Strategy Archives

August 9, 2023

ESPN Bet to launch in November

Jay Snowden, president and CEO of Penn Entertainment, confirmed that ESPN Bet will go live in November this year.

Penn and sports broadcaster ESPN’s transformative $1.5bn deal will consist of Penn relaunching its existing Barstool Sportsbook as ESPN Bet.

Off the back of the deal Penn is divesting its Barstool Sports sportsbook brand and selling it back to Dave Portnoy, founder of Barstool.

Snowden confirmed the month for launch on Penn’s earnings call today, following the publication of its second quarter results.

When the deal was announced yesterday, Penn said the launch had been set for “the fall”, with no specific details as to when.

On the earnings call, Snowden skipped around the month with “sometime this fall” and “certainly before Thanksgiving” before landing on November.

Snowden defended the timing of the launch amid claims it would come too late in the NFL season.

“I think our launch in November is good, because it won’t get lost at the beginning of football season,”..

August 9, 2023

Jackson highlights scale, product as profit drivers for Flutter

Peter Jackson, CEO of leading online gaming conglomerate Flutter Entertainment, highlighted the business’ scale and subsequent ability to invest in its products as being behind its crossing of the profitability threshold.

In H1 2023, the Flutter reported profitability on both a US and group-wide basis. In the company’s earnings call, Jackson highlighted the business had previously expected 2023 to be the year in which the threshold was met.

“I think it’s important we remember the context a few years ago,” Jackson said. “We knew this year would be the tipping point, we reached that milestone earlier because the business is bigger than we anticipated.

“We knew this year would be profitable, we’ve proved the model works, we will continue to acquire and invest in as many companies as we possibly can.”

Jackson emphasises the importance of scale

The executive emphasised Flutter’s size, revenue and market share as the business retained its title as the largest online gaming business in t..

July 31, 2023

Fox Bet to close by 31 August

Flutter Entertainment and Fox Corporation have announced that their Fox Bet sports betting joint venture will close next month.

A phased closure of the Fox Bet operations will take place from today (31 July) until 31 August.

Flutter has been operating the brand as part of The Stars Group US, along with the US-facing operations of the PokerStars business.

It was confirmed that Flutter will retain ownership of both PokerStars and FanDuel Group. However, Fox will retain future use of the Fox and Fox Bet brands. These include the Fox Bet Super 6 prediction game, with a revamped version of this still due to go live this summer.

In addition, Fox, which holds a 2.5% stake in Flutter, will retain its option to acquire 18.6% of FanDuel.

Fox Bet’s short history

Fox Bet was born in May 2019 when Fox linked up with The Stars Group to launch a new sports betting service in the US. This was prior to Flutter acquiring The Stars Group in May of the following year.

At the time, it was planned fo..

July 17, 2023

Entain to acquire Angstrom Sports in £200m deal

Entain will acquire sports modelling, forecasting and analytics specialist Angstrom Sports in a deal worth up to £203m.

Under the deal, Entain will pay an initial £81.0m, as well as £122.0m in additional payments over a three-year period, totaling £203.0m.

Angstrom utilises simulation-based predictive modelling to offer a range of pricing and forecasting capabilities to sportsbook clients.

Primarily serving the US market, Angstrom’s offering covers the most popular competitions and leagues in the country.

The acquisition will allow Entain to offer a full suite of end-to-end analytics, risk and pricing capabilities for its US operations, namely BetMGM, which it runs as a joint venture with MGM Resorts International.

This will improve customers’ US sports betting experience including more betting opportunities, optimised parlay and in-play products, it added.

The acquisition is expected to complete during Q3 2023.

Unlocking new US opportunities

“We’re delighted Angstrom will b..

July 14, 2023

Penn migrates Barstool Sportsbook to proprietary platform

All Penn Entertainment’s brands are powered by proprietary technology after Barstool Sportsbook and Casino was migrated to its in-house platform.

The migration took place simultaneously across 16 states where Barstool operates during Major League Baseball’s (MLB) All-Star Break, the largest-scale technology migration in North American gaming to date.

Penn describes the migration as a major development which completes its long-term strategic goal to be technologically independent, bringing all gaming operations in-house.

Penn’s acquisition of theScore, which was in the process of building the platform when it was bought, and the launch of Penn Games Studios also formed part of this plan. TheScore, now Penn’s brand in Ontario, was the first to move to the new tech stack.

‘Milestone achievement’

The updated version of Barstool Sportsbook and Casino contains several new elements, including streamlined navigation, more personalisation capabilities and faster deposits and withdrawals.

June 16, 2023

DraftKings enters race to acquire PointsBet US

DraftKings is looking to outbid Fanatics for PointsBet US, prompting a strong reaction from the ecommerce giant's CEO Michael Rubin.

Tabled today (16 June) – weeks after Fanatics announced plans to acquire the business – the unsolicited non-binding indicative proposal is worth $195.0m (£152.2m/€178.5m). It states DraftKings would purchase the business on a debt-free, cash-free basis with no financing conditions.

PointsBet said its board will now assess the proposal. The group added that the proposal does not constitute a binding offer or commitment from DraftKings to place a firm bid.

The group did not set a date as to when a decision would be reached.

Fanatics’ Rubin: “They are trying to block us”

Responding to news of the DraftKings proposal, Fanatics CEO Rubin said he was “skeptical” of the move. He added that it was a “desperate” attempt to slow progress on Fanatics’ own deal with PointsBet.

