Earnings+More - Apr 21: Ontario on course for $1.1bn
Apr 21: Ontario on course for $1.1bnOntario app and GGR data, DAZN-Pragmatic sportsbook plans, Rank and Monarch Q1s, EKG app testing.Good morning. On today’s agenda:
Up with the people, sign up now Ontario data
Market sizing: A report from Morgan Stanley yesterday cited the geolocation data which suggested Ontario GGR for 2022 was tracking at below MS estimates of $1.3bn. Data from GeoComply put Ontario volumes at around a third of New York in the opening weeks.
New app data: Wells Fargo issued new data from Apptopia which confirmed that as of Apr14, bet365 and theScore led the way with ~78k in DAUs. Next up was Betway at ~43k, then FanDuel with ~30k followed by BetMGM (~14k), PointsBet and 888 (~5k each), then Caesars and BetRivers (~3k each). Happy with that: Wells Fargo suggested these early results were “encouraging” for Penn National, owner of theScore.
One to watch: Wells Fargo note that FanDuel got off to a similarly slow start in New York before powering into the lead within weeks. MS addendum: Morgan Stanley also revisited their own app data from earlier in the week (see Tuesday’s email) and after fixing a mapping issue and adding data to April 19, they found that FanDuel was now third on 16% of app downloads vs. 35% for theScore and 27% for bet365. Morgan Stanley: “Taking first-mover advantage has proven a successful strategy in most US markets so an early lead is a positive read-through for the top 5 operators which account for 92% of April MTD downloads.” **Sponsor's message: Spotlight Sports Group (owned by Exponent Private Equity) is a leading technology, content and media business specialising in sports betting. Its industry-leading Superfeed is used by the biggest betting brands in the world including bet365, Flutter and Entain. The content engine powers on-site engagement by delivering impartial expert betting insight for 20 sports in 70 languages. For more information visit: spotlightsportsgroup.com DAZN sportsbookDA’ sportsbook: Sports streaming provider DAZN has announced that it will partner with online gaming tech supplier Pragmatic Play to launch an online sportsbook in Ontario in Q3. Up to now Pragmatic’s focus has been on online slots and live casino supply but the group launched its online sportsbook platform this month. Pragmatism: The DAZN sports-betting offering will be called DAZN Bet. The announcement follows rumors that DAZN would be developing an OSB offering using source code from Spanish sportsbook specialist Optima (now part of Sportradar).
On appointment: The DAZN sports-betting venture has long been trailed and CEO and ex-Entain boss Shay Segev recently recruited former Entain COO Sandeep Tiku as its new CTO. More betting-focused appointments are expected in the coming months.
Backgrounder: In the year to Dec20, DAZN saw losses climb to $1.3bn on revenues that rose to $871.8m. In early February, majority shareholder Access Industries, owned by billionaire investor Len Blavatnik, agreed to a $4.3bn recapitalization of the business that leaves the company debt-free. Line to take: Now’s not the time to be the Netflix of sport.
Tekkorp Capital Australian launchSouthern cross: Matt Davey’s Tekkorp Capital has teamed up with Australian sports-betting pioneer Matthew Tripp and News Corp for an Australian-facing sports-betting venture.
Monarch Q1
High sailing: Despite Monarch’s Reno resort undergoing renovation the group said the property has still gained share.
Coming up for air: Jefferies said Monarch’s room renovation project at its Atlantis venue in Reno would be completed by the end of Q2 and the Black Hawk was in the early stages of exploiting the Denver feeder market. However Monarch management said there were signs of macro-economic pressures linked to inflation, fuel price rises and labor shortages. On balance: Macquarie said Monarch had “the best balance sheet in the space at 0.3x leverage” and free cash flow of E$114m by 2023 that could lead to M&A opportunities or a push for more organic growth. Rank Q3 trading statement
Open all hours: Rank said the best comparable for its casino and bingo businesses in the UK was the company’s financial Q319. Against that, Grosvenor venues revenue of £691.m was down 14% while Mecca Bingo’s £34.1m was down 25%.
