Earnings+More - Fanatics makes BetPARX bid
Fanatics makes BetPARX bidFanatics poised to launch M&A move, Deal Talk reaction, Kambi investor day recap, startup focus – IO Stadium +MoreGood morning. On today’s agenda:
Fanatics’ BetPARX bidThe apparel-to-sports-betting giant is in talks about a takeover that analysts believe could be worth $100-$150m. Ball Parx: The news late on Friday that Fanatics has signed a letter of intent with the Greenwood Gaming-owned online operator came on the same day that the company took its first bet. No agreement has been reached, but analysts at JMP said it would likely be worth between $100m and $150m.
Breaking the seal: The company took its first bet in Maryland yesterday and going by a comment from CEO Matt King during a Massachusetts regulators meeting a fortnight back it appears that MA might be its debut online state. ** 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, and with a team of experts and world class knowledge, it’s no surprise BettingJobs is experiencing rapid growth with outstanding results. Does your company have plans to expand teams to cope with strong growth and demand? Contact BettingJobs.com today where their dedicated team members will help you find exactly what you are looking for. Deal Talk instant reactionAccess points: Gideon Bierer, managing partner at Partis, suggested the key likely hinges on BetPARX’s market access in Michigan where the company has a partnership with the Gun Lake tribe. Bierer pointed out that Michigan is a ~$1.5bn GGR market and in terms of further market access is something of a closed shop.
What’s it worth? JMP indicated BetPARX generated LTM GGR of ~$80m, implying net revenue of $50m. Their price tag estimate is based on current trading levels for DraftKings of between 2x-3x sales.
More KambiThe backend supplier was keen to emphasize where it thought machine learning was taking sports betting. Where we’re going, we don’t need roads: COO Erik Lögdberg spoke about the challenge of the next generation of algorithms that will be able to take the “exploding bubble” of sports data and feed it into a “limitless sportsbook” for the end user.
Shape of things to come: CEO Kristen Nylen said the acquisition of Shape Games was about fulfilling the operator need for native apps – he noted that in the US consumers were overwhelmingly choosing apps over browsers. He added that “no-one is doing everything in-house”. “A lot of legacy tech is failing.”
The shares weekRivalry: The Toronto-listed esports-led betting operator enjoyed a good week after announcing an upbeat Q4 trading update. 🎮 Rivalry gets a bump off the back of this week’s upbeat trading update MGM/Entain reportHere we go again: Financial news site CTFN cited an industry source and an investment banker in suggesting MGM will ‘explore’ a bid for Entain only after the UK government’s White Paper on gambling is released.
Analyst takes – MacauDon’t dream it's over: “Unreasonable expectations” and the dangers of “dreaming the dream” about a return to pre-pandemic levels in Macau are the primary risks at present, suggested the team at Deutsche Bank.
Behind the velvet rope: On VIPs, DB pointed out that under the new rules for junkets they can no longer extend credit, participate in revenue shares or work with multiple concessionaires. As such, the number of junkets has declined dramatically since its peak in 2012.
🌇 End of the road for junkets? (Deutsche Bank/Macau DICJ) More analyst takesLas Vegas: The boom looks set to continue at least into March, according to analysis of the latest room survey data from the team at Truist, who say the rates are robust but with convention-based weekdays showing stronger than leisure weekends. Regionals: The harsh weather impacted player visitation at the end of 2022 but should be viewed as a one-time impact, suggested the team at JMP after conducting a property road trip.
The week aheadLas Vegas Sands: On Wednesday, LVS will give an update against the backdrop of guarded optimism over Macau and the more robust Singapore. Jefferies analysts will be hoping for comment on the Macau concession renewal commitments and the expectations around the VIP business. Casino-to-bingo operator Rank will report its half-year numbers on Thursday. In mid-December, the company warned once again on profits, suggesting FY23 operating profits would fall to between £10m and £20m. On Tuesday, the debut issue of Compliance+More will be sent, including the latest from Massachusetts and Kentucky, an update on the sale of the Park Lane Club in London and a look at what UK Gambling Commission’s deputy CEO said in a speech in Copenhagen. Startup focus – IO StadiumWho, what, where and when: Las Vegas-based IO Stadium was founded in August 2021 by CEO Catherine Lee, who saw the potential for a fan-first full-service NFT development agency and marketplace.
