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: Caesars (CZR) announced a revised agreement to sell the non-U.S. assets of William Hill to 888 Holdings (EIHDF) for a revised enterprise value of between GBP 1.95B and GBP 2.05B. The revised agreement reflects a GBP 250M reduction in consideration payable at closing and Caesars being entitled to receive up to GBP 100M as deferred consideration subject to the enlarged business of 888 Holdings meeting certain 2023 financial targets. After the repayment of debt and other working capital adjustments and subject to customary closing purchase price adjustments, Caesars expects to receive net proceeds from the transaction at closing of approximately $785M. The transaction is subject to receipt of the approval of shareholders of 888 Holdings and regulatory approvals. Caesars' expectation is that the transaction should close in June.
After the announcement yesterday, Morgan Stanley analyst Thomas Allen called the news a "small negative." Caesars will now receive $785M, or $415M less if it does not receive the deferred compensation, which he estimates could be about a $2 headwind to his $122 price target, though with Caesars stock trading near $72, Allen said "there remains significant upside" and he maintained an Overweight rating on Caesars shares.
Oryx Gaming, a Bragg Gaming (BRAG) company, announced that it has gone live with its exclusive iGaming content portfolio in Portugal with prominent online gaming operator, Betclic. The company's debut in the Portugal iGaming market represents its seventh regulated European country launch since April 2021.
The National Football League is now the largest American owner of equity in Genius Sports (GENI) as it controls about 7.7% of the business after 4.25 million warrants vested last week, reported Sportico's Brendan Coffey and Eben Novy-Williams. Genius Sports shares spiked following the report.
Elys Game Technology (ELYS) announced the entry into definitive agreements with Lottomatica. Under the terms of the agreements, Elys will license a customized sportsbook platform for Lottomatica for its B2C activities, with a main focus on the North American market. Elys expects to obtain land-based license rights through an ancillary agreement that will expand its land-based distribution in the Italian market ahead of the anticipated federal license renewals in Italy. Elys also plans to submit its land-based technology for certification to the Italian regulator for land-based operation in Italy.
Gaming and Leisure Properties (GLPI) announced that, on April 1, it completed the previously announced acquisition from Bally's Corporation (BALY) of the land and real estate assets of Bally's three Black Hawk Casinos in Black Hawk, CO and Bally's Quad Cities Casino & Hotel in Rock Island, IL for $150M in total consideration. These properties were added to the existing Bally's Master Lease. The initial rent for the lease was increased by $12M on an annual basis, subject to contractual escalations based on the Consumer Price Index, with a 1% floor and 2% ceiling, subject to CPI meeting a 0.5% threshold.
PARTNERSHIPS: The Toronto Blue Jays and theScore Bet, a wholly owned subsidiary of Penn National (PENN), announced a 10-year exclusive partnership making theScore Bet the Official Gaming Partner of the Toronto Blue Jays. "This landmark deal - the first of its kind in the country - brings together two best-in-class Canadian organizations to offer fans innovative and exciting ways to experience the game, both at the ballpark and online. The historic partnership represents the Blue Jays' first gaming partner and theScore Bet's first professional team sponsorship. Teaming up is a natural collaboration for the two Toronto-based organizations with Ontario recently opening its market for sports betting and iGaming to regulated private operators on April 4," the team and company stated.
Caesars and the New York Mets announced a multi-year partnership to make Caesars Sportsbook an official sports betting partner of the team. "In addition to a variety of VIP experiences and hospitality assets for members of the industry-leading loyalty program, Caesars Rewards, this partnership features plans to open a new sportsbook lounge at Citi Field, Caesars Sportsbook at the Metro Grille," the team and company announced.
Genius Sports has agreed a new data tracking and video augmentation partnership with Liga MX franchise Club Necaxa. Through its Second Spectrum division, Genius Sports' tracking technology will provide data-driven player analytics, enhancing Necaxa's on-field performance levels while powering immersive fan experiences. Genius Sports will install its AI and machine-learning powered cameras at the Estadio Victoria, capturing transformative new data points including player speeds, expected goal conversion rate, shot velocity and more.
DraftKings (DKNG) and the Mashantucket Pequot Tribal Nation announced they have agreed to a deal to expand their relationship and pave the way to offering the DraftKings online and retail sports betting experience in Puerto Rico, subject to applicable licenses and regulatory approvals being obtained. The announcement comes following Foxwoods and DraftKings having successfully launched sports betting and iGaming in Connecticut on October 19, 2021. The DraftKings retail sportsbook will be located inside the Foxwoods El San Juan Casino and is expected to open in the coming weeks, pending receipt of applicable licenses and regulatory approvals. In addition to online and retail sports betting, DraftKings will have the opportunity, pending receipt of applicable licenses and regulatory approvals, to provide customers in Puerto Rico with its legacy daily fantasy sports product, which is currently available in 44 states in the United States and operational in six countries internationally, the company said.
ONTARIO LAUNCH: On Monday, legal sports betting in the Ontario province of Canada went live. Operators wasted know time announcing their own launches there. Sportradar (SRAD) announced that its subsidiary Sportradar AG has received a gaming-related supplier registration for online/mobile wagering from the Alcohol and Gaming Commission of Ontario. Sportradar now holds 36 licenses in North America across states, territories, tribes, and Canada.
