• Deal will see Tipico shutter its US operations.

• In +More: the betting scandal engulfing the UK Conservative party.

• A skeptical view of the news of a bid for Penn from Boyd.

• Entain’s review is an ongoing process, report analysts.

You’ve got a real type of thing going down.

Done deal

Signed, sealed: MGM Resorts has confirmed its subsidiary LeoVegas has bought the product and platform of Tipico US for an undisclosed sum. Tipico will wind down its US operations ahead of the deal closing in the third quarter.

• Earnings+More broke the news of the deal in late April.

Going it alone: MGM Resorts said the acquisition of the Tipico US platform would allow LeoVegas to operate a “purpose-built proprietary sportsbook across all international markets and brands” excluding those exclusive to the BetMGM JV. LeoVegas currently operates on the Kambi platform.

• As part of the deal, LeoVegas will acquire Tipico’s US-facing management, tech and trading teams across the US, Colombia and Europe.

Kit and kaboodle: Gary Fritz, president of interactive at MGM Resorts said the deal was a “significant milestone in the strategic development of MGM Resorts’ global digital gaming business.”

• “This acquisition gives us control of our entire technology ecosystem,” he added.

• LeoVegas CEO Gustav Hagman said owning the tech would enable the company to “grow and strengthen” its sportsbook offering in both new and existing markets.

• This is the second acquisition by LeoVegas since it was bought by MGM Resorts, having bought Push Gaming in May last year.

Tiny dancer: Despite the well-regarded tech platform, Tipico failed to make much of an impression in the US since its launch in October 2020, managing to establish nothing more than a toehold in New Jersey, Iowa, Ohio and Colorado.

• Tipico is owned by private equity house CVC.

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Skins regime: Following the news Betfred is to exit Maryland next month, it has been reported that Bally Bet is set to launch in the state soon alongside a new operator called VSC. Meanwhile, also hoping to get the go ahead in the coming weeks is Betr. 

• But before that, co-founder Jake Paul has recently launched a skin care brand with Walmart.

By the numbers

US iCasino: Same-store GGR from the iCasino states rose 28% YoY in May, accelerating from the 23% gain in April and equalling the rise in Q1, according to the analysts at JMP.

Career paths

Genius Sports has appointed Kenneth Kay as its new board chair, replacing David Levy, who will continue as strategic advisor.

iGP has appointed Jovana Popovic Canaki as deputy CEO, reporting to CEO Giovanni Paticchio. Most recently, Popovic Canaki served as VP of partner success at Aspire Global.

Mark Show has joined Flutter as the company’s new director of global payments strategy having previously fulfilled the same role at Spotify.

What we’re reading

A gambling ring in 10 Downing Street: The betting scandal engulfing the ruling UK Conservative party. And there could be more names to come.

Boyd/Penn: a skeptic writes

A pinch of salt: Assessing the chances of Boyd Gaming being successful in its rumored bid for Penn Entertainment, the analysts at Deutsche Bank outlined what they suggested is an improbable chain of events that would need to occur for a deal to happen.

• “The complexity of this deal should not be underestimated,” the team argued, given the likelihood that Boyd immediately would sell on the online business.

First, kill all the lawyers: As detailed by DB, the list of parties that would need to agree and/or cooperate alongside the two protagonists is long.

• Deep breath: It includes the gaming REIT Gaming & Leisure Properties, buyers of potentially disposed of bricks & mortar properties, a buyer for the online business, ESPN, approvals form state regulators and the Federal Trade Commission, and, finally, the capital markets.

• No wonder, then, the analysts believed the “knee-jerk reaction” from the investment community is it would be a “challenging deal” for Boyd to make.

The tear sheet: The DB team made the point that while it is no surprise – given the current noise around Penn – the company is in play, Penn would likely not accept a bid in the mooted region of $20-$25 a share.

• “That said, we believe the negotiations, if they are in fact occurring, imply a level of interest beyond what we think most investors deemed possible in recent weeks,” the analysts added.

A change is gonna come: Whether Boyd ends up launching a full-scale bid or some other corporate action takes place, Jefferies reported, after meeting with Penn management at their conference in Nantucket last week, their impression was the status quo wouldn’t hold.

