Gambling in the USA

5 Ways Investors are Betting on a 2019 Gambling Boom

Published

6 years ago

January 15, 2019

Photo Source: coindesk.com

FN Media Group Presents Safehaven.com Market Commentary

In May 2018, the Court struck down a U.S. Federal law that prohibited legal sports gambling, ruling that it was unconstitutional. Sports gambling can now be authorized and regulated by the States, not by the Federal Government. And it’s triggered a potential sports gambling revolution. Mentioned in today’s commentary includes: MGM Resorts (NYSE:MGM), International Game Technology (NYSE:IGT), Boyd Gaming Corporation (NYSE:BYD), Marriott International (NASDAQ:MAR), Millennial Esports Corp. (OTC:MLLLF).

In October, the state of New Jersey handled more than $250 million in bets, a 41% increase from the previous month. The Garden State is leading the way. Mississippi, Delaware, West Virginia, New Mexico, Pennsylvania, Rhode Island…the legal sports gambling world is growing by the day.

By 2022, sports fans around the world will be betting $1 trillion online every year. Profiting from this new industry doesn’t have to mean rolling the dice.

Here’s five stocks investors should watch because of the shift to legal sports gambling:

#1 MGM Resorts (NYSE:MGM)

Sports betting is small potatoes in Vegas: compared to blackjack earnings of $1.24 billion, legal sports betting only pulled in a paltry $329.1 million. But all that’s about to change, and major casino chain MGM Resorts (NYSE: MGM) is working to bring sports betting to the prime-time.

The biggest casino operator in the U.S. generates over $4 billion in revenue from Vegas alone. But it also has properties in Atlantic City, and just this year took over the Empire Casino in New York. It’s got a pretty sizable footprint in the sports betting world, raking in $114 million from sport betting on the Strip last year, 35% of the total.

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With a market cap of $13.5 billion, MGM has some deep pockets. And its using that financial muscle to corner the sports betting world. It’s already launched sports betting at two Mississippi casinos, and became the “official gaming partner” of the NBA.

MGM Resorts has solidified deals with the biggest leagues in the country: basketball, hockey and professional baseball have all signed on to allow MGM to cross-promote the company’s casinos and sports betting app. So far, MGM can only handle bets for teams based in states where betting has been formerly legalized.

By far the biggest prize is the National Football League, and MGM has already got its foot in the door. With Pennsylvania about to embrace legal sports betting, both the Philadelphia Eagles and the Pittsburgh Steelers will be fair-game.

#2 Bragg (BRAG.V; BKDCF)

Bragg Gaming Group (BRAG.V; BKDCF), formerly Breaking Data Corp., has an audience of 31 million for its media property, Give Me Sport (GMS). Together with its online global gaming platform, Oryx Gaming, BRAGG has plans to leverage the Give Me Sport audience into the largest sports gaming customer base on earth. Online gambling can be incredibly profitable, with one study estimating the gross market at $46.7 billion in 2018 and $89 billion by 2025.

GMS has a Facebook page with 26 million active, fanatic users. For comparison, ESPN has only 19 million, and it’s a major media brand, worth $28 billion. Or Sky Bet, a property that was just sold for $5.7 billion, which had only 819,000 viewers.

BRAGG hopes to tap into its huge audience, using the Oryx Gaming services to launch a new sports-centric betting platform, Give Me Bet. When Give Me Bet goes live, it will incorporate Oryx Gaming tech with the GMS brand, to deliver a catered on-line sports betting experience specifically for BRAGG’s audience.

BRAGG has seen strong growth in its two major assets, Give Me Sports and Oryx. Just in the last year, Oryx has seen revenue growth of more than 400%. Monthly traffic in the UK for Give Me Sport has increased by 5 million, with revenue growing 30%. If BRAGG (BRAG.V; BKDCF) taps a reasonable number of its huge potential audience, its earnings from sports gambling could be enormous.

This little company could be one of the biggest success stories of 2019.

#3 International Game Technology (NYSE:IGT)

This company has had a rocky year, climbing to a one-year high of $31 before falling to $14 in November, to stabilize in early December at around $16.

With a market cap of $3.4 billion and 12,000 employees, IGT is a big firm with a big footprint: it manufactures more casino gaming platforms and slot machines than any other company out there. But times are changing, and IGT is branching out into sports betting.

IGT is a service provider, which means it doesn’t have to handle the risk of managing sportsbooks. All it needs to do is fulfill the needs of companies like MGM, constructing infrastructure that make the boom in sports betting possible. In 2017, IGT handled more than $12 billion in sports betting. That should make IGT a safe bet for investors looking to score on sports betting in 2019.

