re really trying to make sure we offer the best experiences that sports fans want,” Kucharz said.
Kaplowicz admitted that BetMGM and DraftKings “have a two- or three-year head start on us,” in terms of entering markets, and that is a clear advantage. But the company’s connection to Barstool Sports’ personalities, such as Dave Portnoy and Dan “Big Cat” Katz, has helped Penn Interactive make up ground. He cited a recent event at Hollywood Casino Aurora in Illinois, where a promotion featuring Barstool stars resulted in 10,000 new first-time depositors to the company’s mobile sports wagering system.
“We have a loyal audience with Barstool followers, physically and on social media, and it really gives us a chance,” Kaplowicz said.
As the sports betting division of MGM, BetMGM has a connection to brick-and-mortar casinos (in the same way that Penn Interactive is connected to Penn National Gaming’s casinos). Prevost noted that the company’s omnichannel connections can be used to entice sports bettors in ways not available to competitors who are only online.
“We can offer unique destinations. We can offer experiences, from entertainment to sporting events and the like, and that really is a differentiator,” Prevost said.
While DraftKings is at its core a digital business, it does have two physical sportsbooks, at the Scarlet Pearl Casino in D’Iberville, Mississippi, and Resorts Casino Hotel in Atlantic City. DraftKings will alsopartner with the PGA to open a sportsbook at TPC Scottsdale in Arizona.
But Kucharz admitted that DraftKings is “focused first and foremost on the digital consumers and getting that experience right.”
