• Flutter finds a new home in New York.

• In +More: OpenBet and IMG Arena under one roof, Better Collective investor.

• Rank looks ahead to Gambling Act benefits.

• BettingJobs’ Jobsboard features head of product and PR director roles.

Everybody here was someone else before.

Flutter NYSE listing reaction

Welcome to New York: Flutter can be happy with its reception this week following its dual-listing on the NYSE at the start of the week, as the analysts assessed the likelihood that it will be the precursor to a primary listing later this year.

• The reaction on the trading floor was somewhat muted, with Flutter’s US share price effectively flat over the week, down less than 1%.

• But the analysts were more effusive, suggesting the company represented a “compelling long-term growth story,” in the words of the team at CBRE.

Meant to be: The team at Wells Fargo said Flutter’s corporate pivot to New York reflected  a ”natural evolution” given that, over time, the US is predicted to be the company’s primary profit center.

• Ducks, get in line: As was noted by E+M earlier this week, the timetable towards a primary listing will kick off with a shareholder vote at the AGM on May 1.

• That could lead to a full S&P 500 listing by the end of the year, although this is at the discretion of the index. At the same time, Flutter would exit the FTSE 100 in London.

• JMP noted the current composition of the S&P 500 has no online gaming company. But, given Flutter’s profitability and global scale, it meets “nearly all criteria as a candidate for inclusion,” with the only negative being its domicile.

Mind the gap: The hope is Flutter will be able to close the valuation gap that has opened up between it and nearest direct rival DraftKings. The CBRE team estimated the current implied valuation for Flutter of 14.5x FY25 EBITDA is some way behind that of DraftKings, which is currently trading at 23x.

• The US listing is a “key catalyst” because it “opens the door to a much deeper pool of capital providers and significantly enhances the company’s profile and share of voice in the US,” the team added.

• Deal talk: Wells Fargo reported Flutter management as saying few opportunities in the US “make much sense” right now. But LatAm was called out as having some “sizable opportunities.” 

Moat building: JMP suggested, when it comes to FanDuel, Flutter is in the process of building a position of strength via higher investment in product and innovation, including a further push into parlays. 

• EKG analysts said this week that same-game parlays made up ~50% of revenues for the major US operators on the NFL last weekend.

• They added that live SGPs were “not widespread” beyond the likes of FanDuel, DraftKings and bet365.

• Wells Fargo noted the higher structural hold margin in the recent Q4 trading statement.

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+More

Endeavor is integrating its OpenBet sportsbook backend business and the IMG Arena data business under the one umbrella, as the company seeks a deeper integration over areas such as odds pricing.

• Recall, Endeavor completed the $800m acquisition of OpenBet in Sep22. The company said yesterday it has a combined client list of 450-plus sportsbook operators.

• The company told Sportico the integration was the “culmination” of an ambition to create a leader in the global betting, sports data and technology industry.

Affiliate giant Better Collective has announced BLS Capital, a Copenhagen-based investment firm, has taken a 6.7% stake in the company. BLS says on its website it is a boutique asset manager with focus on long-term investments in “robust, listed companies with the purpose of creating attractive, long-term risk-adjusted returns.”

Bet 365 has launched online sports betting in Indiana. Meanwhile, BlueBet has furthered the rollout of its ClutchBet offering in the US via a launch in Louisiana, and supplier EveryMatrix has obtained approval from the Pennsylvania regulator to offer its services in the state.

By the numbers

Ohio: Total sports-betting GGR rose 29% to $87.1m on handle that fell marginally to $830m. FanDuel led OSB on 44% market share, followed by DraftKings (30%) and ESPN Bet (9.7%).

Product+More

Digitain has launched a new sports-betting tool, AutoBet, allowing players to customize their betting with preferred odds ranges.

Compliance+More

The Georgia sports-betting bill has passed a vote in the Senate – but with a constitutional amendment added that means it will need two-thirds majorities in both houses of the legislature and to be put on the ballot in November. See C+M on Tuesday for more.

