Paul vs. Tyson a win for sportsbooks and for Netflix, but paves way for even more

Kelsey Wilhelm

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November 19, 2024

Paul vs. Tyson a win for sportsbooks and for Netflix, but paves way for even more

While the match itself failed to meet expectations for many, the Jake Paul vs. Mike Tyson event live-streamed on Netflix offered a lot of insights into how companies, including sportsbooks and syndicators, can reach new audiences.

Aside from the $40 million purse taken home by 27-year-old Youtuber-turned-boxer Jake Paul, and the $20 million Mike Tyson made after going the eight-rounds, some estimates indicate that up to $100 million could have been wagered on the match.

According to betting data from FanDuel Sportsbook, in regards to bet count, Mike Tyson was the fan favorite – at 85 percent. Looking at the bet handle, however, Jake Paul was in the lead, at 53 percent. But the most popular round betting pick was for Tyson to win the fight in the first round.

Punters taking the long shot on Tyson faced significantly higher earnings. Canadian rapper Drake reportedly wagered some $355,000 on Tyson via online sportsbook Stake, which would have paid out over $1.01 million. Other celebrities, such as UFC superstar Connor McGregor (who reportedly bet some $1 million on fights over the weekend) and NBA star Shaquille O’Neal also chose to wager on the 58-year-old boxing legend.

But not all bets have to be big.

For Benedikt Becker, Marketing Director at Shikenso Analytics, “betting on Tyson wasn’t logical, but it felt right.

“Watching with friends and making small bets just makes it more fun and engaging”.

And Jake Paul has been quick to notice this. Paul co-founded sportsbook Betr in 2022 with Simplebet co-founder Joey Levy. The brand, which focuses on micro-betting, was featured prominently in the opening video of the event, and aims to tap into the “tens of billions of dollars in revenue” from the US sports betting industry by the end of the decade, according to Levy.

Wagers, streaming and syndication

“The fight showed how live sports fuel massive betting engagement. DraftKings, as the official sponsor, was front and center with prominent ring sponsorship during the event,” points out Becker.

“What’s interesting is the shift toward younger, tech-savvy audiences who are Netflix subscribers and getting more involved. Sharing trades on social media or with friends has become increasingly popular, adding a social layer to the experience,” he notes.

Both Drake and McGregor shared the fact that they had bet on Tyson via social media.

Sportsbooks – such as DraftKings, FanDuel, Caesars, bet365, BetMGM and others – were also quick to grab onto the event to attract new punters, offering hefty promotions and bonus bets.

Aside from sportsbooks, Netflix’s shift from video-on-demand (VOD) to live sports could provide further options to other companies as well, such as for sports technology providers.

“Companies like Sportradar can pivot by offering tools like real-time player stats, odds, and overlays to enhance the streaming experience.

“A wild idea? Netflix could integrate upselling features to their subscribers—clickable player profiles and stats, or even list fantasy leagues in their Netflix Game section. Sportradar could power these innovations, creating a new revenue stream for both sides,” notes Becker.

Sportradar, a sports technology company, provides everything from sports data, odds and live streams to gaming products and casino solutions.

But looking to Netflix itself, how can it capitalize off of its ongoing venture into live sports?

“Netflix’s live events offer global reach and targeting based on subscriber data. Marketing opportunities include prime slots for their ad-tier subscribers, demographic and localized targeting, in-stream product placements or exclusive pre- and post event content,” notes Becker.

“Another key shift? Sponsorship intelligence will become more critical than ever. Brands will need a holistic approach to track exposure—not just visually but also through brand shoutouts and mentions in press and media. Combining this with fan sentiment analysis—both during the event and on social media—will be key for measuring ROI and optimizing future campaigns”.

Becker notes how at Shikenso Analytics, brands have already been approaching the company to use its AI-powered insights to measure and optimize sponsorship impact. This has been particularly talked about during the boom in eSports, as sponsors try to truly understand what they’re getting for their buck.

