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   Technology StocksDraftKings, Inc. / Online Gambling


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To: Glenn Petersen who wrote (161)12/29/2020 5:28:52 PM
From: Glenn Petersen
   of 247
 
DMYT closed at $22.76 today; RSI starts trading tomorrow.

Rush Street Interactive Closes Business Combination with dMY Technology Group, Inc.


– Common Stock and Warrants to Change Tickers and Trade on the NYSE under the new Ticker Symbols “RSI” and “RSI WS”, respectively, Commencing on Wednesday, December 30, 2020 –

December 29, 2020 04:15 PM Eastern Standard Time

CHICAGO--( BUSINESS WIRE)--Rush Street Interactive, LP (“RSI”), one of the fastest-growing online casino and sports betting gaming companies in the United States, today announced that it has completed its previously announced business combination (the “Business Combination”) with dMY Technology Group, Inc. (“dMY”). The Business Combination was approved at a special meeting of dMY’s stockholders held today.

“In a finite competitive landscape with high barriers to entry and strong secular growth trends, we were impressed with what RSI has been building since 2012 and are excited to partner with Greg Carlin, Richard Schwartz and their talented team as they continue to expand their market-leading platform”

Tweet thisUpon completion of the Business Combination, the combined company was renamed Rush Street Interactive, Inc. (the “Combined Company”). Beginning on Wednesday, December 30, 2020, the dMY tickers will change and the Class A common stock and warrants of the Combined Company will commence trading on the New York Stock Exchange (the “NYSE”) under the new ticker symbols “RSI” and “RSI WS,” respectively.

The Business Combination creates a leading online gaming company with U.S. market share in online casino that is currently among the highest in the industry and a top online sports betting offering. RSI provides customers an array of offerings, including real-money online casino wagering, online and retail sports wagering, and social gaming. RSI currently operates in six states – New Jersey, Colorado, Pennsylvania, Indiana, Illinois, Iowa – as well as Colombia, and it has secured market access in three additional states, including New York, with plans to target other jurisdictions. RSI is growing quickly and has experienced a revenue increase of nearly five times from the first nine months of 2019 to the first nine months of 2020.

“Today marks a momentous milestone for RSI as we enter the public markets with a tremendous opportunity ahead of us,” said Greg Carlin, Chief Executive Officer of RSI. “With online casino and online sports betting still in the early stages in the United States, we believe there is significant growth potential for our business in both existing and new markets. Eilers & Krejcik estimates the total U.S. online casino market to be approximately $20 billion at maturity, and projects $15 billion for online sports betting. Our steadfast focus on customer experience and broad demographic reach, combined with our proprietary technology platform, provide us with what we believe are material advantages to further our leadership position as online gaming continues to mature.”

“In a finite competitive landscape with high barriers to entry and strong secular growth trends, we were impressed with what RSI has been building since 2012 and are excited to partner with Greg Carlin, Richard Schwartz and their talented team as they continue to expand their market-leading platform,” said Niccolo de Masi, Chief Executive Officer of dMY Technology Group. “Through RSI’s differentiated offerings and loyal user base driven by strong player trust and engagement, we believe RSI is ideally positioned to capitalize on the rapid growth in online casino and online sports betting. RSI is firmly committed to operational excellence, and we believe it has the best product, the best tech platform and the best customer service in the market.”

Cash proceeds from the transaction consisted of dMY’s approximately $230 million of cash in trust and approximately $160 million from a PIPE investment led by Fidelity Management and Research Company at $10.00 per share in the Class A common stock of dMY. After the payment of amounts to redeem equity from existing RSI equity holders in accordance with the terms of the Business Combination Agreement previously entered into amongst the parties, and the payment of transaction fees and expenses, the Combined Company had over $240 million of cash on its consolidated balance sheet as of the closing. The funds are expected to be used to accelerate the Combined Company’s growth in both domestic and international markets, support marketing efforts and provide additional working capital.

