Earnings+More - Sep 23: Weekend Edition #65
Sep 23: Weekend Edition #65Playtech H1 call, PlayUp SPAC merger, SBC Summit Day 2, analysts in brief, Twitch slots ban +More
Thought bubbleIt’s been a consequential week for the world of gambling-related streaming as it appears that the work of regulating the space has been outsourced to Amazon. However, the confluence of cryptocurrencies, gaming and streaming is like the dotcom era on steroids and clearly not a phenomenon that will be going away. Expect actual gambling regulators to start getting involved quick smart – but whether they can corral an ecosystem that is properly beyond reach is a different question. Playtech H1 call
Responding to analyst questions over the future of Playtech’s B2C business Snaitech, chairman Brian Mattingley said “if there was an opportunity” to realize shareholder value with its Snaitech B2C business in Italy, the board would look at it. But he emphasized that “at the moment we don’t think the market is right”.
Product-wise, CEO Mor Weizer noted that live casino provider concentration was “very concentrated”. “The choices are limited. In the US it is only Playtech and Evolution and everyone will want both,” he claimed.
Fantastic voyage: In terms of potential M&A, Weizer noted Playtech “would consider’ M&A to expand Snai. Generally, he said Playtech is in a “fantastic position”, with leverage at less than 1x.
** 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” PlayUp
SPAC, back: The strategic review at PlayUp has concluded with the company seeking a merger with the IG Acquisition Corp (IGAC) SPAC, which will value PlayUp at $350m. The deal is expected to close in Q1 next year. A standby equity purchase has also been concluded with a fund managed by Yorkville Advisors Global to provide $70m of liquidity.
Risk on: PlayUp has had a troubled 12 months. At the turn of the year, a legal issue with former US CEO Laila Mintas blew up around a potential takeover by crypto trading firm FTX. What we’re listening toChamath Palihapitiya on the All-In podcast on shutting down two SPACs: “When we launched these things, the stock market was in a different place. Looking at deals, it has gotten harder and harder to find a good risk/reward.” Twitch gambling ban
Getting twitchy: Via a Twitter posting, Twitch signaled a crackdown on unregulated streaming on its site saying that it would prohibit the streaming of slots, roulette or dice games featuring gambling sites that were “not licensed in the US or other jurisdictions that provide sufficient consumer protection” as of October 18.
Backgrounder: According to TwitchTracker, gambling is the 10th most popular type of content on the platform. Chris Krafcik from Eilers & Krejcik noted that in the US Barstool is the most prominent casino streamer at present; while in New Jersey, Resorts is working with the Slot Squad. Meanwhile, LeoVegas (recently bought by MGM) owns streaming site casinogrounds.com. 🍿 What we’ll be saying: E+M’s Scott Longley will be hosting a panel next week at iGaming NEXT in Valletta entitled ‘The affiliate debate: do streamers have too much control?’ SBC Summit Day 2
Data power: The depth of sports data and how it is consumed is one of the fundamental differences between the US and European markets, Sportradar CEO Carsten Koerl said during his fireside chat on Thursday morning.
Pros and cons of being public: Asked about life as the CEO of a newly listed company, Koerl said he wasn’t worried about profitability in the US because the group “will execute on it”. When it comes to everyday matters, he said there were two very different aspects to it.
Panel highlightsFirst Pitch – and the winner is: Kero Sports, whose founder Tomash Devenishek told E+M: “Part of the reason for the win at SBC First Pitch has been our early deals to deliver the Kero stack as a real money product to operators, which have been a major milestone for the company.”
Non-Core: A US panel saw Gareth Core, product director at FanDuel, say retail would continue to play a strong part in the group's strategy. Daniel Graetzer, CEO of MaximBet, meanwhile, admitted his company wasn’t competing in the same rarefied atmosphere as the top-tier operators.
Rich pickings: William Woodhams, CEO of Fitzdares, said “the number one reason to go into Canada is Canadians, they love to bet, they’re cool and they’re rich”. But Martin Lycka, head of regulatory affairs at Entain, said the jury is out on Ontario’s advertising ban on promos and inducements. Market watch😱Caesars led the sector south on Thursday Analysts in briefBoyd Gaming: In their initiation note on Boyd Gaming, the team at JMP noted that currently Boyd’s partnership with FanDuel was driving its online growth but, with the deal for Pala Interactive pending, it will give the company optionality over its Stardust iCasino product in a market that long term could reach a TAM of $21bn at maturity. Red Rock: Also looking at Red Rock’s new build plans, the team at JMP suggested that historical returns on new builds and high barriers to entry are “underappreciated” by investors. They also noted that in the Las Vegas locals market Red Rock has exposure to “one of the healthiest” in the US, with elevated home prices, wage growth and above-average population growth. **Sponsor’s message** Venture capital firm Yolo Investments manages €550m in capital across 80 of the most exciting companies in fintech, gaming & blockchain. The Gaming Fund, regulated by the Guernsey Financial Services Commission, a dedicated 29-company, €183m AUM portfolio has invested in fast-growth assets including Dabble, Kalamba, SimWin & ThriveFantasy. Yolo Investments has just opened its fund to new investors as it looks to scale new cutting-edge concepts, including its exclusive high-roller land and live casino brand, Bombay Club, global banking network & OTC desk Aims Group. NewslinesMaryland will launch with OSB in October or November after the state’s Sports Wagering Application Review Commission agreed to approve individual sportsbooks on a rolling basis instead of waiting for a universal launch date. A number of operators, including Caesars, BetMGM, FanDuel, Barstool Sportsbook, and BetRivers, already have retail sports-betting licenses. Take the pledge: Bally’s Corporation, BetMGM, DraftKings, Entain, FanDuel, and MGM Resorts International are among the operators that have agreed to a first industry-led responsible gaming standards effort with a 12-point pledge. In other streaming news: According to the latest ratings, Amazon’s debut Thursday Night Football program surpassed expectations, bringing in 13.2m viewers. GiG co-founder Ben Clemes is set to head up the company’s US efforts from the second quarter of next year as part of its broader North American expansion strategy. Under the table: In the Alvin Chua trial, an associate of his told the court that Suncity had developed a system for under the table betting. On socialGrim poll numbers in CA for Prop 27. But judging by the $19.2M they spent this month, FanDuel and DraftKings don't think it's a lost cause. Calendar
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Sep 22: Segev – betting only a piece of DAZN puzzle
Thursday, September 22, 2022
SBC Summit Day 1, Playtech H1, US gaming analyst update, California Prop. spend, Inspired analyst update +More
Sep 20: German regulator’s 100% channelization goal
Tuesday, September 20, 2022
Gaming in Germany Day 1, SBC Summit Barcelona preview, California tribal gaming analysis +More
Sep 19: Esports Entertainment hits rights issue button
Monday, September 19, 2022
The week in shares – Esports Entertainment, Wynn New York, Startup focus – StatsDrone, New Jersey – August +More
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
Thursday, September 15, 2022
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