In a new report to clients, B. Riley analyst David Bain points out that since the Fed commenced its tightening cycle in March 2022, shares of Caesars slid 50% compared to an average loss of 3% for the casino operators in his coverage universe. The only comparable gaming name that performed worse over that span was Penn Entertainment (NASDAQ: PENN), which tumbled 55%.

Bain also observed that despite the interest rate headwinds, Caesars’ 2024 estimated earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) is 18% higher than the reported 2022 figure. Other data points confirm the gaming company’s leverage to lower borrowing costs.

For every 100 basis points in lowered rates, CZR’s interest expense declines/free cash flow increases by $60 million. We believe CZRs could also look to refinance its $1.6 billion 8.125% fixed senior notes sometime next year, as rates are likely to continue to fall, in our view,” wrote Bain.

Some market observers believe the Fed could pare rates by 150 basis points by the second quarter of next year, implying Caesars could see a larger boost to free cash flow than $60 million before the end of the first half of 2025.

Caesars Can Make it Rain with Asset Sales

Earlier this year, Caesars CEO Tom Reeg said the operator is open to selling noncore assets to raise cash that could be used to reduce its debt burden. He didn’t elaborate on what those assets could be.

Bain speculated that Caesars could consider selling the Linq Promenade, the retail space adjoining that Strip property. Such a transaction could generate $700 million in proceeds, Bain said.

Caesars has already engaged in some sales this year. Last month, it announced the sale of the intellectual property rights associated with the World Series of Poker (WSOP) to investment firm NSUS Group Inc. for $500 million. That results in an immediate influx of $250 million in cash, with the remainder coming in five years.

Combine that with $250 million in capital spending coming off Caesars’ books and the casino giant’s financial position is steadily improving.

Caesars Could Embrace Buybacks

Bain estimates that by the end of next year, Caesars’ net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio should be below 3.5x with lease-adjusted debt below 5x. Should those objectives be reached, it could give the Harrah’s operator the flexibility to repurchase its stock.

Given the above and an enterprise value/EBITDA valuation of 6.3x (versus ~10.4x at the time of the Eldorado/CZR merger in 2020), we believe CZR is in a position to begin to repurchase shares, though we still expect a vast majority of incoming cash will be used to repay debt,” concluded? Bain.

The gaming company has $141 million remaining on a previously announced buyback program.

The post Caesars Set for Lower Rate Perks, Could Sell Linq Promenade, Says Analyst appeared first on Casino.org.

That’s the take of CBRE Credit Research Colin Mansfield and Connor Parks who in a new note to clients said the gaming company bolstered its financial flexibility with the recent sale of $850 million of corporate debt. Some proceeds from that transaction will go toward eliminating the operator’s 2025 maturities, meaning it now has no debt coming due before 2026.

The issuance clears out the 2025 maturities at MGM’s domestic box, with the next maturity being the $400 million due in late-2026,” according to the analysts. “Lease-adjusted consolidated leverage at MGM remains low at 4.3 times pro-forma for the issuance.”

The CBRE duo noted that MGM has the resources to work on multiple large-scale projects, including MGM Osaka in Japan, and potentially, converting Empire City Casino in Yonkers, NY to a traditional casino while also possibly pursuing gaming licenses in Thailand and the United Arab Emirates (UAE).

MGM Has Big Ambitions

Each of the projects mentioned above would likely be a multibillion-dollar venture. MGM has a 42.5% stake in the Osaka integrated resort scheme, which carries a price tag of $8 billion, and it could take several billion more to transition Empire City into a Las Vegas-style gaming venue if the operator wins one of the three downstate casino permits New York regulators could award next year.

“Each development would require multibillion-dollar investments and sizeable equity checks, though MGM can fund these via FCF (free cash flow) depending on their ultimate timing,” observed the CBRE analysts.

The analysts added that MGM “has balance sheet flexibility” should it need to issue more debt to deal with the possibility of overlapping timelines on various projects. The gaming company added $175 million to its already sizable cash-on-hand position via the aforementioned bond sale.

Where Dubai Fits in for MGM

MGM executives have consistently said the company would be interested in bidding for a gaming license in the UAE if that opportunity presents itself. Its MGM-branded hotel in Dubai is currently structured as a nongaming venue, but CEO Bill Hornbuckle told analysts and investors earlier this year that the operator said aside space for a casino, indicating it could quickly pivot if need be.

The operator has 150,000 square feet to work with at the Dubai property when it comes to adding a casino, but the company hasn’t commented on the cost of such an addition.

The post MGM Has Capital to Execute Big Projects, Analysts Say appeared first on Casino.org.

In a suit filed in the US District Court for the Eastern District of Pennsylvania, the MLB players union is seeking compensation and punitive damages from Bet365 and DraftKings. Separate litigation filed in the New York State Supreme Court, New York County targets FanDuel and Underdog Fantasy. The MLBPA described the defendants’ misuse of player images as “flagrant,” adding it could be harmful to the athletes’ long-term earnings potential.

For professional athletes, the ability to control the commercial use of their names, images, and likenesses is a crucial return on their substantial career investment,” said the union in a legal document.

Professional athletes, including MLB players, often appear in advertisements for companies across a slew of industries, but they’re compensated for doing so. Some athletes, both current and retired, have appeared in commercials for sportsbook operators. However, the MLBPA argues that some of its members may not want to appear to be endorsing wagering, which is the perception some bettors may have when seeing those players’ images splashed across a gaming company’s website or mobile app.

For DraftKings, Second Players Union Suit

Specific to DraftKings, this is the second lawsuit from a players union faced by the company. A suit filed last month by the NFL Players Association (NFLPA) implies the Boston-based gaming company owes that labor group as much as $65 million over a nonfungible tokens (NFTs) deal gone bad.

The baseball players union said the gaming companies don’t use NFL players’ images on their platforms, and that the only reason they use baseball players’ images is as a means to entice bettors.

“Defendants’ use of player images within their sportsbook platforms is not merely informational — it is promotional,” the union’s lawyers said in the complaint. “Users could bet that the Phillies will beat the Marlins, or that Bryce Harper will hit more than two home runs in a given game, without seeing Harper’s valuable image. Indeed, both DraftKings and Bet365 offer the same types of bets in other sports without using player images.”

Player Images Increasingly Valuable

Advertising and promotions in the forms of cash or free bets are key components of how sportsbook operators attract new bettors, and high market-share betting firms such as DraftKings and FanDuel are known for their prolific use of celebrity endorsers.

While quantifying what an individual athlete’s name and image are worth is difficult because it’s a sliding scale between higher-profile and lesser-known profiles, some companies pay significant sums for use of pro athletes’ names and images.

It’s estimated that the MLBPA and NFLPA generate hundreds of millions in annual revenue from licensing pacts with video game publishers while trading card companies pay tens of thousands per player across the major sports.