• “We continue to think some change is inevitable given conflicting views between investors and the company,” they added.

📈 I love your price action: Penn and Boyd on Friday 

Strategic reviews forever

Don’t stop the rock: Entain’s capital allocation committee will continue its work in reviewing strategic options, “leaving the door open” for further potential sales, according to the analysts at CBRE after meeting with management.

• In May, Entain announced the conclusion of the committee’s review of operations and the decision to put the Georgia-based Crystalbet up for sale.

• The CBRE team said they were “encouraged” by the focus on long-term strategic objectives, including executing in the US, returning to growth in core markets and improving margins.

Situation vacant: However, the team reported there was no further progress on the appointment of a new CEO, noting that after two “short-tenured CEOs back-to-back” – Shay Segev and Jette Nygaard-Andersen – the board is “taking a strict approach to finding the right leader for the business, which will likely extend the process.” 

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Venture playground

A new fund called Ixia Capital has raised $20m to invest in real-money gaming, esports and related digital technologies with a focus on India, Africa and the UAE. The fund is headed up by Mona Motwani, ex-Sportradar.

• The new money will be invested via Ixia Studio, which is in the process of launching six disruptive projects – FasFas Games, a Sports NFT Trading Exchange, a Gaming Loyalty Reward Platform, Sports Investment Thought Leadership Platform, and a Sports Coverage and Games Engagement App. 

Dream job: Jordan Gnat, the former CEO of Playmaker Capital – the media and affiliate play bought by Better Collective in November last year – has joined Dreamcraft Ventures, the VC firm founded by BC’s own Jesper Søgaard and Christian Kirk Rasmussen, as a limited partner. 

Startup focus – 7Qz

Who, what, where and when: Registered in the US with a subsidiary in South Africa, fantasy and prediction games provider 7Qz was founded in 2022 by CEO John Maylam. The company’s key differentiators revolve around two principles, he says:

• “We deliver the dopamine rush (and monetary reward) associated with sports betting in a responsible gaming way.” 

• While 7Qz’s user betting experience “doesn’t overcomplicate and become a barrier to entry.”

Funding backgrounder: The only funding round to date was friends and family, which raised $92k in Oct22.

The pitch: “7Qz is a technology company that bridges the gap between the sports fan and the sports bettor… by providing engaging, easy-to-play hybrid fantasy/predictions games,” says Maylam. The company’s strategy is to achieve global distribution by partnering with existing large sportsbok operators and platform providers.

Jumping someone else’s train: Retaining customers is “difficult,” adds Maylam. “Players jump from sportsbook to sportsbook based on promotions.”

• Odds can also be “complicated” and the customer experience of watching live events needs “enhancing.”

• “7Qz solves these issues,” he claims, adding that its user-friendly game is “easy enough for your grandmother to play but has enough juice in it for the seasoned sports bettor.”

Egg chasing: Following nine-months of beta testing, 7Qz signed a deal to host a premium college rugby competition in South Africa, the Varsity Cup. This resulted in plenty of interest from companies looking to “expand their footprint throughout Africa.”

• ”We plan to use this successful blueprint to expand into the Middle East, LatAm, Asia and the US.”

• The company is currently beta testing an AI buddy to “provide you with updated stats and info related to a specific prediction.”

What will success look like? “Medium term, we are looking to establish our brand and increase our footprint across multiple regions,” says Maylam. “Longer term, we would like to make this format one of the standard sports-betting modalities of the future: player vs player instead of player vs house.”

• Revenue targets under a pay-to-play model would be $1.9m-$2.4m in Y1, rising to $6.8m-$8.3ml by Y3.

Growth company news

Pro League Network has received approval for wagering on CarJitsu in New Jersey.

Meanwhile, a new app dedicated to real-money gaming on tractor pulling called Full Pull Picks has launched, according to SportHandle.

Calendar

• Jul 16-19: iGB Live, Amsterdam

• Jul 19: Evolution

• Jul 24: Churchill Downs (earnings)

• Jul 25: Churchill Downs (call)

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