Category: Sports Betting & Gaming

20 posts

News – New York Sports Betting has generated $1.2 billion in handles and $91.4 million in revenue in just 16 days.

iBET ETF Insights: Industry insiders believe NY will set a new record for the largest amount of sports wagering in the first two months of business. It will be a couple of weeks before New York reports its handles for January and February, but insiders believe it will surpass the current record of $777 million held by Arizona.


News – The Louisiana control board has opened up online sports betting as of 1/28/2022.

iBET ETF Insights: Key timing with the NFL Championship Games played last weekend and the Super Bowl in Two Weeks. The operators going live with the launch were DraftKings, FanDuel, Ceasars, BetMGM, BetRivers, and Barstool Sportsbook.


News – Paysafe (PSFE) Enters New York Sports-Betting market – Paysafe is an online payment solution that makes online purchases secure. Instead of using your debit/credit card, they provide a Paysafecard that is prepaid online and does not have any personal or financial details linked to it.

iBET ETF Insights: Paysafe has already gone live in other states such as Arizona, Louisiana, Michigan, and more. In total Paysafe is in 18 states plus Washington DC.


News – Morgan Stanley upgrades DraftKings stock – Last Wednesday Morgan Stanley upgraded DraftKings stock rating and stated that after its earlier stock decline, timing is good for long-term investment in what is a potential $21 Billion dollar market.

iBET ETF Insights: The upgrade by Morgan Stanley follows the first official numbers released Friday by the New York State Gaming Commission for the new online market. New York Sports Betting has generated $1.2 billion in handles and $91.4 million in revenue in just 16 days. Morgan Stanley predicts that legal US sports betting and iGaming will increase to $20.6 billion in 2025, from less than $1.5 billion in 2019.


News
New Jersey gives tax break for Sportsbooks Governor Phil Murphy signed a bill giving their sports lounges a tax break on credits (free play) that are used to entice gamblers into playing. The new law applies to brick-and-mortar locations, and it allows online operators linked to racetracks to get the same relief.

iBET ETF Insights: This new law should help the racetracks and casinos diminish the past 2 years of losses due to the pandemic, when 92% of sports betting took place online.

Digital Transformation of Gambling

Online gambling has quickly become one of the most popular markets in the world. The industry is seeing an increase in volume flowing through it with each passing quarter and 2022 will be no different. According to Grand View Research, the online gambling market is expected to reach $127.3 billion by 2027. More than $500 million was spent betting on Super Bowl LV.

The industry can be split into two distinct categories – casino betting and sports betting. The modernization of technology has revolutionized the way the industry generates revenue, moving from land-based casinos to online and mobile experiences. It’s an undeniable shift in consumer behavior that has only been accelerated by the global pandemic and growing digital landscape.

2022 offers exciting growth potential for the stocks in this industry. Here’s why we should be looking at the digital transformation as an opportunity rather than a setback.

Sports Betting Is Here To Stay And 80% Takes Place Online

Sports are a universal way for us to connect and involve ourselves in a community. The desire to speculate on and potentially profit from our passions is growing. Millennial behavior has shown their appetite shifting away from traditional gambling, and into sports betting.

It’s already a huge market, and it’s only getting bigger. About $160 billion worth of bets are made on sports each year, with online bookmakers taking almost 80% of that figure. Once a largely niche activity, the digitization of betting has driven the market forward to huge growth. The ongoing legalization of sports betting across states in the US has allowed for this exponential growth.

Grand View Research estimates a compound annual growth rate (CAGR) of 10.1% from now to 2028 in the global sports betting market. We may not be able to pack Vegas casinos full of gamblers amidst the Omicron breakout, but we can be confident that sports enthusiasts are placing their bets on sites like DraftKings and Barstool Sports.

United States sports betting market predictions by Grand View Research

Casino Stocks Are Quickly Adapting

Casino stocks are rapidly expanding their online gambling offerings. Other companies tangential to the industry are doing the same to capitalize on growing demand.

These companies recognize that the online and mobile market participants crave a dynamic gambling environment. iGaming companies are introducing new and engaging games to appeal to younger generations. Penn National (PENN- NDAQ), offers a mobile application with slots and table games. BetMGM (MGM – NYSE) – offers the same, with additional games that further socialize the gambling process.

DraftKings (DKNG – NDAQ) is stirring up the competition by offering traditional table games like poker, blackjack, and baccarat on DraftKings Casino. They see the lucrative opportunity of online gambling outside of just sports.

