News – New York Sports Betting sets record for mobile sports betting, generating $1.6 billion in handles.
iBET ETF Insights: This is more than double what Arizona did for its first month launch at $777 million. This makes NY the largest mobile sports betting state. Only California which is not legalized at this point can unseat NY.
Caesars (CZR) – Led the state with over 600 Million in handles in its first month
Fan Duel (FLTR) – Did over 500 million in handles in NY in its first month
Upcoming Earnings to Watch this week:
MGM, Kambi, Evolution, Kindred
3 Stocks to Watch
DraftKings (NASDAQ: DKNG)
DraftKings went public in April of 2020 through a special-purpose acquisition company (SPAC).
DraftKings (DKNG) soaked up the spotlight in 2021. A couple of major events:
• (March 4) DraftKings became the official sportsbook and daily fantasy partner of the UFC in the United States and Canada.
• (April 15) The NFL announced that DraftKings would become an official sports betting partner. This included an extension of DraftKings as the NFL’s exclusive official daily fantasy partner.
• (November 4) The NBA expanded its relationship with DraftKings and made the company a co-official sports betting partner of the league. This included daily fantasy sports, iGaming, sports betting, and a slew of other opportunities.
DraftKings forecast a 2021 fiscal revenue between $1.24-$1.28 billion. They also estimate a nearly 50% increase in revenue for the fiscal year 2022.
iBET ETF Insights: DraftKings did nearly 400 million in handles in New York in the first month of operations. DKNG currently sits near a 52-week low and Morgan Stanley recently upgraded the stock.
Game Account Network (NASDAQ: GAN)
Gan is a Software-as-a-Service (SaaS) provider that builds solutions for sports betting and online gaming clients. They are well recognized for their award-winning platform GameSTACK. GameSTACK provides solutions in the realm of account management, payment, and analytics.
Following a sub-par earnings report for Q3 of the 2021 fiscal year, CEO Dermot Smurfit stated “Our third-quarter financial results were in line with our expectations as our business to business segment revenues rose 5% compared to the prior quarter, while our business to consumer revenues experienced seasonality following a record second quarter.”
iBET ETF Insights: In early 2022, GAN is sitting close to its 52-week low. That said, the sports betting and online gaming industries continue to expand as our thirst for digital experience and speculation grows. GAN is in an attractive position as a SaaS provider in this space.
Penn National Gaming Inc. (NASDAQ: PENN)
Penn National Gaming is a more traditional gaming company, with brick-and-mortar locations in nearly half of all US states. They offer table traditional gambling options, as well as live sports betting and racing. Penn’s most significant move in the emerging online sports betting world was its acquisition of a 36% stake in the infamous Barstool Sports company in early 2020. Since then, Barstool has gone live with its Sportsbook app in several states.
In August of 2021, Penn also acquired Score Media and Gaming for $2 billion. Score Media and Gaming has a strong presence in the Canadian mobile sports betting market. With the reach of these acquisitions and a proven focus on the digital sports betting industry, Penn is an attractive long-term play.
iBET ETF Insights: PENN is currently trading near its 52-week low, similar to DKNG, GAN, and the rest of the sector.