Industry News of the Day for November 2, 2023

By iDEA | November 2, 2023

Industry News

  • Legal Sports Report: DraftKings Earnings Preview: What Is Fueling Online Gains?
    • DraftKings investors will learn more about the company’s recent strides toward the top of the online gaming heap when leadership discusses quarterly earnings. The earnings report will come out after the market closes Thursday. That will give the market time to digest the details before DraftKings CEO Jason Robins addresses investors and analysts at 8:30 am Eastern Friday. DraftKings stock is down 9% to below $28 since its Q2 report, but is still up 133% year-to-date. DraftKings has leads handle share in nascent markets like Ohio and Massachusetts for the better part of the year while gaining significant ground on FanDuel in New York, the largest active online sports betting state.
  • SBC Americas: US Momentum Continues For Sportradar As FY23 Guidance Raised
    • Sportradar AG has detailed growth across its three core revenue segments during the third quarter of the year, prompting the firm to update its financial projections for the end of the year. Updating its Global Nasdaq investors, the sportstech and data company reported Q3 revenue growth of 12% from €178m in 2022 to €201m this year, with EBITDA also growing 38% from €36.5m to €50.5m alongside a margin of 25% (Q3 2022: 20%). Although profit did take a hit, falling 64% to €4.6m (€12.8m), Sportradar is confident of continuing momentum into the fourth quarter of the year and into 2024, bolstered by a range of new partnerships including three prominent US deals.
  • CDC Gaming Reports: Bally’s Posts Record Revenue, Slashes Jobs
    • Despite recording best-ever third quarter revenue of $632.5 million (a 9.4 percent improvement from last year at this time), Bally’s Corp. came up $61.8 million shy of profitability. In a potentially related development, the company announced the elimination of 300 positions, as it shifts responsibility for its interactive operations to White Hat Gaming. Shares of Bally’s dropped nearly 16 percent on the New York Stock Exchange, to $7.70 at press time. Company executives stressed the “successful soft launch” of Bally’s Casino at Chicago’s Medinah Temple throughout the call.
  • The Washington Post: Trading Startup Sues Regulator In Effort To Launch Election-Betting Market
    • A financial startup is turning to the courts to settle a long-running debate over whether Americans should be able to bet on U.S. elections. Online-trading startup Kalshi sued the Commodity Futures Trading Commission on Wednesday, arguing the regulator wrongfully denied its application to launch a market for derivatives tied to results of congressional elections. The lawsuit could help determine whether Americans will be able to bet significant amounts of money on election outcomes, after gambling revenues in the U.S. reached a record last year. Kalshi’s plan would let U.S. investors wager on whether Republicans or Democrats will capture the House or Senate in a particular year.

California

  • PlayUSA: Pala Tribe Not Part Of California Sports Betting Initiative Filings
    • Despite previous intentions to lead the effort, the Pala Band of Mission Indians was not part of the California sports betting initiatives filed Friday. PlayUSA confirmed Tuesday with Pala that the tribe’s absence from the proposals meant it did not sanction the filings. Doug Elmets, spokesperson for Pala, provided a brief statement: “The Pala Band of Mission Indians is not involved in either of the initiatives.” The California sports betting initiative effort is led by individuals who had previous business dealings with the tribe through Pala Interactive, an internet gaming platform they helped create for the tribe in 2013.

Florida

  • PlayFL: Seminole Tribe To Relaunch Florida Sports Betting In December
    • Starting in December, Floridians will once again be able to wager on sports legally. Following a lengthy legal battle, an appellate court reinstated the 2021 Florida gaming compact. As a result, the Florida sports betting market will restart, and the Seminole Tribe will offer expanded gaming options at their casinos. According to a press release from the Seminole Tribe of Florida, sports betting, craps and roulette will be available on Dec. 7. To commemorate the occasion, the tribe plans to have “star-studded celebrations” at its six casinos. They are calling it “A New Era in Florida Gaming.”

Maine

  • TheLines: DraftKings Launching In Maine Friday Through Passamaquoddy Tribe Partnership
    • DraftKings has gained market access in Maine to bring its online sportsbook product to residents. The popular sportsbook has partnered with the Passamaquoddy Tribe to gain access. Account registration will begin today, with sports betting set to launch on Friday, Nov. 3, at 9 a.m. This is the 25th market DraftKings will launch in. This mobile wagering agreement between the tribe and DraftKings will see the full DK product available to residents on launch. DraftKings is one of the most popular mobile betting operators in the nation. Maine Residents will soon have access to all DK has to offer.

Nevada

  • Sports Handle: Nevada Sportsbooks Claim $62.3 Million In Revenue For September
    • The Nevada Gaming Control Board reported Tuesday that sportsbooks across the state claimed nearly $62.3 million in adjusted gross revenue in September, the state’s third-highest total in the post-PASPA era. With the start of the NFL season and college football shifting into high gear, a substantial increase in sports wagering action occurred both in Las Vegas and across the Silver State. A total of $811.2 million worth of wagers was accepted. That total narrowly missed landing in the top 10 all-time, but it was also the highest handle since $830.5 million was wagered in March. It was 6.6% higher than the $761.1 million in bets placed in September 2022.

Virginia

  • PlayVirginia: Over A Half Billion Dollars Wagered In Virginia On Sports In September
    • More than half a billion dollars was wagered with sportsbooks in Virginia in September. It was an increase of 26% over September 2022. As a result of this betting frenzy, more than $7 million went to the state in taxes. Revenue figures from the Virginia Lottery indicate that $520.3 million in handle was bet in September. In August, Virginia reported $319 million in total handle from its sportsbooks. The activity in September represents a staggering 63% increase over the prior month. The Lottery does not break down numbers by operator. The surge can be attributed to the start of the NFL and college football seasons.
Posted in Daily Clips