Startup fundraising

Sports data and analytics solutions provider ALT Sports Data has announced a $2.5m seed funding round co-led by Eberg Capital and Relay Ventures, with additional participation from Trinity West Ventures, NuFund Venture Group and several notable sports and technology industry veterans.

Splash Sports has secured $14.1m via a Series A2 funding round, which will in part go towards the launch of a new partner solutions company. The funding round was led by Boston Seed, Velvet Sea Ventures, K5, Elysian Park, Acies Investments, Accomplice, Counterview and others.

Earnings reaction – Rank

r u UK? The casino-to-bingo venues operator is one of the winners to have come out of the prolonged UK Gambling Act reform process and CEO John O’Reilly said yesterday the company would have “lots of opportunities” to invest further in its offerings.

• O’Reilly noted the Grosvenor estate expected to be able to double its machine numbers once the review was done and dusted. 

• Alongside the introduction of sports betting, the company will also be able to take electronic payments in both casino and bingo and see the end of restrictions on B3 games in bingo halls.

• “Gambling reviews don’t come very often, but when they do they provide a critical opportunity to ensure sensible modernizing reforms to what has become outdated law,” said O’Reilly.

Bingo is less positive as the company continues to shrink its estate to concentrate on “more vibrant” venues. The estate is now down to 55 having lost one venue in H1 and two more are set to close in the second half of the financial year.

• You don’t bring me flowers: O’Reilly noted the biggest day of the year in the Mecca business was Mother’s Day, which is March 10 in the UK.

• “People take their mum to bingo on Mother’s Day, which shows you what the Mecca business is all about actually,” O’Reilly said.

• “And we give a free box of chocolates to every customer on Mother's Day.”

The shares week – Evolution

Investors warmed to the live casino giant’s Q4 report yesterday, sending the shares up 7% on the day. The company said revenues rose 17% to €475m while EBITDA increased 21% to €337m.

📺 Evolution gets a warm response from investors to its Q4 earnings

Venture capital firm Yolo Investments manages in excess of €500m in capital across 100 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.

Nevada December analyst takes

I didn’t know you had dandruff: The record-breaking GGR figures for Nevada in December were only surpassed by the handle total of $6.2bn, which, as the team at CBRE said, came in “head and shoulders” above the previous record of $5.7bn in Dec22.

• JMP noted the debut of the Fontainebleau during the month, which they estimated added $30m-$40m of GGR.

JMP noted that January and February represented two important months for the market, suggesting January should remain strong while February, of course, has the Super Bowl. 

• Notably, Macquarie said the average ticket price for the game is $10k, highlighting that the high-end luxury consumer “continues to have a willingness to spend.” 

• However, lower-income consumers “may be feeling the pinch.”

Analyst takes

VICI: The gaming REIT was “very active” in 2023, pointed out the analysts at CBRE, with deals totalling $2.2bn of potential capital commitments. But they noted the deal – in terms of size, quantity, financing type and asset type – “bucked” the company’s typical trends.

• The average investment in FY23 was “just” $222m, less than half of FY22’s $464m.

• Almost half the transactions were financing rather than sales/leasebacks and 80% of the volume was non-gaming.

• CBRE noted the push into non-gaming will likely accelerate this year but that gaming investment will also likely bounce back after a “very quiet” 2023.

Calendar

• Feb 6-8: ICE, London

• Feb 7: Kindred, Disney, Red Rock, Wynn

• Feb 8: Boyd Gaming

• Feb 13: MGM Resorts International

• Feb 15: Betsson, Penn, DraftKings (earnings)

• Feb 16: DraftKings (call)

• Technical Compliance Specialist – US 

• Head of Product – Greece/Malta/Portugal/Romania 

• PR Director – Cyprus 

EveryMatrix delivers iGaming software, solutions, content and services for casino, sports betting, payments, and affiliate/agent management to 300+ 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.

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