Earnings+More - Weekend Edition #78
Weekend Edition #78UK regulation review, Massachusetts licensing, Churchill Downs’ Exacta deal, iCasino pivot, the esports betting year +MoreGood morning. On today’s agenda:
The boys from the NYPD choir were singing Galway Bay. UK parliamentary maneuversThe parliamentary committee with oversight of the gambling sector has announced it will examine the government's approach to regulation. Shot across the bows: The Digital, Culture, Media and Sport Committee has invited interested parties to submit written evidence by February 10 addressing a number of issues following “warnings that more needs to be done to protect people, including children, from gambling-related harm”.
Knight errant: Notably, the date for submissions is after the presumed mid-January publication of the White Paper. The news is also complicated by the Committee chairman Julian Knight MP having had the whip withdrawn by the Conservative party after a complaint about his behavior was made to the police. **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. Massachusetts ’Bowl cutMassachusetts Gaming Commission hearings focus on controversies surrounding Barstool as it suggested retail betting could launch in time for the Super Bowl. Conditions attached: Retail betting will provisionally launch in late January after a meeting yesterday gave the nod depending on GLUI certification. Boston Encore, MGM Springfield and Penn’s Plainridge Park have all been granted licenses.
Mohegan’s digital progressMohegan said it was already profitable online as Q4 group revenues rose 5.6% to $412.9m but adj. EBITDA fell 9.5% to $99.8m. Sun shine: CEO Ray Pineault said there was “no doubt” online would be a “significant contributor” to the bottom line at Mohegan. He was speaking after Mohegan’s first year of contributions from Connecticut where it said it had achieved ARPU of $450.
iCasino pivotsEarlier this week, E+M’s Due Diligence looked at the moves made to pivot towards iCasino. Different drum: The latest monthly online analysis from Deutsche Bank discusses the trends from the last eight quarters for many of the biggest online operators in the US. In light of recent news around brands seeking to pivot towards iCasino, it is worth taking a look at the data for both DraftKings and Caesars.
🎈DraftKings: pivoting towards iCasino via the Golden Nugget acquisition
🎭 Caesars: pivoting away from iCasino, apparently Churchill Downs acquires ExactaChurchill Downs has “surprised” with its acquisition of historical horse-racing tech specialist Exacta for $250m. Exacting standards: In acquiring Exacta, a tech provider for HRM manufacturers integrated with providers such as AGS, IGT and Light & Wonder, Churchill Downs has made a surprising move, suggested analysts at Jefferies.
The esports betting yearRiot Games’ Valorant is the fastest-growing esports title by betting volume, according to Rivalry. Vale! The first-person shooter game is now the fourth most bet on esports after seeing volume growth of 264% YoY. According to the esports-led betting operator Rivalry, it is “now a serious contender” to the top three of League of Legends, CS:GO and Dota2. Across all esports betting, in-play accounted for 62% of all bets versus 38% being pre-match.
ParlayBay’s €1m fund raiseGrowth fund: The new funding will be used to develop new products and sign more clients in 2023. This year ParlayBay signed supply deals with TipoBet365, TOPsport and Hub88 and 7bet.
Sector watch – casual gamesDown time: After record growth during the pandemic years, global spending on gaming software is predicted to fall 4% this year to $184bn, according to a report from games data company Newzoo.
Tika-tape: Still, there are other signs of stress within the casual gaming space. Playtika, for instance, announced earlier this month it was laying off 610 staff or 15% of its global workforce. The Israeli-based company floated on Nasdaq in January 2021 but its shares have struggled ever since and are down 73% in the intervening two years. DatalinesMichigan: Sports-betting GGR was down 24.5% YoY to $40.8m with handle up 1.3% to $480m in November, while online casino GGR rose 35.1% to $145.4m. BetMGM was overall GGR market leader with 33.3%, followed by FanDuel (25.3%) and DraftKings (16%).
💪 FanDuel’s AGR dominance in Michigan 2022 YTD
Pennsylvania: Sports-betting GGR was down 17.5% to $70m on handle that rose 3.6% to $789.2m; online casino GGR rose 37% to $128.6m and land-based casino GGR dropped 1.3% to $264.8m in November. Across all verticals GGR rose 3.4% to $469.4m.
