Forthcoming attractions
Quarterly previews suggest beats and misses
DraftKings and Flutter tipped to provide the positives.
Points target: Betr and Mixi put forward rival takeover offers for PointsBet.
Earnings extra: Evolution and Betsson report.
The challengers: US exchange provider Sporttrade.
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Coming soon
You’ve come a long way, baby: After the choppy waters of Q4 and Q1, DraftKings is tipped to return to its previous pattern of a beat, if not a raise, when it reports its Q2 earnings in the coming weeks.
Bank of America said in its quarterly preview that DraftKings was tracking to a “big beat” of consensus expectations of $228m, with investors expecting Q2 EBITDA at the high-end of the $250m-$300m range.
Similarly, Morgan Stanely said they expected DraftKings to see adj. EBITDA of ~$260m.
The 10 plagues of Egypt: The analysts pointed out this outperformance comes despite a rash of bad headlines in recent weeks, including the higher taxes, the Illinois surcharge news, fears over slowing handle and a lack of progress on state legalization.
But Truist noted the Q2 hold performance should “silence some fears that sports betting was ‘broken’ following a brutal Q4 and Q1/early Q2.”
Looking further out, Truist lowered its estimates across the online sector for 2025 and 2026 due to higher taxes. But they noted that for Flutter much of the impact would be offset by the $65m it will save annually from the renegotiated market access deal with Boyd.
“Of note, we think it’s likely DraftKings accomplishes something similar upon renewal, likely to the detriment of Penn and Caesars,” the team added.
Got some questions that I got to ask: Citizens suggested their team was primed with a clutch of queries they will be hoping to raise with the management at DraftKings and Flutter, with the rise of prediction markets one among many issues likely to be raised.
Both companies have been linked with discussions with current predictions participants – Railbird with DraftKings and Kalshi with Flutter.
Citizens said they believed the big two were in “wait-and-see mode,” at least until the CFTC clarified its position.
Cruel summer: The outlook isn’t so rosy for the Las Vegas operators, which the analysts expect to report earnings misses for Q2 and with further pain to come in Q3. In their B&M preview, Jefferies said the Strip was in for a “grindy summer.”
Devils roll the dice: Tuist said that while summer weakness is “well understood by investors, the bigger question is whether this reverses in Q4.”
Angels roll their eyes: This is what management teams are pointing to, eyeing a “better setup” for 2026 driven by a strong event and convention calendar.
Short road trip: Regional gaming should have a strong quarter, according to the various analysts, with Truist noting they could see some upside from the “trade down benefits” from consumers making local trips vs. having a vacation.
Up, up and away: Also primed for upbeat earnings updates are the Macau operators, where the recent GGR data has also been strong enough to have “surprised on the upside,” according to Jefferies.
But the fear is that much of the growth is coming via promotions, suggested both Jefferies and BofA.
Jefferies added that they expect some questions on the calls of the Macau-exposed operators asking for a “better understanding” of recent trends.
Does Mea Culpa mean nothing to you? Did she die in vain?* Once again, E+M must apologize for an error in our reporting on Wednesday on what might happen with Fox’s 18.6% option in FanDuel. Falsely, we suggested Flutter would likely have to pay Fox at least $5.76bn.
What we should have said was that it would likely have to pay the difference between the $4.5bn value of the option in 2030 and whatever the prevailing valuation for the business is at that time of the negotiations.
As it stands, the value as implied by the Boyd deal is $5.76bn, meaning that were negotiations taking place then the differential between that and the $4.5bn – $1.26bn – would be the price up for discussion.
We very much hope that is now clear and we are sorry for any confusion caused. Meanwhile, we’re off to read a copy of Trading Options for Dummies.
(*Apologies also due to Tony Hancock.)
EveryMatrix delivers iGaming software, solutions, content and services for casino, sports betting, payments, and affiliate/agent management to 300+ global Tier-1 operators and newer brands. The platform is modular, scalable, and compliant, allowing operators to choose the optimal solution depending on their needs.
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Crown Resorts could replace rival Star Entertainment as the casino partner in the Queen’s Wharf project, according to the Australian Financial Review, which said Star’s 50% JV partners Chow Tai Fook and Far East are in early discussions about the move. Pointedly, the paper said that, unlike Star, Crown has satisfied state regulators that it has sufficient anti-money laundering and counter-terrorism compliance programs in place to operate a casino.
Two little ducks: Flutter Entertainment has announced its first-ever inter-company platform partnership, with the Italian-facing Sisal deploying Tombola’s proprietary bingo product as an integrated feature on their app and website. Games will continue to be Sisal-branded to maintain consistency but will be powered by Tombola's product offering and expertise.
Bragg Gaming has extended the maturity date for the $2m loan notes owed to group director of content Doug Fallon to August 15. Bragg is in the process of negotiating a $6m revolver and hopes to finalize in the coming weeks.
Underdog is reported to have switched its DFS offering in California to a P2P model following the adverse fantasy sports opinion from state Attorney General Rob Bonta. The move follows a similar switch on the part of PrizePicks. Underdog has preemptively filed a motion in Sacramento in a bid to block the state from “decimating” the sector
Read across
A very stable GENIUS: There are about to be a lot more stablecoins in the world, providing US lawmakers get their way. But could a less volatile future for crypto provide the response to the black market that the regulated online gambling industry has been yearning for? In yesterday’s Compliance+More.
NAAIG-ing doubts: Tuesday’s C+M reported on the long-running tensions between land-based casinos and iGaming operators flaring up again, with accusations of hypocrisy lobbed at the traditional names for claiming consumer protection – not market share protection – is their true goal.
