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Posted on: September 12, 2021, 05:00h.
Final up to date on: September 12, 2021, 11:00h.
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The 2021 NFL season received going Thursday when the Tampa Bay Buccaneers defeated the Dallas Cowboys. However the marketing campaign begins in earnest at this time, and that might be a boon for sports activities betting shares, in accordance with some analysts.
The 2021 NFL season is right here. Analysts see it as a catalyst for sports activities betting shares. (Picture: AP Information)
Soccer is probably the most wagered-on sport within the US, and a few gaming equities are already reflecting anticipation of soccer season. For instance, DraftKings (NASDAQ:DKNG) is greater by 19.7 p.c over the previous month, whereas Caesars Leisure (NASDAQ:CZR) and Penn Nationwide Gaming (NASDAQ:PENN) are up a mean of 12 p.c over the identical span.
iGaming names have rallied over the past month, and we anticipate this to proceed as buyers develop into extra comfy with upcoming income estimates, given aggressive advertising, superior product, and general higher media/betting integration,” mentioned Macquarie analysts, led by Chad Beynon, in a latest observe to purchasers.
Macquarie has “outperform” scores on 9 sports activities betting and iGaming-related equities, together with Caesars, DraftKings, MGM Resorts Worldwide (NYSE:MGM), and Penn Nationwide. MGM is half-owner of the surging BetMGM enterprise.
Anticipate Extra M&A Amongst iGaming, Sports activities Betting Shares
One apparent theme rising within the on-line gaming area is consolidation. Simply final month, DraftKings introduced plans to accumulate Golden Nugget On-line Gaming (NASDAQ:GNOG) for $1.56 billion in fairness, whereas Penn mentioned it’s paying $2 billion in money and fairness to accumulate Rating Media and Gaming (NASDAQ:SCR).
Add to that, Caesars final week lastly introduced a purchaser — 888 Holdings — for William Hill’s worldwide belongings, and there’s far more in the way in which of iGaming and sports activities wagering mergers and acquisitions chatter. These rumors contain every thing from divestments of particular models to outright takeovers.
“Tribal operators resembling Exhausting Rock Digital might be one other consolidating drive. Backside line, we imagine consolidation within the trade isn’t over, a notion that was echoed by MGM CFO Jonathan Halkyard at a dinner we lately hosted,” mentioned Beynon and group.
Certainly, MGM may make the largest splash within the on-line gaming trade area. That’s if it opts to make one other run at Entain Plc (OTC:GMVHY) and is profitable in buying its accomplice on the Wager MGM enterprise. Some merchants imagine the UK is ripe for consolidation exercise, and think about Entain because the more than likely British firm to be acquired earlier than the top of this yr.
For Sports activities Betting Shares, Soccer Is Huge Deal
Whereas a lot of the universe of sports activities betting shares is comprised of newer corporations, there’s no refuting that soccer is the needle mover for the group within the US.
“We estimate that soccer accounts for 35-40 p.c of the annual revs, though most of this is available in 4Q (~33 p.c of annual revs),” mentioned the Macquarie analysts.
One level analysts and buyers will certainly be monitoring when third- and fourth-quarter earnings studies begin rolling in is how a lot betting corporations are spending on buyer acquisition — a related level, as a result of a number of the marquee names within the on-line wagering area aren’t but worthwhile.
On that observe, NBC Sports activities lately mentioned it’s seeing robust demand from sportsbook advertisers for spots on Sunday Night time Soccer. BetMGM, Caesars Leisure, DraftKings, FanDuel, FOX Wager, PointsBet, and WynnBet are the NFL’s permitted sportsbook advertisers this yr. Every broadcast can include a most of six sportsbook advertisements.
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