According to Mordor Intelligence, the online gambling market is expected to register a CAGR of 11.49% during the forecast period, 2021-2026.

United States online gambling market predictions by Grand View Research

COVID-19 has caused turbulence for the lives of many. Our growing digital addictions have a number of downsides too. However, these two factors have positioned and allowed the gambling industry to expand online in an expedited manner. Companies in the industry and their stock prices will likely reflect that growth in the years to come.

As of 1/25/2022, the top 10 holdings of the fund are, FLTR LN, LVS, MGM, PENN, EVO-SS, SGMS, KAMBI-SS, CZR, 9672-JP, TAH-AU. They can be viewed here iBET Sports Betting & Gaming ETF (IBET) – Inherent Wealth Fund

References:

https://www.grandviewresearch.com/industry-analysis/sports-betting-market-report

https://www.investors.com/news/draftkings-stock-leads-gambling-transformation-new-casino-stocks-next-generation-take-over/

https://www.mordorintelligence.com/industry-reports/online-gambling-market

https://www.grandviewresearch.com/industry-analysis/online-gambling-market

 

The New York Gaming Commission announced on Thursday 01/06/2022 that legalized online sports betting is coming to New York. New York became the 18th state to legalize online sports betting, making it available to its 20 million-plus residents. On Saturday 01/09/2022 at 9 am ET, four books launched their services in New York.

Online sportsbooks in New York were long overdue. The state is home to some of the nation’s biggest sports fans and most successful teams. Given the state’s already liberal framework for gambling, it’s no surprise that a legal online sports betting market has finally come to New York.

Industry insiders believe NY will set a new record for the largest amount of sports wagering in the first two months of business. It will be several weeks before New York reports its handles for January and February, but insiders believe it will surpass the current record of $777 million held by Arizona.

Let’s dive into the four books that New York Residents will be able to bet with.

1. DraftKings Sports Book NY (DKNG – NDAQ)
DraftKings is one of the top online sports betting sites in the world. The company is a leading fantasy sports site that has been in business for nearly a decade. It’s no surprise that DraftKings is the first sportsbook to launch in New York as they have long been planning for this day.

The sports betting and fantasy giant was quick to jump on the sports betting train after the repeal of PASPA in 2018. They’ll likely be one of the frontrunners in the New York scene, making quick partnerships with local casinos.

2. FanDuel Sports Book NY (FLTR – LSE)
FanDuel is another popular fantasy sports site that has invested heavily in sports betting. They were ranked the number one overall fantasy sports site in 2018. After the PASPA repeal, FanDuel wasted little time in announcing their partnership with MGM Resorts in New Jersey. They also have a lucrative NBA deal.

“I suspect that New York will surpass all states in their debuts,” Andrew Sneyd, FanDuel’s senior vice president of brand marketing, told CBS MoneyWatch. “It’ll be a very successful first couple of months for New York.”

FanDuel is a betting powerhouse that is owned by Flutter.

Source Betting Sports Dime
Source Betting Sports Dime

3. BetRivers NY (RSI – NYSE) 
BetRivers is a smaller betting company that was launched over a decade ago and has been widely successful in the online poker market. BetRivers currently operates in a handful of sportsbooks around the United States.

As of now, BetRivers is one of the smaller betting companies in the New York sports betting market. However, that may change quickly. The company is one of the top online poker sites in the United States and could easily become a top sports betting site as well.

4. Caesars Sports Book NY (CZR – NDAQ)
Caesars Entertainment is one of the largest casino chains in the world. They operate in a variety of different markets but are most well-known for their Las Vegas casinos. Caesars is one of the most popular online poker sites in the country as well.

They are a natural fit for sports betting and are expected to have a large presence in the New York online sports betting market. After their acquisition of William Hill, the sky is the limit for this gambling giant. These are just the first four books to be authorized – many more are on the horizon.

New Jersey Could be Impacted Negatively

New Jersey a top sports betting market may be impacted negatively. Through November, New Jersey’s nine casinos and three horse tracks have taken nearly $10 billion in wagers. Experts have estimated as much as 25% to 30% of sports bets in New Jersey are placed by New York residents.

Most New Yorkers will probably stay home now and place bets, Daniel Wallach a sports wagering lawyer in New York said, meaning that New Jersey’s sports handle could fall as much as 20%. “It’s not a stretch for a state like California to eventually become legalized and pull down $30 billion in andles every year,” said Wallach, who also teaches sports wagering law at the University of New Hampshire.