As previously announced, Neil Bluhm, Greg Carlin, Richard Schwartz, Einar Roosileht, and Mattias Stetz will continue in their roles as Chairman of the Board of Directors, Chief Executive Officer and Director, President, Chief Information Officer, and Chief Operating Officer, respectively, of the Combined Company, supported by a deep and talented management team with substantial expertise in the online gaming industry. In addition to Neil Bluhm and Greg Carlin, the Combined Company’s Board of Directors include dMY’s Chairman, Harry You, and CEO, Niccolo de Masi, as well as Paul Wierbicki, Leslie Bluhm, James Gordon, Judith Gold, and Sheli Rosenberg.

Jefferies LLC and Oakvale Capital LLP acted as co-lead capital markets and financial advisors to RSI. Kirkland & Ellis LLP served as legal advisor to RSI. White & Case LLP, Cleary Gottlieb Steen & Hamilton LLP, and Greenberg Traurig LLP acted as legal advisors to dMY. Goldman Sachs & Co. LLC served as financial advisor to dMY. Needham & Company and Oakvale Capital acted as placement agents for the PIPE transaction.

About RSI

Founded in 2012 by gaming industry veterans, RSI is a market leader in online casino and sports betting in the U.S. RSI launched its first online gaming casino site, PlaySugarHouse.com, in New Jersey in September 2016 and was the first gaming company to launch a regulated online gaming site in Pennsylvania. With its BetRivers.com sites, RSI was also the first to launch regulated online gaming in Indiana, Colorado and, most recently, Illinois. RSI was named the 2020 Global Gaming Awards Digital Operator of the Year, and the 2020 EGR North America Awards Casino Operator of the Year and Customer Service Operator of the Year. RSI has been an early mover in Latin America and was the first U.S.-based gaming operator to launch a legal and regulated online casino and sportsbook, RushBet.co, in the country of Colombia. For more information, visit www.rushstreetinteractive.com.

<snip>

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From: Glenn Petersen12/29/2020 7:09:17 PM
1 Recommendation   of 247
 
CLOSING TIME: FLUTTER AND CAESARS SECURE KEY APPROVALS FOR US SPORTS BETTING ACQUISITIONS

POSTED ON DECEMBER 29, 2020
BY BRAD ALLEN
Legal Sports Report

Two of the biggest deals in US sports betting are almost complete.

Flutter will close its acquisition of the remaining shares of FanDuel on Wednesday 30 December, the company announced this week.

Around 99.99% of Flutter shareholders voted to approve the deal.

Meanwhile, Caesars announced on Tuesday it had cleared antitrust measures for its acquisition of William Hill.

It also secured approval for the deal from state gaming regulators in West Virginia and Mississippi.

The tie-up still needs rubber-stamping by other state gaming commissions including Nevada, New Jersey and Pennsylvania.

The English High Court must also approve the deal, but Caesars said it expected to close in March 2021.

What does it all mean for US sports betting?

It’s not surprising that Flutter shareholders supported the $4.2 billion deal to buy up a further 37% stake in FanDuel Group.

The price gave FanDuel an enterprise value of $11.2 billion; a discount of over 40% compared to the $20.3 billion value of DraftKings.

There are several reasons the previous private equity owners agreed to sell for that discount. For starters, a minority stake without operational control is simply worth less. Plus they got the cash immediately rather than waiting until 2023.

But for FanDuel users, not a whole lot will change. Perhaps the company will be even more aggressive on bonusing now it owns 100% of the upside. But that’s not yet clear.

Closer tie-in between Caesars and William HillAs for the $3.7 billion Caesars/William Hill deal, customers might notice a bit more of a change.

Caesars said the merger would help its product in several ways including:

-- A unified wallet and customer experience across William Hill online sportsbooks and Caesars online casinos.

-- The chance for William Hill to cross-sell to 60 million customers in Caesars’ rewards database.

Of course, the tie-up may not end the M&A party for Caesars.

Some analysts think the company will spin out the combined online betting and gaming business and list it in the US. Such a company could generate $600-$700 million in pro forma net revenue in FY2021.

And given the valuation multiple assigned to peers like DraftKings and Penn National Gaming, a spin-off could be very valuable indeed.


