Welcome to the latest edition of "Bet On It," where The Fly looks at news and activity in the sports betting and iGaming space.
SECTOR NEWS: Nevada reported that August statewide gaming win was up 3.53% to $1.21B and that Las Vegas Strip gaming win was up 5.21% last month versus last year to $659.73M.
A New York man has accused BetMGM of offering him free bets to prevent him from reporting game glitches to regulators, Katherine Sayre of The Wall Street Journal reported, citing a lawsuit filed Wednesday. Sam Antar has alleged BetMGM's online blackjack and other games repeatedly disconnected from BetMGM's servers which would wipe out potential winnings, the lawsuit said, according to the Journal. His winnings at times were unavailable until he deposited more money. Antar previously complained to account managers and corporate executives, and, in response, he received free betting credits to continue gambling, further fueling his addiction, the suit added. Antar was further told by an account manager the company was receiving similar complaints from other customers, the suit said, according to the Journal. BetMGM is a sports betting and gaming entertainment partnership between MGM Resorts (MGM) and Entain (GMVHF).
MGM Resorts announced a partnership with ExteNet Systems, a privately held owner of 5G and fiber neutral host communications infrastructure solutions, to design, build and operate ExteNet's advanced in-building signal and connectivity solutions across all MGM properties throughout the U.S. Through this partnership, which represents the largest in-building cellular enhancement project in the U.S., MGM properties will offer guests unparalleled mobile connectivity with next-generation wireless infrastructure. In line with its world-famous accommodations, entertainment, restaurants, and casinos. MGM's expanded 5G service will support connectivity for nearly 200,000 visitors daily while eliminating dead zones and increasing reliable access to apps, maps, and other high-tech capabilities.
Gan Limited (GAN) announced the launch of Gan Sports for Island View Casino in Gulfport, Mississippi on September 27. Wednesday's launch of retail sports betting across twenty Internet-connected kiosks will shortly be complemented by the 'Bet the V' mobile sportsbook.
Elys Game Technology (ELYS) announced approval by the DC Department of Small & Local Business Development, DSLBD, of the BetDupont Certified Business Enterprise Joint Venture, CBEJV, between the Company and District Hospitality in Washington, DC. The agreement has an initial term of three years from the date of issuance of the license with a minimum of two anticipated extensions of 2 years each. Subject to regulatory approval of the DC Office of Lottery and Gaming, DCOLG, the BetDupont CBEJV would allow the company to operate the third location in Washington, DC for its white label sportsbook solution at the Ozio Lounge. "While this approval is the first in a two-step process to obtain the license required to operate our sportsbook solution at the Ozio Lounge, we believe the increasing pace of approvals demonstrates our U.S. expansion momentum, as well our ability to operate sportsbooks as an ancillary product for restaurants, bars and other small business establishments in a fully compliant manner," commented Michele Ciavarella, Elys Executive Chairman. "We look forward to announcing additional retail locations in the near future, and to replicating this success in additional markets, including our recently announced expansion into the state of Ohio," the executive added.
Gaming and Leisure Properties (GLPI) announced the completion of the previously announced sale of GLPI's non-land real estate assets and PENN Entertainment (PENN) outstanding equity interests in Tropicana Las Vegas Hotel and Casino to Bally's Corporation (BALY). GLPI will receive net proceeds of approximately $145M in cash after fees and expenses. Pursuant to the terms of the original agreement, GLPI retained its ownership of the land and concurrent with the closing, entered into a 50-year ground lease with Bally's, subject to extension upon Bally's achieving a capital investment threshold, for an initial annual rent of $10.5M. The ground lease will be supported by a Bally's corporate guarantee and cross-defaulted with the Bally's Master Lease with GLPI.
Macau's government said this weekend that tour groups from mainland China could resume as early as November, Reuters' Farah Master reported. Macau will aim to open to mainland tour groups in November for the first time in almost three years, the city's chief executive Ho Iat Seng said on Saturday. Las Vegas Sands (LVS), MGM Resorts (MGM), Melco Resorts & Entertainment (MLCO) and Wynn Resorts (WYNN) were all up following the report. JPMorgan analyst Joseph Greff told investors in a research note that this would be the first time e-visas and group tours could be used for travel into Macau since the beginning of the pandemic. This is the first meaningful travel policy/travel mobility enhancing action since the outbreak of COVID-19, noted Greff. He believes this "positive development isn't something that the industry or investors were expecting."
Paysafe (PSFE) announced its entry into the new Kansas online sports-betting market. The move sees Paysafe supporting multiple online sportsbooks in the state with players' credit and debit card deposits plus ACH payments, while its marketing technology and services provider Income Access is powering the affiliate marketing programs of several Kansas iGaming brands. With Kansas going live this month with online and retail sports-betting in time for the 2022 NFL season's kickoff, the market becomes the 23rd U.S. state or jurisdiction where Paysafe has a presence supporting operators with payments. In Kansas, Caesars (CZR), DraftKings (DKNG), and PointsBet (PBTHF), have all extended their payments partnerships with Paysafe.
Kambi Group (KMBIF) has signed an agreement with ilani, developed by the Cowlitz Tribe and Salishan-Mohegan, a partnership that includes Mohegan Sun to provide its on-property sportsbook solution to the operator's casino located in Washington state. Under the terms of the agreement, ilani will integrate Kambi's sportsbook platform for an on-property rollout at one of Washington's largest casino properties which includes 100,000 total square feet of gaming space and will benefit from Kambi's technology and sports betting services. Washington has become the 19th US state where Kambi will deliver its products and services. Kristian Nylén, Kambi CEO and co-founder, said: "We're very proud to partner with ilani as this partnership further strengthens Kambi's strong relationship with tribal gaming and allows us to expand into our 19th US state."
