Hornbuckle: BetMGM’s UK launch ‘the best test’
Hornbuckle: BetMGM’s UK launch ‘the best test’MGM’s aspirations, NFL promos examined, Better Collective fireside chat, startup focus – BetChill +MoreGood morning. On today’s agenda:
Don’t know what I want but I know how to get it. MGM’s aspirationsCEO Bill Hornbuckle suggests the company ‘just happened’ to choose the UK for the first international launch of BetMGM. Upfront and personal: CEO of MGM Resorts Bill Hornbuckle insisted his company had always been “clear” with its BetMGM JV partner Entain about its own international ambitions for online. “We want and need to be a digital player at scale,” he said during the Bank of America investor event late last week. “We’ve been clear about that since day one.”
On the lookout: The medium- to long-term prognosis for BetMGM was good, Hornbuckle suggested. “We'll see what happens in the third quarter,” he added. “But the push next year will be money-making.”
Putting the money to work: Asked about M&A, Hornbuckle noted that in Las Vegas MGM was “pretty full right now” having recently completed the buyout of the Cosmopolitan. If there were to be any utilization of the company’s cash pile of $2bn, he suggested it would be in the area of online.
Horn of plenty: Taking a brief tour around the world, Hornbuckle noted that contrary to recent reports the Osaka IR in Japan remained on track, while in Macau MGM China had managed to beat market share expectations and in New York the company was hopeful of gaining one of the three downstate casino licenses. ** SPONSOR’S MESSAGE ** EveryMatrix delivers iGaming software, solutions, content and services for casino, sports betting, payments, and affiliate/agent management to 200+ global Tier-1 operators and newer brands. The platform is modular, scalable, and compliant, allowing operators to choose the optimal solution depending on their needs. EveryMatrix empowers clients to unleash bold ideas and deliver outstanding player experiences in regulated markets. NFL promosGenerosity levels ahead of NFL kickoff are up on last year – but for new users only. A new you: Promotional spend ahead of the new season was “slightly” up on 2022 but, crucially, this was driven by offers to new users, according to analysts at Wells Fargo. Laying out the offers, the team found DraftKings saw the “most significant decline” while rival FanDuel was up on last year.
Setting out the merch stall: Fanatics Sportsbook (now including the PointsBet operation in some states) was offering $100 of merchandise credits to new bettors, which, as the Wells Fargo team pointed out, is a lower implied value than the widely available $200 in bonus bets offered elsewhere.
Summer slumber: The team also noted that in the states where promo spend is registered, there was a 16% YoY decline in July across Pennsylvania, Colorado and Michigan; when Maryland, Ohio and Arizona are added the MoM decline totaled 30%. Screen timeVision on: Wells Fargo noted the Caesars Sportsbook app featured a live stream of NFL SNF in gameweek one, an “incremental development in the OSB/media ecosystem”, the team suggested. Caesars is one of four operators with agreements in place with the NFL and its data and streaming partner Genius Sports.
Winner, winner, TV dinner: “Embedding live NFL games and betting on a single screen without any noticeable latency issues is a marquee development in the sports-betting/media ecosystem and, over time, could potentially play a role in negotiations for sports media rights,” the team concluded. NFL hold catalystAny given Sunday: One narrative for this season will be the extent to which the rest of the field catch up with FanDuel when it comes to hold percentage, suggested the analysts at Macquarie, who said DraftKings is “in a position to challenge… on any given week”, which should narrow the gap between the top two even further.
Market hold rates for July and August were at ~10% but the Macquarie team noted that, with activity set to rise ~70% sequentially in September, “much is still to be determined”. They believed the popularity of same-game parlays “places somewhat of a floor on hold rates”.
Further reading: “The 2023 NFL season will begin with 10 players suspended for sports gambling and will end with a Super Bowl played in close proximity to more than 60 legalized Las Vegas sportsbooks,” says the NY Post. Datalines – New York👀Apple scruffs: DraftKings posted a loss of $3.4m in the first week of September on handle of $116m vs. FanDuel’s positive GGR of $7.3m on handle of $122m. BetMGM and Caesars also managed small positives for the week of $1.7m and $1.5m respectively.
