For example, the live odds to win a game can be updated after any big play, as opposed to only during commercial breaks if connections are slower. And in-game betting doesn't just grow the number of wagers made. Increased in-game betting could lead to a higher hold for sportsbooks, Politzer said, which is effectively the margin that books make on all bets. For this change to benefit sportsbooks, companies like Caesars don't need to win over mass audiences, according to Wells Fargo.
"Net, we don't expect consumers' preference for watching football games on big screens to change, but embedding live NFL games and betting on a single screen without any noticeable latency issues is a marquee development in the sports betting/media ecosystem, and over time, could potentially play a role in negotiations for sports media rights," Politzer said. Shares of Caesars were down more than 2% on Monday. — CNBC's Michael Bloom contributed reporting.