Potential and cautionary tales

“Netflix will definitely expand. The Tyson-Paul fight showed there’s demand, and their ability to localize content gives them an edge. For example, cricket could dominate here in Southeast Asia, where it’s hugely popular. Other sports like F1, basketball, or eSports also fit Netflix’s global and younger audiences.”

But in order to do this properly, it needs to get its formula right, and avoid mistakes that give it a negative image.

“Netflix will likely need to upgrade their streaming capabilities. During the Tyson fight, meme culture exploded with “25 percent loading” jokes, and even meme coins were launched during the event. It’s fascinating how quickly internet culture jumps on trends, but it also highlights how critical a smooth streaming experience will be as Netflix scales its live offerings,” notes the marketer.

Despite the streaming dropouts, it’s estimated that some 60 million households watched the fight, which was offered to all 280 million-plus subscribers to Netflix. The event also reportedly triggered a double-digit rise in new subscriptions to the service, earning it millions in new revenue.

“Having run affiliate and performance campaigns for Netflix in the past, I know firsthand how challenging it’s become to drive subscriptions with the same offering,” notes Becker.

“Live sports tap into fandom and bring a sense of immediacy that on-demand content doesn’t. This trend is huge in Asia too.”

It will be interesting to see how other video-on-demand companies pivot to live sports streaming, something Apple is also doing, and exactly how this will shape the future of sports betting worldwide. And while the Paul vs. Tyson fight was dubbed by many as a “money grab”, it appears to have been effective.

At a press conference summarizing his five-year term on Tuesday, Ho highlighted that the gaming industry’s contribution to Macau’s GDP had dropped from a peak of over 60 percent to 37 percent in 2023. He anticipates the share will stabilize at around 40 percent this year, which he described as a “healthy” level.

Reflecting on the city’s recent gaming concession renewal process, Ho noted that operators were required to invest over MOP100 billion ($12.5 billion) in non-gaming projects as part of their new licenses. He acknowledged the severe challenges gaming companies faced during the pandemic, calling the concession process particularly “arduous.”

Under the 10-year gaming concession contracts, which began in January 2023, Macau’s six casino operators initially pledged a collective MOP108.7 billion ($13.5 billion) for non-gaming investments. This commitment was later increased by 20 percent after the city’s market-wide casino gross gaming revenue (GGR) exceeded the predetermined threshold of MOP180 billion ($22.56 billion) for the full year 2023.

Operators’ efforts praised

Macau’s six gaming operators are making strong efforts to bring prestigious concerts and shows to the city, aiming to rebrand Macau from a gaming hub to a city of entertainment.

Ho also praised the gaming industry’s efforts to transform Macau into a “City of Performance.” He recognized the initial success of the city’s burgeoning concert industry, highlighting how major operators have brought internationally renowned artists and performances to Macau, significantly enhancing its global reputation.

Meanwhile, the Chief Executive noted the government’s anticipation of a shift in visitor patterns after the pandemic. He emphasized that the administration has consistently prioritized non-gaming investments by the operators to support this transition.

To address land constraints that limit large-scale event development, the government has built a 50,000-capacity outdoor venue in Cotai. Ho announced that its first concert is scheduled for December 28th, though further details remain undisclosed.

Macau tourism, golden week, October golden week

34M visitor arrivals expected this year

This year’s gaming revenue is expected to surpass initial forecasts, according to Macau’s leader.

The government’s budget projects gaming revenue to reach MOP216 billion in 2024 ($27.07 billion), with further growth to MOP240 billion ($30.1 billion) by 2025. Ho Iat Seng indicated that monthly gaming revenue from January to October averaged MOP19 billion ($2.4 billion), exceeding the budgeted estimate of MOP18 billion ($2.3 billion).

Annual visitor arrivals are now expected to hit 34 million, surpassing the Macau Government Tourism Office’s (MGTO) earlier forecast of 33 million. This marks a robust recovery in the tourism sector.

Looking ahead, while gaming revenue for 2024 is forecasted to grow by 11 percent year-on-year, the government has taken a cautious approach by increasing its overall budget by just 6 percent—signaling prudent fiscal management.