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On a recent episode of the “Full Send” podcast, the UFC boss estimated that between January and March, he won $26 million to $27 million playing baccarat at Caesars Palace on the Las Vegas Strip.

Caesars Palace … I clipped these guys for $1 million a night from, like, the first week of January all the way into March,” said White. “I beat these guys for like $26 million, $27 million.”

He added “Caesars is gangster” and is the place to play for high-level gamblers.

Caesars allows White to play $350K per hand — a limit extended to him and a small amount of other well-heeled clients. At that level, winning $1 million or more in a night is plausible. It’s also feasible that a bettor could lose substantial sums, and White acknowledged there are nights when a bettor can get “wrecked” betting well into six figures per hand.

White is a Longtime Caesars Fan

White’s methodology, which he reiterated on the “Full Send” podcast, is possibly irksome to some casino operators. If he wins three hands in a row, he takes his winnings and leaves.

That makes for a $1 million+ night for him and a loss of the same amount for the casino that he “victimized.” As a result, many Las Vegas casinos refuse to take White’s action, which is why he’s long been devoted to Caesars and MGM Resorts International’s Bellagio. On the podcast, he said Caesars will allow him to bet $350K per hand while Bellagio will go as high as $400K.

Off the Strip, White is known to frequent Red Rock Resort in Summerlin, though he told “Full Send” he plays there at much lower limits because he’s that venue’s only client with the ability to play deep six figures per hand. Red Rock Resorts (NASDAQ: RRR) is controlled by Frank and Lorenzo Fertitta, who were early UFC Investors.

White Still Wants to Play $1 Million a Hand

Despite the fact that his biggest losing night was $8 million, White reiterated his longstanding goal of eventually betting $1 million per hand.

“That’s my goal. That’s my goal in life before I die,” said White on the podcast.

He said under that dream scenario, he’d want a casino to extend to him $30 million in credit so he can play $1 million a hand, but he acknowledged no gaming venue anywhere in the world is likely to indulge him.

The post Dana White ‘Clipped’ Caesars for $26M-$27M on Baccarat Earlier this Year appeared first on Casino.org.

Citing two unidentified sources close to the matter, CFTN reported Monday that the Hart-Scott-Rodino (HSR) Act guidelines pertaining to the deal will expire Monday night, with no need for Standard General to file a second request with federal regulators.

Under the Hart-Scott-Rodino (HSR) Act, parties to certain large mergers and acquisitions must file premerger notification and wait for government review. The parties may not close their deal until the waiting period outlined in the HSR Act has passed, or the government has granted early termination of the waiting period,” according to the Federal Trade Commission (FTC).

Standard General — the hedge fund that’s the largest investor in Bally’s — floated a $15 per share takeover offer in March. That was upped to $18.25 a share, which the regional casino operator accepted in July.

Standard General Bally’s Buy Not Big Enough to Draw FTC Concern

The proposed deal assigns an enterprise value of $4.6 billion to Bally’s and while that isn’t a small amount of money, it’s not the price point at which the FTC would consider making the buyer make adjustments to the initial deal structure.

For example, the FTC sued to block the $24.6 billion merger of Albertsons and Kroger — the largest deal on record in the grocery store industry — because it’s anticompetitive. Some states have taken up that mantle, too, and have launched their own antitrust investigations into the merger.

Some Democrat donors have reportedly encouraged Vice President Kamala Harris to fire Khan should the former win the presidential election in November. The Harris campaign hasn’t publicly said if such a move is on the table.

Next Steps for Standard General

With federal antitrust concerns apparently not an issue, the next step for Standard General is dealing with regulators in the states in which Bally’s operates land-based casinos. Those are Colorado, Delaware, Illinois, Indiana, Louisiana, Mississippi, Nevada, New Jersey, and the gaming company’s home state of Rhode Island.

Standard General is aiming to have the Bally’s acquisition wrapped up in the first half of 2025.

The post Standard General Bally’s Acquisition Unlikely to Face Antitrust Threats appeared first on Casino.org.

Shares of the prospective seller posted a double-digit gain in London trading on Monday after media reports surfaced indicating the two companies could reach an agreement in the coming days. Should that price be what Flutter offers, it would represent the entirety of Playtech’s market capitalization.

Speculation regarding Flutter’s interest in Snaitech began last month with Playtech ultimately confirming it was in talks with the Paddy Power owner.

Snaitech is one of the largest gaming companies in Italy and should Playtech shed that entity, the seller would have no consumer-facing operations, allowing it to focus on its business-to-business technology offerings. Playtech’s Monday surge was aided by news that the company reached an agreement with Mexican gaming firm Caliente regarding a long-standing argument over payments purportedly owed to Playtech. It’s also possible that if Playtech sells Snaitech, bidders could emerge for the former’s tech business.

The sale of Snaitech, will leave Playtech as a business-to-business provider of software, and, according to analysts, is likely to result in a formal takeover bid in the medium term,” reported Mark Kleinman for Sky News.

Last month, Playtech granted Flutter a period of exclusivity to perform due diligence on Snaitech, indicating the seller is not yet fielding offers from other suitors.

Snaitech Buy Keeps with Flutter Tradition

Should it reach a deal for Snaitech, the purchase would extend Flutter’s tradition of deal-making that’s allowed the operator to bolster its footprint in Europe, including in Italy where it’s already one of the largest gaming operators.

Italy is an attractive market for a company for multiple reasons. It’s the third-largest economy in the Eurozone and is Europe’s largest regulated gaming market outside of the UK, meaning a presence there diversifies Flutter’s revenue stream while reducing reliance on the UK.

Although it’s already a large market within the European wagering scene, Italy is rapidly growing thanks to the evolution of iGaming, a sector in which Snaitech has some leverage. Snaitech also operates in Austria and Germany, but is a smaller player in those countries.

Flutter’s Been Acquisitive of Late

Snaitech isn’t the only potential acquisition Flutter is working on. Last week, the company said it’s spending $350 million in cash to buy a 56% stake in Brazil’s NSX Group, which controls the popular Betnacional brand in that country.

Flutter is the parent of FanDuel, the largest online sportsbook operator in the US.

The post Flutter Deal for Playtech Consumer Biz Reportedly Imminent appeared first on Casino.org.

NSX operates the Betnacional brand. Including Betnacional, NSX is the fourth-largest iGaming and online sportsbook company in Brazil. Importantly to Flutter, the target is already profitable. Flutter said NSX is expected to generate 2024 revenue of $256 million on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $34 million.

The $350 million transaction, which was announced last Friday, is scheduled to close by the second quarter of 2025.

NSX Buy Could Be Smart Move by Flutter

Flutter taking a stake in NSX could prove to be a prescient move because Brazil is slated to fully regulate its iGaming and online sports betting markets at some point next year.

