Sports betting's explosive growth opens door to higher-margin gambling
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Sports betting is exploding in popularity and revenue, but companies see it as a gateway to get people to gamble on more lucrative things like online casinos and lottery tickets.
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Companies like DraftKings are aggressively expanding into areas like online casinos and lottery tickets to capitalize on the potential for cross-selling.
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Online casinos and lottery tickets have much higher profit margins than sports betting. Getting users hooked on sports betting can lead them to other gambling verticals.
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More forms of legal gambling create an "additive effect" that leads to more people gambling across land-based and online platforms.
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As gambling expands, so does the risk of problem gambling and gambling addiction, which companies try to mitigate but likely cannot eliminate.