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The big move: Yolo Entertainment has appointed Stephanie Eddy as chief revenue officer. Eddy joins Yolo after spending over a decade at Super Group-owned Betway, where she most recently served as commercial development director.
Acroud has made Mikael Strunge its new CEO, succeeding Robert Andersson. Strunge has been with Acroud for four years, most recently as COO. Payment provider Xace has appointed Megan Easey, formerly of Aristocrat Interactive and Betsson Group, as its new CEO. Kaizen Gaming’s chief people officer Stella Voulgaraki has stepped down from her position after three years.
Head of Acquisition – London
Chief Technology Officer – Remote
Commercial & Strategy Director – London
Rival offers
A Points decision: The denouement of the long-running battle to buy PointsBet is nearing its conclusion, as the rival bidders Mixi Australia and Betr have both lodged off-market takeover offers to shareholders.
The Mixi offer, which comes with the recommendation of the PointsBet board, is an all-cash offer price at A$1.20 a share.
Mixi has already received regulatory approval for the acquisition and has purchased a 9% stake in PointsBet via a pre-bid agreement with shareholders.
You decide: Betr’s bid is an all-share offer, which it said values the company at A$1.22 per share, adding that when synergies are taken into account the offer is worth A$1.89. However, in its initial response to the off-market bid, PointsBet claimed the offer was only worth A$1.03.
E+M PRO will be releasing a side-by-side analysis of the rival offers later today.
Earnings extra
Evolution
We are where we are: CEO Martin Carlesund insisted the live casino giant’s offerings were “what gaming entertainment should look like” after his company turned in somewhat lackluster earnings for the second quarter in a row.
See yesterday’s Earnings Extra edition (PRO subscribers only).
Betsson
Pacemaker: CEO Pontus Lindwall said Betsson was entering Q3 with “good pace and confidence” after the company reported a solid Q2. Revenues were up 12% to €304m and EBITDA up 8% to €84.1m, with a 30%+ growth in Western Europe and LatAm helping to offset declines in the Nordics.
E+M PRO will be publishing an Earnings Extra edition later today.
Earnings in brief
Monarch Casino reported what Truist called a “monster” of consensus-busting revenues of $137m and equally buoyant EBITDA of $51.3m. Jefferies said the numbers were a “surprise vs. our expectations and the upside from early strength from the renovations in Reno and from gaining market share in Black Hawk.”
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The challengers – Sporttrade
The name of the game: As the US betting market continues to evolve, Sporttrade is carving out a distinctive niche – one that blends the mechanics of financial markets with the engagement of live sports.
“We’ve always viewed the world as trading sports,” CEO Alex Kane told E+M. “Everything we list is live-traded. It’s in our name.”
Unlike traditional sportsbooks that focus on moneylines and parlays, Sporttrade is structured more like a prediction market. With a CFTC-regulated designated contract market application underway, Kane sees a broader opportunity to legitimize and scale this format beyond sports, echoing Robinhood’s impact on retail trading.
But Sporttrade’s competitive edge, he argued, is in execution. “The prediction market opportunity is enormous,” he said.
“What we’re building is not new – versions of it existed 20 years ago – but the timing and infrastructure are finally aligned.”
Can’t take my eyes off of you: He cited the rise of retail stock trading and platforms such as Robinhood and Kalshi as proof that US consumers are increasingly comfortable with trading interfaces, and what distinguishes Sporttrade is its focus on product simplicity and user experience.
“If you want to trade sports, you need to create an experience that makes it irresistible, so people can’t take their eyes off the screen,” Kane explained.
“A lot of people think prediction markets are simpler than OSB just by virtue of the charts. Our hope is to build a ubiquitous experience.”
Going for broker: That “ubiquitous” goal includes expanding the menu of tradable propositions and live markets, supported by a matching engine built for institutional-grade liquidity. Kane believes this foundation gives the company optionality to serve both direct-to-consumer and B2B clients, particularly as interest grows among brokers and operators in non-OSB states.
“We have the expertise to help them,” he said. “We’re not just a product, we’re also a risk management solution.”
Crest of a wave: While Kane acknowledges the challenges ahead, particularly the competitive rush for CFTC licensure, he’s confident Sporttrade’s early work on technology, regulatory compliance and live pricing mechanics positions the company as a leader in this new wave.
“This is about being tactical and thoughtful,” he said. “The upside from getting it right is enormous.”
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Connections
Caesars Entertainment has launched its third branded online casino live dealer studio, in Michigan, through its partnership with Evolution. BetMGM has established a multi-year partnership with MLB Hall of Famer and five-time World Series champion Derek Jeter and plans to launch a Jeter-themed slot game. Fanatics has agreed a multi-year licensing agreement with the WWE for WWE-themed online slot games exclusively on Fanatics Casino.
Logifuture has launched its virtual betting product, Simulate, in Croatia through an extended partnership with Mozzart. 3 Oaks Gaming’s online slot games are now available in Italy on StarVegas’ platform. EGT Digital has integrated Optimove’s positionless marketing software into its X-Nave iGaming platform. Greentube’s online casino games are now available on Rush Street Interactive’s BetRivers platform in Pennsylvania.
Inspired Entertainment has extended its partnership agreement with Evoke’s William Hill, which will see an upgrade in the virtual sports provision to the UK bookmaker’s high street estate. Hacksaw Gaming has debuted in Pennsylvania via a content agreement with FanDuel.
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Upcoming earnings
Jul 22: Evoke
Jul 23: Kambi, Boyd Gaming, Churchill Downs
Jul 25: GLP (call)
Jul 29: BetMGM, Red Rock Resorts, Caesars, Brightstar Lottery
July 30: MGM Resorts, Robinhood, Hacksaw, Rush Street
Jul 31: VICI Properties (call)
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