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: Earlier this week, Nevada reported December Las Vegas Strip gaming win was up 122.86% compared to 2020 to $650.78M.
Genius Sports (GENI) announced, ahead of hosting its first virtual Investor Day, that the company expects to achieve Group adjusted EBITDA profitability in 2022 and 2023 of $15M and $40M-$50M, respectively, with continued profitability growth thereafter. In 2022, the company expects to generate revenue of approximately $340M. In 2023, it expects group revenue in the range of $430M-$440M and group adjusted EBITDA of $40M-$50M. Mark Locke, co-founder and CEO, said: "Genius is the key link between leagues, sportsbooks, media outlets, advertisers, and ultimately, fans. Our best-in-class data collection technology is used around the clock and around the globe, powering the high-growth global sports ecosystem. It is difficult to imagine this industry operating efficiently without the mission critical data and technology solutions we provide. We have a clear plan in place to build on this strong foundation and drive profitability for Genius Sports Group in 2022 and 2023, and I am more confident than ever in the growth opportunities ahead as we continue to expand our operations around the world."
Bally Sports, a division of Sinclair Broadcast Group (SBGI), announced a partnership with BetMGM (MGM), to launch its networks' first sports betting program, Live on the Line, Powered by BetMGM. Airing weekdays at 12:00 PM ET across Bally Sports' 19 regional sports network brands, the Bally Sports app and Stadium, Live on the Line, Powered by BetMGM delivers up-to-date information for the betting audience, while also offering content for casual fans. Stadium, Sinclair's 24/7 multi-platform sports network, is producing the hour-long show in coordination with Bally Sports out of its Chicago-based studio. Custom BetMGM graphics, set integrations and interactive elements serve as visual cornerstones of the weekday program.
Las Vegas Sands (LVS) reported Q4 earnings on Wednesday, beating analyst expectations for both EPS and revenue metrics. "We remain confident in the eventual recovery in travel and tourism spending across our markets and enthusiastic about the opportunity to welcome more guests back to our properties in 2022 and the years ahead," said Robert Goldstein, chairman and chief executive officer. "While pandemic-related travel restrictions continue to impact our current financial performance, we again generated positive EBITDA in each of our markets. We remain deeply committed to supporting our team members and to helping those in need in each of our local communities as they recover from the impact of the pandemic."
The National Football League's Division Round playoff games, which aired this past weekend, averaged 38.2M viewers on television and digital platforms, resulting in a duplicated total of over 152M viewer, ESPN's Adam Schefter reported. The 38.2M average marks the highest average for that playoff round to date, Schefter noted.
Genius Sports has secured a new official data, live streaming and fan engagement partnership with global online sports betting and gaming brand Betway. The new agreement provides Betway with Genius Sports' LiveData and LiveTrading solutions, delivering real-time data and pricing for the NFL and NCAA Basketball, alongside the English Premier League and Euroleague Basketball from its long-term existing partnership. Licensed in five states across the U.S., Betway will have access to Genius Sports' full NFL product suite, including access to the league's real-time statistics, proprietary Next Gen Stats and official sports betting data feed.
BETTING ON THE BAYOU: Caesars (CZR) announced its Caesars Sportsbook app is now accepting its first mobile sports bets in Louisiana . Penn National (PENN) also announced it has received approval from the Louisiana Gaming Control Board to offer online sports betting in the state. Penn National launched its Barstool Sportsbook mobile app and desktop product earlier this morning, January 28. FanDuel, a subsidiary of Flutter Entertainment plc (PDYPY), and Boyd Gaming (BYD) have also launched FanDuel Sportsbook in the state of Louisiana. Following the recent opening of five retail FanDuel Sportsbook locations at Boyd Gaming properties across the state, sports fans in Louisiana will be able to place bets on the FanDuel Sportsbook app in 55 of the state's 64 parishes starting today. DraftKings (DKNG) was also among the first entrants into the Louisiana market. The company said, "Following the opening of a new retail sportsbook in Louisiana alongside Golden Nugget Casino Lake Charles, DraftKings will expand its relationship with Golden Nugget Casino Lake Charles (GNOG) when it launches mobile sports betting for eligible customers in the state's permitted parishes starting 8am CT on Friday, January 28th. Louisiana becomes the 17th state to offer DraftKings' online sportsbook, and the company is now live in 18 states including retail-only jurisdictions." On Tuesday, WynnBET (WYNN) announced that account pre-registration and deposit is now available in Louisiana. "WynnBET's launch in Louisiana is just the beginning of an exciting few months for our company as we significantly increase our footprint during the first quarter of 2022," Wynn Interactive President Ian Williams said. "Pending regulatory approval, we will also soon be launching our online sportsbook in New York and Iowa, expanding the number of states players can enjoy our platform from seven to 10. We look forward to welcoming new customers from across the country to WynnBET in the coming weeks." WynnBET is the online sports betting and casino app from Wynn Resorts.
Elys Game Technology (ELYS) announced a binding term sheet with Lottomatica S.p.A. that outlines the entry into a definitive agreement and ancillary agreements to design, develop and service a customized sportsbook technology platform focused on Lottomatica's North American growth initiatives. Michele Ciavarella, Executive Chairman of Elys Game Technology, said, "This partnership adds a new evolution for Elys' innovative sportsbook technology and is yet another example of our modular architecture's ability to seamlessly integrate. We look forward to working closely with Lottomatica and their commercial partners to provide a competitive, flexible, and effective technology solution throughout this long-term relationship. We believe that this partnership could also foster significant synergies in the online gaming industry, both domestically and internationally, and is positioned to drive long-term shareholder value for both companies."
