Good morning. On the agenda today:

• Jim Chanos vs. Jason Robins go another round in the ring.

• Investors have a lot to chew over with Bally, say analysts.

• UK Chancellor intervenes over Gambling Act review on behalf of racing.

Money’s too tight to mention. But this at least remains free:

Chanos vs Robins round two: During an appearance on CNBC to talk about his views on Coinbase, famed short-seller Jim Chanos let slip that he had made a mistake with his previous position on DraftKings.

• According to the report, Chanos has continued with his negative view on DraftKings but admitted he got a crucial financial detail wrong in his public assessment. He also said DraftKings has subsequently sent a legal letter.

Madcap laughs: Back in December when Chanos, who runs Kynikos Associates, made his original attack, Robins said Chanos’ financial case was “insane”. Robins renewed his own attack in the wake of the latest CNBC appearance:

Jason Robins on Twitter: “A guy can go on national TV with the express purpose of tanking a stock he is short on, say something patently false, and then hide behind “oops, I made a mistake” when someone calls him out on it.”

Eat my shorts: He added that he found it hard “believing this was truly a ‘mistake’”. “He supposedly runs a sophisticated shop, and this was a very simple error that anyone who invests (or shorts) for a living should never have made.”

• All this comes a couple of weeks after Robins promised that he and his team “are on a mission to make you regret that decision more than any other decision you’ve ever made in your life”.

Punchdrunk: In the past week, DraftKings has indeed seen something of a bounce - dead cat or otherwise - up over 24%.

Downdraft: More prosaically, according to various reports on Twitter DraftKings mobile site was down over the weekend. Competitors were quick to take advantage:

Dave Portnoy @stoolpresidente

I’m proud to report that once again at #BarstoolSportsbook it's a beautiful day, the beaches are open and people are having a wonderful time. We welcome all #DraftKings business

Darren Rovell @darrenrovell

Yes, DraftKings is down again.

March 19th 2022

92 Retweets3,268 Likes

PointsBet Sportsbook @PointsBetUSA

We’ve heard a competitor might be having tech issues today… 1) Reply to this tweet with a screenshot of a down app 2) DM us your PointsBet username and include the word 'Issues' in the message GET A $10 FREE BET 🤑

March 19th 2022

19 Retweets87 Likes

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New York Wk10

Manhattan highs: Handle was up 13% WoW to $406m, the first time it has cleared $400m since Super Bowl week. GGR came in at $36.8m, the state’s second-highest total since launch and resulting in $18.8m in taxes. 

Top spot: FanDuel continues to lead with 42.6% share of handle, with DraftKings second (25.3%), followed by Caesars (16%) and BetMGM (10%).

Bally analyst update

Moving parts: The team at Jefferies note that the imponderables are piling up at Bally. Saying the company is in the process of an “evolution”, Jefferies noted the recent appointment of Steve Capp at CFO, the ongoing bid situation from major shareholder Standard General as well as the relaunch of the digital business.

• Our impression is that investors are framing the investment case, issues and risks amid a complex set of circumstances.

IGT analyst update

Chain of fools: After meeting with management last week, Deutsche Bank analysts came away suggesting IGT has “cost levers” it can press should the macroeconomic situation worsen. That said, they added that product sales with gaming remain robust, though supply chain issues will have a “modest impact: on the cadence of 2022 sales. Lottery remains positive regardless.

• “The lottery business is unlikely to be impacted by macroeconomic issues, given limited historical correlation and stable recession period performance historically.”

Q1 regional gaming trends

Fundamentals watch: The team at Deutsche Bank said the gaming sector’s “fundamental dynamics” need to be kept an eye on because of the potential impact of macroeconomic events on regional gaming consumers. Looking at the latest data and comparing with their Q1 forecasts for the three regional operators they cover, DB said Caesars Entertainment were up $15.2m on their forecasts, while Boyd Gaming and Penn National were down ~$7.3m. 

