Month: January 2024

Under the deal, Kindred can utilise the full RunningBall and Opta product suite from Stats Perform. This includes a range of real-time official sports data feeds and statistics.

Kindred said the additional content will improve players’ experience when betting on sports via the Kindred Sportsbook Platform. It added the expanded deal will ensure a “frictionless” in-play betting experience.

RunningBall from Stats Perform delivers official in-play sports data feeds. Meanwhile, the Opta brand focuses on player statistics across a range of sports. 

Kindred’s director of sportsbook Andreas Reimblad said that the partnership will set new standards in sports betting.

“This collaboration is a testament to our unwavering commitment to building the Kindred Sportsbook Platform with the best data available on the market,” Reimblad said. 

“We firmly believe that Stats Perform, with its expertise, trusted brands, consistent and unique data points, will be an ally as we continue to develop and roll-out our proprietary sportsbook platform.”

Stats Perform chief betting officer Andrew Ashenden also hailed the expanded deal. He said it will help unlock new value for both Kindred and Stats Perform. 

“This new agreement deepens a long-standing and highly productive partnership with Kindred,” Ashenden said. “We are excited to help take Kindred to great heights through our market leading, built-for betting RunningBall and Opta products. 

“We are delighted that Kindred recognise the value we will unlock together in this exciting new partnership.”

FDJ eyes Kindred acquisition

The deal comes after new broke last week of La Française des Jeux (FDJ) tabling an offer to acquire Kindred. The proposed offer from French lottery and gaming giant FDJ is valued at SEK27.96bn (£2.10bn/€2.48bn/$2.68bn).

Kindred “unanimously” recommended shareholders accept the offer, with an acceptance to begin on or around 20 February and expire on 19 November. Five key Kindred shareholders, which collectively hold 27.9% of all shares, have undertaken to support the offer. 

The deal, however, remains subject to a host of closing conditions. These include 90% of Kindred shareholders accepting the offer, regulatory approvals and no other party tabling an improved proposal.

FDJ said the deal would create the second largest operator in Europe’s gaming sector. It added the combination would result in a “European gaming champion” with stronger revenue and earnings growth.

Kindred expects revenue and EBITDA growth in 2023

After the offer was confirmed, Kindred also posted a preliminary set of results for its 2023 financial year. These reveal an expected rise in both revenue and underlying EBITDA during the 12-month period.

The update shows revenue of £1.21bn, which would be 13.3% more than £1.07bnin 2022. Gross winnings revenue from B2C activities is set to increase 12.4% to £1.17bn. Meanwhile, Kindred said other revenue from the B2B segment will rise 49.6% to £38.6m.

Revenue growth meant more spend on sales, with total cost here rising 9.5% to £530.7m. 

However, such is the expected impact of revenue growth that underlying EBITDA for the year is set to hit £204.5m. This, Kindred says, will be 58.3% higher than 2022.

FDJ also published a trading update in the wake of the offer. This revealed a 6.5% increase in revenue. 

Flutter’s listing on the NYSE wasn’t exactly a quiet affair. A large Flutter poster and banner were unveiled right at the front of the exchange in preparation for 09:30 EST (14:30 GMT), when Flutter shares officially began trading. Clearly, the company behind FanDuel, Paddy Power and Sky Betting and Gaming wanted to enter the race with a bang.

In December, Flutter announced that it was working to list its shares on the NYSE by 29 January 2024. Coming in right on target, the listing represents a turning point for sports betting investment in the US, says Birkin.

For one, stocks listed in the US normally trade at a higher valuation than stocks listed in London. And Flutter’s name alone carries significant weight.

“There are few opportunities for US investors to get materially exposed to the growth of the US online sports wagering or igaming market – DraftKings is the main opportunity,” Birkin observes. “While Flutter isn’t a US online pureplay investment, it has meaningful exposure to the market and that is likely to be of genuine interest to investors.”

This will help to build Flutter’s status in the US – something that already has a foundation, but is set to rocket to new heights over the next few years.

“When the majority of your revenues and earnings are coming from a certain market, and you can get higher valuations with more liquidity, it makes sense to move your listing to that location.”

Big reputation

One significant benefit of listing on the NYSE is the natural draw of investors looking to store cash in the next big thing.