Online sports betting in New York has been a long time coming. Fans are excited to speculate on their favorite sports, and the state is looking forward to all the added tax revenue. It’s a win-win! Plus, the legalization is coming just in time for the NFL post-season run including the Super Bowl.

Nasdaq Trade TalksJill Malandrino
Welcome to Nasdaq Trade Talks. I’m Jill Malandrino a global markets reporter at Nasdaq. Joining us, we have Jeffrey Kamys who is the Chief Investment Strategist and portfolio manager with Inherent Wealth Fund to discuss the growth of Sports Betting and the legalization in the US. Jeffrey has significant experience in the industry, having 15 years as an owner and operator of a fantasy sports company that created online tools for fantasy sports players and sent out digitized information to its participants. Jeffrey, it’s great to have you with us.

Jill Malandrino
Welcome to Trade Talks.

Jeffrey Kamys
Thanks for having me. How are you doing?

Jill Malandrino
Good. We’re doing well. Thank you. And give us a high level overview of the space, and what are the prospects for growth of Sports Betting and legalization in the US.

Legal Sports Betting in the US
Source American Gaming Association

Jeffrey Kamys
Since the time of the chariot races, people have been enjoying wagering. And that’s just a natural fact. And what’s going on now is as we have the growth of legalization of sports betting in the United States. We’re at somewhere near 22, 23, 24 States. We continue to see more and more companies entering the space.

Jill Malandrino
And it’s really a big high tech shootout for the fantasy sports players these days, right?

Jeffrey Kamys
It certainly is.

Jill Malandrino
We know what Disney did to streaming. What does the entry of Disney into sports betting say?

Jeffrey Kamys
Well, I think what this is about, is media combined with the betting, which also combines with advertising. So, as you get this content….. and anyone who has content now, every media company is game to be in this industry. We also see somebody like FuboTV now, FuboTV is a portfolio holding in our ETF that we’re talking about today, FuboTV is going to have one day interactive gaming. So you can imagine sitting on your couch watching a football game and maybe wanting to wager on a specific field goal that may be attempted. The top 10 holdings of the fund are, FLTR LN, PENN, EVO SS, DKNG, MGM, CZR, SGMS, KAMBI SS, WYNN, LVS. They can be viewed here iBET Sports Betting & Gaming ETF (IBET) – Inherent Wealth Fund

Jeffrey Kamys
And that’s really the future of this business. It’s becoming a digitized thing. I think the current story in the marketplace is that these stocks are based solely on Vegas and that Omicron and COVID issues hurt their performance. It’s not the truth. The future of this industry is digitized.

Jill Malandrino
So tell us about the ETF itself. iBET Sports Betting & Gaming ETF. What are some of the more interesting holdings in your ETF?

Jeffrey Kamys
So the iBET ETF, which is a Sports Betting and Gaming ETF, is comprised of about 40 to 50 holdings of publicly traded companies in the industry. There’s probably about 70 companies in the space right now that could potentially be in the ETF. But if you’re watching closely, you’ll see new companies emerging in the marketplace all the time. And that’s because there’s so many opportunities here for growth, so we’re seeing a lot of companies who are now getting/becoming licensed operators.

Jeffrey Kamys
I think Bally’s is a really interesting company. Bally’s is kind of an older company we probably don’t hear that much about, but they’re actually vying for a casino in downtown Chicago, which is really cool. They’re putting together a bid for about a billion dollar casino on the Lake in Chicago. Can you imagine if you take a city like Chicago, which is one of the best convention cities in the United States, and then you add a beautiful casino that has a rooftop deck and all these other amenities.

Jeffrey Kamys
You can imagine the possibilities for a stock like Bally’s, if that happens right?

Jill Malandrino
MGM recently purchased the Cosmopolitan Hotel in Las Vegas. Penn National Gaming was also in the running. What was the strategy behind the purchase?

Jeffrey Kamys
So, think about what’s going on here. These are younger people that stay at the Cosmopolitan. In the Sports Betting marketplace, we’re looking for these new millennials, these 25 to 35 year old’s. If you’ve been to the Cosmopolitan in Las Vegas, I’ve gone myself. I’m probably a little too old for the space now, but 25 to 35 year old’s are the targeted demographic. So, when you talk about digitizing and placing bets on your phone, we’re talking about a younger demographic. So that was a key holding for MGM to go after that. That’s one of the youngest demographic casinos on the strip, for sure.

