This week’s rewind is all about deals, injunctions, and New York, and of course, the expansion of the US sports betting market.
For now, Action 24/7 has its sports betting license back, a trio of sports betting operators gain market access deals, and mobile sports betting in New York braces for a Hail-Mary pass.
On the rewind:
Where does NY online sports betting stand?
New York online sports betting is still a part of the conversation in the state’s budget process. Many had speculated Gov. Andrew Cuomo would simply step aside and avoid negotiations, but the governor is holding firm to his model that doesn’t hold favor with almost anyone.
PlayNY reports that online sports betting is currently in the budget, but it’s not clear how it will be done other than Cuomo is currently getting his way. Details are still limited due to ongoing negotiations.
The takeaway: We are going to have to wait and see what happens in New York. Legalization is closer than it ever has been, but it may be on sub-ideal terms.
Tennessee sportsbook gets licenses reinstated
What a rollercoaster ride it has been for the Action 24/7 sportsbook.
After getting its Tennessee online sports betting license suspended following an investigation into money laundering and credit card fraud, a Nashville judge has granted an injunction to Action 24/7 to reinstate its betting license.
In a statement, Tennessee Education Lottery (TEL) said it would continue to work with the sports betting operator to implement “appropriate minimum internal control standards” to protect the public and limit risk to the integrity of sports betting in the state.
The takeaway: The sage of the first sportsbook to get its licenses suspended in the post-PASPA era is far from over. The TEL said the investigation isn’t finished, and fines could still be issued. On top of this, Action 24/7 must still do damage control to keep its image and brand intact.
PointsBet, theScore, Barstool Sportsbook land market access deals
The sports betting market continues to grow at a rapid pace. This time around, PointsBet, in collaboration with a previous agreement with Penn National Gaming, secured access to Pennsylvania and Mississippi.
PointsBet will offer PA online sports betting and casino, while only offering sports betting in MS.
Lastly, Penn will be expanding its Barstool Sportsbook with launches in Indiana sports betting and in New Jersey.
The takeaway: The trio of operators will continue to expand their reach. The Barstool Sportsbook, for example, is only live in less than a handful of states. PointsBet operates in six states, while theScore Bet is only live in NJ, CO, IN, and IA. As betting continues to expand, more of these deals will continue to pop up.
Bally’s Corp. continues the acquisition trend
The Bally’s Corporation is making a push to acquire Gamesys Group for $2.7 billion.
Bally’s continues to build its B2B2C business foundation, and it doesn’t appear to be slowing down. The company finally completed its acquisition of DFS website, Monkey Knife Fight, and made a $105 million offer to Allied Esports Entertainment for its poker product.
The takeaway: Bally’s is currently operating like the Brooklyn Nets — stockpiling talent. The company has a partnership with Sinclair Broadcast Group and a sports betting platform, Bet.Works. It has a new fantasy sports division with MKF and, if successful, a poker product. Not to mention, the company is on a shortlist for a Richmon, VA., casino.
This week’s Market Teasers include a pair of newcomers to this list, but companies that are well known in the gambling industry. DraftKings is one of the top sports betting operators in the US and has slowly been building its empire over the last couple of years, while Bally’s Corporation continues to make headlines through various M&A deals.
$DKNG | $60.53 | 3.95% change
- After raising $1 billion in new debt last month to finance future acquisitions, DraftKings has used some of that capital to acquire Vegas Sports Information Network (VSiN) for roughly $100 million. DraftKings CEO Jason Robins said, “We think [media] could be a great route for us.” Don’t expect this to be the last deal the company makes in 2021.
$BALY | $67.03 | 5.19% change
- Bally’s is on the shortlist to build a $650 million casino resort in Richmond, VA. The company has been building its gaming verticals almost weekly as it tries to become a strong competitor in the iGaming, casino, and sports betting markets. The company also secured a sports betting partnership with Major League Baseball, further establishing its brand. Are they down? I don’t think so.
**Market Teasers is not financial advice, nor am I a financial advisor. All figures were taken at March 30th’s market close.