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From: Glenn Petersen1/6/2021 12:25:55 PM
   of 247
 
From CNBC.com:

DraftKings — Shares popped more than 6% after the New York Daily News reported Gov. Andrew Cuomo is expected to make mobile sports betting a key part of his policy proposals in his State of the State address.

More from Legal Sports Report:

GOVERNOR CUOMO TO PUSH MOBILE NY SPORTS BETTING IN EMPIRE STATE SHOCKER

POSTED ON JANUARY 6, 2021
BY ADAM CANDEE

Check the thermometer in hell: Gov. Andrew Cuomo is ready to bring NY sports betting into the modern era.

Cuomo will include mobile New York sports betting in his 2021 policy proposals for the state, according to a report from the NY Daily News. The governor consistently opposed mobile wagering in past years and contended the state needed a constitutional amendment to legalize it.

It appears a multibillion-dollar budget deficit fueled by the pandemic softened Cuomo’s opposition — and not a moment too soon for a state bleeding sports betting handle to neighboring New Jersey.

“At a time when New York faces a historic budget deficit due to the COVID-19 pandemic, the current online sports wagering structure incentivizes a large segment of New York residents to travel out of state to make online sports wagers or continue to patronize black markets,” Cuomo said in the report.

While the news might stun longtime industry observers, Cuomo indicated in December that he would consider mobile sports betting and legal marijuana as potential bandages for the state budget crisis.

How big could New York sports betting be?

Mobile wagering in the Empire State could become the country’s crown jewel in the nascent US sports betting market. An Eilers & Krejcik Gaming report in February 2020 estimated New Yorkers wagered $837 million in New Jersey in 2019.

The report indicates about 20% of New Jersey sports wagering comes from New York City. Consider the increase in NJ sports betting handle from 2019 to 2020:

2019: $4.5 billion
2020: $5 billion** First 11 months

New Jersey will approach $6 billion in handle for 2020, with no March Madness betting and four months with no major professional or college sports. Now imagine a more convenient legal option for the roughly 8.4 million people in the boroughs and New York’s potential becomes obvious.

“New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting we aim to keep millions of dollars in tax revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis,” Cuomo said in a statement to the Daily News.

What mobile NY sports betting might look like

The Daily News report indicates Cuomo will ask legislators to require mobile operators to tether to an existing casino. Current law allows sports betting in New York only in-person at existing casinos.

Those include both commercial and tribal operations:

Rivers Sportsbook (Schenectady)
FanDuel Sportsbook (Tioga Downs)
DraftKings Sportsbook (del Lago Resort Casino)
Turning Stone (Syracuse)
Point Place (Bridgeport)
Yellow Brick Road Casino (Chittenango)
Resorts World Catskills (Monticello)
Akwesasne Mohawk Casino (Hogansburg; pending launch)

The initial proposal does not appear to include a suggested tax rate or licensing fee. To compete with the NJ sports betting market, New York might need to align closely with the Garden State’s 13% levy on mobile revenue.

Previous attempts stalled at multiple stops

Cuomo’s support does not guarantee that mobile sports betting will come to New York. State legislators still need to pass a bill and that proved perilous in past years, although two pre-filed bills already existed prior to Cuomo’s statement.

Sen. Joe Addabbo and Assemblyman Gary Pretlow play Sisyphus in their chambers year after year, After legislators backed a 2013 law for retail sports betting at just four existing casinos, Addabbo and Pretlow failed in multiple tries to add mobile wagering in proceeding years.

Issues including a reluctant Speaker of the Assembly, potential tribal exclusivity claims, and the definition of where mobile bets actually occur complicated efforts. But no roadblock stood as tall as Cuomo’s veto pen.

Just a year ago, Cuomo called potential new forms of gaming revenue “irresponsible” in dismissing the idea of mobile betting:

“There’s no gimmicks. There’s no new casino revenue. … This is not the time to come up with creative although irresponsible revenue sources to solve a problem which doesn’t really exist.”

It appears 2021 might just be the time to solve a problem that exists.

