Earnings+More - Reality bites: US market exits
Reality bites: US market exitsSigns of distress in US sports betting, Allwyn Camelot bid, the week ahead, Apple policy move, startup focus – Atlas World Sports +MoreGood morning. On the agenda for today:
Reality bites in US sports bettingKindred’s Iowa exit and the withdrawal of all applicants for supplementary licenses in Illinois show how the tide has turned on enthusiasm for US sports betting. Taking the temperature: Kindred’s somewhat quiet exit from the Iowa market, compounded with the news from the Illinois Gaming Board that all four of the applicants for the next round of sports-betting licenses had withdrawn, suggests a market where the froth is fast disappearing.
IL behavior: At the same time, the Illinois Gaming Board said late last week it was reopening the application period for more sports-betting licenses after three of the four that had previously lodged an interest withdrew.
Under the cosh: In the recent Deal Talk edition of the newsletter, sources suggested that brands spending time and money fighting for single-digit percentages of the market was “not sustainable”.
Live or let vie: Meanwhile, the Sharpr newsletter reported last week that Esports Entertainment has closed down its esports-focused sportsbook Vie.gg, including in New Jersey where it only launched earlier this year. As Sharpr noted, in New Jersey in July Vie.gg took in a total of $570 in gross wagers. One out, one in: As also reported in last Friday’s Weekend Edition, Las Vegas-based retail sportsbook Superbook has gone live in Iowa. **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 offers fully managed solutions that allow publishers to maximize revenue across their highly valuable sports betting audiences. For more information visit: spotlightsportsgroup.com MGM Macau Covid blowMGM Cotai is subject to a lockdown after a positive Covid case was identified on site. Less than Zero: China’s zero-Covid policy has struck once again, as Inside Asia Gaming reported yesterday that MGM Cotai is now in lockdown after a dealer at the resort tested positive. According to the report, no one is allowed to either enter or exit the building. Allwyn’s Camelot talksAllwyn has confirmed a report that it is in “advanced discussions” with the owners of Camelot about buying its UK operations. In a statement released over the weekend, the Czech-based lottery and gaming operator confirmed it was in talks with the Ontario Teachers’ Pension Plan (OTPP) about a potential acquisition of Camelot UK.
Tidying up: The Sky News report suggested that, if a deal were to be agreed, it would give Allwyn access to Camelot's UK earnings roughly a year before it surrenders control of the franchise. It also suggested it would bring a halt to Camelot’s outstanding legal challenge against the regulator.
The week aheadAnother important set of earnings looks with Caesars on Tuesday and MGM Resorts on Wednesday, while Penn reports on Thursday and DraftKings on Friday. Primed: With Thursday’s Nevada data proving that the Strip appears to be defying gravity, all eyes will be on what the casino giants say this week about prospects for Q4 and beyond.
Analyst data pointWith 70% of the market having reported the team at Truist suggested market-wide September GGR was up 48% on handle that rose 36%, helped by strong hold margins of ~12%. This is on top of data from August showing same-store GGR up 59% on handle up 11%. Apple pauses gambling adsThe move follows complaints from developers about the appearance of gambling app advertisements in unrelated categories. New inventory: According to MacRumors, the complaints were caused by Apple's announcement that it had made new inventory available on the App Store that would provide more advertising opportunities for developers, including advertising their apps in categories different to their own.
REIT reviewAnalysts remain optimistic about the prospects for the largest gaming REITs despite the obvious pressure around interest rates. Jefferies said GLP’s “better than expected results” showed its model was able to generate “high-quality stable cash flows”, while Deutsche Bank said VICI currently “offers investors stability in an otherwise uncertain environment”. DB added that M&A discussions including REIT parties “remain somewhat active within the regional gaming environment”.
The shares weekThe Hong Kong listings of the leading US operators in Macau suffered a punishing week as the sector from the wider Xi third-term market sell-off. There Xi Goes: The major Hong Kong-listed offshoots of US gaming’s leading players suffered along with the rest of the Chinese-facing markets as investors reacted badly to President Xi’s consolidation of power at the recent Communist Party conference.