UK horseracing

Catterick garrison: According to the Sunday Times, UK Chancellor Rishi Sunak has intervened in the ongoing Gambling Act review process by writing to the Department of Culture, Media and Sport. He was reportedly prompted to raise the issue of the impact on horseracing by John Sanderson, managing director of Catterick racecourse which is in Sunak’s constituency.

Can’t pay, won’t pay: Sanderson has raised concerns that the rumored proposed affordability checks would see racing lose £60m a year of the money it receives from the bookmakers. He has called on the government to take account of horseracing when it comes to its review conclusions.

John Sanderson: “Betting on horseracing is not simple gambling like a casino. Machines, online casinos and scratchcards are just games of chance, and are far more addictive to a person with a gambling-related problem. That was my message to Rishi.”

At the ready: Meanwhile, Betting and Gaming Council CEO Michael Dugher says the sector is “ready, willing and able” to assist in the Chancellor’s post-Covid economic recovery plan, but warned against the sector’s economic prospects post-review.

What we’re saying

WE+M launched its podcast last week. 

Earnings and More - A Wagers.com Podcast Wagers.com 2 episodes

Startup focus: Tallysight

Who, what, where and when: Tallysight was founded in San Francisco in 2019 by tech startup co-workers Matt Peterson and Masheed Ahadi. The company is an all-in-one content and monetization toolkit for online sportsbooks and publishers to monetize their audiences.

Funding backgrounder: The group recently announced the closing of a strategic financing round, but did not disclose details. It was led by Phoenix Capital Ventures and includes participation from H. Barton Asset Management and Warren Packard, co-founder of fan engagement platform Thuuz Sports, which was acquired by STATS Perform in 2020. It recently kicked off a seed round which it plans to close later this spring.

So what's new? Tallysight recently signed Catena Media to add to its network of more than 1,000 publishers and over 3,100 creators, which includes media groups such as Gannett/USA Today and The Dallas Morning News.

The longer pitch: “We are dedicated to unlocking the creator economy for sports betting and gaming,” says Matt Peterson, co-founder and CEO of Tallysight, who adds that not all publishers or operators should require teams of designers and engineers to create their content.

Matt Peterson: “We are extremely passionate about democratizing access to these tools and enabling ways any sports betting businesses and creators can build, engage and monetize their audiences in this new economy with the best products and most innovative solutions.”

The week ahead 

GAN publishes its Q4s on Tuesday and analysts will be keen to hear about the financial impact of Churchill Downs ending its online sports betting and gaming activities. Gambling.com reports on Thursday, where it will update the markets on the ongoing integrations of Rotowire and Bonusfinder.  

Newslines 

Derby days: Kentucky’s House of Representatives passed an online sports-betting and poker bill at the end of last week on a bipartisan basis. Votes for the bill came in at 58 to 30 against, but many Republicans in the GOP-controlled legislature continue to oppose gambling in all forms.

Rocky tax rates: Colorado House Speaker Alec Garnett is looking into legislation to change state laws and allow online sportsbooks to deduct promos from taxable revenue. Garnett said such a change would double the state’s tax take from sports betting.   

Walk in the Parx: Parx Casino has rebranded its online sportsbook and casino platforms by launching the betPARX app in New Jersey and Pennsylvania. The betPARX app will also launch in Ohio in early 2023 through its partnership with the PGA Tour's Memorial Tournament.

What we’re reading

Going around the block: How NFTs interact with gambling compliance, digital assets and securities. 

Swing hitter: Alun Bowden looks beyond some of the gambling sector’s received wisdom.

On social 

Sammy P @spshoot

Well done @DavidPurdum.

February 18th 2022

7 Retweets30 Likes

Calendar

• Mar 22: GAN Q4

• Mar 24: Gambling.com Q4

Contact us

• Scott Longley scott@clearconcisemedia.com

• Jake Pollard jake@openmediaservices.com