In July, IGT announced a deal with popular sports betting platform FanDuel. IGT will bring FanDuel’s services to its existing platforms in markets across fifteen states. IGT is about to roll out PlayShot, a new service for sports betters, which will utilize FanDuel’s consumer-facing waging system, sportsbook.fanduel.com.

FanDuel plans to leverage IGT’s tech and its solid reputation to build its brand into the legal world of sports betting. So, after a rocky year, it’s more than likely that IGT’s fortunes will pick up in 2019, along with the share price.

#4 Boyd Gaming Corporation (NYSE:BYD)

Boyd Gaming is one of the largest casino operators in the US, with 29 gaming properties in ten states. Like MGM, Boyd is positioning itself to be a major player in the emerging sports gambling sector.

This company has some unique experience from the Vegas Strip: for the last decade, Boyd Gaming has handled the biggest sportsbooks in Sin City. And now that sports betting is legal, it’s preparing to branch out into other regional markets.

The company just signed a deal with MGM Resorts, the casino chain that’s trying to corner the sports betting market. The two companies have agreed to share online and mobile gaming platforms, with MGM offering up its online poker and casino gaming apps for Boyd’s sportsbook, in 15 states. The “unprecedented” deal could mark the beginnings of a sports gambling empire, managed by MGM and Boyd.

Boyd’s got a new sports betting app, BConnected, that its rolled out in three casinos. And like IGT, it’s signed a deal with FanDuel, leasing out its gaming properties for FanDuel’s mobile and online sports betting platform.

The deal covers all states where Boyd holds gaming licenses, excluding Nevada, and builds off of Boyd’s deal with MGM.

#5 Marriott International (NASDAQ:MAR)

One might not think a hotel chain would have much skin in the game, when it comes to sports gambling. But they’d be wrong. As one of the biggest hotel chains in the country, Marriott possesses marketing and rewards programs that casinos are eager to partner with. And as sports gambling grows around the country, sportsbooks holders like MGM and Boyd are going to want to partner with Marriott, to leverage the hotel chain’s customer base in order to rope in more business.

Marriott already has a sizable footprint in the casino world, with a licensing deal with JW Marriott Las Vegas Resort & Spa, as well as a number of casinos across the Caribbean. And in February 2018, the company announced plans to build a 4,000 room resort and casino, The Drew, in the heart of the Vegas Strip.

Marriott has suffered some bad press lately, taking a hit for a data breach scandal in December. But the stock is poised to bounce back, and could yield some excellent returns when sports gambling picks up and the national market grows and grows.

Other companies prepared to see huge growth as gaming takes off again:

Millennial Esports Corp. (OTCQB:MLLLF)

Millenial E-sports is a small company based in Toronto focusing on E-sports and E-gaming.

The Company doesn’t just focus on content creation and broadcasting, it also offers data analytics and execution tools.

In 2017, the company started providing analytics and business intelligence products for the e-gaming industry, and recently, the company has partnered with the likes of Aston Martin and McLaren but also with MotoGp and Formula E and has developed games for mobile platforms.

By. Meredith Taylor

Gambling in the USA

Expanse Studios (GMGI) Enters the U.S. Sweepstakes Market

Published

3 days ago

December 24, 2024

Zoltan Tundik

North American Expansion Kicks Off Through Strategic Partnership with Moozi

Golden Matrix Group’s game development division, Expanse Studios, has officially entered the U.S. sweepstakes market, marking a significant milestone in its North American growth strategy. This move is powered by a strategic content partnership with Moozi, one of the most dynamic sweepstakes social casino platforms in the region.

With Moozi now featuring over 50 of Expanse Studios’ top-performing games—including immersive slots, crash games, and table games—this partnership positions GMGI to capture a share of the $5.6 billion U.S. sweepstakes market, projected to more than double to $11 billion by 2025 (Eilers).

Damjan Stamenkovic, CEO of Expanse Studios, commented:

“This partnership signifies our formal entry into the U.S. market, showcasing the innovation and player-first experiences that define Expanse Studios. Collaborating with Moozi enables us to deliver advanced gaming content to a growing audience in North America, a key region for our global growth.”

James Anderson, Moozi’s CCO, added:

“Expanse Studios has set a high bar for engaging and innovative gaming experiences. Their addition to our platform elevates Moozi’s offerings and strengthens our mission to lead the U.S. sweepstakes social casino space.”

This launch underscores Expanse Studios’ commitment to innovation and its long-term growth trajectory in regulated markets. By entering the North American sweepstakes market, Expanse Studios takes a bold step in expanding its footprint while delivering cutting-edge gaming experiences.

Gambling in the USA

Arizona’s Tribal Gaming Contributions Reach $42.5 Million in Q2 FY2025

Published

4 days ago

December 23, 2024

Zoltan Tundik

he Arizona Department of Gaming (ADG) has announced an impressive $42,508,200 in tribal gaming contributions to the Arizona Benefits Fund for the second quarter of Fiscal Year 2025.

