Unexpected Mobile Sports Betting Disruptions Mar Fan Experiences During Super Bowl
In the thrilling world of gaming, stocks took a nosedive on Monday, only to bounce back following a series of mobile sportsbook malfunctions during the Super Bowl. The technical glitches, seemingly stemming from a skyrocketing demand for online sports wagering, have sparked doubts about the industry's resilience in dealing with technology kinks during monumental sports events.
Five titans – Barstool Sports, BetMGM, DraftKings, FanDuel, and BetRivers – experienced technical snags with their mobile sports betting apps, either before kickoff or during the game itself. Penn National Gaming, Barstool's 36% stakeholder, closed at $121.23 on Monday, marking a 6% drop. DraftKings, meanwhile, slumped 3%, ending the day at $61.97.
The companies largely pointed fingers at their backend providers for the mishaps. As of now, Kambi powers the sportsbook technology for DraftKings and Penn National, with DraftKings planning to migrate to an in-house platform run by SB Tech by fall. Kambi's share price remained steady on the Nasdaq Stockholm exchange.
GeoComply, a leading geolocation compliance technology provider, reported a 254% surge in U.S. online sports betting volumes during Super Bowl weekend, according to data obtained by Morgan Stanley. This surge apparently caused the outages at DraftKings and FanDuel, MD analyst Thomas Allen wrote in a Feb. 8 note.
In New Jersey and Pennsylvania, mature markets, increased betting volumes soared over 70%. Overall, volumes rose 6% in contrast to the NFL Conference Championship weekend. Excluding data from Virginia and Michigan, GeoComply online sports betting transactions climbed 4% from the previous weekend. New markets in Virginia and Michigan went live just before Super Bowl weekend.
The intermittent outages in Michigan are of concern due to its fledgling status and customers still exploring various trustworthy apps. European-based Kambi Group Plc, DraftKings' partner, has partnerships with multiple other operators, while FanDuel collaborates with IGT and Scientific Games.
FanDuel's customer service team took to Twitter to address Michigan and Illinois users experiencing outages, assuring them that service would be restored, starting from 5:43 p.m. ET. Customers in both states, however, had to wait until 8:47 p.m. to access the platform without issue.
Kambi blamed the troubles on a "specific player-related bet offer," along with an increase in the range of outcomes for the Super Bowl, which reportedly doubled in size. This concentrated volume on a high-capacity, expanded bet offer led to a backlog in the overall bet validation process, causing temporary impacts on performance. Despite these issues, overall system performance met expected benchmarks.
DraftKings admitted that customers were unable to access their mobile and online Sportsbook, attributing the outage to a surge in traffic affecting their backend provider. The company emphasized the importance of owning their proprietary technology in the face of such instances.
Other operators like BetMGM and Penn National faced technical difficulties, although the exact sources remained unclear. Meanwhile, William Hill and PointsBet, relying on in-house technology for their mobile sportsbook platforms, reported no major disruptions.
Questions surrounding the long-term implications of these intermittent outages linger, as the NCAA Men's Division I basketball tournament is nearing. The potential for user defection to more stable platforms and increased regulatory scrutiny underscores the importance of robust infrastructure and transparent communication for online sports betting companies during major events.
- The technical glitches experienced by five sports-betting giants during the Super Bowl have raised concerns about the industry's ability to handle technology issues during significant sports events.
- The malfunctions, which were primarily attributed to high volumes and expanded bet offers, caused DraftKings and FanDuel to experience outages, according to data obtained by Morgan Stanley.
- Despite the interruptions, some operators like William Hill and PointsBet, which rely on in-house technology for their mobile sportsbook platforms, reported no major disruptions.
- As the NCAA Men's Division I basketball tournament approaches, questions loom over the long-term implications of these outages, given the potential for user defection to more reliable platforms and increased regulatory scrutiny.