Bragg Gaming announced that it launched its content distribution agreement with 888casino in Ontario on the first day of the regulated market opening pursuant to its supplier license from the Alcohol and Gaming Commission of Ontario, or AGCO. The agreement, representing the first of several with iGaming operators in Ontario, includes games from Bragg's exclusive portfolio, such as Egyptian Magic, the recent debut game from its in-house studio Atomic Slot Lab, and others picked specifically for the newly-regulated Ontario iGaming market.
BetMGM (MGM) announced the launch of its online sports betting and iGaming platforms in Ontario, Canada. Ontario is BetMGM's first international market and the 23rd overall in which a BetMGM product is available. BetMGM has also established partnerships with =Canadian athletes to help reach players across the country. Hockey Hall of Fame member Wayne Gretzky and Edmonton Oilers captain Connor McDavid will appear in BetMGM's upcoming marketing campaigns, in addition to the brand's advertisements featuring actor Jamie Foxx and Basketball Hall of Fame member Kevin Garnett.
Penn National announced that its subsidiary, theScore Bet, has officially launched theScore Bet mobile Sportsbook and Casino in Ontario. TheScore Bet, which is available on iOS and Android devices, went live the minute the Ontario market launched.
Genius Sports announced that it has obtained regulatory approval from the Alcohol and Gaming Commission of Ontario, or AGCO, enabling the company to launch with partners from day one of the Ontario online market opening.
Paysafe (PSFE) has announced that it is live and supporting private iGaming operators with payments in the Canadian province of Ontario's expanded market. Building on longstanding payments partnerships with the Canadian provincial government-operated lotteries, Paysafe is now powering payments for operators in Ontario's new private market. Among others, these partners include PointsBet (PBTHF) and theScore Bet.
FanDuel (PDYPY) Sportsbook and FanDuel Casino has officially launched in Ontario, Canada, on Monday. This expansion means Ontario residents and visitors can access FanDuel's variety of sports betting and casino offerings.
Gan Limited (GAN) announced its concurrent launch of sports and iGaming in Ontario.
STATE UPDATE: According to Benchmark analyst Mike Hickey, Illinois reported total February online handle of $652.3M, down 21% from January's record $829.1M handle. Overall, including retail, the Prairie State reported a record $679.4M handle, almost $150M less than the previous months record. Illinois reported February online sports betting total handle of $652.3M, or up 33% year-over-year and down 21% sequentially. Tier one wagers, defined as bets on final match results, brought in $347.9M or 53% of total handle. Tier two wagers, such as prop bets or over/unders, attracted bets worth $304.4M or 47% of total online handle. Total reported handle was $679.4M. Online wagering reported $652.3M or 96% of total handle.
While the state of Georgia is garnering a lot of eyeballs with the Masters this weekend, those who are looking to bet on the event in Georgia will have to wait some time. According to Matthew Waters of Legal Sports report, a bill that would legalize sports betting never made it to the House floor. SB 142, which would have made operations legal for 18 online sportsbooks, was not called Monday, the 40th and final day of the 2022 Georgia Legislature. The legislation calling for a referendum to allow sports betting and casino gambling, SR 135, was scrapped to bring in something else. Representative Ron Stephens decided to amended both pieces of legislation and introduce them to his committee on March 28, but the process received a cold reception, as many in his committee said they were seeing the bills for the first time that day. Nonetheless, both bills arrived and were ready for the House floor. The process is likely delayed at least another year, but reportedly similar legislation next session could delay legal betting until the 2024 NFL season.
Even closer to the finish line is a bill to legalize sports betting in Kansas. SB 84 made strides last week but must wait at least three weeks for more action., Pat Evans of LSR reported. The House of Representatives pushed through a final SB 84 version early Saturday morning after a committee agreed on a deal for the Kansas sports betting legislation Friday. However, the Senate did not act on the bill before the legislature adjourned for a three-week veto break. April 25 is the return date and there are hopes that the Senate will presumably take up the bill. Reportedly, should it receive a final approval from the Senate, Governor Laura Kelly likely will sign the bill. Kelly told reporters last week she wants sports betting of some form in Kansas. There is somewhat of a border battle as both Missouri and Kansas attempt to reach the finish line first in terms of legislation. Both states now have a sports betting bill through one chamber.
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) and Wynn Resorts (WYNN).
Accel Entertainment
-0.11 (-0.93%)
Bally's
-0.53 (-1.90%)
Boyd Gaming
+0.43 (+0.70%)
Caesars
-1.425 (-2.02%)
Churchill Downs
-4.8 (-2.31%)
DraftKings
-0.765 (-4.45%)
Use FLUT
-0.62 (-1.10%)
Gan Limited
-0.095 (-2.09%)
Genius Sports
-0.205 (-4.71%)
Las Vegas Sands
-0.07 (-0.19%)
MGM Resorts
+0.1 (+0.26%)
Penn Entertainment
-0.69 (-1.83%)
Rush Street Interactive
-0.195 (-2.70%)
Scientific Games
+0.63 (+1.10%)
Wynn Resorts
-1.57 (-2.12%)
888 Holdings
+0.4735 (+18.72%)
Bragg Gaming
-0.27 (-4.53%)
Elys Game Technology
-0.095 (-4.03%)
Gaming and Leisure Properties
+0.345 (+0.75%)
Sportradar
-0.47 (-3.33%)
Paysafe
+0.19 (+6.34%)
PointsBet
+0.002 (+0.07%)