Startup Focus – Atlas World SportsWho, what, where and when: Chicago-based Atlas World Sports was launched in January 2021 by founder and CEO Robert Kraft. Along with Kraft, the group’s co-founders are CFO Kevin Seiberlich, CSO Robert Bardunias and CTO Sasa Maljkovic. Funding backgrounder: The company is currently finalizing its seed round. To date it has raised $1m from angels with another $500k committed in December, and Kraft says a fund has committed $4m for a Series A in 2023. The pitch: Kraft says the concept “of course” came about in May 2018 after PASPA was repealed, with the idea being “very similar to Expedia or Priceline” with a central hub for sports bettors to make informed bets with a single, efficient, user-friendly experience.
What will success look like? An ideal exit “will probably make sense in three to five years”, Kraft says. “It will most likely be based upon a strategic buyer, whether it is a media company, a European affiliate or an American tech company seem to be the likeliest potential routes.” Earnings in briefBetMakers Q123 revenues rose 13% YoY to AU$23.8m thanks to the launches of six new partners during the period. The group is the tech partner of Matthew Tripp’s OSB startup Betr and also activated its agreement to distribute Penn Entertainment horse-racing content outside the US and Canada. DatalinesNew York: GGR was down 10% to $33.5m in the week ending Oct 23, despite handle rising 13% to $365.7m – its highest level since March Madness.
NewlinesAustralia-listed betting operator BlueBet has made a $500k strategic investment in free-to-play gamification specialist Low6. The agreement is for a five-year period and enables BlueBet to launch products on the Low6 platform. The Macau Government Tourism Office told GGRAsia that the SAR was preparing to welcome package tours from mainland China next month, although the measures will be implemented gradually. Spain’s Senate passed a bill that increases ad restrictions including not linking gaming to social success and the depictions of money. What we’re readingBetting on politics: US regulators ponder whether to allow election betting. On social14 people work in this service station Starbucks and as far as I can tell, none of them like coffee. Calendar
Contact
If you liked this post from Earnings+More, why not share it? |
Key phrases
Older messages
Weekend Edition #70
Friday, October 28, 2022
Vegas Strip defies the odds, UK gambling ministers we have known, Red Rock 'staring growth in the face', sector watch – tokens +More
Kindred’s Dutch flier
Thursday, October 27, 2022
Kindred happy with Netherlands re-entry, Evolution not so much with RNG, Boyd analyst reaction +More
PointsBet chases super heroes
Wednesday, October 26, 2022
PointsBet identifies super users, Boyd beats but profits dip, Betsson buys B2B, Kambi falls +More
FanDuel’s media plays
Monday, October 24, 2022
FanDuel/Ringer deal, the shares week, the week ahead, analyst takes +More
Weekend Edition #69
Friday, October 21, 2022
Caesars' Times Square bid, Sightline's JP Morgan investment, Entain's new term loan, sector watch – affiliates +More
You Might Also Like
The curious case of Google Trends in India
Saturday, May 4, 2024
For nine of the last ten years, the most searches were for why Apple products and Evian water are so expensive ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
3,500 sign ups in 24 hours
Saturday, May 4, 2024
Today's hack Do you piggyback on Slack communities? ;) Noam Schwartz gained 3500 sign ups in 24 hours. Recently I received an email from Noam Schwartz - a member of our gorgeous community: I did an
Your Personal Trainer for Making Sales
Saturday, May 4, 2024
If you want the best results, you're going to need the best trainer... View in browser ClickBank When you're at the gym, you can do one of three things: Use the machines randomly Follow a
Zhipu AI: The Rise of an AI Tiger Reaching for AGI
Saturday, May 4, 2024
The only overview of Zhipu AI's technology, open-source efforts, partnerships, and future goals in English
So long, Henry.
Friday, May 3, 2024
A combined issue flush with key insights and original thoughts in two new, data-driven reports. View this email in your browser So long, Henry. (No. 994). The economy is squeezing consumers to the
He survived all recent Google updates
Friday, May 3, 2024
Advice from Birdzilla's founder
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