PointsBet bidders were in ‘merger talks’
PointsBet bidders were in ‘merger talks’
DraftKings/Fanatics report, Genius EPL extension, another New York entrant, startup focus – Split the Pot +More
Good morning. On today’s agenda:
Report suggests DraftKings and Fanatics previously discussed merger.
Genius Sports extends English Premier League deal for one year.
Another runner enters New York casino race.
Startup focus is Swedish games developer Split The Pot.
Pushing up the ante, I know you got to see me.
PointsBet rumors
DraftKings and Fanatics were previously in discussion about a merger before becoming rivals in the bidding for PointsBet.
Plot thickens: DraftKings and sports apparel to betting and trading cards giant Fanatics held discussions about a $28bn merger, according to a report in the New York Post on Friday. The two are currently locked in a bidding battle for the US operations of PointsBet.
Jason 💔 Michael: Citing two sources, the paper suggested the respective CEOs Jason Robins and Michael Rubin held talks in early 2021 over what would have been a 50/50 merger.
Hold a grudge: The paper said talks were called off despite Robins being keen.
“Jason was stopped and now he is returning the favor,” an anonymous gaming executive told the Post.
Focused on the job in hand: A DraftKings spokesperson told the paper the bid for PointsBet was “centered around the significant synergies and financial rationale” and that the suggestion of any “ulterior motive” was “irresponsible and not grounded in reality”.
Rubin told CNBC that the DraftKings bid was a “move to delay our ability to enter the market”.
“I guess they are more concerned about us than I would have thought,” he added.
The week ahead
Eyes on the prize: Attention now turns to PointsBet’s EGM on Friday where shareholders will vote on Fanatics’ original $150m bid. The last communication from the company on Monday last week said the board continued to recommend a vote in favor.
At the same time, the board said it would engage with DraftKings over its $195m counter-offer.
Analysts at Jefferies suggested the dynamics around the table were that if Fanatics were to return with a higher bid, DraftKings had limited appetite to respond.
“Our impression is that DraftKings can bid higher still but has a specific limit which does not alter the commitment to profitability in 2024, and should remain disciplined,” the team added.
Calendar
Jun 30: PointsBet EGM
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Genius’ EPL extension
Data provider signs one-year extension to English and Scottish soccer distribution deal.
One more year: Genius Sport and Football DataCo, the data rightsholder to the English Premier League, English Football League and the Scottish Professional Football Leagues, have extended their existing relationship for one extra season.
The provision of low-latency data will now run until the end of the 2024-25 season.
The deal also sees Genius extend its Second Spectrum skeletal tracking to EFL Championship games. Genius previously announced a similar deal for the EPL in 2020.
Dem bones: Analysts at JMP noted that the management believes the deal – which covers over 4,000 games – “does not get enough credit” for its EPL rights. “The ability to further implement Second Spectrum technology into the extension underscores our belief in the long-term growth story of this area of the business,” the team added.
Genius also holds the distribution rights to NFL games, which JMP noted now has two more years to run.
Skeletal tracking is also a part of that deal and JMP suggested the value add makes it “increasingly difficult for the NFL to look to another data provider, in our view”.
Then there were 11
The owner of the Parx Casino chain Greenwood Gaming has teamed up with real estate developer Silverstein to bid for one of the three New York downstate casino licenses.
Crowded house: The partnership would build a casino – to be called the Avenir – and hotel complex on the Upper West Side of Manhattan, opposite the Javits Convention Center.
The bid faces stiff competition against 10 already announced bidders.
These include SL Green/Caesars, Las Vegas Sands, Bally’s, Mets owner Steve Cohen, Mohegan/Soloviev Group, Saks Fifth Avenue, Rush Street Gaming/Vornado, MGM Resorts, Wynn Resorts and Genting Malaysia.
Analyst takes
Casino palooza: Having returned from a road trip to various properties in and around the Chicagoland market, the team at Truist suggested the unfavorable economic backdrop is yet to impact consumer spending patterns.
A unique set of developments are also impacting the market, including a slew of new casino supply, continued VGT rollout and even the potential for iCasino.
Bally’s new $1.7bn flagship property will eventually dominate the area; it has a temporary casino opening in the summer with the full property set to be unveiled in 2026.
Acid test: “Given a turbulent few years at Bally’s, management understands the importance of execution on what should turn out to be the flagship property in the company portfolio,” Truist added.
Whale of a time: After meetings with a dozen betting and gaming companies during its Consumer Conference in Nantucket last week, the team at Jefferies reported companies suggesting there was “no evidence” of consumers tightening their belts.
“The fundamental strength across Las Vegas and digital gaming is notable, with more mixed, specific dynamics in regional gaming,” the team added.
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Startup focus – Split The Pot
Christian Rajter’s Swedish games developer hopes to attract a non-casino audience.
Next time around: Ex-Expekt and Mobenga founder Christian Ratjer makes his return to the sector with the intention of finding an untapped lower-end, non-casino audience with “intuitive, lightweight and superfast” games.
The Sweden-based company was founded by Ratjer and Per-Ivan Selinder (also ex-Expekt) in 2019 and has offices in Poland, Serbia and South Africa.
It has partnerships with top operators in Africa, including Betika, Betway, Hollywoodbets and 888Africa.
The company is self-funded with some participation from friends and family.
A warm welcome: Rajter says Split The Pot has concentrated on making “inclusive games where everyone should be able to play them”, something for which, he says, there is a “clear appetite”.
“A challenge we have faced, though, is breaking new ground with content that is not casino but rather non-traditional games,” he adds.
“This has been, and to some extent still is, a challenge in marketing the content as the punters are used to variations of the same.”
This is the world calling: Rajter says that with traction having been gained in Africa, Split The Pot is looking to expand into the LatAm region and India.
“The appetite for the type of content we provide has increased sharply in the last year,” he adds.
“The goal of the company has been the same since day one when we founded Split The Pot; to supply innovative, enjoyable and non-traditional games to everyone.”
Growth company news
Pro League Network’s World Putting League championship will be available for betting in eight states. The Action Network will stream the tournament live as the exclusive broadcast media partner.
BeyondPlay will provide its jackpot management tool to Soft2Bet.
Career paths
Brazilian OSB and iCasino operator Aposta Ganha has seen Hugo Baungartner join as VP for global markets to support expansion into new regions as part of an international growth strategy.
Codere Online has appointed Michal Elimelech to its board of directors. Elimelech was previously head of US marketing and held other leadership positions at 888.
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Newslines
Genting Malaysia has called a halt to the $1.23bn sale of a parcel of land in Miami to Smart Miami City after the purchaser attempted to amend the terms of the deal. In a filing to the Malaysia stock exchange it said it would continue to review its options with regard to the 15-acre block of land.
Churchill Downs is collecting signatures to get a new 300/350-strong HRM facility in Manassas Park, Virginia, on the ballot in November. The petition requires 450 signatures, or 5% of Manassas Park voters.
Mohegan Gaming’s largest creditor, Chatham Asset Management, has proposed a refinancing of Mohegan’s senior secured notes due in 2026 involving a $250m backstop for $400m of new 2027 notes.
What we’re reading
Bottoms up: Flutter is the toast of the FTSE 100 says The Irish Times.
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