Gambling in the USA

5 Ways Investors are Betting on a 2019 Gambling Boom

Published

5 years ago

January 15, 2019

George Miller

5 Ways Investors are Betting on a 2019 Gambling Boom

Photo Source: coindesk.com

Reading Time: 5 minutes

FN Media Group Presents Safehaven.com Market Commentary

In May 2018, the Court struck down a U.S. Federal law that prohibited legal sports gambling, ruling that it was unconstitutional. Sports gambling can now be authorized and regulated by the States, not by the Federal Government. And it’s triggered a potential sports gambling revolution. Mentioned in today’s commentary includes: MGM Resorts (NYSE:MGM), International Game Technology (NYSE:IGT), Boyd Gaming Corporation (NYSE:BYD), Marriott International (NASDAQ:MAR), Millennial Esports Corp. (OTC:MLLLF).

In October, the state of New Jersey handled more than $250 million in bets, a 41% increase from the previous month. The Garden State is leading the way. Mississippi, Delaware, West Virginia, New Mexico, Pennsylvania, Rhode Island…the legal sports gambling world is growing by the day.

By 2022, sports fans around the world will be betting $1 trillion online every year. Profiting from this new industry doesn’t have to mean rolling the dice.

Here’s five stocks investors should watch because of the shift to legal sports gambling:

#1 MGM Resorts (NYSE:MGM)

Sports betting is small potatoes in Vegas: compared to blackjack earnings of $1.24 billion, legal sports betting only pulled in a paltry $329.1 million. But all that’s about to change, and major casino chain MGM Resorts (NYSE: MGM) is working to bring sports betting to the prime-time.

The biggest casino operator in the U.S. generates over $4 billion in revenue from Vegas alone. But it also has properties in Atlantic City, and just this year took over the Empire Casino in New York. It’s got a pretty sizable footprint in the sports betting world, raking in $114 million from sport betting on the Strip last year, 35% of the total.

With a market cap of $13.5 billion, MGM has some deep pockets. And its using that financial muscle to corner the sports betting world. It’s already launched sports betting at two Mississippi casinos, and became the “official gaming partner” of the NBA.

MGM Resorts has solidified deals with the biggest leagues in the country: basketball, hockey and professional baseball have all signed on to allow MGM to cross-promote the company’s casinos and sports betting app. So far, MGM can only handle bets for teams based in states where betting has been formerly legalized.

By far the biggest prize is the National Football League, and MGM has already got its foot in the door. With Pennsylvania about to embrace legal sports betting, both the Philadelphia Eagles and the Pittsburgh Steelers will be fair-game.

#2 Bragg (BRAG.V; BKDCF)

Bragg Gaming Group (BRAG.V; BKDCF), formerly Breaking Data Corp., has an audience of 31 million for its media property, Give Me Sport (GMS). Together with its online global gaming platform, Oryx Gaming, BRAGG has plans to leverage the Give Me Sport audience into the largest sports gaming customer base on earth. Online gambling can be incredibly profitable, with one study estimating the gross market at $46.7 billion in 2018 and $89 billion by 2025.

GMS has a Facebook page with 26 million active, fanatic users. For comparison, ESPN has only 19 million, and it’s a major media brand, worth $28 billion. Or Sky Bet, a property that was just sold for $5.7 billion, which had only 819,000 viewers.

BRAGG hopes to tap into its huge audience, using the Oryx Gaming services to launch a new sports-centric betting platform, Give Me Bet. When Give Me Bet goes live, it will incorporate Oryx Gaming tech with the GMS brand, to deliver a catered on-line sports betting experience specifically for BRAGG’s audience.

BRAGG has seen strong growth in its two major assets, Give Me Sports and Oryx. Just in the last year, Oryx has seen revenue growth of more than 400%. Monthly traffic in the UK for Give Me Sport has increased by 5 million, with revenue growing 30%. If BRAGG (BRAG.V; BKDCF) taps a reasonable number of its huge potential audience, its earnings from sports gambling could be enormous.

This little company could be one of the biggest success stories of 2019.

