Mar 28: UK gambling’s cost-of-living crisis
Mar 28: UK gambling’s cost-of-living crisisGambling and the cost of living, March madness update, MGM analyst note, Truist online update, Startup Focus - MetaBet +MoreGood morning. On today’s agenda:
Fill her up, Jacko. Click here. UK gambling cost-of-living pollKey finding: Half of the UK’s gamblers will spend less on gambling or stop gambling altogether as the cost-of-living crisis continues to bite, according to a survey conducted by YouGov on behalf of the Department of Trust (DoTrust).
Making ends meet: Of the respondents who said they gambled, 11% said they were increasingly struggling to cover essential bills, 43% said they were cutting back on essentials and 38% said they were more closely watching what they spend. What it means for operators: With inflation in the UK at 30–year highs, Charles Cohen, CEO at DoTrust, noted this is translating quickly into an affordability crisis for the gambling sector.
** SPONSOR’S MESSAGE: Spotlight Sports Group, a world-leading technology, content and media company has released a new white paper detailing the sports betting opportunity for publishers across North America. The paper investigates the size of the market, the revenue models available and the changing behaviors of sports fans. Outlining the keys to success, the research also discusses Racing Post's successful journey from a traditional digital publisher to super affiliate. Click here to download the full white paper. March Madness updateMad for it: The team at Jefferies suggest that with more upsets than usual, March Madness is likely to be an ”incremental positive” for the sportsbooks. Only one 1st seeded team made it through to the Elite Eight and two 2nd seeded teams.
MGM analyst updateHow we roll: After meeting with CFO Jonathan Halyard, analysts at Wells Fargo suggested MGM was “yet to see” any demand change due to higher gas and airfare prices. They noted that consumer demand in Q1 had recovered and that recent occupancy trends were better than expected with pricing power strongest at the higher-end properties.
Truist online updateA downer: Sports-betting GGR was down 40% and handle was -17% MoM, but +17% and +51% YoY with ~65% of results reported. Louisiana and Montana were up 116% and 166% but all other states saw sizeable drops in GGR and handle. NY high: New York accounted for the majority of wagering in its first full month of data at 18% of handle, followed by NJ (15%), NV (12%), PA/IL (9%) and CO/MI (6%). 90% of wagering came from online. Market share leaders continue to be FanDuel with 20%/34% handle share in Jan/Feb, DraftKings is second with 27%/26%, Caesars third at 19%/15% thanks to its New York activities and BetMGM fourth with 8%/13% during the first two months of 2022. Penn National accounted for 5%/3% share (8%/7% excluding NY). TAM upped: New York’s $274M of GGR and $3.9bn in handle since launch 10 weeks ago (NJ second with $91M GGR, $2.3bn handle) and profitability will be “very difficult” in the Empire State.
Subhandle: New Jersey sports betting GGR was “weak” at $31m (-49% MoM and -54% YoY) due to poor hold and high promotional spend. This was partly expected because of New York's OSB launch and concerns around cannibalization, but the Garden State’s $986m handle (+33 YoY) was the first sub-$1bn handle since Aug21. Stock struggle: Interactive stocks have struggled amid an uncertain macro environment as operators continue to make their cases for long term profitability. Promo percentage: The Super Bowl led to heightened promo spend levels throughout PA, MI, CT & AZ (although the latter has not yet reported). “Concerning” PA: As a percentage of GGR, PA promotional spend was 45%/107% in Jan/Feb22 (vs. 34%/56% YoY), coming in much higher than expected in February and leading to -$450K losses at $22.6m of promos on $22.2m GGR, “a concerning figure for a mature market,” Truist said.