Jill Malandrino
Yeah, I’ll move it out of that demographic, but that is a gorgeous property. I agree with you there. Let’s discuss your current outlook versus longer term outlook for the space and what are possible other entrance to it.

Jeffrey Kamys
Right. Okay. So this is really interesting to me, is who else is coming, right? Because it is so prominent now. And we’re hearing about sports betting everywhere. So back in the old days, let’s say 20-30 years ago, whenever there was a game on TV, you would always have an announcer and he’d be talking about the game. He may make a joke or allude to. Hey, that was important for someone. But now you have these announcers before the games during the games, talking about betting, if they wagered.

Jeffrey Kamys
So, to me, what I see is the future, with Disney entering the sports betting space, coming in with ESPN. It’s where Main Street USA comes into play in betting. So it’s going to continue to grow. And I think you’re going to see larger companies, media driven companies. If you have a media entity, you will be more and more involved in sports betting. And let me give you an example. So recently, Fox, Fox just announced that they are going to attempt to bring back the USFL, which was the United States Football League, something that was around in the 80s.

Jeffrey Kamys
Now, one of the main reasons or drivers is that they can keep the bettor or the person watching the game, engaged. So, Fox has their own betting tool. Fox bets, and essentially what they’re going to do now is create the content to keep the person watching the game and betting. And what does that do for their ad retention? It’s great. So, if you have someone who bets on a game and maybe the worst game ever, they’re going to still watch it.

Jill Malandrino
Yes, that is a brand strategy. Jeffrey we appreciate the insight. Thanks for joining us on trade talks.

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus (to obtain a prospectus please call 1-833-910-2700). Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal. Risks include those related to investments in the highly-competitive sports betting industry, including from illegal or unregulated companies.
Expansion of sports betting (both regulated and unregulated), including the award of additional licenses or expansion or relocation of existing sports betting companies, and competition from other leisure and entertainment activities, could impact these companies’ finances. Small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. Fund investments are concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Investments in foreign securities involve social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more develop countries. Depositary Receipts involve risks similar to those associated with investments in foreign securities, but may not provide a return that corresponds precisely with that of the underlying shares. Please see the prospectus for details of these and other risks.
Foreside Fund Services, LLC: Distributor not affiliated with (Inherent Wealth Fund, LLC)

Inherent Wealth Fund LLC, an ETF sponsor focused on thematic and sector-specific investing that appeals specifically to the next generation of investors, including a growing retail community, is announcing the launch of the iBET Sports Betting & Gaming ETF (IBET).

iBET sports betting & gaming ETF is the first and only actively managed sports betting & gaming ETF. Inherent Wealth Fund founder, CEO Jeffrey Kamys is bringing more than 15 years of experience in the fantasy sports, sports analytics, and sports world to manage the fund.

“We’re excited about the growth of this industry as more states move toward legalizing sports betting. With the recent announcement and entry of Disney (Walt Disney Co NYSE DIS) into the sports betting arena, we believe it’s the green light that sports betting in the United States has arrived both on Main Street & Wall Street.” —Jeffrey Kamys

Inherent Wealth Fund LLC is a registered investment adviser and ETF sponsor focused on thematic and sector-specific investing that appeals specifically to the next generation of investors, including a growing retail community. To learn more about the company, please visit: www.inherentwealthfund.com.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the iBET ETF please call 1-833-910-2700 or visit the website at www.inherentwealthfund.com. Read the prospectus or summary prospectus carefully before investing.

Exchange Traded Funds (ETF) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns

Investing involves risk, including possible loss of principal. Risks include those related to investments in the highly-competitive sports betting industry, including from illegal or unregulated companies. Expansion of sports betting (both regulated and unregulated), including the award of additional licenses or expansion or relocation of existing sports betting companies, and competition from other leisure and entertainment activities, could impact these companies’ finances. Small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. Fund investments are concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Investments in foreign securities involve social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more develop countries. Depositary Receipts involve risks similar to those associated with investments in foreign securities, but may not provide a return that corresponds precisely with that of the underlying shares. Please see the prospectus for details of these and other risks.

Fund holdings are not recommendations and are subject to change. Please click here for a complete list of fund holdings: https://www.inherentwealthfund.com/etf/ibet-etf-download/

Distributed by Quasar Distributors, LLC.

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