🍎 Top 4 New York GGR market shares Aug22 vs. Aug23 Collective effortJefferies analysts report back on a fireside chat with Better Collective CEO Jesper Søgaard. Buy, build, rinse, repeat: The betting and gaming affiliate giant has completed 32 acquisitions in its listed lifetime and, according to the team at Jefferies, management at the business has no intention of stopping its M&A spree any time soon.
In media res: Jefferies said Better Collective has proved adept at acquiring media assets and then taking the user base from the various platforms and delivering them to its sports-betting operator clients.
Analyst takesMacau: The mass market has seen some subtle changes in the recovery seen to date, some of which could yet have a lasting impact on the market, suggested the team at Deutsche Bank. They believed the underlying trends are healthy, with spend per visitor well above 2019 levels and mass drop shares implying “likely upward momentum”.
Light & Wonder: Despite investor skepticism, analysts reported that the gaming supply giant continues to insist it will hit its target of $1.4bn of adj. EBITDA by 2025. Management held a series of meetings last week after which Jefferies said the “necessary growth drivers… do not appear to be heroic.”
** SPONSOR’S MESSAGE ** Industry-leading market making and uptime throughout College Football's opening weekends. Want to learn more about how Huddle leads the way on US sports? Get in touch to arrange a meeting with Dylan Mitchard, Huddle’s VP of Business Development at SBC Barcelona to learn how we can support your sportsbook, ranging from odds feed integration to an automated trading solution. Explore more: https://huddle.tech/huddle-is-attending-sbc-summit-barcelona/ Startup focus – BetChillThe Stockholm-based sports-betting platform provider has big ideas. Who are you? B2B sports-betting Stockholm-based platform provider BetChill was formed in 2015 by a bunch of online gaming luminaries including Etibar Namazov, Andrew Naudi, Edward Mifsud and Michael Schembri Parnis. Funding backgrounder: The company has been entirely financed by Namazov but is currently seeking its first round of outside investment to “fuel its growth and expansion”. It is hoping to raise up to €1.7m.
What’s the game? He says players have the opportunity to bet on the team they think will generate the most points during a football match. “The game features a constantly moving graph that rises and falls in real-time, similar to stock trading,” he adds.
What will success look like? In the medium- and long-term, Namazov says he envisions becoming a prominent player in the global sports-betting B2B platform space. They seek strong growth, profitability and expansion into new regulated markets. Growth company newsKonquers all: The iCasino games startup Konquer, founded by two former DraftKings execs, has completed two significant deals in the past fortnight. At the end of August it announced a multi-year deal with ODDSworks and it followed up last week with a licensing agreement with Galaxy Gaming.
Mojo working: The player trading startup Mojo has announced a new fantasy product that it hopes to use to expand its offering outside of its launch state of New Jersey. Hot takes: A social platform and sports experience app called Takes has launched a beta offering and announced details of a recent $1.6m pre-seed raise from multiple investors, including Riccardo Silva, co-owner of AC Milan and Miami FC, and Carlo Pozzali, co-founder of MP & Silva. Hub spot: The Florida-based startup DFS Hub has launched an online tool using data analysis to offer casual players a better chance against highly experienced DFS users. Startup career paths: Triggy co-founder Stefan Thunberg will succeed Martina Åkerlund as CEO. On LinkedIn the company said it would be moving into new business verticals and would “continue to scale”. Åkerlund, who has been with the company for three years, will remain on Triggy’s board. Further listening: Why there will never be another 200m subscriber app, via the More or Less pod. Career pathsThe big move: Flutter Entertainment has a new chair as non-executive director John Bryant takes over from outgoing board member Gary McGann. Bryant was formerly the executive chair and CEO of Kellogg Co.
A new career in a new town: Blueprint Gaming has named former Bally’s Corporation executive Nick Wright as its new CCO. Better Collective has appointed ex-YouTube executive Brandon Boone as its VP for communications strategy and public relations in North America. Allwyn has a new global chief people and culture officer, as Naida Buljugic joins from Casino Austria. eSports Entertainment has given Michael Villani the job of CFO on a permanent basis. Job title of the week: Cameron MacMillan is the new VP of VIP at Underdog Fantasy. MacMillan previously served as an advisor to Better Collective. NewslinesBally’s temporary Chicago casino took its first legal wagers from the public on Saturday. ** SPONSOR’S MESSAGE ** Are you an iGaming founder or senior executive launching a business in the US?
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Older messages
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