Florida legalized and launched mobile sports betting back in 2021. After operating for a short period of time, the activity was put on hold, amid legal disputes over the legitimacy of the gaming compact between the state and the Seminole Tribe. After two years, one long-standing legal saga in the state may have finally come to an end with a decision from the US Supreme Court that cleared online sports betting.
Now, an industry analyst suggests that online sports betting in Florida may create new opportunities for companies in the sector. While the Seminole Tribe’s exclusive rights over mobile betting likely won’t allow rival betting operators like FanDuel and DraftKings among others, it may benefit sports data, solutions and technology providers.
Ryan Sigdahl, an analyst for Craig-Hallum Capital Group, the leading research, trading and investment banking firm, suggested in a recent report that the regulated sports betting market in Florida may benefit sports data companies such as Sportradar and Genius Sports.
The announcement comes at a time when Craig-Hallum has a Buy rating for Genius Sports at a price target of $11. On the other hand, the company has a buy rating on Sportradar and a price target of $18.
Supplying Much-Needed Data
According to Sigdahl, the opportunities that lie ahead of Genius and Sportradar involve the provision of sports data for the Seminole Tribe. Given that legal mobile betting relaunches by beating the outstanding lawsuits, the Tribe may seek reliable providers of sports data and possibly solutions and technology as well. This makes Sportradar and Genius a perfect fit for the role, given that mobile betting gains traction just like it has in other US states.
It’s important to note that Florida is a major sports betting market, considering that its population is approximately 7% of the total population of the country. Moreover, the state has a passionate sports fan base, considering that it is the home of three NFL teams, two NBA teams and two MLB teams.
Currently, an overwhelming majority of nearly 40 US states offer some form of legal sports betting. The expansion of the activity became possible thanks to the 2018 repeal of the Professional and Amateur Sports Protection Act by the US Supreme Court. According to data from the American Gaming Association, there are currently five US states that do not have legislation on sports betting, while legislation in seven states has halted.