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From: donatas962/5/2021 7:40:42 AM
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s

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From: Glenn Petersen2/6/2021 4:12:25 AM
   of 247
 
DraftKings Jumps as Cathie Wood’s ARK Adds Stock to ETF

By Connor Smith
Barron's
Feb. 2, 2021 7:31 pm ET



The logo for DraftKings is displayed on a laptop computerGabby Jones/Bloomberg
-------------------------------
DraftKings stock popped on Tuesday after Cathie Wood ‘s ARK Next Generation Internet exchange-traded fund disclosed it added the online sports-betting stock.

As of Feb. 1, the ETF (ticker: ARKW) owned 620,300 DraftKings shares worth about $33.9 million. As Barron’s previously noted, the stock jumped in after-hours trading on Monday despite an absence of company-specific news. ARK Investment’s exchange-traded funds have been hugely popular in recent months. Five of ARK’s actively managed ETFs trounced the broader market in 2020 thanks to bets on disrupters such as Tesla (TSLA). Even plans of a space-themed ETF from ARK Invest sent stocks in the sector rising.

DraftKings stock has soared 238% since going public via a merger with a special purpose acquisition company in April.
Shares were up 8.5% to $59.31 on Tuesday, while the S&P 500 index was up 1.4%.

In a note on Tuesday, Morgan Stanley analyst Thomas Allen wrote that he believes FanDuel and DraftKings continue to lead in app download market share, with DraftKings doing well in new states that have launched online sports betting. He cites preliminary app download data from Sensortower that showed U.S. sports betting app downloads increased 299% year-over-year in January, with DraftKings on FanDuel’s heels with 32% share, compared to the latter’s 34% share of downloads. FanDuel is owned by Flutter Entertainment.

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To: rogermci® who wrote (155)2/25/2021 2:13:48 PM
From: Rarebird
   of 247
 
DKNG reports before the open. I see a high likelihood that earnings will serve as a catalyst to move the stock up by at least 20%. Target:$72-$73

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To: Rarebird who wrote (167)2/25/2021 2:50:48 PM
From: rogermci®
   of 247
 
Implied option volatility suggests a 4 point move by tomorrow's close.

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To: Rarebird who wrote (167)2/26/2021 2:04:39 PM
From: rogermci®
   of 247
 
Good call. Got my 4 points.

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From: Glenn Petersen3/2/2021 6:18:47 AM
1 Recommendation   of 247
 
DRAFTKINGS STOCK STEADY ON IMPROVED REVENUE GUIDANCE DESPITE MASSIVE Q4 LOSSES

POSTED ON FEBRUARY 26, 2021
BY BRAD ALLEN
Legal Sports Report

DraftKings stock climbed 4% on Friday following a strong Q4 earnings report and upgraded outlook for 2021.

The company posted Q4 revenue of $332 million, up 98% on a pro-forma basis and ahead of analyst estimates.

CEO Jason Robins said the revenue beat was driven by:

-- Good hold rates, especially on NFL

-- More college sports than initially projected

-- Remote registration in Ilinois

-- A strong launch in Tennessee, where the market saw over $300 million in handle in its first two months

-- People stuck at home with more time and money for betting

New guidance affects DraftKings stock

As a result, DraftKings raised its FY21 revenue outlook from $750-850 million to $900 million – $1 billion.

Robins said the improved outlook reflected “the outperformance of our core business and newly launched states that were not included in our previous guidance.”

There was also growth in existing states, with New Jersey handle up 103% year-on-year. DK said it was profitable in New Jersey in its second full year of operation there.

Elsewhere, monthly unique players increased 44% to 1.5 million, while average revenue per player increased 55% to $65.

Big costs for DraftKings

However, the growth came at a high cost. Net loss for the quarter was $266 million. Adjusted EBITDA was negative $88 million.

Much of the difference between the two numbers was driven by stock compensation during the quarter, which was $149 million.

As for costs, sales and marketing spend ramped up year-on-year to $192 million. However, it was down slightly on a sequential basis from $203 million in Q3. That’s because of the marketing ramp-up around NFL betting at the end of Q3.