“While there are funds that have the ability to direct a portion of their investment outside of the core investment area, being listed on the NYSE will without doubt open the doors to more potential investors,” Birkin explains.

So Flutter is cementing its place in the US, a market with more than a few big-hitters. But will the likes of DraftKings and BetMGM be shaking in their boots?

“I don’t think that it will be a positive for them, but I also don’t think it’s going to lead to any major shift,” Birkin admits. “Potentially it could turn the heads of some investors, and the change in accounting will make the FanDuel and DraftKings businesses more easily comparable.”

At the end of the day, he says product and technology offerings take priority over where a company is located.

“Product and technology – along with sensible marketing and promotions – are going to be more important than where each operator is listed.”

Making a mark on America

Flutter is taking this US transition so seriously that it has proposed a primary listing on the NYSE. This will be presented to shareholders at Flutter’s 2024 AGM on 1 May. If approved, the transition could occur in Q2 or Q3.

While the decision to prioritise the NYSE clearly won’t hinder Flutter’s trajectory, Birkin believes it might not have the market-share impact the company is hoping for.

“The FanDuel business is obviously already based in the US, and the overall Flutter business has plenty of resources – so I don’t see them doing this because they’re in need of further investment into the business to drive their US market share,” he muses.

“There are benefits to being listed in the US, but their market leading positioning shows that not being listed there hasn’t hampered their ability to operate or take market share.”

When looking at Flutter’s positioning in the market, it helps that its full-year 2023 results were released just under two weeks ago. The company’s US performance was continually positive throughout the year, particularly in terms of net win.

What is Flutter’s ultimate goal?

With its listing opening up new opportunities for investment, Flutter likely has some big plans for the US in 2024.

One of Flutter’s main goals, says Birkin, will be to consolidate its position as a market leader by taking more share in the igaming space – a strategy that has been modelled before.

“While some people may view the US market as unique, in many ways it’s the same story being played out that has happened many times in many other markets,” he says. “Paddy Power did this successfully in the UK market many years ago, where growth was primarily led by sports, before a number of years where there was a strong tail-wind from growth in the igaming segment.”

“William Hill also successfully grew their online business with a big push into igaming from their sports heritage.”

He believes FanDuel – as an existing leader in US sports betting – will also follow this well-trodden path.

“The same is likely to be the plan for FanDuel – maintain a sports wagering market leadership and at the same time accelerate the overall growth rate of the business by increasing their lower share in the igaming market.”

“Scale matters – and having such scale in sports is naturally going to translate to gains in igaming.”

Glazaite joins the company having spent the last four years in senior sales roles within igaming and sports betting. These include head of sales at Soft2Bet, senior sales director at Delasport and, most recently, commercial director at EEZE.

In her new role as CCO, she will be tasked with developing and implementing a long-term commercial strategy, identifying new business opportunities in key markets worldwide and evaluating mergers and acquisitions to enhance the company’s market position.

Baker-Mosley arrives at iGP having spent five years at sports betting provider Kambi, where he drove the brand globally, cementing its position as a leading B2B sportsbook brand.

The appointment further advances the strides made by iGP in 2023 following its ambitious rebrand. Michael will lead a growing marketing team and develop strategies to help cement the company as a market-leading provider of cutting-edge technology, products and services for the igaming industry.

Alongside recently hired Dirk Camilleri, IGP’s new chief product officer, the trio make up the final members of iGP’s restructured senior management team.

Giovanni Paticchio, CEO of iGaming Platform, said: “I am confident both Inesa and Michael will bring great enthusiasm to their respective roles and help drive the company forward. 2024 and 2025 are pivotal years for iGP and, now we have the leadership team in place, I am even more confident that iGP will emerge as a leading brand within the industry.”

Inesa Glazaite, chief commercial officer at iGaming Platform, said: “iGP is perfectly poised for growth and I’m looking forward to working with current and future iGP partners to support them reach their iGaming ambitions. I’m looking forward to meeting them at ICE as we drive their respective businesses forward.”

Michael Baker-Mosley, chief marketing officer at iGaming Platform, said: “iGP has everything in place to become a global leader within the industry. We have great products, great core technology and a hungry culture with brilliant people. I’m excited to begin building this brand, showcasing to operators the value we can bring.”