That’s expected to open the floodgates for international operators to bid for licenses in the country. Flutter has an advantage because it’s already established in Brazil, but partnering with a local company like NSX could be viewed favorably by regulators and it’s a move some rivals have signaled they’ll employ as well.

“Strong demand for sports betting and iGaming products with compound annual gross gaming revenue (GGR) growth in the unregulated market of 38% since 2018, to almost $3 billion in 2023,” according to a statement issued by Flutter.

Brazil’s Booming Gaming Market

In the eyes of many US investors, Flutter is viewed as the parent of FanDuel — the largest online sportsbook operator in this country – and while that’s accurate, the company has a massive international footprint that includes exposure to Australia, Europe, and Latin America.

“Flutter Brazil will be exceptionally well positioned to take full advantage of the significant growth opportunity in the newly regulating Brazilian market,” concluded Flutter in the statement. “In line with our successful strategy in other newly regulated markets such as the US, we expect to drive market share growth and embed future profitability through disciplined customer investment. This is expected to result in a Flutter Brazil adjusted EBITDA loss of approximately $90 million to $100 million in 2025.”

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At an event earlier this week celebrating the venue’s first anniversary in the Illinois town, General Manager Jahnae Erpenbach reiterated that a hotel is still part of the long-term plans for the venue, but evaluating demand is critical when it comes to deciding when to make large-scale additions to the property, which is one of the newest casinos in the state.

We need to make sure we balance the demand in our ability to do that,” she said at the event.

The casino is a joint venture between the Wilmot family and Tilman Fertitta, whose Fertitta Entertainment Inc. (FEI) controls the Golden Nugget brand.

Strong Start for Golden Nugget Danville Without Hotel

Casinos and hotels are often joined at the hip, but there are dozens of examples of gaming venues across the US that don’t feature guestrooms. That’s often the result of market factors, including population and the ability of the surrounding region to attract conventions and tourists.

Those are financial boons for Danville, which was banking on the gaming venue to lift it out of a public pension liability mess. Wilmot added that about half the visitors to Golden Nugget Danville since doors opened hailed from outside of Illinois.

That’s important because the property could face competitive pressure from Churchill Downs’ Terre Haute Casino Resort in Indiana, which is about an hour’s drive southeast of the Golden Nugget. Erpenbach acknowledged there was some impact to the Golden Nugget when Churchill opened the Indiana casino hotel in April, but that property won’t disrupt long-term plans in Danville.

Sportsbook Off Table Over Near-Term

Erpenbach added that the hope is Golden Nugget Danville will eventually have a retail sportsbook, but that appears unlikely over the near- to medium-term because DraftKings already has a land-based presence in Illinois and would be required to shell out another $10 million for a license to run a sportsbook at Golden Nugget Danville.

With the gaming company grappling with higher taxes in the state, that licensing fee isn’t economical, particularly when accounting for the fact that in Illinois, like the rest of the US, the bulk of sports wagers are placed online, not in person.

DraftKings and Golden Nugget have a relationship by way of the former’s 2022 acquisition of Golden Nugget Online Gaming (GNOG), which made Fertitta one of the largest shareholders in the online sportsbook operator.

The post Golden Nugget Danville Hotel Possible, Sportsbook Prospects Murky appeared first on Casino.org.

The decision arrived three years after the two companies struck an accord to develop a “mini casino” in what was previously a Macy’s department store at the Nittany Mall — a shopping venue located just five miles from Penn State’s campus. Bally’s wasn’t eligible to bid on the license when the auction was held four years ago, but Ira Lubert — the sole owner of SC Gaming — was eligible due to his stake in Rivers Casino Pittsburgh. He was the winning bidder and later partnered with Bally’s, agreeing that the gaming venue would bear the regional casino operator’s brand.

Amid Bally’s shifting corporate priorities, the agreement was scuttled and Lubert is making clear to state regulators that he has the financial resources to advance the project on his own.

As a part of the Pennsylvania Gaming Control Board’s application and approval process, I demonstrated to the Board my resources and capability to independently develop and operate this casino project without reliance on a third party, including Bally’s,” he said in a statement.

Lubert developed the Valley Forge Casino Resort during the global financial crisis and has a 3% stake in Rivers Pittsburgh.

A Lot’s Changed for Bally’s in Three Years

When? Bally’s and SC Gaming decided to team up on the Pennsylvania mini casino three years ago, the project was inline with the casino operator’s prior ventures. Since then, however, Bally’s rapidly became more ambitious, targeting larger, more expensive developments in bigger cities.

While the future of the Tropicana site is in flux and there are no assurances that Bally’s will procure a downstate permit in New York, the Chicago venture alone requires significant attention from the gaming company, indicating shedding of smaller projects, such as the Pennsylvania mini casino, could be prudent at this time.

Additionally, in July, Bally’s agreed to be acquired by Standard General — the hedge fund that is the gaming company’s largest shareholder. Such a transaction wasn’t on the table three years ago when the operator agreed to work with SC Gaming on the Nittany Mall casino.

Bally’s Has New Vision

Prior to Bally’s accepting the Standard General takeover offer, some shareholders criticized the company for becoming financially strained and placing too much emphasis on expensive projects in Chicago, Las Vegas, and New York. Some investors argued that some or all of those projects should be abandoned in the name of cost savings.

Some cost efficiencies are likely to be realized by dropping out of the Pennsylvania mini casino partnership, but Bally’s didn’t quantify that. With Chairman Soo Kim, the founder of Standard General, likely to take on a larger day-to-day role in Bally’s operations, it’s possible more cost-cutting moves will take place, but that remains to be seen. It is, however, clear that the Nittany Mall casino didn’t fit with Bally’s new vision for its future.

“The termination of the framework agreement aligns with Bally’s long-term strategic goals and allows the company to allocate resources towards other priorities. Bally’s remains confident in its ability to adapt and thrive in the ever-changing market,” said the company in the press release.

The post Bally’s Won’t Participate in Casino Near Penn State Campus appeared first on Casino.org.

Weakness in China’s economy — the world’s second-largest — is a credible reason for market participants to avoid Chinese stocks and Macau gaming names such as Wynn Macau. However, Stifel analyst Steven Wieczynski argues that investors are currently ascribing no value from Macau or the operator’s United Arab Emirates (UAE) project to the stock. That scenario is “ridiculous,” says the analyst.

We do believe current trading levels of WYNN shares are essentially pricing in almost zero value for their Macau assets (as well as their UAE project), which we believe is way too pessimistic/Draconian,” wrote Wieczynski in a new report to clients.

Wieczynski added that while he lowered estimates on Wynn’s Las Vegas and Macau integrated resorts, he views the stock as attractive and recent weakness as a potential buying opportunity. He reiterated a “buy” rating while paring his price target to $103 and $121. Even with that reduction, the new forecast implies upside of about 35% from Thursday’s close.