#3 International Game Technology (NYSE:IGT)

This company has had a rocky year, climbing to a one-year high of $31 before falling to $14 in November, to stabilize in early December at around $16.

With a market cap of $3.4 billion and 12,000 employees, IGT is a big firm with a big footprint: it manufactures more casino gaming platforms and slot machines than any other company out there. But times are changing, and IGT is branching out into sports betting.

IGT is a service provider, which means it doesn’t have to handle the risk of managing sportsbooks. All it needs to do is fulfill the needs of companies like MGM, constructing infrastructure that make the boom in sports betting possible. In 2017, IGT handled more than $12 billion in sports betting. That should make IGT a safe bet for investors looking to score on sports betting in 2019.

In July, IGT announced a deal with popular sports betting platform FanDuel. IGT will bring FanDuel’s services to its existing platforms in markets across fifteen states. IGT is about to roll out PlayShot, a new service for sports betters, which will utilize FanDuel’s consumer-facing waging system, sportsbook.fanduel.com.

FanDuel plans to leverage IGT’s tech and its solid reputation to build its brand into the legal world of sports betting. So, after a rocky year, it’s more than likely that IGT’s fortunes will pick up in 2019, along with the share price.

#4 Boyd Gaming Corporation (NYSE:BYD)

Boyd Gaming is one of the largest casino operators in the US, with 29 gaming properties in ten states. Like MGM, Boyd is positioning itself to be a major player in the emerging sports gambling sector.

This company has some unique experience from the Vegas Strip: for the last decade, Boyd Gaming has handled the biggest sportsbooks in Sin City. And now that sports betting is legal, it’s preparing to branch out into other regional markets.

The company just signed a deal with MGM Resorts, the casino chain that’s trying to corner the sports betting market. The two companies have agreed to share online and mobile gaming platforms, with MGM offering up its online poker and casino gaming apps for Boyd’s sportsbook, in 15 states. The “unprecedented” deal could mark the beginnings of a sports gambling empire, managed by MGM and Boyd.

Boyd’s got a new sports betting app, BConnected, that its rolled out in three casinos. And like IGT, it’s signed a deal with FanDuel, leasing out its gaming properties for FanDuel’s mobile and online sports betting platform.

The deal covers all states where Boyd holds gaming licenses, excluding Nevada, and builds off of Boyd’s deal with MGM.

#5 Marriott International (NASDAQ:MAR)

One might not think a hotel chain would have much skin in the game, when it comes to sports gambling. But they’d be wrong. As one of the biggest hotel chains in the country, Marriott possesses marketing and rewards programs that casinos are eager to partner with. And as sports gambling grows around the country, sportsbooks holders like MGM and Boyd are going to want to partner with Marriott, to leverage the hotel chain’s customer base in order to rope in more business.

Marriott already has a sizable footprint in the casino world, with a licensing deal with JW Marriott Las Vegas Resort & Spa, as well as a number of casinos across the Caribbean. And in February 2018, the company announced plans to build a 4,000 room resort and casino, The Drew, in the heart of the Vegas Strip.

Marriott has suffered some bad press lately, taking a hit for a data breach scandal in December. But the stock is poised to bounce back, and could yield some excellent returns when sports gambling picks up and the national market grows and grows.

Other companies prepared to see huge growth as gaming takes off again:

Millennial Esports Corp. (OTCQB:MLLLF)

Millenial E-sports is a small company based in Toronto focusing on E-sports and E-gaming.

The Company doesn’t just focus on content creation and broadcasting, it also offers data analytics and execution tools.

In 2017, the company started providing analytics and business intelligence products for the e-gaming industry, and recently, the company has partnered with the likes of Aston Martin and McLaren but also with MotoGp and Formula E and has developed games for mobile platforms.

By. Meredith Taylor

Gambling in the USA

Nebraska’s First Permanent Casino to Open in May in Columbus

Published

18 hours ago

April 25, 2024

Niji Narayan

Reading Time: 2 minutes

Nebraska’s first full-fledged, newly built and state-sanctioned gambling casino is slated to open in Columbus next month, marking a milestone in the state’s rollout of casino gambling.