Alpha Odds from Sportradar allows operators to generate bespoke betting prices in line with their risk exposure and liabilities. Launched in 2022, Alpha Odds is currently used by more than 60 operators around the world.

The tool uses Sportradar’s artificial intelligence capabilities to predict the probability of an event taking place. This, Sportradar said, allows operators to manage their risk more. 

“Since Alpha Odds introduction to the market in late 2022, Sportradar has transformed trading betting markets,” Sportradar’s senior vice president of managed trading services, Darren Small, said.

In related news, the financial reconciliation aspect of Alpha Odds was independently certified by auditors PwC. The solution achieved the International Standard in Assurance Engagement (ISAE) 3402 Type 1 for matching and client invoicing calculation systems. 

“The independent ISAE certification validates the performance of Alpha Odds. It provides confidence to clients that the associated financial aspects of the solution are transparent and accurate,” Small said.

New organisational structure for Sportradar

The update comes amid major change at Sportradar. A new leadership structure is now in place as part of a wider initiative to streamline its global organisational structure. Revealed last week, the new structure consists of six business functions across the Sportradar business.

Warren Murphy switches from chief product officer to chief delivery and operations officer, leading product delivery and operations. Nick Maywald, formerly chief content officer becomes chief growth and innovation officer, with responsibility for growth and innovation. 

Elsewhere, chief commercial officer Eduard Blonk will lead the commercial function, and Lynn McCreary, chief administrative officer, chief legal officer and corporate secretary, will oversee legal, risk and administrative services.

Severine Riviere-Gerstner will head up the people sector as chief people officer, and chief financial officer Gerard Griffin the finance function. Griffin, however, will leave the group in May for personal reasons, while Ulrich Harmuth is also stepping down as chief strategy officer.

Carsten Koerl, CEO of Sportradar, said the new structure better positions the group for future growth.

Genius Sports’ tool will allow sportsbooks to maximise profits over ‘unlimited’ sports events and bets. Factoring in real-time liability, Edge can recalculate odds at a fixture and market-type level for maximum profitability, including bet-builder products.

Genius Sports product director Thomas Holland revealed early adopter partners of Edge have enjoyed an 18% average rise in margins. The tool is available now through Genius Trading Services or as a standalone solution.

“The explosion of betting content means sportsbooks offer hundreds of thousands of events every year,” Holland said in the announcement. “This makes it almost impossible for trading teams to truly optimise pricing and ensure they are squeezing maximum margin out of every bet, especially where turnover is highest.

“We’re excited to roll this ground-breaking solution out across our sportsbook partners worldwide, adding incremental profits across the board.”

Genius Sports’ new innovation comes after its September launch of BetVision. BetVision is a new sports betting solution that allows players to place bets from within live video on sportsbooks apps. FanDuel incorporated BetVision into its app in November to improve its NFL offering.

Genius Sports’ tool solves ‘real problem’

Edge is aiming to offer an improved pricing tool over current risk management solutions, which ‘limit players and minimise losses’.

In a follow-up interview, Holland expanded on what Genius saw that prompted the company to devise a more efficient solution.

“We feel that current risk management services are managing risk by limiting bookmakers and customers,” Holland said.

“That is a real problem. It leaves money on the table for operators, who end up rejecting good bets, and creates a frustrating on-platform experience for bettors.”

Edge ‘empowers’ sportsbooks

With early adopters enjoying such a rise in margins, Holland is delighted with the benefits provided to sportsbooks by Edge.

“Edge empowers every sportsbook to compile a set of odds that are unique to their sportsbook and driven by how their customers are betting,” Holland continued.

“Market price and in-game data remain important, but Edge means traders will know that their odds are always being optimised for profit based on betting data.”

Edge will allow sportsbooks to make in-play betting “more profitable”, though Holland said this will differ on a case-by-case basis.

“Edge sees a fixture as a singular event comprising of both pre-match and in-play markets,” Holland added. “That means that we will carry all liability information through from pre-match to create the optimal in-play price whereas some products throw all that pre-match information away.

“Edge instantaneously adjusts odds to maximise profits as soon as any liabilities build up on specific market outcomes. In the long run, this will make in-play betting more profitable for operators as their good days will be even better, while losses will be minimised on bad days.”

