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   Technology StocksDraftKings, Inc. / Online Gambling


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From: Julius Wong3/29/2021 9:24:52 AM
1 Recommendation   of 247
 
DraftKings to become an Official Gaming Partner of WWE
Mar. 29, 2021 8:47 AM ET World Wrestling Entertainment, Inc. (WWE) By: Niloofer Shaikh, SA News Editor 5 Comments

DraftKings (NASDAQ: DKNG) will become an Official Gaming Partner of WWE (NYSE: WWE), subject to regulatory approval in all applicable jurisdictions.

WWE fans and DraftKings customers will be able to participate in free-to-play pools contests.

The collaboration will launch an inaugural free-to-play pool at WWE’s two-night pop culture extravaganza, WrestleMania, on April 10 and 11.

DraftKings will receive an exclusive license to media assets and in-game branding for WWE pay-per-view events.

“We’re excited to enter this new agreement that makes DraftKings WWE’s first-ever free to play gaming partner,” said Stephanie McMahon, WWE Chief Brand Officer. “This collaboration marks a significant step in deepening engagement with our passionate fans and will provide DraftKings the opportunity to leverage the massive appeal and reach of the WWE brand.”

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From: Glenn Petersen3/30/2021 11:19:51 PM
   of 247
 
WHAT DOES DRAFTKINGS WANT OUT OF VSIN ACQUISITION?

POSTED ON MARCH 30, 2021
BY BRAD ALLEN
Legal Sports Report

DraftKings has acquired Vegas Sports Information Network, Inc. (VSiN) in a bid to build out its content capabilities.

No specific financial details were disclosed, but the deal was worth around $100 million, LSR understands.

DraftKings stock was up slightly in early trading.

What is VSiN?

The Las Vegas-based VSiN was founded in 2017 and produces up to 18 hours of live linear sports betting content a day.

It is broadcast through a variety of video and audio channels including Comcast Xfinity, Sling TV, fuboTV, iHeartRadio and TuneIn.

Current VSiN CEO Brian Musburger and his exec team will continue to manage day-to-day operations and maintain editorial independence.

VSiN employees will also be integrated into the DraftKings workforce. Both companies have offices in Vegas.

Adding to DK Sportsbook brand equity

DraftKings CEO Jason Robins said VSiN created “authentic and credible content” for sports bettors at every level.

Robins added: “In addition to its brand equity among sports bettors and engaging talent roster, VSiN also has an established infrastructure that DraftKings can immediately help expand, in the hopes of adding value to consumers who are looking to become more knowledgeable about sports betting.”

DraftKings is ramping up its content creation

DraftKings has been relatively forthcoming about its desire to ramp up its own content creation. Robins hinted at an investment in the area during the company’s recent investor day.
“We think [media] could be a great route for us,” Robins said. “We’re considering whether or not to ramp up in our own content creation.”

And the VSiN deal might not be the last strand of that plan. Last month DK raised $1 billion in new debt to finance potential acquisitions.

That means the company still has a lot of dry powder for further M&A.

What next for VSiN?

VSiN CEO Brian Musberger said:
“We created VSiN as a destination for sports bettors to find the most credible content to help inform their wagering decisions. Harnessing the power and network of the DraftKings brand will help us reach an even wider audience with our unique content.”

The company now has some tricky waters to navigate, however. Firstly, the network has a subscriber base that may balk at paying for betting information from a network owned by a bookmaker.

Secondly, key VSiN on-air talent like Gill Alexander has been loudly critical of the Euro-style bookmaking tactics that DraftKings employs. How will that talent feel about working directly for a bookmaker?

VSiN also has studios at Southpoint and Circa. How will those casinos feel, having invested in those studios, only to see them now owned by a rival operator? It’s also interesting to note that DraftKings doesn’t operate currently in Nevada.

Finally, VSiN has multiple ongoing advertising contracts with DK Sportsbook competitors like BetMGM, BetRivers and PointsBet. What happens to those contracts if a BetMGM ad read comes from a DraftKings-branded studio?