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“Investors must have confidence that the operations and performance of public companies reflect merit and legitimate considerations. Bribery and corruption distort the orderly operation of the markets and undermine investor confidence”, stated Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit in the decision.

He emphasized that BIT Mining’s inadequate controls allowed a bribery scheme involving top executives and influential Japanese officials to thrive.

In addition to the SEC’s civil penalty, the US Department of Justice (DOJ) has also entered into a deferred prosecution agreement (DPA) with BIT Mining, which includes a $10 million criminal fine. Of this amount, $4 million will be covered by the SEC’s civil penalty.

Zhengming Pan indicted

Zhengming Pan, BIT Mining, 500.com — Zhengming Pan, former CEO of 500.com

The former CEO of 500.com, Zhengming Pan, has been indicted on multiple charges related to the FCPA violations. The indictment, unsealed yesterday, accuses Pan of conspiring to violate anti-bribery provisions, as well as failing to maintain accurate books and records.

“Paying bribes to foreign government officials is a serious crime”, District of New Jersey US Attorney Philip R. Sellinger said in a recent statement concerning the case. “The top leadership of BIT Mining directed consultants to pay bribes to Japanese government officials to secure a bid for a large resort in Japan. This agreement and indictment hold both the corporation and its leadership accountable.”

According to court documents, between 2017 and 2019, BIT Mining, under the direction of Pan, agreed to pay around $1.9 million in bribes, knowing the funds would be used to influence Japanese officials. The scheme included the use of cash, travel, entertainment, and gifts, concealed through sham contracts and false accounting.

As part of the DPA, BIT Mining acknowledged that the appropriate criminal penalty under US Sentencing Guidelines would typically be $54 million. However, due to the company’s financial situation, the penalty was reduced to $10 million.

BIT Mining has committed to cooperating with ongoing investigations and enhancing its compliance programs. The DOJ said its resolution was influenced by the company’s cooperation, which included voluntarily providing documents and other information.

The FBI’s International Corruption Unit is also actively investigating the case, with prosecution led by Assistant US Attorney Jennifer Kozar and Trial Attorneys from the Criminal Division’s Fraud Section.

According to the Philippine News Agency, Gatchalian emphasized that the PNP requires more funding to effectively gather intelligence, particularly in the ongoing fight against POGOs. He noted that some POGOs are going underground and disguising their operations by integrating into other business sectors.

He stressed the urgency of supporting the PNP in its intelligence-gathering efforts at this critical time.

Philippine National Police PNP, Philippines

The senator pointed out that the PNP’s intelligence fund has decreased from PHP1.36 billion ($23 million) in 2023 to PHP906 million ($15.4 million) in 2024. In the proposed National Expenditure Program (NEP) for 2025, the PNP’s intelligence fund was initially set at PHP806 million ($13.7 million) but was increased by PHP100 million ($1.7 million) by the Senate. Gatchalian questioned the reduction from previous years, stating that it contradicts the goal of intensifying the fight against illegal POGOs.

With President Ferdinand Marcos Jr.’s directive to end all POGO operations in the country by the end of the year, law enforcement agencies like the PNP must ramp up their efforts to dismantle illegal operations, especially those involved in serious crimes such as kidnapping for ransom, human trafficking, and online scamming.

According to PNP data, as of May this year, 5,800 victims have been linked to POGO-related crimes. Gatchalian referred to Section 4 of Executive Order No. 74, issued by the President on November 5th, which called on the PNP to intensify efforts against illegal POGOs and other offshore gaming operations.

As chair of the Senate Committee on Ways and Means, Gatchalian has been a staunch advocate for ending POGO operations, arguing that the social costs of allowing them to continue far outweigh any economic benefits.

In a statement issued on Tuesday, the Philippine Amusement and Gaming Corporation (PAGCOR) addressed comments made by Joseph Lobo, a senior official in its Offshore Gaming Licensing Department, who claimed last week that the agency lacked authority over a suspected POGO operator in Bataan, identifying the Authority of the Freeport Area of Bataan (AFAB) as the governing body.