Funding backgrounder: IO Stadium is a founder-funded start-up. The pitch: The company says there is an opportunity to create more immersive, gamified, utility-backed loyalty experiences in the world of sports and entertainment through web3 technologies, while brands can create new revenue streams and lay the groundwork for brand-centric economies.
What will success look like? “Success looks like an all-in-one rewards experience for gamers of all kinds that properly incentivizes loyalty to the brands they love,” says Lee. NewslinesThe Delaware State Lottery has issued an RFP for its iGaming contract, which is currently held by 888. Pollard Banknote has extended its relationship with the North Carolina Education Lottery to provide an iLottery platform until 2025 with renewal options through to 2028. What we’re readingMarge vs. the Monorail: a classic Simpsons episode remembered. Calendar
An +More Media publication. For sponsorship inquiries email scott@andmore.media. |
Key phrases
Older messages
Weekend Edition #81
Friday, January 20, 2023
Bally's 'roadmap rescope', Smarkets redundancies, Kambi's rose-tinted hopes, DraftKings' Euro markets exit, BetMGM's PA promos +More
Weekend Edition #80
Friday, January 20, 2023
Kindred issues a profit warning, 888 update, MeridianBet reverses into Golden Matrix, DoubleDown buys SuprNation, Lottomatica IPO +More
Fanatics cites Sky Bet as ‘second-mover model
Friday, January 20, 2023
Fanatics' plans, OSB's inflection point, DraftKings' unruffled investors, GeoComply 'mimicry' evidence +More
Due Diligence #3
Friday, January 20, 2023
New entrants enter the OSB fray, Kindred serial warnings, recent analyst takes +More
Entain exits unregulated markets
Friday, January 20, 2023
Entain says NGR/EBITDA impact will be small, Macau junket operator ordered to pay $831m fine, Macquarie's 2023 outlook, New Jersey December, analyst takes +More
You Might Also Like
Convincing loyal customers of a competitor
Friday, April 26, 2024
Today's hack When people think about giving advice, their desire to be helpful outweighs their supportive bias Supportive bias makes loyal customers of your competitors defend their current product
👀 The MF Who Ruined Search
Friday, April 26, 2024
I'm finally selling out… 😏 (COURSE LAUNCH)
Diamonds are not forever
Friday, April 26, 2024
Also in today's edition: Tight pockets, still; AI fatigue is here ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
🔍 Short Form Vid Structure & Landing Page Tactics
Friday, April 26, 2024
One tip. One tactic. One transformation.
So, about my last email
Thursday, April 25, 2024
My responses to your concerns
Witness the AI power for yourself: Join our training LIVE!
Thursday, April 25, 2024
Let's show you how to use this unique tech to launch yourself light-years of other people struggling generating revenue View in browser ClickBank The broadcast training is going LIVE - Join us here
Jons Growth Journal Issue #3 - why I'm avoiding short form content, side hustle updates, YouTube Channnel
Thursday, April 25, 2024
short form content is the worst.
Alternative to Google Traffic?
Thursday, April 25, 2024
In case you missed it, I was one of the presenters at the "Alt-G" virtual conference put on yesterday by none other than Jared Bauman (host of the Niche Pursuits Podcast). Here's what
Digiday's annual guide to ad-supported streaming services, from the top platforms to marketing spend
Thursday, April 25, 2024
Vetting platforms including Hulu, Netflix, Peacock and others
♦️ Why your brand needs an enemy to grow faster (and how to choose one)
Thursday, April 25, 2024
And how BMW became "The Ultimate Driving Machine"...