Wynn, Other Macau Stocks Are Deeply Discounted

For the better part of five years now, Wynn Macau and shares of the other concessionaires in the Special Administrative Region (SAR) have struggled, and those woes intensified this year amid lethargy in the Chinese economy and worries ahead of the US presidential election.

“We get it as to why investors don’t want to look at WYNN right now as there are fears out in the marketplace about the China macro backdrop coupled with fears around the health of the U.S consumer. But based on where shares are trading today, we believe the market is more than discounting enough potential headwinds for this name,” Wieczynski added.

He also noted that while Macau equities are likely to move in fits and starts, Wynn should be able to extract considerable long-term value in Macau due to the operator’s focus on higher-margin gaming segments and cost controls.

Wynn Stock Has Catalysts

Macau stocks are clearly moribund, and with Wynn down 16% over the past 90 days, it would be easy for investors to be dismissive of the shares. That view, however, ignores the point that the stock has tailwinds, including the Wynn Al Marjan Island project in the UAE.

Wieczynski argued that the venture, which is positioned to be the first regulated casino hotel in the Arab world, currently isn’t reflected at all in Wynn’s stock price even though it could eventually be worth $10 to $17 a share in today’s dollars.

“We would note WYNN is doing an extensive (three plus hours) investor day/presentation in early October out in Las Vegas,” concluded Wieczynski. “We believe WYNN will spend a considerable amount of time going through their long-term growth opportunities with a specific focus around their UAE project. We don’t believe WYNN management would be holding such a detailed investor event unless they were confident in the long-term financial benefits this project should bring.”

The post Wynn Stock Getting No Macau, UAE Credit ‘Ridiculous,’ Says Analyst appeared first on Casino.org.

This week, detractors and supporters of the Long Island casino plan made their voices heard to the Nassau County Legislature. Public comment is essential because some opposition groups previously accused the county and the gaming company of operating in backroom fashion. Last year, the New York State Supreme Court ruled the lease transfer agreement on the coliseum between the county and Sands violated state open meeting laws.

While Nassau County is providing more avenues for residents to endorse or voice concerns about the casino plan, some groups it cannot be overlooked that construction of an integrated resort could violate New York’s State Environmental Quality Review Act (SEQRA).

The abounding harmful impacts of this massive casino are clearly unmitigable and should have informed any decisions on land control,” said Say No To The Casino, a civic group that’s long opposed the project, in a press release. “The SEQRA process should not only have been completed prior to entering into any lease with Las Vegas Sands, but also should have included the impacts of the $4B NYU Langone proposal at Nassau Community College.”

The organization added that a recent study noted Long Island’s drinking water supply is being threatened by climate change and over-pumping — scenarios that would be worsened by building a large-scale casino hotel.

Environmental Review to Sands Long Island Casino Plan

The environmental review, which is currently ongoing, is vital to Sands’ Long Island casino ambitions on multiple fronts, not the least of which is that under New York law, the lease transfer on Nassau Coliseum between the county and the gaming company cannot be finalized until the review is complete.

Additionally, should the review turn up issues and vulnerabilities, the county and Sands could work to address those matters assuming the process is completed in timely fashion.

On the issue of time, Nassau County and Sands may have that on their side because it appears increasingly likely that there will be no action on opening the bidding window for the three downstate permits until the middle of 2025 at the earliest.

Charges of ‘Environmental Racism’

Climate and environmental concerns are part of the territory with new casino hotel projects and that’s true regardless of location.

It’s equally as common for groups opposing those projects to leverage environmental worries to drive home their points. Say No To The Casino may be doing that and it’s calling attention to risks to minority communities stemming from the casino plan.

“We find it ironic that the same politicians who claim to want to ‘Save Our Suburbs’ are among the loudest voices in favor of forcing the country’s second largest casino, and the boundless long-term negative environmental, economic, and social consequences, into our community,” according to the group. “The brunt of the impact would be shouldered by the vulnerable minority communities that surround the HUB. Erecting this casino would be nothing short of environmental racism.”

The post Sands Long Island Casino Plan Draws ‘Environmental Racism’ Critique appeared first on Casino.org.

District Court Judge Jia Cobb recently ruled in favor of Kalashi, which the Commodity Futures Trading Commission (CFTC) previously blocked from offering election markets. The CFTC regulates the company and others like it. Kalashi sued the commission in 2023, arguing it overreached when it barred the exchange from offering cash-settled election outcome contracts. Last than two months before the 2024 presidential and congressional elections, Cobbs ruling was released. In it, the judge pointed out that the contracts offered by Kalashi are neither gaming nor an illegal act.

This case is not about whether the Court likes Kalshi’s product or thinks trading it is a good idea,” Cobb stated in her opinion. “The Court’s only task is to determine what Congress did, not what it could do or should do. And Congress did not authorize the CFTC to conduct the public interest review it conducted here.”

Soon after Cobb’s ruling, two election-related? betting markets went live on Kalashi — one each on whether Democrats or Republicans will have control of the House and Senate after the Nov. 5 elections.

Interactive Brokers Election Betting Access Could Be Boon for Bettors

To date, betting in the traditional sense on US elections has been illegal in this country, but some companies have been able to get into the election game by doing things differently. For example, Polymarket has seen a surge in interest, helped in large part by the 2024 election, by allowing clients to purchase shares in an event and because the shares are an asset, the asset does not constitute a bet.

For bettors and market participants that want to invest in the 2024 election, the access provided Interactive Brokers could prove crucial. The company runs the largest electronic trading platform in the US, procession more than three million trades per day and is regulated. Interactive Brokers has more than 1.7 million client accounts, indicating there could be significant profit potential in allowing clients to wager on elections.

The demand is there. As of early August, data indicated more than $1 billion had been wagered on the US presidential race in gray market venues such as PredictIt and Smarkets.

Interactive Brokers Has Relevant Experience

Interactive Brokers has experience in finance-related event contracts. It recently launched its ForecastEx platform, which allows bets on economic data such as consumer sentiment, inflation, and the monthly jobs reports.

Other financial services firms are getting into the game, too. Earlier this year, trading house Susquehanna International Group commenced making markets on Kalashi relating to the Federal Reserve’s plans for interest rates and movie reviews.

Still, some groups believe election betting isn’t appropriate and could weaken democracy.

“Democracy in America is at a fragile crossroads, with more Americans questioning the integrity of elections than ever before” said Cantrell Dumas, director of derivatives policy at Better Markets, in a statement. “The shocking attack on the Capitol on January 6, 2021, is just one glaring example, but across the country, less visible incidents continue to chip away at the public’s confidence in our elections and democracy itself. In this shaky political moment, the last thing our country needs is for democracy to be undermined further by allowing gambling on elections.”

