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: Sports betting will eventually occur through exchanges and retail brokerages such as Robinhood (HOOD) at some point in the future, the head of North American markets at Nasdaq (NDAQ) Tal Cohen said on Thursday, according to John Mccrank of Reuters.
Scientific Games (SGMS) has won a competitive procurement for the Vermont Lottery's gaming systems technology contract, winning the new business from a global competitor. Scientific Games will power the Vermont Lottery for 10 years through the new contract, which may be extended for up to 10 additional years. The Vermont Lottery will flip the switch to its new Scientific Games technology in the Fall of 2022.
The company was busy this week as two other deals were announced. Scientific Games signed a definitive agreement on Tuesday to acquire ACS's cashless table game solution titled PlayOn. The PlayOn cashless product line conveniently provides players with a seamless debit solution at live table games. As a part of the Scientific Games portfolio, the ACS PlayOn product line will be called AToM - Access To On Demand Money. On Monday, Scientific Games announced it won a 10-year base contract from the Pennsylvania Lottery to provide its instant games and Scientific Games Enhanced Partnership for lottery instant game services, as well as a 10-year base contract to provide lottery gaming systems services across the network of nearly 10,000 Pennsylvania Lottery retailers in the Commonwealth.
Score Media (SCR) announced that Penn National (PENN) has received approval from the Minister of Canadian Heritage under the Investment Canada Act in connection with its previously announced acquisition of theScore by way of a plan of arrangement. Subject to approval by theScore's shareholders at a special meeting, receipt of a final order in respect of the arrangement from the Supreme Court of British Columbia, and satisfaction or waiver of the other conditions to closing contained in the arrangement agreement with Penn National, the arrangement is expected to close on October 19.
Genius Sports (GENI) announced a new supplier agreement with PointsBet (PBTHF) to provide its full range of official sportsbook data, content, and fan engagement solutions including for NFL, NASCAR and EPL. This new agreement builds on PointsBet and Genius Sports' existing content and streaming partnership.
BetMGM (MGM) announced an exclusive market access partnership with the Puyallup Tribe of Indians to operate retail sports betting at the Emerald Queen Casino in Washington state. "Today's announcement marks another key moment in the expansion of BetMGM as we extend our western footprint into Washington," said BetMGM CEO Adam Greenblatt. "The Puyallup Tribe and Emerald Queen Casino are ideal partners for us as they represent the same high-level of service, amenities and experiences that is built into our DNA at BetMGM." Emerald Queen Casino operates two properties in Fife and Tacoma, an expansive gaming enterprise owned by the Puyallup Tribe. Pending regulatory approvals, sports betting will be available at both locations in the near future.
Bally's (BALY) announced that its board of directors has increased the company's existing share repurchase authorization to $350M in outstanding shares of common stock. With the closing of the Gamesys (JKPTF) acquisition and the company's new $4.07B debt package, the Bally's board of directors found it appropriate to increase the company's existing share repurchase authorization in an effort to maximize flexibility on capital allocation opportunities to drive long-term shareholder value. Under the repurchase program, Bally's can make repurchases from time to time using a variety of methods, including open market purchases, in block trades, accelerated share repurchase transactions, exchange transactions, or any combination of such methods, consistent with jurisdictional and U.S. Securities and Exchange requirements. The repurchase program does not obligate Bally's to acquire any particular amount of ordinary shares, and the repurchase program may be suspended or discontinued at any time at Bally's discretion. This announcement came right after Bally's announced that it has completed its previously announced combination with Gamesys Group (JKPTF), a UK-based global, online gaming operator. With the closing of the transaction, former Gamesys CEO Lee Fenton will now serve as Bally's CEO. Additionally, former Bally's CEO George Papanier will assume the role of President, Retail, for Bally's land-based casino business, and former Gamesys COO Robeson Reeves will assume the role of President, Interactive. Further, Fenton, Reeves, and Jim Ryan, former Gamesys Non-Executive Director, have been appointed to serve on Bally's Board of Directors.
