• FanDuel has reasserted OSB leadership in New York.

• DraftKings and ESPN Bet will vie for the headlines on Tuesday.

• Analyst takes includes a look at the slot manufacturers.

• Our startup focus is compliance solutions provider BetComply.

Things ain't the same but I'm back in the game now.

FanDuel’s Q4 fightback

The early Q4 evidence from New York suggests FanDuel is reversing some of DraftKings recent GGR gains.

As you were: FanDuel has reasserted its primacy at the top of the market in New York in both handle and GGR, giving an early indication it is fighting back in Q4 after appearing to lose its top-dog status in August.

• In October, FanDuel racked up $892m vs. $652m for DraftKings, whereas in the previous two months it trailed its major rival.

• In Q3 overall, DraftKings led by $1.5bn to $1.48bn for FanDuel.

⚖️ New York weighing machine: FanDuel reasserts handle leadership

Gross out: More significantly, FanDuel also extended its lead in GGR terms, up 8% MoM to $83m, while DraftKings was down over 3% MoM to $59m. In Q3, DraftKings moved closer to its rival with $137m of GGR vs. $160m.

• Jefferies noted that across 22 states that have reported September data, FanDuel just about maintained OSB market leadership in Q3 by 37% to 36%.

• Still, in the YoY comp DraftKings was up 10 ppts while FanDuel was down 3 ppts.

• “This represents the closest quarterly GGR gap between FanDuel and DraftKings since 2020,” the team wrote.

Net net: But at an NGR level, the picture was different once again. In the states that report NGR, the team at Jefferies said FanDuel grew its market share in Q3, up 1 ppt to 49% while DraftKings’ improvement was 7 ppts to 32%. The analysts added that the initial signs from New York backs their theory that FanDuel “could drive greater share gains” in Q4.

• The Jefferies take tallies with that of Flutter itself during last week’s Q3 trading statement, where it said its YTD NGR market share was 52% while Q3 stood at 47%.

• NGR is “the right metric to look at”, Flutter CFO Paul Edgecliffe-Johnson told the analysts last week.

• “That does take account of generosity coming through,” he said. 

• “It’s good that now we’ve got nine states that are publishing that, and we are encouraging the rest of the states to do the same because I think that’s really the metric that matters. And I think that demonstrates our strength.”

🗽 FanDuel accelerates away on October in GGR

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The week ahead

On Tuesday ESPN Bet will go live in 17 states: Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia.

On the same day, DraftKings holds its investor meeting where it is expected to unveil some new sportsbook products as well as reveal to the market its medium-term revenue and profit targets.

Reporting this week

• Nov 13: Genius Sports

• Nov 14: DraftKings investor event

• Nov 15: Gambling.com Group, FansUnite, Better Collective (e), Codere Online

• Nov 16: Better Collective (call)

Earnings in brief

Genting Singapore: Revenue in Q3 rose 33% to $690m while EBITDA was up 37% to $346m, with the company saying the Resorts World Sentosa IR continued to benefit from a “sustained recovery in travel and tourism” into Singapore. The company also announced a $6bn investment in the RWS expansion, including a new 700-room hotel development.

FL Entertainment: The France-based entertainment group and parent to Betclic and Bet-at-home said its betting and gaming units saw growth of 21% in the first nine months of the year to €719m. 

• Sportsbook operations accounted for the lion’s share, up 17% to €558m, with casino up 49% to €107m and poker and other up 26% to €53.2m. 

• Betting and gaming adj. EBITDA was up 23% to €185m.

• The company said it relaunched the Betclic app in September.

The separately reporting Bet-a-home said continued regulatory grief in Germany was largely to blame for the 12% fall in GGR to €34.5m. EBITDA dropped by almost a quarter to €1.7m. The company noted that, as part of its efforts to right the ship, it has outsourced “key corporate functions” for its dotcom operations to EveryMatrix, including its German-facing business.