The Nebraska Racing and Gaming Commission last Friday approved a target opening date of May 13 for Harrah’s Columbus.

“This is a big deal,” commission Chairman Dennis Lee said.

The state’s three other casinos are open, but in temporary facilities. According to construction schedules, all should be open by early next year.

“We’re definitely excited to open the first permanent casino in the state,” said Don Ostert, Harrah’s Columbus general manager.

The 17,000-square-foot casino floor will feature 400 slot machines and 11 live table games, including roulette and craps, Ostert said. It will feature a Brew Brothers restaurant and will offer Caesar’s sportsbook and racebook, Ostert said.

For racing fans, the complex will feature the state’s only 1-mile horse track, though racing isn’t scheduled to begin until August 16. By June, officials hope to have some horses out on the track to test the new surface.

Ostert said officials hope to draw customers from Norfolk and Grand Island, but also from Omaha and Lincoln.

Columbus Mayor James Bulkley said that, from the city’s standpoint, “we are very excited to see it get started and become part of the community.”

The developers incorporated some Columbus history into the casino, he said.

“The location where it is used to be called Wishbones, and it was a venue for years for entertainment, and so people recognize that name, and they have kept that name for the sports bar,” he said.

He expects the casino will draw from Omaha. Although driving to Columbus from downtown Omaha might take close to an hour and a half, the drive from west Omaha is more like an hour, he said.

“I can hit Elkhorn in a short hour today, which is now western Omaha,” he said.

In a few months, Omahans won’t have to leave town to visit a brand-new casino.

At Horsemen’s Park in Omaha, Warhorse Gaming officials are aiming to open their new casino in early August. It will open with 900 gaming positions, including table games and a Sweetwater Cafe.

Gambling in the USA

Gaming Americas Weekly Roundup – April 15-21

Published

3 days ago

April 22, 2024

Niji Narayan

Reading Time: 2 minutes

Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

Caesars Entertainment announced that the Caesars Sportsbook Mississippi app is accepting mobile sports bets at Harrah’s Gulf Coast in Biloxi, Mississippi. Sports fans 21 and older who are interested in wagering on sports via mobile devices can download the Caesars Sportsbook Mississippi app to register and deposit statewide but must be physically present on-property at Harrah’s Gulf Coast to wager.

The Office of Lottery and Gaming (OLG) has announced that FanDuel’s sports betting app and website has officially launched. This development will introduce FanDuel’s sports wagering platform to District residents and visitors, completely replacing the current GambetDC sports betting app and website.

eCOGRA has been officially authorised by the Secretaria De Prêmios e Apostas (SPA) to operate as a certifying entity for betting systems, live gaming studios and online games in Brazil. This announcement marks a significant milestone as eCOGRA continues to extend its international offering of iGaming testing, inspection and certification (TIC) services in regulated markets across the globe.

Jennifer Shatley, a recognised expert in the field and a highly sought speaker and advisor, has joined the Responsible Online Gaming Association (ROGA) as Executive Director. Shatley has had 25+ years worth of experience, working closely with the treatment community, academics, researchers, government bodies, state councils and gaming industry representatives to promote responsible gaming.

Odditt, a leading provider of innovative sports betting data, tools and analytics, has appointed Elaine Milardo as its new Chief Technology Officer (CTO). With over 25 years of experience in the data industry and key roles at DraftKings and Vistaprint, Elaine brings a wealth of expertise to Odditt’s growing team.

Partnerships

Trustly, the global leader in Open Banking Payments, and Light & Wonder, the leading cross-platform global games company, are bringing cashless, in-person deposits to casino floors with Light & Wonder’s cashless solution, RAPIDPLAY. Building on Trustly’s success with guaranteed payments in online sports betting and iGaming, Trustly will deliver the same seamless, quick and secure online payment experience to the physical casino floor.

Fintech company Sightline has entered into an exclusive partnership with compliance and anti-fraud technology solutions leader GeoComply to bolster the security and efficiency of digital transactions within the regulated gaming industry. Sightline will integrate GeoComply’s cutting-edge IDComply identity verification solution as well as GeoComply’s compliance-grade geolocation tools across its comprehensive suite of digital payment solutions for land-based casinos and online gaming operators.