Over a week ago, Clairvest Neem Ventures, or CNV, announced the participation of Caesars (CZR) in its development and operating consortium for a Wakayama Marina City-based integrated resort in Japan. Caesars joins the consortium in full compliance with Japanese law and with no capital commitment. The combination aligns CNV with Caesars Entertainment, the companies stated.
LOUISIANA LETS THE GAMES BEGIN: .Legalized sports betting has commenced in Louisiana with the first wagering parlor opened at a tribal casino, as the state prepares for its largest gambling expansion in decades, Associated Press reported. The Paragon Casino Resort in Marksville partnered with Betfred Sports to open The Draft Room, a sports book featuring theater seating, a custom video wall, betting counters and kiosks, the News-Star reported. Retired New Orleans Saints player Joe Horn made the first official bet on Wednesday. Paragon is operated by the Tunica-Biloxi Tribe of Louisiana and not regulated by the Louisiana Gaming Control Board. But the News-Star reported that Paragon needed legalization of sports betting before it could open its sports book Gamblers will be able to place sports wagers in-person only for now, but Paragon officials said mobile applications will follow. State-licensed casino betting parlors are expected to follow Paragon’s lead within a few weeks, said Ronnie Johns, chairman of the Louisiana Gaming Control Board. “Mobile takes longer because the casinos use outside vendors to do that work, and those vendors haven’t been licensed yet, so they have to go through the suitability process and background checks with the State Police,” Johns said. The Louisiana Lottery, which will regulate the sports betting kiosks planned for bars and restaurants, said it could be January before that retail segment comes online.
NOT SO FAST CONNECTICUT: Thea DiGiammerino of NBC Connecticut reported that the launch of Connecticut's statewide online and retail sports betting, which was originally planned for Thursday, has been pushed back, The Department of Consumer Protection confirmed this on Wednesday. State officials noted on Wednesday that they had not finalized all the details. "We are working with the licensees to ensure their platforms are certified and in compliance with the regulations prior to launch. As such, no date has been set but we do not anticipate it to be a lengthy delay," Kaitlyn Krasselt, a spokesperson for the Department of Consumer Protection, said in an email. Sports betting started at Foxwoods Resort Casino and Mohegan Sun last week. The Mashantucket Pequot Tribe is partnering with Draft Kings (DKNG) while the Mohegan Tribal Nation teamed up with FanDuel (PDYPY) to operate its sports betting.
FLORIDA LATEST: Sports betting is set to become legal in Florida on October 15, but the casinos are not prepared for the gamblers yet, David Dorsey of WINK News reported. The Seminole Casino Hotel in Immokalee is yet to offer a date to begin taking sports bets. Additionally, legal hurdles are mounting, which could very well push sports betting into 2022. The Seminole Tribe of Florida has agreed to pay the state at least $500M per year for 30 years. In return, anyone over 21 years of age in Florida can bet on sporting events online or on an app. However, Seminole Gaming spokesman Gary Bitner has said in the past that the tribe never announced a launch date and was never obligated to launch on October 15. Poker rooms as well as two pari-mutuels are hoping to get in on the action and are fighting to work out a deal. Those businesses claim that tribes have a monopoly on gambling. A hearing is scheduled for November 5.
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 National (PENN), Rush Street Interactive (RSI), Scientific Games (SGMS), Score Media (SCR) and Wynn Resorts (WYNN).
Robinhood
-0.33 (-0.79%)
Scientific Games
-2.35 (-2.88%)
Score Media
-0.41 (-1.17%)
Penn Entertainment
-1.69 (-2.25%)
Genius Sports
+0.135 (+0.76%)
MGM Resorts
-0.33 (-0.74%)
Bally's
-1.63 (-3.09%)
Caesars
-1.98 (-1.71%)
DraftKings
-1.48 (-3.00%)
Use FLUT
+1.35 (+1.38%)
Accel Entertainment
-0.01 (-0.08%)
Boyd Gaming
-0.24 (-0.37%)
Churchill Downs
-1.85 (-0.75%)
Gan Limited
-0.34 (-2.37%)
Las Vegas Sands
+0.99 (+2.67%)
Rush Street Interactive
+0.21 (+1.01%)
Wynn Resorts
+0.41 (+0.48%)