The Arizona Department of Gaming (ADG) has announced an impressive $42,508,200 in tribal gaming contributions to the Arizona Benefits Fund for the second quarter of Fiscal Year 2025. This milestone reflects the continued growth and success of the state’s tribal gaming industry, achieved through strong collaboration between the state government and tribal communities.

A Record-Breaking Year for Tribal Gaming

“This achievement is a testament to the strength of the partnership between Arizona and its tribal communities,” said Jackie Johnson, Director of ADG. “Consecutive record quarters in FY2025 highlight our shared commitment to fostering a thriving gaming industry. Since FY2004, total tribal contributions have exceeded $2.3 billion, significantly benefiting the state and its residents.”

Supporting Arizona’s Communities

The Arizona Benefits Fund receives 88% of tribal gaming contributions, channeling these funds into key areas that directly impact the state’s residents and natural resources. The Q2 FY2025 contributions will be allocated as follows:

Instructional Improvement in Schools: $21,186,087
Trauma and Emergency Services: $10,593,043
Wildlife Conservation: $3,026,584
Tourism Promotion: $3,026,584
Problem Gambling Education, Treatment, and Prevention: $850,164
ADG Operating Costs: $3,825,738

These contributions reflect the state’s commitment to using tribal gaming revenue for meaningful community support, from enhancing education and emergency services to preserving wildlife and promoting tourism.

A Growing Gaming Landscape

Arizona currently hosts 26 Class III casinos, regulated under the Arizona Tribal-State Gaming Compact. These casinos contribute a percentage of their gross gaming revenue to the Arizona Benefits Fund as well as to cities, towns, and counties. This model of tribal-state collaboration has proven instrumental in bolstering local economies and funding critical programs.

About the Arizona Department of Gaming

Founded in 1995, ADG is Arizona’s regulatory authority overseeing tribal gaming, racing, event wagering, and more. Beyond regulation, ADG is deeply committed to problem gambling education, offering support and resources to affected individuals and families through its Division of Problem Gambling and 24-hour helpline, 1-800-NEXT-STEP.

Looking Ahead

As tribal gaming contributions continue to break records, the partnership between Arizona’s government and tribal communities stands as a model for sustainable growth and mutual benefit. These contributions not only fuel essential state programs but also underscore the lasting value of collaboration in driving economic and social progress.

For a detailed breakdown of contributions by year and further information, visit the Arizona Department of Gaming’s official website.

Gambling in the USA

Industry veteran joins North American operator as chief interactive gaming officer to drive growth in iCasino states and efficiencies in its online sportsbook

Published

1 week ago

December 18, 2024

Wladimir P.

Delaware North, a global hospitality and entertainment company with a significant gaming division, has named industry veteran Lee Terfloth as chief interactive gaming officer as it pushes ahead with ambitious plans for its digital offering.

Terfloth has an impeccable track record across some of the biggest land-based and online gaming operators in North America, including Borgata, Resorts Digital, Hard Rock and, most recently, Prime Sports, where he was chief executive officer.

As chief interactive gaming officer at Delaware North, Terfloth will be responsible for two core objectives: Expanding the operator’s Betly mobile sportsbook and casino brand into additional iGaming states while also reviewing its sportsbook business to improve operational efficiency.

The appointment of Terfloth comes hot on the heels of news that Delaware North has chosen to migrate to Playtech’s powerful online sportsbook and casino platform in the states of Ohio, Arkansas, Tennessee and West Virginia.

Jason Gregorec, president of Delaware North’s gaming division, said:

“Lee Terfloth is a high-caliber senior iGaming executive who has played a key role in launching and growing interactive gaming divisions at some of the most established and renowned gambling operators in North America.

“We are delighted to be able to leverage this experience and knowledge as we ramp up our own online gaming division via our Betly brand, which has already gained traction in key online sports betting and iGaming states such as Ohio, Arkansas, Tennessee and West Virginia.

“I’d like to officially welcome Lee to the team and look forward to working with him as we deploy our ambitious plans for online gaming across regulated U.S. states,” Gregorec said.

Lee Terfloth, chief interactive gaming officer at Delaware North, added: “I’m thrilled to join Delaware North at a pivotal time for the business as it shifts up a gear with its activity in the online gaming space.

“Betly is an incredibly strong brand and now that we are migrating to the Playtech platform, we have the technological foundation to really level up our activity in terms of markets and the quality of the experience we offer to players.

“I have plenty of experience working with operators at this stage in their lifecycle and look forward to working with the incredible team we have in place to not only meet but exceed the goals the business has set for its interactive division,” Terfloth said.