PAGCOR clarified that it ‘seeks to rectify this statement,’ emphasizing its jurisdiction:

‘Republic Act No. 9728 grants the AFAB the power to oversee certain tourism-related activities within the Freeport Area of Bataan, including games, amusements, recreational and sports activities, subject to the approval and supervision of PAGCOR.’

‘This underscores the fact that while AFAB may regulate specific activities and exercise authority within its jurisdiction, its power to issue licenses for gaming operations remains conditional and subject to PAGCOR’s oversight and approval.’

This clarification follows a raid by law enforcement last month on Central One Bataan’s facility in the Freeport Area amid suspicions of human trafficking and other violations.

During a press briefing last week, Central One refuted claims of being a POGO operator, condemning the raid as unlawful, and asserting that it operates legally under the AFAB’s framework. A company representative also indicated that, while the group held a gaming license, it was “never used”.

In its statement, PAGCOR emphasized that offshore gaming companies misrepresenting themselves as business process outsourcing (BPO) firms pose a significant concern.

To combat illegal gaming operations effectively, PAGCOR stressed the need for thorough scrutiny and accountability for companies that misuse the BPO designation.

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The November 2024 Bulletin provides a comprehensive overview of global efforts to combat illegal betting and its associated crimes. The document, authored by multiple experts in racing integrity and financial crime, highlights the transition of a regional council into a global body, offers case studies from regions heavily affected by illegal gambling, and underscores the broader implications of these activities.

One of the key news is the announcement that the Asian Racing Federation’s Council on Anti-Illegal Betting is transitioning to become a global entity under the IFHA. This development reflects the need for a unified international approach to combat illegal betting, which is increasingly a transnational issue.

Southeast Asia faces escalating threat from illegal online gambling and cyber fraud: UN

The Council, originally formed in 2017, has been a leading think tank on illegal betting and related financial crimes. With its transition to a global body, the IFHA Council will now collaborate with international stakeholders, including INTERPOL, the United Nations Office on Drugs & Crime (UNODC), and the World Lottery Association. This move aims to address the growing challenges posed by offshore betting operations and unlicensed gambling platforms that exploit regulatory gaps across jurisdictions.

The situation in the Philippines has also not gone unnoticed by the organization, with the report examining the Philippine government’s recent decision to ban Philippine Offshore Gaming Operators (POGOs). These entities, which had operated under a regulatory framework since the early 2000s, became hubs for criminal activity, including human trafficking, cyber fraud, and money laundering.

Manila Makati, Philippines, POGOs, pogo exodus

The report highlights how raids throughout 2023 and 2024 uncovered extensive criminal networks linked to POGOs. Despite the ban, many operators are rebranding as legitimate businesses or relocating to other jurisdictions with weaker regulatory oversight, such as Timor-Leste and the Pacific Islands. The displacement of these operations is raising concerns about the global spread of the illegal gambling model and its associated crimes.

The economic impacts of the ban are also discussed, including potential job losses and a decline in government revenue. However, the report argues that these losses are outweighed by the broader social and legal costs of allowing such operations to continue unchecked.

The Isle of Man is presented as a case study demonstrating how illegal gambling operations are extending their reach globally. In 2024, authorities in the Isle of Man suspended the licenses of King Gaming Ltd and Dalmine Ltd following investigations linking these companies to illegal betting and related scams.

The bulletin describes how these operations employed tactics such as “pig-butchering” scams, where individuals are lured into fraudulent schemes. Links to larger criminal syndicates operating in Southeast Asia, particularly the Philippines, are also detailed. The report highlights how the Isle of Man, which claimed to have a lenient regulatory environment, became a hub for these activities, illustrating the global nature of the problem. Authorities on the island have since denied these claims, but questions about the effectiveness of local rules governing offshore gambling remain.