Ride the pony: Grosvenor’s online casino business grew NGR by 3%, benefiting from the return of omnichannel business. Mecca was down 11%, however, due to issues around the January migration to the RIDE platform. Out of office: The company said the seasonally slower Q4 has started with lower visitor numbers to its Grosvenor venues. The company is waiting to see how the return of office workers and summer visitors to London develops. Cost-of-living crisis: CEO John O’Reilly said Rank “recognize (s) the pressures on UK consumers” but said the company would benefit over the rest of this year from the gradual reduction of pandemic impact and the return of overseas customers. EKG app analysisTied at the top: DraftKings and FanDuel are tied as the top two online sports betting apps in the US, according to the Eilers & Krejcik Q1 app analysis report. EKG said both apps were “effectively indistinguishable from one another in terms of quality”.
Breaking the deadlock: Meanwhile, PointsBet’s development work is paying off. It is number 3 in the rankings and EKG said the group had succeeded in being a genuine contender in consecutive quarters in what is a “near-complete lock DraftKings and FanDuel have on the top two spots”.
Debutants fail: EKG tested eight new apps during Q1, including SI Sportsbook, Fubo, MaximBet, PlayMaverick and DRF and all of them “ranked in - or very near - our lowest tier”, the firm said.
Emperor’s no clothes: Caesars Sportsbook re-launched its app in Q3/Q421. The app runs on a William Hill-NeoGames stack and currently ranks just outside of the EKG top 10.
Earnings in briefHolland Casino said 2021 revenue was down 8.7% to €304.2m due to COVID restrictions at its venues. Casinos were closed for 168 days last year and faced restrictions when open. Slot revenue was down 18% to €152.4m and table game revenue fell 25.5% to €94.1m. Online gaming generated €40.4m in revenue. Questions we are askingWhat is happening with DraftKings and Golden Nugget? The pair led the fallers on a generally bad day for the markets yesterday, down 7.8% and 7.5% respectively. NewslinesIndiana wants me: PlayUp has expanded its market access footprint in Indiana to include igaming, pending regulatory approvals, via its existing sports-betting market-access agreement with Caesars Entertainment. This adds to the existing access arrangements with Caesars in New Jersey, Pennsylvania and Iowa. And then there were two: The Wakayama Prefecture in Japan has pulled out of the race to host a casino development, according to reports from the Japan Times. It leaves Nagasaki with Casinos Austria and Osaka with MGM Resorts in the bid for casino licenses. The pullout is bad news for Caesars which had plumped for Wakayama alongside partners Clairvest Neem Ventures. At bat: Maximbet is the first sportsbook to sign up with an active MLB player after it agreed terms with Colorado Rockies outfielder Charlie Blackmon to become a sportsbook brand ambassador. Speed kills: Sportradar has signed a multi-year integrity services contract to provide bet monitoring and fraud detection to NASCAR. Pay off: VICI has announced a $5bn debt offering with the majority of the proceeds going towards the MGP acquisition and the paying of MGM Resorts International’s interest in the business. What we’re sayingBack together: Scott and Jake are reunited on podcast episode #5 which will be sent to subscribers later today. Up for discussion this week, ICE, 888, DAZN +More. It can be viewed on YouTube now if you can’t wait. What we’re readingStupid is as stupid does: America’s problems are more than just a phase. On socialIan Wright, Wright, Wright. You have to remember that for the majority of my football journey, I never thought I'd become a professional footballer. So to do that, enjoy the times I had with the fans and my teammates and now to receive this accolade, is a true honour. I feel really humbled and grateful ❤️🥲 Calendar
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Apr 20: 888 buffeted not beaten
Wednesday, April 20, 2022
888 Q1 trading update, LVS US Integrity investment, Pennsylvania and Michigan analyst commentary +More
Apr 19: Better Collective punts on esoccer
Tuesday, April 19, 2022
Better Collective buys Futbin, Ontario downloads data, Light & Wonder refinancing, New Jersey, Pennsylvania, Michigan and Louisiana datalines +More
Apr 12: IGT bolsters igaming with iSoftbet buyout
Tuesday, April 12, 2022
IGT agrees to by iSoftBet, Sportradar acquires VAIX, ICE day 1, Acroud trading update, YOLO invests in Enteractive +More
Apr 11: ICE is back
Monday, April 11, 2022
ICE is back, Kindred issues a profit warning, American Affiliate analyst call, startup focus - quarter 4 +More
Apr 8: Weekend Edition #41
Friday, April 8, 2022
888 completes cash raise, Entain analyst reaction, MGM Resorts analyst update, WE+M quarterly awards +More
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