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: Gan Limited (GAN) announced the launch of iGaming and online sports betting for Saginaw Chippewa Indian Tribe of Michigan, who own and operate Soaring Eagle Casino & Resort. Soaring Eagle Casino & Resort is the largest casino in the State of Michigan, with a 210,000 square-foot casino facility that offers thousands of slot machines and floor games available in the Midwest. It also possesses a database of patrons, who the parties anticipate converting into active online players via Gan's iBridge loyalty platform, the company and tribe announced.
Scientific Games (SGMS), doing business as Light & Wonder, has extended its existing agreement with Entain (GMVHF) through to 2030. The original agreement signed with Entain in 2018 is the largest contract to date for Light & Wonder's UK gaming business. This extension has built on this relationship. Light & Wonder will continue to supply over 10,000 terminals to Entain's licensed betting offices LBO through their Coral and Ladbrokes retail shops. The company will also provide game titles from its global game portfolio as well as titles from its Manchester Studio.
Cogniac announced its partnership with Melco Resorts & Entertainment (MLCO). The partnership implements Cogniac's proprietary visual data processing platform to support operations of Melco's loyalty program, Melco Club, at the company's City of Dreams Manila luxury integrated resort. Cogniac's AI-based computer vision platform facilitates the operational capacities of the integrated resort's exclusive rewards program, Melco Club.
Oryx Gaming, a Bragg Gaming (BRAG) company, announced a new agreement to provide its player account management, or PAM, iGaming platform and exclusive content to a new online casino brand, 711.nl, in the regulated Dutch market. Pursuant to the agreement, Oryx is supplying its proprietary PAM platform for iGaming to 711.nl, which will ensure the operation for the 711.nl online casino that recently received its license and is poised to begin operation. Oryx will also deliver games developed by its in-house studios as well as exclusive content from partner studios. The new partnership represents the company's third agreement to provide its PAM platform to an iGaming operator for the Netherlands market and its fifth agreement to supply online gaming content in this market, it noted.
Elys Game (ELYS) announced a partnership with All Bets to establish allBETS DC One and operate a sportsbook planned to open at 821 Upshur St. NW, in Washington, D.C. The company's subsidiary, USBookmaking, will provide sport wagering services to manage the sportsbook risk and provide trading services. Following the launch of Grand Central Restaurant and Sportsbook, in the Adams Morgan area, and with the Cloakroom DC currently in regulatory review, the partnership with allBETS DC would represent the company's third implementation of its strategy to offer a sportsbook solution in non-conventional locations such as restaurant and bar venues in Washington, DC.
Oryx Gaming announced that it has taken its content live in the UK with the mobile-first online gaming group, Casumo. An initial selection of games from Oryx's content portfolio has gone live with the casino operator, with additional titles, including from Atomic Slot Lab powered by Bragg, set to be rolled-out on a regular basis.
Sportradar (SRAD) announced the acquisition of Vaix Limited. Vaix's AI technology allows betting and gaming operators to gain a personalized view of their customers, which enables them to provide a more targeted experience. The acquisition does not have a material impact on the company's annual outlook for 2022, provided on March 30. For over two years, Sportradar has partnered with Vaix and incorporated its technology into its Managed Trading Services, MTS, offering. Paolo Personeni, managing director of Managed Betting Services at Sportradar said: "VAIX products with their Artificial Intelligence and algorithms are now being natively integrated as part of the Sportradar Sportsbook platform, enhancing our data analytics, promotions system and player personalization. All Managed Betting Services customers will enjoy a faster and simplified integration. The acquisition of Vaix is the culmination of a very important and productive partnership we have had with the company over two years." Terms of the acquisition are not disclosed.
STATE UPDATE: Based upon filings with the New Jersey Division of Gaming Enforcement, total casino win for the nine casino hotel properties was $216.6M for March, reflecting growth of 17.2% compared to $184.9M for March 2021. Year-to-date total casino win for the nine casino hotel properties was $612.7M, reflecting growth of 24.2% compared to $493.1M for the prior period. For the month of March, internet gaming win reported by casinos and their partners was $140.7M, reflecting growth of 23.7% compared to $113.7M for the prior period. For the year-to-date period, internet gaming win reported by casinos and their partners was $408.5M, reflecting growth of 31.2% compared to $311.2M for the prior year-to-date period. Sports wagering gross revenue reported by casinos, racetracks, and their partners was $66.4M for March, reflecting a 9.3% increase when compared to $60.8M in the prior period. Sports wagering gross revenue reported by casinos, racetracks, and their partners was $157.5M for the year-to-date, reflecting a 16.8% decline when compared to $189.3M for the prior period. Total gaming revenue reported by casinos, racetracks, and their partners was $423.7M for March, reflecting a 17.9% increase from $359.3M reported in March 2021. For year-to-date, total gaming revenue reported by casinos, racetracks, and their partners was $1.18B reflecting a 18.6% increase from $993.7M reported in the prior period.
According to Benchmark analyst Mike Hickey, Michigan commercial and tribal operators reported $162.2M in total gross gaming receipts in March, a 12% increase from February. Online casinos and online sports betting contributed 94% of the total gross receipts reported in March. Online sports betting handle of $451.6M was up 13% month-over-month after reporting a record $496.8M back in January of this year.
