Will bettors abandon Caesar’s sportsbook after the New York outage?

Will bettors abandon Caesar’s sportsbook after the New York outage?

Forty years ago, The Clash released their single “Should I Stay or Should I Go?” This particular question is likely to be asked about the heads of at least some sports bettors across New York after Caesars Sportsbook experienced multiple outages during the first weekend of its biggest betting launch since the fall of the Professional and Amateur Athletes Protection Act in 2018.

The Clash never answers his question, but some in the sports betting world – most of whom didn’t want to be identified in this story – say that despite the frustration caused by the interruptions, most bettors would choose to stay.

“There is very little [online sites] In the market out there I don’t know it’s going to have any kind of long-term problem,” said one stakeholder.

Another industry source said, “I don’t think it’s going to hurt you. You have one weekend. Now you have time to recover. You have people who can run their accounts and get ready for the next week. I think with the little breaks, the Caesars will do enough publicity to sway them.”

But Joe Stove, an analyst with Susquehanna, disagrees. He says Caesars lags behind industry leaders DraftKings and FanDuel, and that the weekend’s issues weren’t a one-time occurrence.

“People will try to get [deposit] Match it, use it and move on, because it will be a better experience in DraftKings or FanDuel sport handle. Caesars definitely have a great brand and they have an amazing advertising and marketing campaign, but they don’t have the technology. The app is now a nightmare.”

Caesars, which was offering the biggest bonuses in its opening weekend, was among four operators that launched digital sports betting in New York on Saturday morning. Live broadcast capped a frantic nine months that began with the then government. Andrew Cuomo is all but forcing legislators and stakeholders to accept a limited market for mobile betting at the state level.

Since then, operators, regulators, vendors, and everyone else in the industry have been part of a frenzy to get off the ground. Ultimately, nine platforms will be available to bettors in New York, but only four have been approved so far. According to the regulator, BallyBet, BetMGM, PointsBet, Resorts World and WynnBet are still undergoing the approval process.

Was it a request? Or a bigger problem?

Caesars hasn’t released any kind of official statement, nor has it mentioned the issues in New York over the weekend. But Caesars Entertainment CEO Thomas Reeg spoke about the question on CNBC Monday morning. He said Caesar took nearly one million bets in the 39-hour period between Saturday morning and Sunday night, nine times the number of bets placed during the Arizona launch in September.

“When you have massive demand, that’s when you see weaknesses in your system,” Reg said. “Unfortunately, we did not perform flawlessly this weekend. As a sports bettor, I know how frustrating that is.”

During the outages, bettors were unable to place bets. Saturday’s blackout appears to have lasted about three hours, while Sunday’s outage was about 45 minutes.

Caesars is offering the biggest rewards yet for new york bettors, a $300 account registration credit and up to $3,000 in deposit money. That potential $3,300, plus brand loyalty, should be enough to get bettors back.

A media consultant said: “I think people just can’t bet, they’ll have a short memory” sport handle.

Stauff says Caesars’ problems aren’t new, and that the company had to come to market in New York with a blowout offer in order to convert customers who might go elsewhere.

“Overall, the Caesars app had pretty consistent outages and continued to have issues with geographic locations, so this is a pretty consistent case,” Stoffe said. “What it generally tells me is that they are still trying to fix the plumbing, the basic software.

“It’s also a major issue for Caesars versus someone else because they don’t have a marketing reach. They’re still trying to build an initial user base. They’ve launched this promotion, and it’s a solid proposition, and it has to be because DraftKings and FanDuel have important customers… Coming from New Jersey. It’s especially tricky because they have a minimal tech stack, have geolocation issues, and provide a matching number for a $3,000 deposit. So if you can’t transfer or you can’t use it, you’ll go ahead.”

Stauff estimates that 25-30% of FanDuel customers in New York, and 10% of DraftKings, will be New Yorkers who have crossed the border to bet in New Jersey since 2018.

Other companies have struggled

It’s not the first time – and certainly won’t be the last – that an operator has struggled to keep up with volume or other problems have arisen.

There were reports that both DraftKings and FanDuel had more minor issues in New York over the weekend. But among the more recent major issues was the struggle of the Kings of the Draggings during the National Sports Betting Championship, during which some players were unable to bet. DraftKings shortened the competition and gave anyone who entered their entire $10,000 balance, whether they were winning or losing by the time the issues arose.

Several big operators have struggled during the NFL and Super Bowl playoffs. In 2020, FanDuel crashed multiple times over the wild Card weekend, and at least five platforms – Barstool Sports, BetMGM, DraftKings, FanDuel and BetRivers – experienced turmoil ahead of the 2021 Super Bowl. In both cases, The bookies were unable to place bets, but the issues were quickly resolved and operators at the time spoke of the challenge of dealing with the sheer volume.

“We are aware that customers were unable to access the online and phone sportsbook. This outage appears to have been caused by an increase in traffic that caused issues for the backend provider,” DraftKings wrote in a statement provided to sport handle After the 2021 Super Bowl interruption. “Our DFS products and pools, backed by in-house technology, run without problems. This incident is why we think having our own technology is important.”

Although Caesars did not say what the problem was, observers say that if it is a “technical issue,” the company will need to address it as soon as possible to avoid further disappointment or pressure on users. Anecdotally, bettors who shop or feel brand loyalty tend to fall back even after there are issues. In Michigan, a stakeholder said sport handle that when BetMGM went down before the Super Bowl in 2021, his buddies were frustrated at the moment, but they “didn’t give up on MGM. The real bettors shop the rows, and I think they were upset, but they’re back.”

Eighteenth week? meh

Furthermore, the media consultant said that while the New York launch was a huge deal — according to GeoComply, 17.5 million bets were placed over the weekend — the final week of the NFL season isn’t exactly a weekend dream.

“It’s the worst weekend to bet in the NFL,” said the media advisor. sport handle. “It’s not the worst thing for them to go out in the week when no one is at work. … It’s a completely different ball game. It’s good fire training.

“I think brand loyalty will replace the problems. Caesars have great brands and they have done a great job with JB Smoove, the actor/comedian who has represented the brand in commercials.

The industry source said, “If they have those loopholes, their marketing will come back and give [customers the bonus] If they don’t get it. This is already a loss leader for them, so they will take it to the next stage. So if they think it will work for them, they will continue to do so.”

It looks like Caesars specials are still available in New York.

Caesar’s Roast on Twitter

If Twitter is any indication, some bookies have used the breaks as an opportunity to have a little fun at Caesars over the weekend. Here is a sample:

What now?

According to Caesars’ media relations division, the bets keep appearing. The company took its millionth bet on Monday morning, and it was the most downloaded app on the App Store over the weekend. In another great number, Caesars said betting in New York between 9 a.m. Saturday and Sunday night is almost identical to the combined handle of the other 20 states in which Caesars are active.

The outage appears to have had little short-term effect on Caesar’s share price. The price closed at $89.66 on Friday, a day before the launch, and at $88.30 on Monday. On Tuesday, Caesars was trading just over $89 at midday.

So, “Should I stay or go?” hard to say.

Leave a Comment

Your email address will not be published. Required fields are marked *