WYNN OR GO HOME: Wynn Resorts is looking to unload its online sports-betting business at a steep discount as the fledgling niche faces painful losses from stiff taxes and costly promotions needed to lure customers, New York Post's Josh Kosman reported. The Las Vegas-based casino giant is quietly shopping its Wynn Interactive unit - operator of the WynnBet online gaming app - and has slashed the asking price to $500M after floating a $3 B valuation less than a year ago, a source close to the situation told The Post. In November Wynn said it was axing plans it reported in May to merge Wynn Interactive with Austerlitz Acquisition Corp. (AUS), owned by Las Vegas Knights owner Bill Foley. After disclosing that the app was on track to burn $100M in both Q3 and Q4, CEO Matt Maddox sspoke to the apps feasibility. “The market is really not sustainable right now,” Maddox said on a November 10 earnings call. “Competitors are spending too much to get customers. And the economics are just not something that we’re going to participate in.” Matthew Waters of Legal Sports Report noted that now one of the nine NY sports betting licenses is up for sale mere weeks after the market began. This could attract suitors who did not bid the first time around. Fanatics is reportedly a front-runner to snatch up WynnBET to get into New York, but multiple suitors are likely. Fanatics failed to be considered for a New York license in its original joint bid with Penn National. In terms of the rest of the country, WynnBET provides market access to 14 states, including nine live states:
Additionally, there are also five states pending launch:
FRESH MARKET: The New York online sports betting market launched on January 8 and industry handle through January 16 was $603M, according to Morgan Stanley analyst Thomas Allen. Assuming NY's daily handle for the first eight days at a 7% hold would imply a roughly $1.9B market. Allen told investors that upside drivers for the Empire State market include the fact that only four of the nine operators were in operations that week and the market can continue to ramp as more customers sign up. However, downside drivers are that there are likely future bets included in handle since the market just opened with heavy promotional spend is in a seasonally busy period. As far as handle share is concerned, Caesars led at 43%, followed by Fanduel 33%, DraftKings 22% and Rush Street Interactive (RSI) 2%. The analyst concluded that given the higher-than-average 51% tax rate burden, he would expect the promotional spending environment to decelerate faster than most states as operators look to avoid substantial losses.
POTENTIAL TAKEOUT: Shares of Bally's (BALY) rose earlier this week after shareholder Standard General, which holds a 21% stake, disclosed in a regulatory filing earlier that on January 25, Standard General delivered a non-binding letter to the board of directors of the company proposing a transaction under which it would acquire all of the outstanding shares of common stock not currently owned by Standard General at a price of $38.00 per share. The filing stated in part: "As described in the proposal letter, Standard General expects that the Board of Directors of the company will appoint a special committee of independent directors to consider its proposal and make a recommendation to the Board of Directors. Standard General will not move forward with the transaction unless it is approved by such a special committee. In addition, the transaction will be subject to a non-waivable condition requiring the approval of holders of a majority of the shares of the company not owned by Standard General or its affiliates. No assurances can be given that a transaction will be consummated. The Proposal Letter provides that no legally binding obligation with respect to a transaction will exist unless and until mutually acceptable definitive documentation has been executed and delivered with respect thereto." In afternoon trading on, Bally's shares have advanced $7.55, or 26%, to $36.78. Macquarie analyst Jordan Bender believes the core business is worth $42.00 per share, with every 1% US market share worth an additional $600m, or $9.00 of equity for the company. The analyst thinks the $38 offer price could act as a starting point for Standard General with the expectation for a potential takeout price to increase. Bally's has spent the last year piecing together one of the most comprehensive sports betting and iGaming strategies in the space, Bender told investors in a research note. Additionally, the app ready to go live in the next several months in any state eligible for an online license.
PUBLICLY TRADED COMPANIES IN THE SPACE INCLUDE: Accel Entertainment (ACEL), Bally's, Boyd Gaming, Caesars, Churchill Downs (CHDN), DraftKings, Flutter Entertainment, Gan Limited (GAN), Genius Sports, Las Vegas Sands (LVS), MGM Resorts, Penn National, Rush Street Interactive (RSI), Scientific Games (SGMS), Score Media (SCR) and Wynn Resorts (WYNN).
Genius Sports
+0.035 (+0.60%)
MGM Resorts
+0.94 (+2.31%)
Las Vegas Sands
+0.92 (+2.19%)
Caesars
+2 (+2.84%)
Penn Entertainment
+1.72 (+4.06%)
Use FLUT
+2.29 (+3.18%)
Boyd Gaming
+0.57 (+0.99%)
DraftKings
+1.065 (+5.50%)
Golden Nugget Online
+0.42 (+6.02%)
Wynn Resorts
+1 (+1.21%)
Elys Game Technology
+0.09 (+3.38%)
Austerlitz Acquisition Corporation I
-0.005 (-0.05%)
Rush Street Interactive
+0.315 (+3.68%)
Bally's
+1.17 (+3.38%)
Accel Entertainment
+0.245 (+2.00%)
Churchill Downs
+0.77 (+0.39%)
Gan Limited
+0.02 (+0.31%)
Scientific Games
-0.52 (-0.95%)
Score Media
+ (+0.00%)