Pennsylvania's March data showed a rise in sports wagering attributed to March Madness and recording the state's and nation's highest ever online casino gross gaming win of $140M. Hickey noted that Pennsylvania's sportsbooks generated $667M in bets, up 30% from $514.3M in March 2021. Additionally, March's handle was up 20% month-over-month from $558M in February. Online casinos and poker rooms generated $118M in net gaming revenue in March. Revenue was up 15% month-over-month.
The widespread adoption of mobile sports betting in New York State has paved the way for three new full-service casinos to likely open in or near the five boroughs, according to Brian Pascus of Crain's New York Business. A casino in Manhattan is considered as a possibility as well. CBRE analyst John DeCree noted that New York Governor Kathy Hochul reached an agreement on the state budget that, among other things, fast-tracks the licensing of up to three downstate casinos, which he says creates "the largest land-based gaming opportunity in years." DeCree believes MGM Resorts (MGM) is "a likely winner" of one of the three licenses and estimates a full casino at Empire City could generate $1.28B of gaming revenue, and $1.45B of total revenue, should MGM win a license. He reiterated a Buy rating on MGM shares.
Maine sports betting legislation is almost en route to Governor Janet Mills., Pat Evans of Legal Sports Report reported. The Senate passed LD 585 Tuesday night, 23-11. The House, which originally passed the bill last week, agreed with an amendment shortly after the Senate passage. The ME sports betting language is a small piece of broader tribal sovereignty legislation. Mills, who previously vetoed a sports betting bill in 2020, is expected to sign LD 585 after a pit stop at the Appropriations Table, where a piece of sports betting legislation from 2021 still resides. “The bill is now sitting on the appropriations table. That is where the sports betting bill from last session went to seemingly die after passing both the House and Senate last year,” Maine Gambling Control board chair Steven Silver told LSR. “It does not appear that LD 585 will suffer the same fate since this was the Governor’s preferred bill." The original version of LD 585 left the Maine's commercial casinos and race tracks out of sports betting entirely., but they were eventually included when Tuesday's amendment gave Penn National (PENN) casino in Bangor retail sports betting instead of the horse racing track it manages.
ANALYST COMMENTARY: Rosenblatt analyst Barton Crockett initiated coverage of Fox Corp. (FOX) with a Neutral rating and $38 price target. The audience numbers for the core Fox News Channel are "amazing" and Fox has "interesting exposure" to sports betting through FoxBet and rights to buy 19% of FanDuel (PDYPY) at a price to be determined through arbitration, Crockett tells investors. However, pay TV pressures are "inexorable," which mutes long-term earnings growth expectations and sentiment towards the stock, the analyst added.
JPMorgan analyst Joseph Greff thinks Las Vegas Sands (LVS) represents a favorable risk/reward and he would be a buyer following a pullback from the upper $40's in February. Current share levels compensate investors for China's ongoing COVID-19 lockdown impacts in Macau, where weakness in March through month to date is "appreciated and unsurprising," Greff tells investors in a research note. The analyst believes there is little credit in the stock for a potential positive fundamental inflection point at Marina Bay Sands in Singapore, given the country's March/April re-opening of its vaccinated travel lanes. He keeps a Buy rating on Las Vegas Sands with a $51 price target.
Noting that Ontario launched its regulated sports betting and iGaming market on April 4, Morgan Stanley analyst Thomas Allen said that month-to-date, Penn National's theScore betting app has taken a "very strong lead" in app downloads at 50%, followed by legacy and Betway. BetMGM and BetRivers have 3% each, Caesars (CZR) has 2% share, and 888 (EIHDF)/LeoVegas each have 1%, Allen added. The analyst maintained an Equal Weight rating on Penn National's shares.
Citi analyst George Choi opened "30-day positive Catalyst Watches" on both Galaxy Entertainment (GXYEF) and Melco Resorts & Entertainment. He expects both companies outperform their peers in the near term. Q1 was the worst gross gaming revenue quarter for Macau since Q3 of 2020, but the six casino operators have been working hard on optimizing operating expenditures, Choi tells investors in a research note. Investors should therefore not be surprised that Macau as a whole incurred an industry EBITDA loss during the quarter, says the analyst. However, based on his forecasts, Galaxy and Melco managed to produce positive EBITDAs "during this extremely difficult quarter." Choi believes both companies' early efforts in cultivating the premium mass business are "now proving to be the right strategy."
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).
Gan Limited
-0.11 (-2.66%)
Scientific Games
-0.77 (-1.29%)
Entain
-0.205 (-1.01%)
Melco Resorts
-0.05 (-0.81%)
Bragg Gaming
-0.15 (-2.81%)
Elys Game Technology
+0.02 (+1.28%)
MGM Resorts
-0.805 (-1.91%)
Penn Entertainment
-0.315 (-0.85%)
Fox Corp.
-0.51 (-1.42%)
Fox Corp.
-0.53 (-1.36%)
Use FLUT
-1.419 (-2.57%)
Las Vegas Sands
-0.52 (-1.40%)
Caesars
-1.1 (-1.62%)
888 Holdings
-0.2448 (-8.90%)
Galaxy Entertainment
-0.12 (-2.06%)
Sportradar
-0.145 (-1.10%)
Accel Entertainment
-0.36 (-2.90%)
Bally's
-0.53 (-1.79%)
Boyd Gaming
-1.14 (-1.78%)
Churchill Downs
-2.96 (-1.43%)
DraftKings
-0.21 (-1.46%)
Genius Sports
+0.015 (+0.39%)
Rush Street Interactive
+0.08 (+1.29%)
Wynn Resorts
-1.79 (-2.37%)