Boutte is accused of making over 8,900 bets in his native Louisiana between April 2022 and May 2023 while underage.

The Louisiana State Police Gaming Enforcement Division, which made the arrest, said Boutte was 20 years old when placing the bets. The minimum legal age to bet on sports in Louisiana is 21.

Boutte is said to have used an alias to circumvent legal age requirements. At the time, he was playing American football for the Louisiana State University (LSU).

Of the nearly-9,000 wagers, at least 17 were on National Collegiate Athletic Association (NCAA) football games. These included at least six related to LSU football events. 

Boutte charged with computer fraud and underage gambling

Police launched an investigation into the matter last July and secured an arrest warrant on 18 January. Boutte was arrested last week on one count of computer fraud and another of underage gambling. 

Local media reports he has since been released from custody but with the investigation still ongoing, he could face further charges. 

Boutte is in his debut season with the Patriots having joined the team in the 2023 NFL Draft. For the current season, he has two receptions, 19 receiving yards and a receiving average of 9.5. 

NCAA urges greater betting protection for student-athletes

The charges come after the NCAA in October called for greater protection for student-athletes from gambling harm. The collegiate organisation wants states to update existing laws and regulations to help to preserve the integrity of its competitions.

Almost 40 38 states have passed laws legalising sports betting since PASPA was repealed in 2018. However, the NCAA says only some contain protection and integrity provisions to help its players.

The now NCAA is advocating for improved laws and has developed new model legislative provisions it recommends states pass. It has committed to working with lawmakers in states seeking to legalise wagering to ensure provisions feature in legislation.

NFL clamps down on rule-breakers 

Boutte has not yet been given a suspension by the NFL for his activities, with these relating to bets placed before he joined the league. However, the NFL has previously suspended players for betting on sports.

Last summer, several players were issued suspensions for breaching league ruled on sports betting. Denver Broncos player Eyioma Uwazurike was indefinitely suspended for betting violations in June. 

Meanwhile, Isaiah Rodgers and Rashod Berry of the Indianapolis Colts were suspended until at least the end of the 2023 season. Free agent Demetrius Taylor was also banned for the 2023 campaign. All three players were found to have placed wagers on NFL games during the 2022 season. 

In addition, Nicholas Petit-Frere of the Tennessee Titans was handed a six-game suspension for betting on non-NFL sports at the club facility.

NFL gambling policy prohibits anyone in the NFL from engaging in gambling in any club or league facility or venue, including the practice facility.

Revealed in a Form 8-K filed with the US Securities and Exchange Commission, the early set of figures cover the three months to 31 December 2023. Caesars has published both lower and higher estimates for several key figures and business segments.

Group revenue for the period is set to be between $2.82bn (£2.22bn/€2.60bn) and $2.84bn. Both would be above the $2.77bn adjusted revenue posted in Q4 of 2022.

Caesars noted the adjusted 2022 total reflects the subtraction of operations for Rio All-Suite Hotel & Casino in Las Vegas prior to divestiture in October 2023. Actual revenue in 2022 was $2.82bn, towards the lower end of the Q4 2023 estimated results.

Digital success set to offset Las Vegas decline

Breaking this down, Las Vegas operations revenue is forecast to be between $1.08bn and $1.09bn. This suggests Q4 revenue will be behind the adjusted $1.10bn posted in the previous year. Subtracted Rio revenue in Las Vegas during Q4 of 2022 was $54m, with the unadjusted 2022 total at $1.15bn.

Elsewhere, revenue from regional operations will likely range from $1.34bn to $1.37bn. As Caesars highlights, this would be ahead of the $1.36bn total in 2022.

Turning to the digital business, this is where Caesars anticipates the most revenue growth. For Q4 of 2023, Caesars said digital revenue will be between $303m and $305m. The $304m midpoint of this would be 27.0% higher than 2022.

As for other revenue, managed and branded revenue will likely be between $67m and $69m, compared to $72m in 2022. Caesars also expects to post a corporate and other loss of $2m. This is in contrast to the $2m revenue in the previous year.

Digital set to be EBITDA-positive for Caesars again in Q4

Going into further detail on segmental performance, Caesars published forecasts for adjusted EBITDA and net income.

