Earnings+More - Aug 9: Betr breaks cover
Aug 9: Betr breaks coverJake Paul-fronted Betr raises $50m, PlayAGS Q2, DraftKings analyst updates +MoreGood morning. On today’s agenda:
Betr fundraise
New sheriff: The new B2C sports media and micro-betting-focused Betr took to social media yesterday to announce a $50m funding round and to say they were going to “disrupt legacy gambling and legacy media”.
Microdosing: In a Medium post, Joey Levy said he launched Simplebet to “simplify” sports-betting, either via direct-to-consumer or via B2B.
Somebody tell Denise: Levy said he realized why “no company had built the technical infrastructure to enable micro-betting at scale” for US sports was because “soccer drove the global regulated sports betting market, and what moments are there to bet on during a soccer match?” What does this mean for Simplebet? Levy noted that while companies like DraftKings - a Simplebet client - “have pushed the envelope” by launching micro-betting, they are “presenting micro-betting as a feature within a supermarket of legacy sports betting products vs as the core experience.”
The disruptors: Not content with disrupting one sector, Levy goes on to say that “given the convergence of sports betting and sports media and how the latter is just as antiquated as the former”, Betr is also launching a media company led by Paul who is “the world’s most disruptive athlete-influencer”. On the team: Joining Betr is Alex Ursa, head of product, who comes from FanDuel and head of media Mike Denevi who was previously at Bleacher Report. On the capital table: The fundraise was led by Florida Funders which led a previous $30m round earlier this year.
Go social: Notably, the press release said Betr is on TikTok, YouTube, Instagram, and Twitter, and on LinkedIn and at betr.app. On social1/ It's interesting to watch U.S. sports betting nomenclature evolve in real time.
For the first few years of regulated betting, we saw a mishmosh of "live," "in game," "play-by-play" and "in play" used to describe real-time wagering ... Also on social And… My marketing strategy for every US betting brand is now useless. Credit here to @betr who can only fuck it up from here. betr @betr Our guy @JakePaul turned down $40M for this. 😈 https://t.co/ASZIgdgPoz**Sponsor's message: Spotlight Sports Group is a leading technology, content and media business specialising in sports betting. Working with the largest media companies in the world, including AS.com and Advance Local, Spotlight Sports Group, offer fully managed solutions that allow publishers to maximize revenue across their highly valuable sports betting audiences. For more information visit: spotlightsportsgroup.com PlayAGS Q2
80-20 rule: With domestic daily revenue per EGM up 6% QoQ for the fifth consecutive quarter, CEO David Lopez said the company’s goal when it comes to premium-mass market ratios is to be “at 80-20% of our base”. Goal hanger: The group was continuing with its “fleet optimization efforts”, that is replacing legacy stock with new models. Lopez said there had been “a slight acceleration for premium units going into Q3” and made the point that some of its “closest competitors (are at) about 40% on that figure”.
Consistent supply: Lead times and supply chain logistics were steady at four to six weeks and this would help the focus on premium placements, CFO Kimo Akiona noted.
Analyst reaction: Jefferies noted that the recent Supreme Court decision on regulating bingo machines in Texas “should provide a meaningful opportunity” for the company.
DraftKings analyst reaction
Surplus to requirements: The team at CBRE suggest that with “most competitors watching their checkbooks”, DraftKings has been able to maintain momentum on the revenue side while “optimizing” it marketing to reduce cash burn,
Moving target: Jefferies, meanwhile, suggested the narrative around DraftKings has shifted “in a good way” and noted the “growing acceptance” of the management’s insistence on not needing to raise capital and also the the shift in the market’s tolerance for accepting risk. Cali cost of entry: One area of focus is the ballot race in California and the team at Credit Suisse noted that while it is a “significant opportunity”, it does come with a hefty price of admission with an estimated external marketing spend of between $250m-$300m.
Exuberant me: Roth’s analysts said H2 would be the “litmus test” for the OSB operators to determine whether the industry's recent marketing rationalization is “structural vs seasonal”.
👀 DraftKings one-month share price performance Analysts in briefSportradar: Ahead of earnings next week, the team at Jefferies have revised estimates down slightly, suggesting revenue will come in at $170m vs. $172.4m previously while adj. EBITDA will be $30.8m vs. $35.5m.