The post Interactive Brokers to Debut Election Betting as Kalshi Scores Legal Win appeared first on Casino.org.

At the Goldman Sachs Communacopia and Technology Conference, Fox CEO Lachlan Murdoch said the media company is proceeding with plans to take an 18.6% interest in FanDuel, the rights to which were acquired in 2020 when Flutter doled out $12.2 billion for The Stars Group (TSG). Fox sold Sky Bet to TSG in 2018 for $4.7 billion, taking an equity stake in the buyer.

Murdoch told attendees at the conference that Fox values FanDuel at $35 billion, meaning 18.6% is worth $6.5 billion. Assuming he’s correct and FanDuel is worth $35 billion, that implies the gaming company is worth $17.22 billion more than DraftKings (NASDAQ: DKNG), its most direct competitor. At the close of US markets on Wednesday, DraftKings sported a market capitalization of $17.78 billion.

Fox Won’t Leave $2 Billion on the Table, Says Murdoch

That $6.5 billion figure is well in excess of the $4.3 billion Fox previously estimated it would need to pay to exercise its rights to acquire 18.6% of FanDuel. To buy that portion of FanDuel, Fox must be a licensed sportsbook operator in the states in which FanDuel does business. Murdoch mentioned at the Goldman Sachs conference that the company is working to address that issue.

We’re not going to leave $2 billion on the table,” he said.

It’s clear FanDuel has appreciated in value. Following a legal spat in 2022 between Flutter and Fox, the latter agreed to buy that 18.6% of FanDuel for $3.72 billion with a 5% annual escalator, meaning that for each year the option wasn’t exercised, the price would go up 5%.

“FOX has a 10-year call option that expires in December 2030 to acquire 18.6% of FanDuel for $3.72 billion, with a 5% annual escalator,” according to a November 2022 statement issued by the media firm. “FOX has no obligation to commit capital towards this opportunity unless and until it exercises the option.”

Murdoch said Fox has already initiated the process of procuring state gaming permits.

“We’ve begun the process with state regulators,” Murdoch said. “To fully monetize the option, we need to be licensed as a gaming operator, even with only with only 18.6% and so we’ve started that process with state regulators to begin the gaming licensing approvals.”

Where’s Fox Going to Come up with $4.3 Billion?

Murdoch didn’t get into specifics of how Fox would come up with the $4.3 billion needed to activate its FanDuel stake. Coincidentally, the media entity had $4.31 billion in cash and cash equivalents at the end of fiscal 2024.

He didn’t mention the possibility of selling debt to fund acquisitions or the purchase of the FanDuel interest.

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At the Bank of America’s Gaming and Lodging Conference last week, Robins acknowledged DraftKings customers scoffed when it proposed a small levy on winning sports bets placed by clients in Illinois, New York, Pennsylvania, and Vermont to deal with the elevated taxes in those states.

Clearly, this was something that our customers — they didn’t like this type of solution,” Robins said at the conference. “Our thinking behind it was, well, we can invest more in promo for you and other things because we’re going to be collecting more upfront. But we got feedback that people didn’t like this particular solution, so we changed it.”

After announcing the surcharge plan on August 1, DraftKings reversed course less than two weeks later as none of its rivals followed suit. Though the company didn’t say the two events were linked, DraftKings scrapped the surcharge plan on August 13, the day on which FanDuel parent Flutter Entertainment (NYSE: FLUT) reported second-quarter results and told investors it had no plans to follow its competitor on the tax on winning bets gambit.

Robins Looking for Ideas to Contend with High Taxes

While Robins didn’t mention specific ideas, he said the gaming company he co-founded is examining avenues through which it can better contend with some states’ high taxes on online sports betting.

“The bottom line is, at some point, I guess it depends on what happens in other states, but I don’t think that in perpetuity, it will make sense for anybody to completely just eat any tax increase that happens anywhere,” said Robins at the conference.

Some analysts have speculated that either or both of Illinois and New York could pass iGaming legislation next year, and that would be an avenue through which operators such as DraftKings could offset some of their sports betting tax exposure.

Other Legislative Issues Confounding Gaming Companies

Shares of DraftKings are up 5.47% year to date – a tepid showing relative to some peers and broader domestic equity benchmarks. One reason the stock has been lethargic in 2024 is because there’s been little of note in terms of positive legislative action.

“DKNG’s total addressable market should increase over the next 3-5 years as states legalize sports betting,” noted Zacks Equity Research. “As budget deficits continue to balloon, more states will likely turn to sports betting as a much-needed tax revenue source.”

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On a recent edition of “The Greg Hill Show,” Boston sports talk radio host Courtney Cox said there are three finalists who could acquire the Celtics: Amazon founder Jeff Bezos, Boston Red Sox President Sam Kennedy, and Encore Boston Harbor. Located in Everett, Mass., Encore Boston Harbor is Wynn’s lone US casino hotel outside of Las Vegas. The property is the holder of the first sportsbook license in state history.

Kennedy’s potential involvement implies it would be Fenway Sports Group, which owns the Red Sox and the NHL’s Pittsburgh Penguins, among other sports interests, that makes a bid.

Bezos being interested in the Celtics isn’t surprising as he’s long coveted a professional sports franchise. Last year, he was among the bidders for the NFL’s Washington Commanders, but the team was ultimately sold to another group.

Wynn Resorts Buying Celtics Seems Iffy

The unidentified source cited by Cox isn’t from Boston and Wynn hasn’t commented on any interest in buying the Celtics or any other professional team.

Speculation that the gaming company could be mulling a bid for the team may be attributable to the operator’s hopes of expanding Encore Boston Harbor and the surrounding area. There’s been chatter that such an effort, if approved, could include a new arena for the Celtics and Boston Bruins. There’s also been scuttlebutt that the basketball team could relocate its offices to Everett.

As for the NBA allowing an owner with gaming interests, that’s not an issue. Golden Nugget boss Tilman Fertitta owns the Houston Rockets and Dr. Miriam Adelson and Patrick Adelson recently acquired majority control of the Dallas Mavericks. Adelson is the largest Las Vegas Sands (NYSE: LVS) shareholder, and Dumont is president and chief operating officer of that gaming company.

Steve Wynn an Unlikely Bidder

Born in Connecticut, Steve Wynn is a native New Englander and could well be a Celtics fan, but for now, his possible involvement in acquiring the Celtics appears to be mere speculation.

Assuming the Celtics’ sale price were to approach $5 billion, that might be too rich for Wynn’s blood, but it would be easily affordable for Bezos. One of the richest people in the world, Bezos is worth an estimated $190.4 billion.

The post Wynn Rumors, Including Steve, Hover Around Celtics Sale appeared first on Casino.org.

GambetDC was previously the lone mobile sports wagering application in the US capital city. However, due to a spate of controversies and disappointing performance, Intralot outsourced the operation of its app to Flutter Entertainment’s FanDuel, which took control in April. FanDuel paid a $5 million conversion fee to the Office of Lottery and Gaming (OLG) to take over for Intralot.

