Earnings+More - Stake in the ground
Stake in the groundAssessing Stake.com, Entain’s Angstrom deal analyzed, and could a betting operator get to own some of ESPN +MoreGood afternoon. In this month’s Due Diligence, we take a closer look at Stake.com and the emergence of its Kick streaming platform.
I wanna know, how do you go all the way up? Stake and chipsThe largely crypto-based operator has risen in prominence in recent months. Lights out for the territory: Having become the subject of scrutiny from the unlikely source of the Chelsea Supporters’ Trust, Stake.com appears willing to accept further scrutiny after a report in Australia suggested the company has applied for a license in the Northern Territory.
The only other exception is the UK where it operates under a white-label arrangement with Isle of Man-based TPG. This allows the company to advertise within the UK.
Bigger than you thought: As was discussed in an FT article earlier this year, using data from Regulus Partners, the paper estimated Stake.com was seventh in the list of global gambling companies by GGR with revenues of $2.6bn,.
** SPONSOR’S MESSAGE ** Venture capital firm Yolo Investments manages in excess of €600m in capital across 80 exciting fintech, gaming and blockchain companies. The Yolo Investments' Gaming fund, regulated by the Guernsey Financial Services Commission, has taken positions in fast-growth suppliers and operators, including Dabble and Enteractive. Yolo Investments (yolo.io) wants to hear from readers of this newsletter. Get in touch with your pitch, or for a chat about innovative products which can plug into our investment ecosystem. KickaboutVenting: Craven appeared on a Gamers Update stream earlier in July suggesting that a large acquisition was on the cards. Stake was, he claimed, primed to make a “very big move into the USA with a very big acquisition”.
Just look at these streams: The interview appearance on the gaming stream followed the news that the Twitch rival Kick, which shares a common ownership with Stake.com, had completed a $100m deal with a streamer called xQc.
Angstrom acquisitionThe £203m deal for Angstrom gives Entain a sports-betting edge. Mea culpa: First, E+M must apologize for mistakenly suggesting the total buyout price for the UK-based sports-betting supplier was £122m. This was due to a misreading of the press release from Entain which, in our defense, wasn’t entirely clear about the total value of the contingent consideration. We are pleased to be able to correct the record.
Gimme, gimme, gimme: It is also worth noting that, given Angstrom’s footprint in the provision of US sports, the deal will cement Entain’s central role as the provider of the technology backend to the BetMGM business.
ESPN saleSports-betting operators have been mentioned as potential buyers of ESPN. Turn off: Comments last week from Disney CEO Bob Iger suggested that the entertainment giant might look to offload a stake in ESPN. In a sit down, which took place at Allen & Co’s annual get-together in Sun Valley, Iger indicated discussions around the future of ESPN could be on the agenda.
As noted by Sports Business Journal, the media space experts believe the likeliest partners would be private equity, including KKR, Apollo and Candle Media, a Blackstone-backed media company run by former Disney executives Kevin Mayer and Tom Staggs.
But SBJ also speculated that sports-betting operators might also be interested in taking a stake. Recall, late in 2022 DraftKings was strongly tipped to be on the verge of agreeing a partnership with ESPN, which would have involved a major marketing tie-up.
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Genius Sports: The 25% share price rise following the announcement of the extension of Genius Sports’ deal with the NFL demonstrated the extent to which a renewal had weighed on the minds of investors, suggested analysts at B Riley.
Bally’s: The regulation of iCasino by Rhode Island brought a fillip for Bally’s, which alongside IGT holds the monopoly for operation in the state. JMP suggested the market could be worth up to $15m to Bally’s.
Gambing.com: Roth MKM initiated on Gambling.com this week and said the increased reach from partnerships brought incremental revenue at a reasonable margin. But partnerships also provide SEO benefits, the analysts suggested.
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Older messages
Entain snaps up Angstrom
Monday, July 17, 2023
Entain buys Angstrom, 888 calls a halt, quarterly earnings preview, Las Vegas Sands in the week ahead, startup focus – Ultimate Odds +More
BetMGM’s slashes promo spend
Sunday, July 16, 2023
BetMGM's promo slowdown, Betsson's Q2 pre-announcement, shares week, sector watch – affiliates +More
Second quarter notches up $2.8bn of deals
Tuesday, July 11, 2023
Transaction tracker details for Q2, what to expect from the second half of 2024 +More
Bet365 taking US share
Monday, July 10, 2023
Bet365 on the march, DraftKings profit prediction, Betfred's 2022 bounce, Gambling.com and Genius Sports analyst takes +More
Hard Rock Florida restart in the balance
Friday, July 7, 2023
Hard Rock's choices, William Hill figures, Better Collective and EveryMatrix M&A, GM and MeridianBet merger terms +More
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