DatalinesOhio: July GGR came in at $206.7m, down 2.1% YoY and 27.4% above Jul19. Penn’s four Ohio properties generated $70.5m in GGR, down 4.5% YoY and up 25% vs. Jul19. Illinois: Land-based GGR in July of $122.9m was up 2.3% to $122.9m and 6.1% above Jul19.. On a same-store basis (excluding Hard Rock Casino Rockford, which opened in Nov21), GGR totaled $117.9m, implying a 1.9% decrease YoY and 1.8% above Jul19. NewslinesEvolution the acquisition of Nolimit City for a consideration in cash of €200m upfront. With earnouts, the final price tag could reach €340m. Greek to me: Sports-betting supplier Pinnacle Solution has agreed a data partnership with decentralized betting ecosystem Azuro to provide sports and esports prices, with the feed available to front-end operators connected to Azuro’s blockchain protocol. Novibet has signed a multi-year market access contract with Caesars Entertainment to operate in New Jersey. The company also secured market access in Mexico through a contract with Big Bola Casinos. What we’re readingDog bowl: Underdog Fantasy satisfies the appetite for safer gambling. Calendar
Contact us
If you liked this post from Earnings+More, why not share it? |
Older messages
Aug 8: UK gaming feels the heat
Monday, August 8, 2022
The week ahead, DraftKings, Penn Entertainment and Century analyst reactions, startup focus - BettorEdge +More
Jul 20: BetMGM motors on in Michigan
Friday, August 5, 2022
Pennsylvania and Michigan June data, analyst Q2 previews, Las Vegas Sands preview, stablecoin analyst update +More
Jul 21: Evolution: ‘We’re greedy for more’
Friday, August 5, 2022
Evolution Q2, Las Vegas Sands Q2, Betsson Q2, Q2 analyst preview, Caesars analyst updates +More.
Jul 22: Kindred hails 'promising' Dutch start as profits plummet
Friday, August 5, 2022
Kindred Q2, Las Vegas Sands analyst reaction, sector watch - cashless payments +More.
Aug 5: Earnings extra - DraftKings looks to market share gains
Friday, August 5, 2022
Draftkings and Century Casinos release Q2 earnings
You Might Also Like
Greater Good Awards: One week left to secure the best rate
Friday, May 3, 2024
There's one week left to secure the best rate on entries to the Greater Good Awards, showcasing your company's commitment to creating a better future. Last year, we recognized companies
Poor New York celebs
Friday, May 3, 2024
Fri, May 3rd, 2024
Block Commits to Monthly Bitcoin Purchases
Friday, May 3, 2024
Plus Former SEC Litigator Denies Anti-Crypto Agenda
TONIGHT: Last chance to secure the best rate for the Digiday Awards
Friday, May 3, 2024
Tonight is the last chance to secure the best rate on entries to the Digiday Awards. By entering, you have the opportunity to gain recognition among the best in media and marketing in front of
Prediction Markets Don't Believe The Fed
Friday, May 3, 2024
Listen now (2 mins) | Today's letter is brought to you by Consensus 2024! Consensus 2024 is happening May 29-31 in Austin, Texas. This year marks the tenth annual Consensus, making it the largest
Cultivating creative ideas
Friday, May 3, 2024
Today's Guide to the Marketing Jungle from Social Media Examiner... Presented by Social Media Marketing World logo It's 🧑🍳 Raspberry Popover Day, Reader! 😋 Get ya some! In today's edition:
Weekly Dose of Optimism #92
Friday, May 3, 2024
Icons, Georgia Nuclear, Fusion Magnets, Solar Satellites, mRNA Cancer Vaccines, Extropic, Nanotechnology ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Influence Weekly #333 - Creators Cash In: Paid User-Generated Content Offering Explodes 93% In 2023
Friday, May 3, 2024
TikTok and Universal Music Group end feud with new agreement
Chaos isn’t a pit 🕳 Chaos is a ladder 🪜
Friday, May 3, 2024
I'm leaning in.
Issue #18: Defense Unicorns to the Rescue!
Friday, May 3, 2024
Issue #19: Wallet-as-a-service