That set the stage for FanDuel to explore terminating its contract with the OLG, and for the likes of Caesars Sportsbook and BetMGM to offer mobile sports wagering in the city. As a result of that expansion, Caesars was able to land the kiosk business.

Caesars Familiar to DC Bettors

While Caesars doesn’t operate a land-based casino in Washington, DC, bettors are familiar with the gaming company and its brand. Before offering mobile sports wagering there in July, the company opened a retail sportsbook at Capital One Arena in 2021 – the first sportsbook in a US professional sports team’s home court or stadium.

Our self-service betting kiosks are an excellent addition to our sports wagering options in DC,” said Caesars Digital President Eric Hession in a statement. “Whether sports fans prefer a traditional ticket-in-hand wagering experience or want to simply deposit cash for their mobile app account, our kiosks enhance the premier sports betting experience we offer through the combination of options and convenience that supports dozens of small businesses locally.”

In addition to being able to use the kiosks to place wagers, bettors can also use the machine to add funds to their Caesars Sportsbook mobile accounts. Bets placed via kiosks are also eligible for rewards credits in the Caesars Rewards program.

The kiosks are located throughout the city and are found in bars, taverns, restaurants, and at official lottery retailers.

Caesars Branding Could Help Allay Kiosk Concerns

When the city opted to expand its mobile sports betting market, retailers that are home to the kiosks expressed concern that the move would diminish the appeal of the devices, thus pinching an important revenue stream.

In its press release, Caesars didn’t touch on that issue, but it’s possible the gaming company’s well-known brand and iconic logo will entice bettors to continue using the kiosks.

Financial terms of the gaming company’s deal with the OLG weren’t disclosed.

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Recent media reports suggest that new Prime Minister Paetongtarn Shinawatra is poised to bring a casino policy statement to parliament as soon as this week, and that the package is likely to include a directive calling for as many as seven gaming venues to commence Thailand’s foray into regulated gaming.

Should related speculation about the creation of seven integrated resorts, including three in Bangkok prove accurate, those numbers would top previous scuttlebutt. Earlier this year, there was chatter that should Thai policymakers approve casino gaming — an increasingly likely prospect — the country would start with five casino hotels. That plan called for two gaming venues in Bangkok, and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket.

Bangkok Could Be an Alluring Casino Center

An article published by The Nation on Monday featured comments from Deputy Secretary-General to Prime Minister Suksit Srichomkwan indicating that the casino legislation under consideration by the Thai cabinet provides for three integrated resorts in Bangkok.

Assuming long-term return on investment in the high teens or low 20s in percentage terms – a common goal in the gaming industry – a $3 billion licensing fee would likely be palatable to numerous gaming companies, including US-based firms Las Vegas Sands, MGM Resorts International, and Wynn Resorts. All three have expressed some interest in Thailand.

The aforementioned legislative package also includes stipulations that casinos command no more than 10% of an integrated resort’s square footage and that gaming venues outside of Bangkok will carry an initial licensing fee of $1.5 billion.

Bangkok Casinos Matter for Other Reasons

The Thai government’s commitment to allowing casino resorts in Bangkok is important for other reasons. First, it’s the most populous city in the country, thus making it desirable for operators.

Speaking of Japan, Thai lawmakers backing the country’s casino ambitions are hoping to speed up the legislative process so that their nation’s first gaming venues open before MGM Osaka does in 2030.

The post Thai Government Eyes Bangkok for Three Casinos appeared first on Casino.org.

The newly issued senior notes mature in 2033 with an interest rate of 6.25% and are “guaranteed by all of Wynn Resorts Finance’s domestic subsidiaries” except Wynn Resorts Capital.

Wynn Las Vegas, LLC will use the amounts to (i) redeem in full Wynn Las Vegas and Wynn Las Vegas Capital Corp.’s 5.500% Senior Notes due 2025 (the “2025 LV Notes”) and (ii) pay fees and expenses related to the redemption and (b) use the remainder of the net proceeds for general corporate purposes, which may include covering all or a portion of the $130 million forfeiture under the non-prosecution agreement described in our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 6, 2024,” according to a statement issued by the gaming company.

Last Friday, Wynn disclosed to investors that it reached a $130.13 million settlement with the Justice Department — the largest-ever penalty applied to a single domestic casino — “based on admissions of criminal wrongdoing,” according to DOJ.

Wynn Bond Sale Implies Swift Payment of DOJ Penalty

While the gaming company didn’t comment on exactly when it will pay the $130.13 million it owes to the government, noting that some proceeds from the bond sale could be used for that purpose implies the casino operator could swiftly deal with that obligation.

In one example highlighted by the DOJ, Wynn Las Vegas permitted a Chinese patron who “had spent six years in prison in China for conducting unauthorized international monetary transactions and violations of other financial laws” to wager at the property.

As part of a nonprosecution agreement (NPA) with the government, Wynn Las Vegas acknowledged wrongdoing and noted that it has extensive measures to bolster its anti-money laundering protocols while telling the government that staffers involved in the questionable transactions are no longer employed by the company.

Wynn Bond Sale Serves Another Purpose

While the Wynn bond sale serves the aim of potentially quickly moving the DOJ liability off its books, the transaction is important because it also allows the operator to redeem bonds coming due next year.

In separate though related news, gaming device and lottery giant International Game Technology (NYSE: IGT) said Tuesday that it’s selling a new euro-denominated bond issue to redeem nearly $500 million in senior secured notes maturing in 2025.

The post Wynn Selling $800M in Debt to Pay DOJ Fine, Redeem 2025 Bonds appeared first on Casino.org.

The announcement was made in a regulatory filing with the Hong Kong Stock Exchange (HKSE). An entity known as Venetian Venture Development Intermediate II and a financial services firm plan to purchase the Sands China equity. Based on Sands China’s September 9 closing price, $103 million represents 59,612,518 shares or 0.74% of the gaming company’s freely floating stock.

Sands China is the largest casino operator in Macau, running five integrated resorts in the lone Chinese territory where gaming is permitted.

LVS Could Further Boost Sands China Stake

News that Las Vegas Sands is upping its interest in its Macau unit isn’t surprising because it did so last year. Some analysts believe LVS’ plan is to eventually take that percentage to north of 75%, but not ultimately buy out minority investors.

That listing is important because it allows local retail investors and professional market participants in Hong Kong and mainland China to access the stock. In turn, that listing shows commitment to Macau and China, which can be viewed as a positive among Chinese regulators.

In his August note, Umansky added that Sands China is unlikely to restart its dividend before next year although it’s been 14 months since LVS resumed its quarterly payout. Sands China is one of three Macau operators that doesn’t currently pay a dividend.