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From: Glenn Petersen4/7/2021 3:51:48 PM
2 Recommendations   of 247
 
ANALYSIS: HAS BARSTOOL SPORTSBOOK ALREADY HIT A CEILING?

POSTED ON APRIL 7, 2021
BY BRAD ALLEN
Legal Sports Report

Barstool Sportsbook has always been pitched as a contender for a podium position in US sports betting.

In February, Penn National CEO Jay Snowden told analysts:

“You should assume we are going to be top three. We said that before we ever launched and we’re delivering on that. We’re going to be profitable faster than anyone else, and we’re delivering on that.”

The latest state figures suggest Barstool actually might not be delivering on that just yet.

Now, in full disclosure: trying to tease out true insight from monthly reports is tricky. Revenue and handle can be quite variable from month to month.

But there are some interesting trends to pick out, starting with the PA sports betting market.

Barstool Sportsbook has steady share in PA

The February state report marked the fifth full month of the Barstool Sportsbook in the first market where it launched.

In those months, online handle share essentially hovered in a low-teens range:




Barstool Sportsbook PA online handle share

Bonusing rising in kind

But at the same time, the company significantly ramped up the amount of bonuses it dishes out:



In December, for example, promotional credits equalled 1.1% of handle. By February that was up to 8.8%.

In other words, the company’s market share is flat despite a massive increase in bonusing.

As Loop Capital analyst Daniel Adam said in a recent note:

“The surge we saw in Penn’s promotional spend last month to win a few points of share in PA seems to contradict the company’s messaging. Clearly, ‘just relying on the Barstool Media partnership’ is not enough for PENN to ‘generate meaningful market share.'”

A similar story in Michigan sports betting?

Over in Michigan, Barstool share of handle slipped from 23.9% in the first ten days of the market to 13.3% in February. That’s despite a broadly similar level of bonusing on a per-day basis.

So what’s going on?

One answer is the Dave Portnoy effect. The Barstool Sportsbook cast of characters were in Pennsylvania for the launch of the app there. More recently, they were Michigan for the opening of that market.

With Portnoy alone betting $50,000 a pop at his own shop, it is not unreasonable to think the Barstool squad could have a material effect on handle.

Of course, they recently were in Illinois betting March Madness so expect Barstool’s debut in the Land of Lincoln to be pretty strong. But the April data from Illinois will likely offer the more pertinent information.

Underdelivering then?

Based on PA and MI then, a reasonable expectation for the Barstool Sportsbook seems to be fourth in the US betting market with a low-teens share behind FanDuel, DraftKings, and BetMGM.

That is not quite the podium position that Snowden promised, and it is taking an uptick in bonusing to hold even that level. That means the pledge of “unmatched profitability” might also be in jeopardy.

As a result, Penn’s massive stock run-up over the last year looks a little harder to justify.

Detached from fundamentals

Following Penn’s earnings call in February, Deutsche Bank analyst Carlo Santarelli estimated the betting/igaming part of the business was being valued by the market at $12.5 to $14.2 billion.

He calculated that by subtracting the value of the retail business – easier to project and value – from the overall market cap.

And Santarelli was far from impressed with that valuation.

He wrote: “We continue to believe the Penn stonk is completely detached from fundamentals and trades primarily on momentum, social media hype, and a long term story that we doubt ever materializes.”

Back to reality for Penn

Of course, Santorelli is a well-known Penn bear, and his notes show just how tiring that has been over the past year. Here he is after the last earnings call:

“What is there to actually analyze in a market/stock where apparently nothing is discounted and valuation is a combination of yesterday’s closing price plus today’s news or memes.”

But the market might have changed its tune. At the time of writing, Penn stock is down some 25% from its recent high.