NFL LATEST: Michael Graham of Canaccord noted that the NFL is a "significant" driver of results for U.S. sports betting operators given the level of wagering volumes on football relative to other sports, and this dynamic is "particularly notable" in Q3 given the relatively light sports calendar in the first two months of the quarter. What's more, outcomes during Week 3 of the NFL season were more favorable for sportsbooks than Week 2, with two of the five largest underdogs winning outright, and three of the five largest underdogs covering the spread. Underdogs have won four of ten prime time games outright so far this season, although the under is 7-2-1 in these games, a very favorable outcome for operators through the first three weeks, the analyst added. According to Graham, FanDuel (PDYPY) led the way again at 37% of total handle, down from 39% in Week 1, and its 16% hold rate contributed to 44% share of total gross gaming revenue, or GGR. DraftKings remained at 35% of total handle in Week 2, although its hold rate nearly jumped to 12.7%, increasing its share of GGR to 34%.
STATE UPDATE: New York handle reported by all nine operators in the state for the week ending September 18 came to $296.7M, down 10% from the previous week, according to Benchmark analyst Mike Hickey, citing the latest gaming commission report. He added that he week ending September 11 had produced the first handle over $300M since early May. The most recent update to the Illinois Gaming Board's website included Betfair, the parent company of FanDuel, applying for a sports facility sports wagering license for the United Center in Chicago. Combined online gambling and internet sports betting revenue in Michigan increased 37.0% year-on-year to $154.9m during August, according to the Michigan Gaming Control Board. Player spending in New Hampshire improved month-on-month in August, while the state experienced year-on-year growth across revenue and handle. Consumers wagered a total of $43.4M on sports during the month, up 19.6% year-on-year and 1.6% higher than $42.7M in July of this year. Consumers in Colorado wagered a total of $4.82B on sports during the U.S. state's 2021-22 financial year. During the 12-month period, players in the state spent $4.78B betting on sports over the internet, as well as $59.7M at retail sportsbook facilities across Colorado. North of the border in Ontario, the competitive market for internet-based casino gambling and online sports betting in Ontario is on the cusp of expanding even further, with several new operators preparing to launch. First out of the gate will likely be BetVictor. Other operators expected to launch soon in Ontario's iGaming market include Pinnacle, Bet99, and Betano.
ANALYST COMMENTARY: Northland analyst Greg Gibas lowered the firm's price target on Gan Limited to $2.50 from $3.50 and maintained a Market Perform rating on the shares after adjusting his second half estimates, as he believes Q3 may be sequentially lower, but is still accounting for a ramp into Q4 driven by the World Cup. Gibas, who is also lowering his 2023 estimates to account for more conservative growth, noted that Gan announced the initial launch of its Gan Sports in-house online and retail sports betting technology in the U.S. for Island View Casino.
Jefferies analyst David Katz upgraded Wynn Resorts to Buy from Hold with a price target of $75, up from $62 after the Macau government announced that it will resume visitation access from Mainland China through tours and e-visa by the end of October to early November, calling it "the moment we've been waiting for." While he believes several questions remain and notes that his current forecasts already reflect a meaningful recovery, Katz argued that there "should be a notable, immediate rerating in the shares" of both Wynn and Las Vegas Sands. In that same vein, Katz also upgraded Las Vegas Sands (LVS) to Buy from Hold with a price target of $50, up from $40.
Following the Macau resumption of visitation access, Citi analyst George Choi raised the firm's price target on Wynn Resorts to $91 from $87.50 and kept a Buy rating on the shares. Choi upped the price target on MGM Resorts to $58.50 from $58 and reiterated a Buy rating on the shares. Choi additionally boosted the firm's price target on Melco Resorts & Entertainment to $11.50 from $11 and maintained Buy rating on the shares. Lastly, Choi increased the Citi's price target on Las Vegas Sands to $60 from $58 and reaffirmed a Buy rating on the shares.
PUBLICLY TRADED COMPANIES IN THE SPACE INCLUDE: Accel Entertainment (ACEL), Bally's (BALY), Boyd Gaming (BYD), Caesars (CZR), Churchill Downs (CHDN), DraftKings (DKNG), Flutter Entertainment (PDYPY), Gan Limited (GAN), Genius Sports (GENI), Las Vegas Sands (LVS), MGM Resorts (MGM), Penn Entertainment (PENN), Rush Street Interactive (RSI) and Wynn Resorts (WYNN).
MGM Resorts
-0.105 (-0.35%)
Entain
+ (+0.00%)
Gan Limited
+0.3 (+14.85%)
Elys Game Technology
+
Gaming and Leisure Properties
+0.67 (+1.54%)
Penn Entertainment
+0.31 (+1.14%)
Bally's
-0.02 (-0.10%)
Las Vegas Sands
-0.94 (-2.44%)
Melco Resorts
+0.07 (+1.07%)
Wynn Resorts
-0.94 (-1.46%)
Paysafe
+0.03 (+2.20%)
Caesars
-0.135 (-0.42%)
DraftKings
-0.05 (-0.33%)
PointsBet
-0.1 (-7.09%)
Kambi Group
+ (+0.00%)
Use FLUT
-1.132 (-2.02%)
Accel Entertainment
+0.06 (+0.77%)
Boyd Gaming
+0.07 (+0.15%)
Churchill Downs
+1.86 (+1.01%)
Genius Sports
-0.125 (-3.29%)