Another Reason the Sands China News Isn’t Surprising

There’s another reason why it’s not surprising that LVS is again upping its equity holdings in Sand China. The company told investors such moves were possible when it sold Venetian and Sands Expo and Convention Center on the Las Vegas Strip more than three years ago.

Private equity giant Apollo Global Management now operates the Venetian while VICI Properties owns the property assets of the integrated resort and the convention center.

The post Las Vegas Sands to Modestly Increase Sands China Stake appeared first on Casino.org.

A recent filing with the Securities and Exchange Commission (SEC) indicates that on September 3, Snowden bought 54,200 shares of the regional casino operator’s equity at a weighted average price of $18.44 per share. That resulted in an overall purchase price of $1 million. The prices he paid ranged from $18.15 to $18.76, according to the regulatory document. Penn closed at $17.67 on Monday, extending a slide that’s seen the stock shed 5.61% over the past month.

Snowden’s purchase of his employer’s stock may signal a vote of confidence in ESPN Bet and Penn’s regional casinos, but the chief executive’s office didn’t comment to that effect. In many cases, corporate insiders buy their company’s stock because they believe it is undervalued and poised to appreciate.

Snowden Buying Penn Dip

Beleaguered Penn investors may well be hoping that Snowden’s recent purchase of the stock is an expression of confidence because the shares have shed nearly a third of their value year to date.

PENN has had a volatile few months, with pressure at the 200-day moving average as well as the $20 region,” according to Schaeffer’s Investment Research. “Despite the red ink in 2024, there’s not a single ‘sell’ rating among the 19 analysts covering the security. Should Penn stock continue to underperform, downgrades could add pressure to the equity.”

The stock has been a battleground this year. In May, investor Donerail Group encouraged the gaming company to abandon its online sports betting ambitions and consider selling itself. That stoked speculation of a transaction in which rival Boyd Gaming (NYSE: BYD) would acquire Penn’s regional casinos and ESPN Bet would be sold to another buyer.

No such deal has materialized as of yet, and Snowden made comments to analysts that indicate Penn isn’t actively shopping itself and that it wants to remain an independent company.

Snowden Buys While Other Gaming Execs Sell

Another reason Snowden’s purchase of Penn stock could be viewed as a positive is because it’s a departure from what’s been seen in the gaming space in 2024. For the most part in 2024, industry executives have been sellers, not buyers, of their companies’ shares.

With the September 3 buys, Snowden now owns now owns a total of 853,045 shares of Penn.

The post Penn CEO Jay Snowden Buys $1M Worth of Company Stock appeared first on Casino.org.

Well-heeled donors to the Harris campaign have recently increased pressure on Harris to sack Kahn and Securities and Exchange Commission (SEC) Chairman Gary Gensler should she win the White House.

Earlier this year, the FTC announced an investigation into MGM Resorts International’s (NYSE: MGM) response to the September 2023 cyberattack that temporarily crippled the casino company’s domestic operations.

Kahn hasn’t signaled that she’s considering recusal, and the legal wranglings between the FTC and MGM are ongoing.

Kahn was appointed by President Biden in 2021 and her term expires on September 25, meaning it’s likely to be renewed so that the top spot at the FTC isn’t vacant until after the election. Should Kahn commit to a second term, that means unless she is fired by Harris — assuming the vice president wins the election — the FTC chair would occupy that position for a significant portion of Harris’s first term as president.

MGM Director Barry Diller Wants Kahn Gone

IAC/InterActiveCorp (NASDAQ: IAC) Chairman Barry Diller is among the Democrat donors reportedly leaning on Harris and her campaign to remove Kahn. In a July interview with CNBC, Diller called Kahn “a dope” and said she’s against “almost anything” that helps business efficiently grow.

Diller’s conglomerate is the largest MGM investor, controlling roughly 20% of the gaming company’s shares as of May. IAC initiated its MGM stake in August 2020 and added to it three months later.

Mark Cuban is No Fan of Treasury Secretary Gensler

SEC Chairman Gensler has been rumored to be a potential candidate for Treasury Secretary should Harris win the presidency, but that appears increasingly unlikely as some of the vice president’s wealthiest supporters increase pressure on her to fire him, too.

Cuban has long said he wants to partner with Sands on bringing a casino hotel to the Dallas-Fort Worth metroplex.

The post Dem Donors Want Harris to Sack FTC Chair Lina Kahn, Who Sued MGM appeared first on Casino.org.

When Circa announced the contests for the 2024 season, the sportsbook operator promised a record $16 million in guaranteed payouts, but that figure was topped by more than 25% as Circa Survivor alone netted 14,266 entries at $1,000 apiece, meaning the prize pool for that contest is $14.26 million. Last year, the two contests had $14 million in entries combined.

The prize pool for Circa Survivor will go to the last person (or people) standing. It will consist of up to 20 legs throughout the year, one for every week of the football season plus two special weeks,” according to a statement issued by the gaming company. “Each week, participants will choose a team to win straight up, but the player cannot pick the same team twice for the duration of the season. Thanksgiving/Black Friday and Christmas Day will each be considered their own contest weeks.”

In a short amount of time, Survivor has become one of the most popular regulated NFL pool competitions in the country. The massive prize pool coupled with not having to pick against the spread resonates with professional and recreational bettors alike.

Circa Survivor Isn’t Easy

Circa Survivor requires participants to pick a single NFL winner each, but not against the spread. To some novice participants, that task sounds easy, but it’s not.

Additionally, the separation of the Thanksgiving and Christmas Day games is a curveball for Circa Survivor participants. This year, there are three games on Thanksgiving Day, meaning participants may want to be careful about using too many of those six teams prior to that holiday.

Christmas could be even trickier because there are just two games. One involves the Chiefs and the other features the Baltimore Ravens — teams many Survivor participants would be inclined to choose well before Dec. 25.

Circa Million in Strong Form, Too

The sixth edition of the Circa Million contest garnered 5,871 entries resulting in an overlay of $183,000. That contest tests participants’ ability to pick NFL games against the spread.

“Each player will make five picks against the spread each week via the Circa Sports Nevada mobile app, a Circa Sports kiosk or over the counter at any of the six Circa Sports locations in Nevada. One point will be awarded for each correct selection and one-half point for each push,” according to the statement.

First place takes home $1 million, but Circa Million offers 125 other ways to win over the course of the season, including cash for those that finish anywhere from second to 100 and quarterly prizes.

The post Circa NFL Contests Shatter Records with $20M Total Prize Pool appeared first on Casino.org.

The fine, which is part of a non-prosecution agreement (NPA), is believed to be the largest on record for any US-based casino company “based on admissions of criminal wrongdoing,” according to DOJ. Las Vegas-based Wynn Resorts notified investors about the penalty in a form 8-K filing with the Securities and Exchange Commission (SEC) late Friday.

