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SECTOR NEWS: Scientific Games (SGMS) announced that it has withdrawn its previously announced July 15 all-stock offer to acquire the remaining 19% equity interest in SciPlay (SCPL) that it does not currently own. A special committee of independent directors of SciPlay announced that discussions between the special committee and Scientific Games regarding Scientific Games' proposal to acquire the outstanding publicly traded shares of SciPlay have terminated. In July, Scientific Games made a proposal to acquire the 19% equity interest in SciPlay it does not currently own at a price of 0.250 shares of Scientific Games for each share of SciPlay. The special committee conducted a review of the terms of Scientific Games' proposal and analysis of SciPlay's anticipated financial performance and growth prospects. Based on its review and analysis, the special committee rejected Scientific Games' initial proposal, and actively engaged with Scientific Games to negotiate terms that it believed better reflects the value of SciPlay. However, the special committee and Scientific Games have been unable to reach an agreement on a transaction between SciPlay and Scientific Games, and discussions between special committee and Scientific Games regarding a potential transaction have terminated. "Although the Special Committee is disappointed that it and Scientific Games were not able to reach an agreement, both the Special Committee and Scientific Games remain firm in their support of SciPlay's leading platform of digital games, as well as their belief that SciPlay is at an inflection point and positioned for significant growth," the committee said.
In early December, Bloomberg reported that Churchill Downs (CHDN) is exploring options, including a sale of TwinSpires Racing, Macquarie analyst Jordan Bender told investors in a research note. The report said TwinSpires could be valued close to $1.5B and the sale of the business would be unsurprising, says the analyst. However, Bender is surprised Churchill Downs would look to sell the online horse wagering business given the growth since the launch in 2007 and synergies it has with the Kentucky Derby and its horse racing tracks. He believes the TwinSpires headline price of $1.5B wouldn't capture the full value of the horse racing business as well the synergies with the other areas of the business. He keeps an Outperform rating on Churchill Downs with a $287 price target.
Bundesliga International and Sportradar (SRAD) have agreed to a five-year extension of their long-term partnership with a focus on providing fans with greater access to German football's top leagues.
Melco Resorts & Entertainment (MLCO) announced that it has entered into a strategic partnership with Marriott International (MAR) to bring the W Hotels Worldwide brand to Studio City Phase 2. Scheduled to be open together with Studio City Phase 2 in December 2022, W Macau - Studio City is "set to become an iconic addition in the world class leisure destination through its detail-driven, unexpected design, signature Whatever/Whenever service and innovative programming," the company said.
In other news for Melco, shares gained in New York trading on Friday after Macau published its final report following the public consultation period in relation to the revision of the region's gaming law. The final report following the public consultation period in relation to the revision of Macau gaming law suggests a clear intent by the government to conduct the retendering of licenses by June 26, 2022, making any extension to the current concessions unlikely, IAG reported. Meanwhile, Morgan Stanley analyst Praveen Choudhary called the clarity on public opinion on key discussion points a positive for the Macau gaming group. Choudhary sees a status quo on the number of licenses at six, the duration of between 10 to 20 years, taxes and dividends, but also expects there will be increased oversight on operations. It seems that three items that had "negatively surprised the market when the public consultation was revealed in September" - namely dividend oversight, government representative oversight on day-to-day operation and a local MD stake increase - will stay, but that they will be "manageable," Choudhary added. Other publicly traded companies in the Macau gaming space include Las Vegas Sands (LVS), MGM Resorts (MGM), and Wynn Resorts (WYNN).
Fubo Gaming, a subsidiary of FuboTV (FUBO), announced the launch of Fubo Sportsbook in Arizona, marking the second state in which the sportsbook is available. Sports enthusiasts 21 years of age and older in the Grand Canyon State can now place wagers on thousands of live professional and collegiate sporting events, including the upcoming bowl games and professional football championship game, using the mobile app or on the Fubo Sportsbook website. The launch in Arizona, in partnership with the Ak-Chin Indian Community, expands Fubo Sportsbook's presence in the U.S.
Elys Game Technology (ELYS) announced a content distribution agreement with Playtech, a gambling software development company, to integrate and launch its digital iGaming content under the Newgioco brand in Italy. With the Playtech collection of gaming content, Elys' online and mobile casino now includes 31 providers that offer customers in Italy up to 1,300 slots as well as 100 tables and live dealer games. This gaming content is provided through Newgioco, a wholly owned subsidiary of the company.