While total adjusted EBITDA is likely to fall from $949m to between $920m and $940m, there is reason for positivity when it comes to digital.

The early figures suggest Q4 will be the first consecutive quarter in which the digital division will be EBITDA-positive. This follows positive results in both Q2 and Q3 of 2023, whereas in Q4 2022, the business posted a $5m adjusted EBITDA loss.

In contrast, adjusted EBITDA for almost all other segments is likely to be lower. The largest decline is set in Las Vegas, where Caesars expects to post between $486m and $492m – lower than both the adjusted 2022 figure ($529m) and actual result ($537m).

Caesars may narrowly miss out on Q4 profit

As for group net loss, Caesars expects a loss of between $157m and $4m, suggesting it could be close to turning a profit if it reaches the higher end of these estimates.

Las Vegas operations will remain in the black and between $246m and $254, but this will be down from the adjusted $287m in 2022. In the best-case scenario, regional operations may post a $13m profit, whereas the lower end of the estimate suggests a $54m loss. In 2022, regional operations generated a $17m loss.

The digital business will almost certainly remain at a net loss, with this set to be between $9m and $7m. However, this would be a marked improvement on the $35m loss posted in the previous year.  

Caesars said the figures published here represent only preliminary results for the business. The operator is due to publish both its Q4 and 2023 full-year results on 20 February. 

Handle for November was 3.3% ahead of the existing Arizona record of $690.0m in March 2022. It was also 15.7% higher than $616.9m in November 2022 and 10.1% more than $648.2m in October 2023.

Some $705.7m was wagered online and $6.1m at retail sportsbooks. A further $1.8m was bet with limited event wagering operators in Arizona.

Licensees paid out $671.3m in winnings to players while free bets and promotional credits in November amounted to $20.5m. This left $20.3m in adjusted gross revenue for the month.

Revenue was 45.9% lower than $37.5m in November 2022 and 38.5% behind $33.0m in October. Online betting revenue hit $19.9m, retail revenue $338,476 and limited event wagering $96,986.

As for tax, this reached $2.0m in November. Almost all of this came from online wagering, with only minimal contributions from retail and limited event wagering operators.

DraftKings and Crown Gaming lead in Arizona

Looking at individual operators, DraftKings and partner Crown Gaming were ahead in the online market. Online revenue from the partnership reached $9.7m from $229.4m in wagers.

FanDuel took more bets, processing a total of $249.3m in online wagers. However, it could only post $7.7m in revenue, putting it second behind DraftKings. 

The only other online operator to post more than $1.0m in revenue was Bally Interactive, which hit $1.9m from $91.7m in internet wagers.

As for retail operators, only four were able to report positive revenue. The leader of the pack was FanDuel on $115,060 off a $1.9m handle.

Just behind in second place was Caesars with $111,979 from $1.1m. BetMGM was third with retail revenue of $84,577 off a $660,242 handle. 

In terms of limited event wagering operators, TP Racing claimed the top spot with $42,575 in revenue from $920,621.

In her new leadership role, Donoghue will work with the existing teams at DraftKings to uncover new growth opportunities. She will also be charged with spearheading various internal processes.

Donoghue joins DraftKings after five and a half years at online retail giant Amazon. Here, she served as vice-president of Amazon’s US Sports Content & Partnerships division. 

Prior to this, she spent over 19 years with US sports broadcaster ESPN, serving in a series of senior roles. These include executive vice-president of global business and content strategy, as well as executive vice-president of global strategy and original content.

Donoghue also has experience working within the legal sector. Earlier in her career, she was senior director for legal at PolyGram. In addition, she worked as an attorney for law firm Winthrop, Stimson, Putnam and Roberts. 

“I am thrilled to be joining DraftKings during this exciting phase,” Donoghue said. “I’ve long admired the organisation’s steady rise as an industry innovator. This is a special opportunity to expand on its industry-leading position and propel the company to new heights.”

DraftKings CEO and co-founder Jason Robins also welcomed the appointment. Robins said Donoghue will be a “transformative” force in DraftKings’ future success.

“We are delighted to welcome Marie to our executive team and the immense wealth of experience she brings as a highly regarded leader and trailblazer within our industry,” Robins said. 

