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Technology Stocks : DraftKings, Inc. / Online Gambling -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (263)	5/15/2023 8:44:11 PM
From: Glenn Petersen	2 Recommendations Recommended By richardred sixty2nds Respond to of 282

A pair of sports betting deals has the gaming industry asking, ‘Who’s next?’ PUBLISHED MON, MAY 15 20234:07 PM EDT Contessa Brewer @CONTESSABREWER CNBC.com KEY POINTS -- Fanatics’ splashy $150 million acquisition of PointsBet’s U.S. business wasn’t the only deal in gambling in recent days — and it could be a sign of more to come. -- Aristocrat agreed to buy NeoGames at $29.50 a share, a 130% premium to NeoGames’ closing price Friday. -- Fanatics executive Matt King sees more consolidation on the way, but not at sky-high prices. Fanatics’ splashy $150 million acquisition of PointsBet’s U.S. business wasn’t the only deal in gambling in recent days — and it could be a sign of more to come. Fanatics on Sunday announced it has agreed to buy PointsBet’s U.S. assets, a long-rumored tie-up. Fanatics CEO Michael Rubin previously vowed to launch sports betting operations in every state where it’s legal, except New York. \ Buying PointsBet gives Fanatics market access in New York, along with some 14 other states, and importantly its iGaming, or online casino games, business in Michigan. For Fanatics, the deal really pays off when it comes to upfront licensing fees it would need to pay in new states. “We’re really able to save tens of millions of dollars worth of upfront license fees by leveraging PointsBets footprint versus going at it with a new footprint,” said Matt King, Fanatics CEO of Betting and Gaming, on Monday. King also said the cost to enter new markets has declined between 40% and 50% compared to where it was roughly three to five years ago. Now compare that to another blockbuster deal in the sector: the $1.2 billion acquisition of NeoGames by Aristocrat. The deal, announced Sunday, was for $29.50 a share, marking a 130% premium to NeoGames’ closing price Friday. Aristocrat is a global leader in attention-getting slot machines. With its purchase of NeoGames, it’s declaring its intent to compete in online lottery, casino and sports betting. As Jeffries gaming analyst David Katz wrote in a note Sunday night, ”[NeoGames] and the digital gaming group in general, is undervalued by the US market at present levels.” Still, he doesn’t expect higher valuations in the near future. Just as importantly, according to Katz, the recent deals raise the question of, “Who’s Next?” As the buzz over mergers and acquisitions dominates at gaming conferences, speculation has fallen on SportRadar, a global sports data provider, as a potential takeover target, as well as Gambling.com, an affiliate business that provides media content to funnel new depositors toward gaming operators. Rush Street Interactive, another frequent target of acquisition speculation as of late, is working to flex its muscle as an iGaming operator first, sports betting house second. At the SBC Summit, a top sports gambling conference, last week CNBC asked RSI CEO Richard Schwartz whether he’s entertaining offers. “We have an obligation to shareholders and to get the best return we can. And so we’re always open to evaluate opportunities,” he said, before highlighting the reasons why RSI would be attractive. Fanatics’ King agrees more consolidation is likely on the way. “There really is no new capital kind of coming into this category,” he said. “Anybody without a sustainable business model is going to be ripe for an acquisition.” But don’t expect sky-high prices when it comes to gaming acquisitions, King said. “I think certainly people’s price expectations have started to reflect reality,” he added. — CNBC’s Jessica Golden contributed to this report. Fanatics-PointsBet, Aristocrat-NeoGames deals could signal more ahead (cnbc.com)

To: Glenn Petersen who wrote (263)	6/16/2023 8:31:23 AM
From: Glenn Petersen	1 Recommendation Recommended By sixty2nds Respond to of 282

DraftKings makes $195 million offer for PointsBet, outbidding Fanatics PUBLISHED FRI, JUN 16 20237:33 AM EDT Jessica Golden @JGOLDEN5 Contessa Brewer @CONTESSABREWER CNBC.com KEY POINTS -- Sports gambling powerhouse DraftKings has made a $195 million, all-cash offer for PointsBet’s U.S. assets. -- The offer comes a month after Fanatics agreed to buy the Australian company for $150 million in an effort to boost its presence in sports gambling. -- Fanatics CEO Michael Rubin told CNBC after the announcement that he’s highly skeptical of the deal, which he views as DraftKings attempting to slow Fanatics down. Sports gambling powerhouse DraftKings has made a $195 million, all-cash offer for PointsBet’s U.S. assets, it said on Friday, as it looks slow down the rise of Fanatics. The offer comes a month after Fanatics agreed to buy the Australian company for $150 million in an effort to boost its presence in sports gambling. “While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalize on compelling opportunities at attractive valuations, as is the case with PointsBet’s U.S. business,” said DraftKings CEO Jason Robins in a statement. “We believe DraftKings is uniquely positioned to submit this superior proposal due to our scale and corresponding ability to generate meaningful synergies from the acquisition.” DraftKings, which is publicly traded, has a market cap of about $10 billion. Fanatics CEO Michael Rubin told CNBC after the announcement that he’s highly skeptical of the deal, which he views as DraftKings attempting to slow Fanatics down. “It’s a move to delay our ability to enter the market,” Rubin said. “I guess they are more concerned about us than I would have thought.” This story is developing. Please check back for updates. DraftKings offers to buy PointsBet for $195 million, outbidding Fanatics (cnbc.com)