Earnings+More - Allwyn buys Camelot UK
Allwyn buys Camelot UKAllwyn acquires Camelot UK, muted kick-off in Qatar, Caesars the investors choice say analysts, startup focus – ZeroFlucs +MoreGood morning. On today’s agenda:
Allwyn’s Camelot buyoutThe deal is set to complete in Q1 next year and will see Allwyn take over the running of the UK National Lottery a year early. Lottery balls: Allwyn has acquired the Camelot UK lottery business from the Ontario Teachers’ Pension Plan for an undisclosed amount believed to be “close to £100m”. Allwyn had confirmed it was in talks in late October.
Just last week, the company announced it had secured €1.6bn of new debt facilities. Recall, Allwyn recently called a halt to a deal with the Cohen Robbins SPAC, which would have seen the company float in New York. The company cited market conditions for the reverse. ** SPONSOR’S MESSAGE** GiG is a leading gaming platform and sportsbook provider for online and land-based operators with digital aspirations. We deliver a full end-to-end solution through our award-winning iGaming and sportsbook solutions. Built for regulated markets and a top-class customer experience, GiG is pioneering the multi-platform era. If you are looking to expand your operations into new, profitable markets, our strategy is the solution. Find out more at sales@gig.com. Kindred legal challengeKindred said this morning it will challenge the “coercive fine” that had been reinstated by the Norwegian gaming authority. Norwegian would: The new legal challenge comes after the Norwegian regulator Lotteritilsynet reinstated its fine for illegal activities against Kindred’s wholly owned Malta subsidiary Trannel International, despite the changes the company says it has made.
World Cup ballsAs the World Cup started this weekend amid beer controversy, Flutter became the latest bookmaker to suggest betting volumes are set to defy the muted enthusiasm. This Bud’s not for you: The two biggest UK-listed operators have tried to whip up some enthusiasm for betting on the World Cup despite the controversy surrounding the tournament ahead of kick-off yesterday.
Last refuge: Also attempting to whip up some enthusiasm was Entain, which suggested the World Cup would drive a “record number of actives, bets, stakes and first-time-deposits”.
Q3 analyst takesLooking over the recent earnings season, analysts say the resilience of the US gaming consumer shone through. The team to beat: The team at Wells Fargo noted that Caesars has come ”very far, very fast”, albeit off a low base over the quarter, up 68% in the last three months. The team added that they believe Caesars has the “highest ceiling” in the sector and has been and will be “the stock to own in a risk-on environment”.
🎉Caesars share enjoy a bounce Interest rates: The WF team also pointed out that interest in Macau is at its highest “in recent memory”, reflecting hopes that the Chinese authorities are set to ease travel restrictions and that there is now a “line of sight” to concession renewals at year end.
Aging gracefully: DB have also taken a look at handle trends in mature OSB states, suggesting that in states that launched either in 2021 or prior YoY handle decelerated, while in states that launched either in 2019 or prior showed negative YoY handle in Q3. 🚧Signs of decelerating handle in maturing OS states (source DB) The shares weekCasino royale: The affiliate provider Gambling.com saw its shares rise nearly 4% on the day after its Q3 earnings, extending a rebound from the past month, which had seen it rise more than 36% to over $10 for the first time since March. Jefferies said the casino.com acquisition announced last week “completes” its US domains.
🎯Gambling.com vs. Catena Media and Better Collective Startup focus – ZeroFlucsWho, what, where and when: Brisbane-based same-game parlay provider ZeroFlucs was launched by Steve Gray along with former Entain Australia colleague Carly Christensen. Funding backgrounder: The company is entirely self-bootstrapped “with all funding coming from our own pockets”, and recently added Benjie Cherniak as a strategic advisor. The pitch: Gray suggests the rush to market in the past few years has led to the development of a “stale” product set for SGPs and says customizable solutions can represent a “major opportunity”.
ZeroFlucs’s solution works directly from bookmakers’ own markets and odds, this way “the product can be rolled out affordably and with innovations that are not available elsewhere”.
What will success look like? ZeroFlucs went live recently with the Australian bookmaker TopSport, while the response from both large and smaller sportsbooks has been positive.
Sorare and ANJ reach compromiseThe fan token and NFT-backed card tournament operator Sorare will strengthen access to its free-play offering following discussions with France’s gambling regulator ANJ. The move comes as ANJ expressed “serious doubts” as to how the country’s gambling legislation related to Sorare’s offering of tournament cards.
DatalinesNew York: GGR dropped 20% to $31.2m for the week ending Nov 13, handle was also down, 5.4% to $334m.
NewslinesIGT has signed a five-year contract extension with Loto-Québec to deliver the provincial lottery operator its Intelligent VLT management system. DraftKings will launch its online sportsbook in Maryland on Nov 23rd, pending regulatory approvals. What we’re readingBlitz spirit: The New York Times on how “cigars, booze and money” made sports betting ubiquitous. Further reading: Meanwhile, David Briggs accuses the piece of “sensationalist number juggling”. On socialEcuador fans are chanting "Queremos Cerveza" at the World Cup in Qatar.
Translation: "We want beer."
CalendarDec 6: The Startup Month #5 Dec 13: Deal Talk #5 Dec 20: Due Diligence #2 Contact
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Weekend Edition #73
Friday, November 18, 2022
Gambling.com revenues double, Lottomatica makes BetFlag offer, analysts warm to FanDuel, Allwyn debt raise +More
FanDuel: ‘On top for a reason’
Thursday, November 17, 2022
FanDuel presents in New York, MaximBet quits the US, DoTrust fundraise, Better Collective, Catena Media earnings +More
Sportradar’s early US profitability
Wednesday, November 16, 2022
Sportradar's first-time US profitability, Aristocrat defies macro woes, Apollo sells up AGS stake +More
Due Diligence #1
Tuesday, November 15, 2022
Will DraftKings need to raise more cash from investors? Plus some recent analyst takes
Caesars & DraftKings lead sector bounce
Monday, November 14, 2022
The shares week, US sportsbooks hold analysis, startup focus – OSAI, the week ahead including FanDuel +More
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