BetMGM has announced a partnership with GameCode, a distinguished iGaming company focused on the North American market. The partnership includes the launch of Boom Boom Boom, HammerCash, Gold Gold Gold and Super3 series which are now live at BetMGM in Michigan and New Jersey through direct integration. BetMGM plans to offer GameCode’s full portfolio of games in all jurisdictions where the operator’s iGaming platform is live pending regulatory approvals.

SCCG Management has announced a joint venture investment with Numb3rs, an innovative all-in-one payment solution provider built for gaming operators. The partnership aims to transform the gaming sector by integrating Numb3rs’ proprietary tech stack, ECRYPT, into the marketplace, thereby offering a comprehensive suite of payment processing solutions.

Gambling in the USA

Gaming Americas Weekly Roundup – April 8-14

Published

2 weeks ago

April 15, 2024

Niji Narayan

Reading Time: 2 minutes

Latest News

FanDuel Group, the premier online gaming company in North America and an Official Partner of Churchill Downs Inc., announced five time Entertainer of the Year Luke Bryan and Grammy award-winning R&B singer Ne-Yo as the headlining performers at FanDuel’s inaugural Kentucky Derby Party. The exclusive, invite-only event will take place on Friday, May 3 at Paristown Arts and Entertainment District in Louisville, Kentucky from 7:00 PM to 12:00 AM.

TPI, a leading provider of innovative player communication solutions for the casino industry, has appointed Joe Tingson as its new Vice President of Customer Success. With his unparalleled dedication to his customers, Joe will play a pivotal role as a leader for our digital Customer Success and Product teams.

PrizePicks, the largest daily fantasy sports operator in North America, has announced plans for its new 33,000 square foot Atlanta Headquarters, which will be located in the Star Metals Building in Midtown Atlanta. The company plans to grow its workforce by 1000 new jobs over the next seven years, the economic impact of which will be $25M to the state of Georgia.

Century Casinos Inc. has announced that it opened its hotel in Cape Girardeau, Missouri, The Riverview. The Riverview is a 69 room, six-story building with 68,000 square feet that is adjacent to and connected with Century Casino Cape Girardeau. The project cost $30.5 million and was financed with cash on hand.

Churchill Downs Incorporated (CDI) has announced the opening of Terre Haute Casino Resort in Terre Haute, Indiana. The $290 million investment includes a casino floor with 1000 slot machines, 36 table games, and a state-of-the-art sportsbook. The 400,000-square-foot entertainment venue also features regionally inspired bars and restaurants including: Four Cornered Steakhouse, Rockwood Bar & Grill, The Soda Shoppe, Crossroads Center Bar and High Limit Bar.

Bragg Gaming Group Inc., a global B2B gaming technology and content provider, announced that Chief Financial Officer (CFO), Ronen Kannor, has notified Bragg’s board of directors (Board) that he will resign from his position to pursue other career opportunities, effective June 3, 2024. The Company confirms that the search for a replacement CFO has commenced.

Partnerships

EQL Games has partnered with global aggregation leader and NeoGames company, Pariplay, to provide the Virginia Lottery, through an agreement with NeoPollard Interactive, with a series of eInstant iLottery games for their industry-leading digital platform.

JACK Entertainment LLC announced the selection of Konami Gaming Inc.’s SYNKROS to power industry-leading systems technology across its 1.5 million square feet of casino entertainment space. The Ohio-based gaming operator’s portfolio includes a combined 2600+ gaming machines and 85 table games at JACK Cleveland Casino in downtown Cleveland, and at JACK Thistledown Racino, located approximately 10 miles to the southeast.

PrizePicks, the largest daily fantasy sports operator in North America, announced that the company has reunited with the Atlanta Braves as the club’s Official Daily Fantasy Sports Partner for the 2024 season. The partnership extends a longstanding relationship that dates back to 2020, with the two Atlanta-based companies continuing to work together on unique opportunities for their dedicated fans.