Earnings+More - Gambling’s relief at SVB rescue act
Gambling’s relief at SVB rescue actGambling’s limited exposure to SVB collapse, Sportradar’s ATP deal, six launch in Mass, startup focus – ALT Sports Data +MoreGood morning, welcome to the start of your week. On today’s agenda:
Won’t you come on down to my rescue. Rescue actThe news that the US government is stepping in to protect depositors at the collapsed Silicon Valley Bank brings relief for any affected sector startups. Collateral damage: The unveiling on Sunday of the US government’s plan to fully protect depositors at the failed SVB will bring some welcome relief to any gambling sector startups connected with the bank.
Relief: Containment appears to have been achieved. Lloyd Danzig, principal at Sharp Alpha, said after the news of the government rescue came through that it had been a “hectic weekend” for startup founders with exposure to SVB.
Backgrounder: In the space of just a couple of days at the end of last week, SVB went from making a cash call to being the first bank failure since 2008, with the US authorities having to step in on Friday.
On socialY Combinator’s Gerry Tan had warned over the weekend that SVB’s collapse could be an “extinction level event” for startups. ** SPONSOR’S MESSAGE** BettingJobs is the global leading recruitment solutions provider to the iGaming, Sports Betting and Lotteries sectors. Boasting a 20-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. Sportradar’s smash and grabSportradar is in exclusive negotiations over a six-year data, streaming and integrity deal with the ATP to take over from Endeavor’s IMG Arena. Game, set, match: The talks between the supplier and the ATP’s Tennis Data Innovations could see the ATP switch just three years into a six-year deal signed in 2020. The ATP has reportedly taken advantage of a three-year break clause to switch providers.
TDI is based in London and manages live betting streams for more than 14,500 matches annually across the ATP and ATP Challenger tours. The group’s CEO David Lampitt spent nearly a decade at Sportradar before taking the job.
Note: Sportradar reports on Wednesday. In November the company said it expected revenues for FY22 of €718m-€723m and adj. EBITDA of €124m-€127m. Mass liftThe Massachusetts OSB market launched on Friday but without some key names. The joy of six: The six names that opened for business in Massachusetts – FanDuel, DraftKings, BetMGM, Caesars, WynnBet and Barstool – should have been more but for key initial no-shows.
Expectations management: The team at JMP noted after meeting with FanDuel management it will “stick to the strategy of trusting its technology to acquire players for a 12- to 18-month payback”.
Betr off: Also absent on Friday was micro-betting specialist Betr. Speaking to Earnings+More, CEO Joey Levy said the company planned to launch in the state “some time over the next month”.
Analyst takesGenius Sports: Credit Suisse said that the “appealing part” of the Genius story is its potential ability to leverage fixed costs. “But it feels as if data rights are eating into the ability to generate operating leverage,” the team added.
🛑 Genius Sports investors react badly to its Q4 earnings Macau: Following a property tour in Macau and Singapore, the team at Jefferies said their confidence in a recovery is now higher. Flutter: The US listing would be a “natural progression”, according to the team, who noted Flutter would seek approval from shareholders at the AGM in April before seeking a listing at the end of this year, with a primary US listing needing further approval in 2024.
AGS: With the supplier having been approved to sell its EGM products in Colorado, Minnesota and Missouri, this could lead to an additional TAM of 40,000 units for the group, suggested Jefferies, giving AGS a “long runway of growth”. Datalines – Iowa’Kings gambit: Iowa remains one of the few markets where FanDuel isn’t the market leader. Instead, major rival DraftKings managed not only to extend its handle share in February, from 32% to 36%, but also grabbed the lead by NGR with 42%, up from 29%.
👑 DraftKings’ NGR and handle leadership in February in Iowa Startup focus – ALT Sports DataWho, what, where and when: Founded by Todd Ballard and Joe Dunnigan, alumni of GoPro, the Carlsbad, California-based company was launched at the start of 2022 with the aim of bringing odds pricing and affiliate marketing into the realm of alternative sports. Funding backgrounder: The company closed a $2m seed round in July of 2022 from backers including the founder and CEO of GoPro Nicholas Woodman, Trinity West Ventures, Eberg Capital and IA Ventures. The pitch: Ballard says ALT Sports’ approach is to not only bring odds and pricing data and trading services for new sports in the action, endurance, motor, outdoor and other alternative sports categories. “Our goal is to help operators access 80m-plus US new high-value and largely untapped high-frequency and high-value bettors.”
What will success look like? “The opportunity for us to help expand their fan bases and deepen engagement is something we view as a rare opportunity, and even obligation, to give back to the sports that have given us so much,” says Ballard.
The week aheadTuesday sees Super Group report its Q4 earnings. Its last communication with the market came in late February when it announced it was selling its Digital Gaming Corp. business to Games Global.
In Earnings+More this week, the latest Deal Talk looks at what FanDuel’s possible dual listing in New York says about London’s appeal as a listing hub for online gambling entities. ** SPONSOR’S MESSAGE ** Founded in 2013, Metric Gaming is based in Las Vegas and London and developed the industry’s first truly multi-tenant sportsbook platform, purpose-built to support operators across multiple territories, regions or States. Metric is proud to be partnered with both Racebook HQ and Lacerta Sports (powered by Starlizard) and will roll out innovative MTS solutions for both racing and sports in 2023, including soccer and four main US sports. To find out more, please visit www.metricgaming.com NewslinesDraftKings has opened its retail sportsbook at the Boot Hill Casino in Kansas. Elm Tree Partners, the company behind nextgen sportsbook platform SB22, has signed a strategic partnership agreement with Warner Gaming in Las Vegas. What we’re readingPolitico: New York casino lobbying is a “petri dish for corruption”. Calendar
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Weekend Edition #88
Friday, March 10, 2023
Genius Sports' NBA tracking, analysts' online doubts, sector watch – fan tokens, +More
Entain ‘diligent’ on market exits
Thursday, March 9, 2023
Entain reiterates on regulated markets, Betr Mass miss, Full House on the up, NeoGames' iLottery push +More
Prophet ability
Tuesday, March 7, 2023
Prophet Exchange CEO opens up on job losses, Inside the Raise – Circl, latest funding rounds +More
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Monday, March 6, 2023
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Weekend Edition #87
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Flutter going west, Wynn Macau's rebound, Rush Street shares drop, sector watch – payments, Jobsboard +More
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