There are plenty of factors at play of course. But the market may also be noticing that Barstool Sportsbook is not yet living up to its hype

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To: Edward Fraser who wrote ()4/12/2021 6:14:30 AM
From: StevenProfitt
   of 247
 
whats next? drugs?

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To: Edward Fraser who wrote ()4/12/2021 7:01:36 AM
From: LarryBerry
1 Recommendation   of 247
 
Yes, in recent years more and more states have legalized casinos, however, such laws are adopted not without the participation of large players in the gambling market. The pandemic also affected the situation, because casino taxes are additional funds for the state, which are clearly not enough now. But it's unlikely to be a blow for online casinos, little will change for major online services such as linkw88moinhat.com. But the tendency to search for additional funds for the treasury is rather negative. Everything that was previously banned is now being revised more and more often.

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To: Glenn Petersen who wrote (175)4/14/2021 10:43:37 AM
From: Glenn Petersen
1 Recommendation   of 247
 
MORE THAN A SPORTSBOOK: IS DRAFTKINGS BUILDING A MEDIA EMPIRE?

POSTED ON APRIL 13, 2021
BY BRAD ALLEN
Legal Sports Report

DraftKings has hired its first ever chief media officer in a move that hints at wider ambitions in the media space.

Brian Angiolet will fill the newly created role. He joins DraftKings at the end of April from his previous role as SVP Corporate Strategy at Verizon.

DK said Angiolet would “optimize content creation and media strategy” in the new role.

‘Virtuous circle’ between content and gaming

DraftKings CEO Jason Robins used an interesting term to describe the nexus within the new role.

“Brian deeply understands how the virtuous circle among sports, gaming, and content has the potential to boost engagement,” said Jason Robins, DraftKings’ co-founder and CEO.

“As our media presence grows with the acquisition of VSiN, among other strategic moves, Brian’s creative ideas and insightful perspectives will further propel the possibilities of DraftKings content.”

More media deals on the way

Beyond the VSiN deal, an Axios report said Angiolet would be looking at further media acquisitions for DK including The Action Network (TAN).

An LSR source with knowledge of the negotiations said that acquisition was a 50-50 shot.

“What TAN has going for them is their parent company [The Chernin Group],” the source said. “Peter Chernin is a great negotiator and he has other assets in his portfolio that DK would want to leverage.”

The Chernin Group also has a stake in The Athletic, although the sports website has an existing betting partnership with BetMGM.

DraftKings still has a very healthy balance sheet for acquisitions after raising $1 billion last month.

DraftKings eyeing a media empire?

As for DraftKings, the release hinted at a future where sports betting is just one revenue stream in a wider media portfolio.

“DraftKings is quickly establishing itself as both a product provider and resource for fans,” the company said.

It referenced integration agreements with Turner Sports and ESPN, as well its own DK Live and DK Nation platforms.

The operator also recently invested in former ESPN chief John Skipper’s new venture Meadowlark Media.

Following that investment, DK said it would work with Meadowlark to deliver “high-quality, original sports programming.”

Around the DraftKings circle

Following these deals, DK could potentially make money from:

Sports betting
Casino
DFS
Subscriptions (VSiN, TAN)
Advertising

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From: Glenn Petersen4/15/2021 6:11:04 PM
   of 247
 
NFL picks Caesars, FanDuel, DraftKings for first wave of sports betting partnerships


PUBLISHED THU, APR 15 20215:37 PM EDT
Jabari Young @JABARIJYOUNG
CNBC.com

KEY POINTS

-- The agreements are worth nearly $1 billion combined for five years, with league options after the third and fourth year.

The National Football League is officially open for sports betting, announcing sportsbook partnerships with top companies Caesars, FanDuel, and DraftKings.

The agreements allow the sports betting firms to use NFL intellectual property and use its trademarks for betting promotions. The betting companies will also operate in a content-sharing model with the NFL -- for example, the betting sites will be able to use material such as NFL highlights and Next Gen Stats data, which will help them set betting lines. The firms may create their own promotional content to be featured on NFL properties.