The operator declined to share an EBITA outlook for 2021, based on the variance in new state launches. Investors remained largely unfazed by the company’s sizable spend, as DraftKings stock opened Friday at $60 and sat art $59.50 as of publication.

What next for DK?

Going forward, the company said the migration to its in-house SBTech platform should be complete by the end of Q3 2021. That will give it greater control over product development and boost margins, Robins said.

Other key takeaways:

DraftKings said it was the largest iGaming operator in the US by GGR in Q4

DraftKings registered more customers in Iowa in five days via mobile registration than through the entirety of 2020.

The company will host an investor day on March 9.

What do investors think?

Gaming investor Jason Ader played down the losses, saying the company was right to pursue growth while the sector was still early-stage.

“I’m not saying its a value stock, obviously it’s trading on a very high multiple,” Ader said. “But from a business perspective, they are executing at a very high level.”

He said DraftKings would be smart to make the most of its lofty valuation and issue equity to make an acquisition.

“Their stock is good currency right now and they should use that to strengthen their business,” Ader said.

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From: Glenn Petersen3/12/2021 7:45:24 PM
   of 247
 
Sports betting company Flutter considers spinning out FanDuel to boost value

PUBLISHED FRI, MAR 12 20216:14 PM EST
UPDATED FRI, MAR 12 20216:19 PM EST
Alex Sherman @SHERMAN4949
CNBC.com

KEY POINTS

-- Some Flutter investors are pushing for the U.K.-based owner of FanDuel to spin out the company because it trades at a discount to DraftKings.

-- A spin isn’t imminent or assured, according to sources.

-- Simplifying Fox’s future ownership in Flutter and FanDuel is one complicating factor to a spin.

Flutter, the U.K.-based mobile gaming company that owns 95% of FanDuel, is considering spinning out FanDuel as a separately traded company to trade on a U.S. exchange, according to people familiar with the matter.

A separation of FanDuel isn’t assured or imminent, said the people, who asked not to be named because the discussions are private. FanDuel is Flutter’s crown jewel, which may spur Flutter CEO Peter Jackson to keep it.

Fox Sports, which owns 2.5% of Flutter, has an option to buy an additional 18.5% stake in FanDuel in July. Fox also has a 10-year option to buy half of the Stars Group’s US business, another asset owned by Flutter. (Stars Group owns Fox Bet.) Clearing up Fox’s FanDuel ownership is a complicating factor that may delay a spinout, said the people.

Spokespeople for FanDuel and Fox Sports declined to comment.

Several investors in Flutter have expressed frustration that Flutter is trading at a discount to DraftKings despite FanDuel’s status as the largest U.S. player, said the people, who asked not to be named because discussions are private. When Flutter announced it was acquiring another 37.2% stake in FanDuel in December for $4.5 billion, part of the logic behind the transaction was to allow for an eventual spin of FanDuel, the people said.

DraftKings’ market capitalization is more than $28 billion. The company booked $644 million in revenue in 2020, and predicts it will have $900 million to $1 billion in revenue for 2021.

Flutter, which trades on the London Stock Exchange, has a market capitalization of £27.7 billion (about U.S. $39 billion), which is less than 40% higher, even though FanDuel alone reported $967 million in revenue in 2020, which is 50% higher -- and that doesn’t include Flutter’s other assets. Moreover, FanDuel claims to be the market leader in U.S. sports gambling, with 40% market share.

A potential spinout could happen at a crucial time for mobile sports betting in the U.S., as 19 states are set to vote this year on whether to legalize it, including Texas and New York, the second- and third-most populous states.

Flutter is a holding company for betting sites, such as Paddy Power, Betfair, Fox Bet, PokerStars and TVG. The other assets, with lower growth profiles, may be weighing down FanDuel’s value. FastBall Holdings, a consortium of venture capital firms CapitalG (the late stage investing arm of Google parent company Alphabet), Comcast Ventures, KKR, Verizon Ventures, NBC Sports Group, and Shamrock Capital, owns 7% of Flutter after the December FanDuel acquisition.

Disclosures: Comcast Ventures is the venture capital arm of Comcast, which owns NBCUniversal, the parent company of both NBC Sports Group and CNBC.

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