NewslinesFuboTV will stream Bally Sports’ RSNs as part of a new content agreement despite uncertainty around how much content the RSNs will have access to. VICI has completed a sale and leaseback acquisition of Foundation Gaming’s Fitz and WaterView casinos in Tunica and Vicksburg, Mississippi, for $293.4m. MGM Resorts has completed the sale of the Mirage in Las Vegas to Hard Rock. Allwyn has agreed a deal to buy Camelot Lottery Solutions for an undisclosed sum. The deal follows the buyout of Camelot UK for a rumored £100m. GiG has signed a five-year agreement to provide online casino games and player account management services to LuckyBet. Intralot has signed a five-year supply deal to provide the Ohio Lottery Commission with its sports-betting solution. Kambi has signed an online sportsbook agreement with Brazilian DFS operator Rei do Pitaco. What we’re readingSphere and now: The MSG Sphere surpasses the Allegiant Stadium in costs. On socialDele Alli's career trajectory is quite crazy in honesty. Last night during Beşiktaş' cup game vs Şanliurfa they went 2-0 down within 15 mins
He was hooked off within 30 mins and the reaction was not good whatsoever…😳🇹🇷 CalendarJan 2: E+M is back Jan 3: The startup month #6 Contact
|
Key phrases
Older messages
Due Diligence #2
Tuesday, December 20, 2022
The pivot to iCasino in the US, plus recent analyst takes
Jersey’s handle declines continue
Monday, December 19, 2022
Datalines – New Jersey, GAN's Wynn deal, Rank analyst takes, startup focus – SimWin Sports +More
GiG buys AskGamblers for €45m
Friday, December 16, 2022
GiG acquires chunk of Catena Media's European ops, XLMedia considers divisional sale, Bally's Chicago support +More
Deal talk #5
Tuesday, December 13, 2022
SPAC's highs and lows, 888's debt woes, Tilmann Fertitta's Wynn move +More
888’s bankers take a haircut
Monday, December 12, 2022
Banks pay the price for 888 debt, the shares week, New York casino plans, 2023 analyst takes, startup focus – Livespins +More
You Might Also Like
The future is retail media
Thursday, April 25, 2024
Plus: How B2B is going B2C
Take a peek into the marketers’ tech stack, make it easy for customers to find your emails, and more
Thursday, April 25, 2024
The latest email resources from the Litmus blog and a few of our favorite things from around the web last week. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
What makes a winning influencer campaign?
Thursday, April 25, 2024
Find out in the 2024 Influencer Marketing Report
This is something I’ve never done before...
Thursday, April 25, 2024
Do you want to know the number one topic I discuss with clients during our consulting calls? Here's the thing... It's not just one. But it's clear that most marketers and business owners
5 Simple Ways to Improve Your Pricing
Thursday, April 25, 2024
Discover how to enhance your pricing strategy with consumer psychology expert Phill Agnew. Learn how subtle changes impact customer decision-making.
This A.I. demo will blow your mind ClickBanker!
Thursday, April 25, 2024
It will absolutely shock you to see how easily you can have revenue flowing in. View in browser ClickBank We're back live in just a few hours with a mind blowing AI software demo ClickBanker...
Thinking of Stepping Down as Founder-CEO?
Thursday, April 25, 2024
You Just Might Be Asked Back To view this email as a web page, click here saastr daily newsletter Thinking of Stepping Down as Founder-CEO? You Just Might Be Asked Back By Jason Lemkin Monday, April 22
5 Critical Elements for Every Blog Post (PLUS How to Write a Call to Action)
Thursday, April 25, 2024
Hello Reader! How's your blogging week been? Today marks ANZAC Day in Australia, a solemn occasion commemorating the sacrifices of the Australian and New Zealand Army Corps during wartime,
Samourai Wallet Founders Arrested
Thursday, April 25, 2024
Plus Hong Kong to Launch Bitcoin and Ethereum ETFs
🧠 $1m Startup Marketing Secret
Thursday, April 25, 2024
Reverse Engineer Growth