Analyst takes

Slots manufacturers: Macquarie’s analysts noted all the providers produced Q3 beats while the regional operator commentary was “better than expected”, which also bodes well for slots. “We don’t think there is imminent risk of operator capex budgets being slashed given that slot product is what drives the business, though there could be a slowdown as we've seen in prior cycles,” the team said.

• Reporting on the recent EKG slot survey, the team pointed to Aristocrat’s continued “elevated” market leadership at 28%.

• However, IGT leads with 29% while Light & Wonder is at 20%, followed by Everi (6%) and AGS (5.8%).

Light & Wonder: The message of a healthy gaming consumer environment was hammered home last week by Light & Wonder, with Truist saying the company had noted “good visibility” into its placement pipeline into Q4 and beyond while any potential weakness would be offset by “building strong content”.

Bragg Gaming: The team at JMP noted the recent two-year extension agreement reached between Bragg and Entain over the provision of its PAM to the operator’s BetCity business in the Netherlands removed a “major overhang”. Meanwhile, the team suggested the “need for quality content and studios” on the part of operators could position Bragg as a takeover candidate. 

Wynn Resorts: The team at CBRE suggested Wynn has gained an increased financial flexibility off continued Vegas strength and the “rapidly recovering” Macau, as evidenced by the “opportunistic tender” for $400m of senior notes at a discount to par as well as the repurchase of $56m of stock.

Startup focus – BetComply

Who, what, where and when: The newly founded London-based compliance solutions provider is, says chief compliance officer Mike de Graaff, “challenging the conventional perception of compliance as expensive, slow and overly restrictive”. Instead, the company is “dedicated to expediting clients’ entry into regulated markets while ensuring compliance and sustainability”.

• BetComply is led by a team of experienced professionals with a deep understanding of the iGaming industry and regulatory requirements. Alongside De Graaff is Daniel Brookes, interim CEO; and David Schubert, CRO.

• The provider’s approach to compliance is to focus on what is needed for success in a regulated market. This includes providing clients with access to cutting-edge technology and AI tools, as well as tailored compliance solutions. 

• We are “redefining compliance as a facilitator of growth and market access”, claims de Graaff. 

You’ve got the brawn, we’ve got the brains: “We firmly believe the big opportunity lies in transforming compliance within regulated markets,” he says. “It’s evident that compliance is often seen as expensive, sluggish and overly restrictive, but we’re convinced it’s an indispensable element for any business aspiring to enter a regulated market.”

• “We stand firmly against the notion of over-compliance and instead focus on doing precisely what is necessary to thrive in the market.”

• BetComply approaches compliance with “innovation at its core” and has formed strategic partnerships with industry leaders, such as Rdentify, which “enables us to craft tailored, technology-driven compliance strategies that can adapt to the ever-evolving regulatory landscape”, de Graaff explains.

• Another key aspect is its close collaboration with service providers, testing laboratories and legal firms. 

• “This means no more enduring slow and complex processes filled with legal jargon.”

The company has experienced a rapid take-off, with several clients signing up within the first two weeks, eager to tap into new markets.

• BetComply sees significant opportunities in emerging markets, such as Brazil and Finland, and growing markets, such as Ontario, Netherlands, Germany and the US. 

• “These markets are all experiencing rapid growth and they offer significant opportunities for our clients,” de Graaff says.

The one: “BetComply sees success as becoming the preeminent choice for those seeking to establish an iGaming business or enter a specific market,” he concludes.

Growth company news

HappyHour, the Malta-based VC fund focused on early-stage iGaming startups, has made a strategic investment in digital wallet and cashier solution Fluid.

BeyondPlay has partnered with Delasport to bring multiplayer and jackpot engagement features to its licensees.

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Career paths

Galaxy Gaming has appointed Matt Reback as president and CEO. He replaces Todd Cravens, who spent six years at the helm. Reback was most recently founder and president of Bravery Gaming.

Newslines

Bally’s has received permission to relaunch Bally Bet in Indiana from the state’s gaming regulators, according to Covers.com.

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