O-FFICIAL: House Bill 29, a bill that legalizes sports betting in Ohio has been signed into law by Ohio Governor. Mike DeWine, WHIO TV reported, citing a spokesperson for the governor’s office. The governor’s office announced the sports betting bill signed into law on Wednesday. The bill had been on DeWine’s desk since December 8, after both houses of the Ohio Legislature passed HB 29 and sent it to the governor. According to the legislation, the state will legalize sports wagering no later than January 1, 2023. In a one-on-one interview with News Center 7′s John Bedell last week, DeWine showed indications the bill would be signed into law. “I see no reason that I would not sign it ... I look forward to signing the bill,” DeWine said. The bill allows for casinos, stadiums, bars, and restaurants to offer sports betting. Cell phone apps that offer sports betting will also be legal in the bill.
PENNSYLVANIA SETS MONTHLY RECORD: Figures released by the Pennsylvania Gaming Control Board showed total gaming and fantasy contests revenue for Pennsylvania in November at a record $433M, a 52% year-over-year increase compared to November 2020, according to Benchmark analyst Mike Hickey. The increase was driven by online sports betting revenue of $76.3M, up 103% month-over-month. Together online sportsbooks and online casinos made up about 38% of the total revenue in November. Total online and retail revenue in November reportedly surpassed the previously monthly record set just last month in October. Market share leaders by gross gaming revenue included Fanduel (PDYPY), DraftKings (DKNG), BetMGM (MGM), Barstool (PENN) and Rush Street Interactive (RSI). Pennsylvania is the fifth most populated state with an approximate population of 13M. According to Brad Allen of Legal Sports Report, November was a bad month for sports gamblers in The Keystone State. November handle was down 2% from the record set in October to $761.6M. Some of that downturn may be explained by the 11.7% hold, as bettors reportedly had less money to recycle. Additionally, there was also one less weekend of football and fewer days total. On a per-day basis, betting volume actually ticked up to $25.4M per day from $25M in October. That suggested NBA and college basketball was also driving handle. More than 92% of the month’s handle was placed online.
SLOWLY BUT SURELY: Ocean Downs Casino opened its TwinSpires Sportsbook Dec. 17 becoming the fourth retail sportsbook to open in Maryland this month, according to LSR. Ocean Downs is among the 17 retail licenses allocated in Maryland sports betting legislation. Retail sports betting in Maryland opened earlier this month when MGM National Harbor opened its BetMGM Sportsbook Dec. 9. Online sports betting in the state likely will not launch until at least late in 2022. “Maryland sports fans have been wagering on the Kentucky Derby with TwinSpires for many years, and will be familiar with the famous betting brand’s market-leading offers, products and promotions,” said Ben Murr, SVP and chief technology officer of Churchill Downs, the owner and operator of both Ocean Downs and TwinSpires. Penn National‘s Hollywood Casino will reportedly open its sportsbook this week, according to a release from the MGLCC. Another three licenses are awaiting their final approvals from the MLGCC as well: Long Shot’s, Riverboat on the Potomac and Greenmount Station. As far as online sports betting, the process will likely take an online launch in Maryland deep into 2022, Maryland Lottery and Gaming Control Agency Director John Martin said.
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).
Scientific Games
+6.83 (+10.99%)
SciPlay
-2.34 (-15.16%)
Churchill Downs
+2.81 (+1.20%)
Sportradar
+0.665 (+3.67%)
Melco Resorts
+0.685 (+7.00%)
Marriott
+2.04 (+1.25%)
FuboTV
+1.315 (+7.93%)
Elys Game Technology
-0.01 (-0.29%)
Use FLUT
+0.5501 (+0.73%)
DraftKings
+0.22 (+0.74%)
MGM Resorts
+0.775 (+1.71%)
Penn Entertainment
+1 (+1.96%)
Rush Street Interactive
+0.265 (+1.59%)
Accel Entertainment
+0.105 (+0.81%)
Bally's
+1.04 (+2.80%)
Boyd Gaming
+0.89 (+1.39%)
Caesars
+1.97 (+2.11%)
Gan Limited
+0.39 (+4.26%)
Genius Sports
+0.085 (+1.12%)
Las Vegas Sands
+1.67 (+4.51%)
Score Media
+ (+0.00%)
Wynn Resorts
+3.38 (+3.94%)