Financial terms were not made available, but according to a person familiar with the agreements, the five-year pacts could be worth just under $1 billion combined over the life of the deal. But the NFL has rights to opt-out after the third and fourth year of the agreements, the person added.

Caesars will keep its league sponsorship as “Official Casino Sponsor” allowing it to leverage NFL trademarks at its casino properties. The company purchased William Hill sports bookmaker for $3.7 billion last September.

Meanwhile, DraftKings and FanDuel get more brand exposure on league media properties, including the NFL Network and NFL RedZone channels.

The agreements fall under tier one deals for NFL, and the league is expected to announce another wave of sports betting partnerships but with lesser content options and more restrictions. The NFL agreed to a data rights deal with Genius Sports earlier this month. Hence, the sports betting companies need to purchase Genius’ data to operate their NFL bets.

The league also agreed to media rights deal in March with partners NBCUniversal, Fox Sports, ESPN, CBS Sports and Amazon. The 11-year deal is worth over $100 billion.

After the announcement Thursday afternoon, DraftKings stock was up 4% to $60 per share in after hours, while Caesars was slightly down at roughly $93 per share.

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To: Glenn Petersen who wrote (179)4/19/2021 1:02:21 PM
From: inspbudget
   of 247
 
With the recent news about the NFL deal, I wonder why the stock has been tanking the past couple weeks?

It is now doing a triple bottom at $57, and went below that level this morning.
Any upcoming news or whatever that could be the reason behind this selling trend?

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To: inspbudget who wrote (180)4/19/2021 1:13:05 PM
From: Glenn Petersen
1 Recommendation   of 247
 
Probably collateral damage from the SPAC implosion, although DKNG is far removed from its SPAC origins. It has also become evident that the competition to remain at the top of the national brands is going to be a long and expensive slog. IM HO, they are making all the right moves and I remain a long-term bull.

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From: Glenn Petersen4/19/2021 1:27:23 PM
   of 247
 
EBET is trading at $19,77 this morning, down $5.88.

HOW MUCH DID ESPORTS BETTING COMPANY JUMP AFTER NASDAQ IPO?

POSTED ON APRIL 19, 2021
BY BRAD ALLEN
Legal Sports Report

Esports betting platform EBet Technologies jumped 700% following its IPO on the Nasdaq on Thursday, demonstrating a growing market appetite for both betting and esports.

$EBET debuted Thursday at $6 per share, aiming to raise $14.4 million.

However by pre-market trading Friday, it was up to $46 a share. That’s equivalent to a $585 million market cap.

That is a significant premium to its current financials. Revenue for the fiscal year to September 30, 2020 was $196,000. Net income was -$573,000.

What is EBet?

EBet provides a platform for betting on esports titles like Counter-Strike: GO and League of Legends.

It operates a B2C site called Gogawi, focused on Asia and Latin America.

It also offers its technology as a B2B product.

Esports betting in the US?C

EO Aaron Speach said the company was “in the process” of getting into the US but not rushing because of the current regulatory environment.

Esports betting is still tiny in the US. Nevada allows wagers on approved events, while New Jersey could be close to widespread legalization.

EBet recently added Dennis Neilander, former chairman of the Nevada State Gaming Control Board, to its board to help its US ambitions.

Out with the old …Speach said the long-term market was potentially enormous.

“There were 500 million esports viewers in 2020,” he said. “Meanwhile the NFL has an audience of 160 million and they generated $64 billion in legal wagers. So you can see how big the opportunity is.”

Esports bettors are also a much younger demographic than traditional bettors. As a result, EBet sees an opportunity to acquire customers without having to compete directly with heavyweights like FanDuel and DraftKings.

Instead, Speach pointed to companies like GG.Bet and Esports Entertainment Group ($GMBL) as more direct competitors.

“There’s tons of growth ahead, “ Speach predicted. “We’re really excited to bring esports to the forefront and we’re going to crush it in 2021.”

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