On socialUp to the gills: Genius Sports and DraftKings’ stock-based compensation problem. iGaming NEXT New YorkThe iGaming NEXT New York conference will take place on May 12-13 and will bring together the leading OSB/iGaming executives, institutional investors and leaders in the Web3.0 space. The event is supported by the likes of Morgan Stanley, Playtech, Spectrum Gaming and Evolution and is limited to 700 high-level delegates. To register with a special 10% discount, use the code: 10UNL050. Conference agenda, ticket purchases and registration details: www.igamingnext.com/nyc22 Startup Focus - MetabetWho, what, where, when: The company was founded by Benn Gurton and Mark Phillip in 2019, with operations split between their home bases in Brooklyn, New York, and Austin, Texas. MetaBet works as a matchmaker between media properties and sportsbooks, maximizing conversions. Funding backgrounder: MetaBet hasn't taken on any outside funding. So what's new? MetaBet has hosted March Madness Bracket, with odds, TV listings, and live scores performed well, Phillip says. The next product release is focused on using “sticky, interactive tiles” to convert fans that are new to sports betting. The longer pitch: “We’re excited about the position we’re in and even more excited about what’s to come,” says Phillip who suggests that having a broad sweep of customers across operators, media properties and performance marketers means MetaBet has the “luxury of understanding everyone’s pain points”.
Phillip points out that operators to date have “understandably” focused their marketing and UX on the portion of the market that already understands sports betting.
He adds that MetaBet will be launching a suite of products this Summer that “engage and educate casual fans” about sports betting “without them even realizing, and we expect them to be the best performing products in our customer-centric arsenal”.
Metabet’s tech “gives us an advantage over our competitors, not just in our product and coverage breadth, but in the ease of integration”, says Phillip. “We have yet to lose a single customer to a competitor – the plan is to extend our lead and lap the field.” The week ahead
The shares weekGAN staged something of a recovery following the publication of its Q4 earnings last week when it dropped over 20% on the day before staging something of a comeback in subsequent trading to end the week down 6.1%. NewslinesSeventh heaven: Kindred’s Unibet brand has received a license in Ontario, making it the seventh North American jurisdiction in which it has launched. Taco Duel: FanDuel will launch skill-based games in 32 states through its partnership with skill-games developer Game Taco. Ontario on its own: GGPoker and WSOP will launch a co-branded online poker site in Ontario, with Canadian poker pro Daniel Negreanu as its brand ambassador. Lightshow: Scientific Games, aka Light & Wonder, has received its supplier license from the Alcohol and Gaming Commission of Ontario (AGCO) and will be live in the province on April 4 with its Open Gaming content aggregation platform. Pre-emptive bets: South Dakota’s Gaming Commission has fined the Gold Dust Hotel and Casino, Mustang Sally's and tech supplier Internet Sports International $3,000 each for taking unauthorized bets on the NCAA tournament. On socialMoose talk. The full line was: "“Hello Moose-fuckers! I tell you why I hate Canada: half of you speak French and the other half let them.” David Baddiel @Baddiel As a comedy moment it’s still not up there with a member of the audience at Montreal Just For Laughs 1991 punching Jerry Sadowitz out cold for opening with “Hello moose-fuckers.”What we’re readingEquality acts: The women shaking up the gambling industry. Fun times: The Gambling Act review shouldn’t take the fun out of life. Calendar
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Older messages
Mar 25: Weekend Edition #39
Friday, March 25, 2022
Gambling.com Q4, WE+M pod #2, Deutsche Bank on promotional spend (again), sector Watch - streaming, Kero Gaming funding news +More
Mar 24: Playtech extols Hispanic opportunity
Thursday, March 24, 2022
Playtech FY, Zeal FY, Better Collective M&A +More
Mar 23: GAN waits on fragmentation
Wednesday, March 23, 2022
GAN Q4, Deutsche Bank promo spend note, Playmaker Q4, regulatory roundup +More
Mar 21: Chanos and Robins renew fight
Monday, March 21, 2022
DraftKings short selling fight, Bally and IGT analysts notes, UK horseracing intervention, startup focus - Tallysight +More
Mar 18: Weekend Edition no.38
Friday, March 18, 2022
FOX Corp. earnings call, Endeavor earnings call, Allwyn lottery win, New Jersey, Michigan and Pennsylvania Feb22, Sector Watch - Gaming +More
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