Illegal betting is estimated to generate $1.7 trillion globally, according to the UNODC, and is often intertwined with other crimes such as money laundering, human trafficking, and corruption. The bulletin underscores how the borderless nature of online gambling enables criminal networks to operate across jurisdictions, exploiting regulatory loopholes and technological advancements.

Efforts like INTERPOL’s Operation SOGA X are emphasized as critical to tackling this issue. The operation resulted in over 5,100 arrests and the recovery of $59 million in illicit proceeds. The dismantling of illegal betting sites and the rescue of human trafficking victims highlight the far-reaching impacts of such initiatives.

“Considering that MLD has flagrantly and repeatedly violated its obligations (…), the State of Cape Verde has no option but to proceed with the termination” of the contracts, reads a decision from the Council of Ministers regarding the 250 million euro ($264.7 million) investment, announced 10 years ago but never completed, as reported by news agency Lusa.

“The State of Cape Verde provided MLD [in Cape Verde] with every opportunity to resume construction or negotiate the sale of shares or the transfer of its contractual position to a potential interested party in continuing the project,” but no alternatives were presented, it added.

According to the government, “the contractual violations perpetrated by MLD occurred at various levels,” granting the State of Cape Verde, as the “injured party,” the right “to terminate the Establishment Convention, as well as the contracts derived from it,” details the text signed by Prime Minister Ulisses Correia e Silva.

The resolution from the Council of Ministers was published in the Official Bulletin, along with the decree from the Ministry of Finance and Business Promotion that determines the reversal of the assets granted and constructed.

The government stated that MLD “also violated” the legal framework for gaming operations, “by transferring, without the authorization of the Government of Cape Verde, ownership of more than 20 percent of the share capital.”

The government further cites “convictions by the courts of the Macau Special Administrative Region against shareholders, directors, and other individuals with rights and responsibilities in MLD,” as well as “the economic and financial situation of the parent company.”

On August 28th of this year, Cape Verde communicated its intention to terminate all contracts with the Macau company, which, on September 16th, justified itself (in a preliminary hearing) by citing the COVID-19 pandemic to deny “culpable non-compliance with obligations.”

“However, this reasoning cannot proceed because COVID-19 ended in 2021, and to this day, the construction works remain halted and without a scheduled date for resumption,” added the resolution from the Cape Verde Council of Ministers.

In 2015, David Chow signed an agreement with the Cape Verde government to build the development on the islet of Santa Maria in Gamboa, with the project’s groundbreaking taking place in February 2016.

Macau Legend Development, Cape Verde project

The project involved the largest tourism development in Cape Verde at the time, with a total expected investment of 250 million euros – approximately 15 percent of Cape Verde’s Gross Domestic Product (GDP).

Macau Legend received a 25-year license from the Cape Verde government, 15 of which were for exclusive operation on the island of Santiago. This gaming concession cost CV Entertainment Co., a subsidiary of Macau Legend, approximately 1.2 million euros.

Macau Legend also received a special license to exclusively operate online gambling throughout the country and the sports betting market for ten years.

The project’s construction faced opposition from various social groups, particularly environmentalists, including a group of 12 scientists and paleontologists coordinated by the Gulbenkian Institute of Science in Portugal.

It was also contested by members of the Cape Verde “Korrenti di Ativista” movement who camped on the islet of Santa Maria. The former chairman of the Cape Verde Architects’ Association (OAC), Cipriano Fernandes, even requested the intervention of the Attorney General’s Office (PGR) to suspend the project.

In recent years, there have only been guards at the gates of the site, an area of about 160,000 square meters, which includes the islet of Santa Maria, partially excavated, and a short asphalted bridge connecting it to an approximately eight-story building, empty and fenced off with barriers.

About a year ago, in an interview with Hong Kong TVB, MLD President and CEO Li Chu Kwan stated that the group intended to close projects in Cape Verde and Cambodia by 2025.

At the time, Cape Verde’s Prime Minister stated that it was necessary to revert the concession before deciding “the fate of this investment, which cannot remain as it is,” he concluded.