“We are skeptical of the DraftKings proposal, which seems like a desperate move ..

June 7, 2023

Adam Greenblatt outlines BetMGM’s path to profitability

The US sports betting and igaming market is maturing and at BetMGM Adam Greenblatt believes product is the battleground where the leaders will be decided for the market’s next phase.

Adam Greenblatt has led BetMGM, the joint venture between Entain and MGM Resorts since its formation in 2018. It is on track to achieve profitability in the second half of the year.

BetMGM is live in 20 states, as well as Washington DC and Puerto Rico and Ontario in Canada. Since 2018, it could be seen as the only business to consistently keep pace with DraftKings and FanDuel.

It didn’t have the database of the legacy daily fantasy giants. But thanks to the MGM Resorts connection (and without M&A along the way), it’s established as a top tier brand in the US.

Other brands with designs on a top tier position such as Caesars, Bally’s, Penn National and 888, have undergone significant change. They’ve acquired to grow, onboarded new tech or sought out new partners.

This may help each business close the..

May 24, 2023

International growth offsets NA decline in Super Group Q1

Growth in Betway-operator Super Group’s African, Middle Eastern and European operations partially offset the decline in revenue experienced in the company’s North American division.

Super Group chief executive Neal Menashe praised the “solid” result in Q1 and emphasised that the company remained focused on profit and revenue growth.

“During the month of March, net gaming revenue was a record high, along with the operational EBITDA margin of over 20% and this is a strong reminder of the value of operating leverage in our business,” he said.

“We are confident that we will continue to build on another strong quarter across igaming and sports betting across the world.”

Regulation in Ontario throttles North American segment

Super Group reported €338.5m for the first three months of 2023, a 1% rise from the €334.5m the company achieved in the same period of the previous year.

Overall, Super Group’s Betway sports betting and gaming business generated €198.2m of the total, while the op..

May 24, 2023

Fanatics’ Matt King brings new thinking to US sports betting

As CEO of FanDuel, Matt King took a daily fantasy sports brand to the top of the US sports betting industry, and in the top job at Fanatics Betting and Gaming he’s looking to do it all over again. Not that he’s looking to emulate his former employers in leading the ecommerce giant; it’s Spotify that inspires him.

For Fanatics Betting and Gaming chief executive Matt King, the challenge he is taking on isn’t building a market leader. He’s already done that during his tenure at FanDuel, which is currently sitting with a seemingly unassailable market share across the US. Revenue there grew from $200m to over $1bn on his watch.

And his core goal isn’t to build an entity capable of taking on a behemoth he created. Instead the billion-dollar question is: how do you create something capable of providing a genuine alternative to consumers?

In a market dominated by iTunes, he’s looking to build Spotify.

Fanatics: Officially licensed everything

What separates Fanatics Betting and Gaming f..

May 4, 2023

Genius strikes deal with Chinese Taipei Football Association

Genius Sports has entered into a long-term data, streaming and integrity partnership with the Chinese Taipei Football Association (CTFA), which is the official data rights holder of Taiwan football.

The partnership will cover the CTFA’s premier competitions, including the Taiwan Football Premier League, the Taiwan Mulan Football League and the Second Division Taiwan Football League.

As part of the partnership Genius will provide its data insights and technology to the CTFA with the aim of bolstering fan experiences. Genius will also help the CTFA to commercialise its sports data and promote their streaming content.

“We’re proud to enter this wide-ranging partnership with the Chinese Taipei Football Association, providing our proven official data, streaming, competition management and integrity solutions,” said Jagdish Singh, head of customer success, APAC at Genius. “Our technology will be central to their strategy to drive new revenues, engage fans and protect their competitions.”
..

April 28, 2023

PointsBet confirms North American sales talks

Australian gaming operator PointsBet confirmed that the business is “currently in discussion with multiple parties” regarding the sale of its North American business.

The company also said that it has terminated previously reported talks to sell its Australian business to the News Corp-backed gaming venture behind the Betr brand. Despite this, PointsBet said it remains in discussion with “other third parties” who have expressed interest in acquiring the business.

“Consistent with commentary previously provided to our investors and the market more generally, PointsBet continues to engage in discussions regarding strategic transactions that offer the potential to add value for our shareholders,” said the company.

pointsbet also confirmed that it had terminated the talks to sell its Australian business to a news Corp-backed venture

Losses mount despite revenue growth

For the three-month period ending 31 March, the business recorded gross gaming revenue of AU$106.6m (£56.4m/€63.9m/US..

April 25, 2023

Yahoo acquires sports betting app Wagr

Yahoo has announced the acquisition of peer-to-peer sports betting app Wagr, bolstering its fantasy and gaming offerings.

While the terms of the acquisition were not disclosed, Yahoo did make clear that, as part of the deal, Wagr will be fully integrated into Yahoo Sports.

The betting platform has previously attracted a number of high-level investments, including support from Seven Seven Six – spearheaded by Alexis Ohanian, Reddit co-founder – the Kraft Group and the owners of the New England Patriots.

Wagr was also the first social sports betting operator to receive a licence in the United States.

Jim Lanzone, CEO of Yahoo, said that the acquisition represents the future of Yahoo’s gaming products.

“The acquisition of Wagr is an exciting step in the development of the next generation of Yahoo Sports’ gaming portfolio,” said Lanzone.

“Wagr stands out for their innovative emphasis on community and social engagement in sports gaming, which aligns perfectly with the Yahoo award-wi..

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Tag: Strategy