“Marie’s exceptional track record speaks for itself. She is poised to be a transformative force in our company’s future success.”

Reports suggest DraftKing could partner Barstool on sports betting

The news comes as reports this week suggest DraftKings could link up with Barstool on a new sports betting initiative.

As reported by Sportico, the initiative would be a more traditional marketing partnership. Barstool would promote DraftKings odds and refer customers to the operator’s sportsbook. Barstool itself would not lend its name to a sportsbook or betting app.

Industry investor Chris Grove said in a post on LinkedIn that the deal would be of benefit to both DraftKings and Barstool, despite the latter not actually offering betting.

Grove also suggested such a partnership would be a blow to Penn Entertainment. Penn sold the Barstool brand back to its founder Dave Portnoy in August last year. Penn had been running Barstool as its sports betting brand since 2020.

Instead, Penn is now working with ESPN on the new ESPN Bet brand.

DraftKings CEO keeping a “close eye” on ESPN Bet launch

ESPN Bet is a product of a $1.5bn (£1.2bn/€1.4bn) deal between Penn Entertainment and Disney-owned ESPN, Donoghue’s former employer. It launched across 17 states back in November.

Speaking at the third annual Craig-Hallum Online Gaming Conference, Robins, said he is not concerned over the launch, despite ESPN Bet smashing records for sportsbook downloads. Instead, he said the addition of EPSN Bet to the mix could be good for the market.

However, Robins also admitted that he is “keeping a “close eye” on the launch.

“We watch this stuff very closely,” Robins said. “We’ve seen nothing to suggest that our trajectory is changing, but its obviously something we’re keeping a close eye on.”

The roadmap was made following discussions with stakeholders. It has three central pillars, all of which prioritise the protection of young people and reducing harmful gambling.

The first pillar will aim to reduce the number of people gambling excessively in France’s gambling market. ANJ said this pillar reflects a public health concern in France.

The second pillar will see ANJ work to continue to be transparent in regards to the integrity of the sector. The third is focused on improving the economic aspect of regulation.

Isabelle Falque-Pierrotin, president of ANJ, said the objectives of the strategic plan will be monitored over the three years.

“After three years of operation of the ANJ, we consider today that the regulation of gambling must take a turning point which implies that the market gradually pivots towards a less intensive model,” said Falque-Pierrotin. “This proactive objective of reducing the number of excessive gamblers and strengthening the protection of minors will be monitored over three years, adjusted based on monitoring indicators and prevalence studies.

“It can only be achieved if all the players join forces alongside the regulator to move the lines: gaming operators, public authorities, institutions, associations etc.”

Reducing gambling ad exposure

The regulator has set out a number of action points for each pillar. For the first pillar, ANJ plans to limit gambling ads for the public. This will have a focus on the most vulnerable groups – minors and those suffering from problem gambling.

ANJ will also encourage ethical advertising among operators and sponsors.

Following the UEFA 2020 European Championship, ANJ ordered operators to “immediately reduce” the number of ads they put out, stating that “a line was crossed” during the tournament. This led to a public consultation on gambling ads, which saw ANJ implement a crackdown in 2022.

ANJ will also refocus its compliance support policy and increase campaigns around the risks associated with gambling. The overall objective for this pillar is to move towards a less “intensive” model, which would reduce the amount of problem gambling behaviour within the gambling market.

Combatting illegal gambling

Within the second pillar, ANJ will implement a number of policies to combat illegal gambling. This will involve intervening with potential caveats for illegal gambling, including payment services, technology suppliers and other platforms.

It will also increase actions against money laundering and fraud, and develop a specific set of policies for operators offering JONUM – which are games with monetisable digital opjects.

In September 2023, a proposed bill called for the regulation of JONUM. Amendments to the bill – which mostly centred around distinguishing JONUM from gambling – were considered by MPs.

JONUM also features in action points for the third pillar. ANJ wishes to support developments in the games sector, particularly those related to JONUM. This will involve finding capacity to monitor new trends and ensuring these comply with player protection measures.

Alongside the three pillars, ANJ designed its strategic roadmap on three bases: making scientific market knowledge and data a priority; mobilising stakeholders in France and Europe; and ensuring ANJ is an exemplary regulator.