Sep 19: Esports Entertainment hits rights issue button
Sep 19: Esports Entertainment hits rights issue buttonThe week in shares – Esports Entertainment, Wynn New York, Startup focus – StatsDrone, New Jersey – August +More
Good morning. In today’s edition:
The week in shares
Dilute: Esports Entertainment, the somewhat confusingly named betting and gaming operator, saw its share take a 46% tumble on Friday after the company announced the pricing of a public offering to raise $7.5m before costs. The proceeds from the sale will go towards general working capital as well as repaying a portion of its outstanding senior convertible note.
🚨 Esports Entertainment shares suffer a bad day on Friday Exit through the gift shop: Esports Entertainment issued a profit warning in May when it said it had failed to monetize its esports tournament assets and was taking a $38.6m impairment charge.
Hard to figure: The company’s revenues come from iCasino operations such as the Lucky Dino as well as traditional sports-betting including BetHard and SportsNation. **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 Disney OSB comments
Reverse ferret: In an interview with CNBC last Friday, Disney CEO Bob Chapek gave some further definition to what the company was planning for ESPN when it comes to sports-betting. Instead of being in the process of building a sportsbook, it appears it is still pursuing a third-party partnership.
NFL ratings
Off to a flier: Viewing figures for the first week’s slate of games averaged 18.5m across the seven broadcast windows. The League said that between Thursday and Monday 121m people watched at least a few minutes of NFL broadcasts.
Wynn New York
Hard yards: The New York Times reported this weekend that Wynn Resorts has teamed up with developer Related Companies, the firm behind the Hudson Yards development to build a casino in Midtown. The property would be situated next to the Javits Center and is the first New York casino project to be announced.
Double Down analyst update
Tough act to follow: DDI revenues in Q2 were down 13.5% to $80.5m and adj. EBITDA was down 16% to $26m, but Macquarie said this was down to tough comps against the pandemic-affected prior-year period, the removal of Apple’s Identifier for Advertisers (IDFA) feature last year, which made user acquisition more expensive, and the wider market pullback.
Churchill Downs Inc acquires Ellis Park racetrack
Extension build: As part of the agreement, Churchill Downs said it would also invest c$75m to build an extension facility at the Towne Square Mall in Owensboro, KY.
B2B openings: The news comes on the back of CDI terminating its OSB and iCasino ventures in February to focus on its horse-racing activities. The group said it would do so in the consumer and B2B spaces and recently announced a partnership to supply horse racing pari mutuel betting to FanDuel. Startup Focus – StatsDroneWho, what, where and when: The Montreal-based business was founded in 2017 by John Wright, CEO, and Darrell Helyar, COO, on the premise of bringing data science and BI to the world of affiliates and affiliate programs. Funding backgrounder: StatsDrone started a funding round process in March with the target of raising $400k, with an announcement due soon. The company already has a VC called NetSolid Investments on board. The pitch: “Affiliate marketing on the surface isn't changing but there are people working to make some changes in the tech side as well as bringing new ideas to the table,” says Wright.
What will success look like? Wright says the medium-term goals would be to launch a series of stand-alone products with a target for revenues of $5m+ in the next 1-2 years.
** SPONSOR’S MESSAGE: BettingJobs is the global leading recruitment solutions provider to the iGaming, Sports Betting and Lotteries sectors. Boasting a 19-year track record supporting the iGaming industry with a team of experts and world-class knowledge, it’s no surprise BettingJobs is experiencing rapid growth with outstanding results! Our team of industry experts will be attending SBC Barcelona, running from 20th - 22nd of September 2022. Contact info@bettingjobs.com today to arrange a meeting at the event where we will be delighted to meet with new and existing connections” Analysts in briefKindred: Following on from the company’s Capital Markets Days last week, the team at Deutsche Bank suggests the positive messaging around the re-entry into the Netherlands could make the company more attractive as a target. However, it noted that the 2025 £1.6bn revenue target was ambitious. The week aheadTuesday: Look out for our coverage of the Gaming in Germany conference and preview of the SBC Summit Barcelona in tomorrow’s newsletter. Coverage from Barcelona will be featured on Thursday and Friday.
DatalinesNew Jersey: Sports-betting GGR in August was up 25.5% YoY to $65.3m on handle that fell 17.7% YoY to $546.8m. Deutsche Bank said the drop in handle for the fourth consecutive month “could be due to a combination of the scaling back of promotions and the impact of New York launching mobile”.
Louisiana: GGR in August increased 14.8% YoY to $179.4m on a neutral calendar. Sports-betting handle was $128.3m with GGR coming in at $9.7m. Wells Fargo said Aug-Sep21 GGR was adversely impacted by Hurricane Ida, while Deutsche Bank said August visitation levels were up 18.4% but spend per visitor was down 3% YoY. Massachusetts Aug22: Casino GGR was down 0.4% YoY to $92m on a neutral calendar. Wynn Encore saw GGR rise 0.4% to $59.6m, Penn Entertainment’s Plainridge Park was down 6.1% to $12m, GGR at MGM Springfield was up 0.9% to $22m. Delaware Aug22: Online casino GGR increased 37.2% to $1.3m YoY, sports-betting GGR came in at $354.4K, a 439.7% YoY rise but 7.5% MoM decrease. Handle was down 40.8% YoY but up 7.4% MoM to $2.9m. NewslinesFanDuel was once again the top dog, according to Jefferies’ Digital Gaming Brand Matrix, which showed it was winning in MAUs, web-traffic duration and overall sports-betting score. In August, DraftKings was again second and BetMGM third. Fifth Street Gaming is planning to rebrand the Lucky Club Casino in North Las Vegas into a Latino-focused casino in partnership with the sports-bar chain Ojos Locos Sports Cantina, according to the Las Vegas Review-Journal. MGM Resorts’ acquisition of LeoVegas is expected to conclude this week after the group’s $604m offer was approved by 98.07% of LeoVegas shareholders. Mohegan Digital has launched its Fallsview Casino-branded OSB and iCasino website in the province of Ontario. The group has partnered with Kambi for its online sportsbook and with companies such as Pala Interactive and Intellitics for its online casino and affiliate activities. What we’re listening toThe All-In podcast of the evolution of the influencer: “The most important M&A deal of 2022 was when Penn Entertainment bought Barstool Sports. It shows that every consumer services business ultimately needs to be a content business.” What we’re readingSorry, not sorry: Erika Nardini, Barstool’s “steady business brain”. Sean Sherman’s modern Indigenous kitchen profiled in The New Yorker. “And, obviously, everybody then was super into ‘Kitchen Confidential’,” Sherman said. “All the line cooks suddenly wanted to be drunken pirates.” On socialRumours tonight that Truss is dumping the appalling proposed gambling reforms.
Mark that down as a victory for personal freedom.
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Sep 16: Weekend Edition #64
Friday, September 16, 2022
Kindred, US betting survey, US market entrants, Allwyn Q2 call, sector watch – crypto +More Thought bubble A history lesson: In its response to the news this week that Australian financial crime
Earnings+More pod #17
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Deal Talk - September
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Catena Media's strategic review, the month in transactions, where next for gaming SPACs? +More.
Sep 12: Lottery.com descends into chaos
Monday, September 12, 2022
Lottery.com funding and resignations, Allwyn float, the shares week - AGS, the week ahead, startup focus - Juice Reel +More
Sep 9: Weekend Edition #63
Friday, September 9, 2022
AGS nixes Inspired talks, FanDuel/Churchill Downs, LiveScore fundraise, Kambi M&A, sector watch - US TV sports +More
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