Pursuant to the NPA, Wynn Las Vegas agreed to forfeit $130 million in funds involved in the transactions at issue and continue to make certain enhancements to its compliance program. The DOJ agreed that, subject to Wynn Las Vegas’s fulfillment of its obligations under the NPA, it will not bring any criminal charges against Wynn Las Vegas concerning the subject matter of its investigation, subject to standard reservations of rights and certain reserved claims,” said the gaming company in the regulatory document.

News of the penalty hasn’t spooked Wynn shareholders as of yet as the stock was down just 0.16% in Friday’s after-hours session. As part of the NPA, Wynn Las Vegas admitted that it used an illegal money transfer system to skirt regulated, traditional anti-money laundering protocols.

Wynn Las Vegas Money Transfers Had China Ties

DOJ outlined several scenarios in which violations at Wynn Las Vegas had ties to China. In one example known as “Human Head” or “Human Hat” betting, a? guest of the Sin City casino resort would use a proxy to wager their funds for fear that if they bet themselves, they’d run afoul of US Bank Secrecy Act or Anti-Money Laundering (BSA/AML) laws.

“A money processor, acting as an unlicensed money transmitting business, collected U.S. dollars in cash from third parties in the United States and delivered that cash to a WLV patron who could not otherwise access cash in the U.S. The patron then electronically transferred the equivalent value of foreign currency from the patron’s foreign bank account to a foreign bank account designated by the money processor,” said DOJ in a statement.

Wynn Resorts’ Wynn Macau unit runs two integrated resorts in the Chinese territory, but DOJ didn’t mention anything about the operator’s Macau exposure playing a role in the money transfer schemes that occurred at the company’s Las Vegas property.

DOJ added that in another example of Wynn Las Vegas flouting anti-money laundering regulations, the venue didn’t report millions of dollars in transactions attributable to a Chinese guest who “had spent six years in prison in China for conducting unauthorized international monetary transactions and violations of other financial laws.”

Wynn Looks to Put Ominous Chapter to Bed

While the bulk of the operator’s earnings and revenue are derived from Macau, Wynn’s Las Vegas complex, consisting of the namesake casino hotel and adjoining Encore, are vital to its US presence and overall investment thesis. That confirms it behooves the operator to put the illegal money transfer issue to rest.

“In reaching the resolution set forth in the NPA, the DOJ took into account the historical nature of the transactions at issue; Wynn Las Vegas’s cooperation with the DOJ’s multi-year investigation; that Wynn Las Vegas no longer employs or is affiliated with any of the individuals implicated in the transactions at issue; and Wynn Las Vegas’s extensive remedial measures, many of which were undertaken prior to the parties entering into the NPA,” said the gaming company in the SEC filing.

The case was investigated by the DEA, Homeland Security Investigations (HSI), and the IRS.

The post Wynn Las Vegas Strikes $130M DOJ Settlement, Largest Fine Ever for a US Casino appeared first on Casino.org.

Thailand’s Deputy Finance Minister Julapun Amornviva said the country’s new government is behind the effort to bring integrated resorts to the Southeast Asian country and plans to move forward on that front. The finance minister said the plan was supported by 80% of politicians attending a recent meeting on the subject.

News of the political momentum for Thai gaming venues emerged after a public comment period on the 22-page Draft of the Complete Entertainment Business Act B.E. That ran through Aug. 18 and by all appearances, Thai citizens are on board with the country introducing casino hotels as a way of boosting the tourism industry, which is one of the largest drivers of economic activity in the nation.

Speculation indicates that Thailand could approve as many as five casino licenses to start with the locations rumored to be two in the capital city of Bangkok, and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket. Each venue would carry a 30-year licensing term.

New Regime Backs Thailand Casinos

Last month, former Prime Minister Srettha Thavisin was surprisingly removed from power, but the winds of political change in Thailand — a country with a history of political volatility — aren’t damaging the case for casinos.

He could be onto something with that assertion because by some estimates, Thai gaming venues could generate more than $15 billion in annual in gross gaming revenue. Should that forecast prove accurate or be exceeded, it’d make Thailand one of the largest casino markets in the world. While that pace of GGR would trail Macau and Nevada, it’d be more than enough to rival or beat Singapore.

The ruling Pheu Thai Party has acknowledged that Thailand is now trailing other countries in the region, including Cambodia, Myanmar, the Philippines, and Singapore, when it comes to legalized gaming. Currently, Thailand has no legal casinos or sports betting, but the country has more than its share of illicit gaming dens, which create problems for those communities and local law enforcement.

Thailand Could Be Vibrant Casino Market

The ongoing political momentum in Thailand for integrated resorts is important on a number of fronts, including the country’s ambition of getting some of those venues open before MGM Osaka debuts in 2030. Additionally, a hospitable regulatory environment could be pivotal in luring big name operators.

It’s believed Las Vegas Sands, MGM Resorts International, and Wynn Resorts are among the global gaming giants that are interested in pursuing Thai licenses. MGM said it would do so through its MGM China unit.

Experts believe Thailand will opt for a 17% tax on gross gaming revenue (GGR) — the same rate applied in Singapore. That tax rate is viewed as attractive and would be competitive with other casino markets in the region.

The post Thailand Casino Plan Gains Momentum as Political Support Increases appeared first on Casino.org.

They may want to rethink that view because there are emerging signs that momentum is building for the Wynn Al Marjan Island integrated resort in Ras Al Khaimah. For example, Wynn management is hosting an investor day in Las Vegas early next month.

In a new report to clients, JPMorgan analyst Joseph Greff said that could be a positive sign because it could imply UAE regulators are preparing to officially approve casino gaming.

The fact that management is willing to host a three-hour investor meeting could likely imply that regulations and licence issuance are imminent,” wrote Greff. “We don’t look at this as a derisking event, but rather one in which equity investors can start to ascribe the currently discounted equity value related to the project.”

The General Commercial Gaming Regulatory Authority (GCGRA), the UAE’s first gaming regulatory agency, was formed last year and in July, approved a lottery license for an Abu Dhabi-based company. That sparked hope the authority would sign off on a casino license for Wynn. Some investors are waiting on that approval because the economics of Wynn Al Marjan Island are significantly more attractive when a casino is included.

More Positive Signs for Wynn’s UAE Casino

Potential near-term approval of a UAE-issued gaming license for Wynn could be a boon because competitors are eager to test the region. The Wynn property is scheduled to open in early 2027, indicating that it would have a temporary monopoly should it win a casino permit because it’s further along than any venue that could be considered competition.

“In September 2023, the UAE establishing the General Commercial Gaming Regulatory Authority (GCGRA), signaling the country’s intent to regulate and potentially legalize certain forms of gambling. Since that announcement, public curiosity has surged, with online searches for gambling-related terms increasing by 54.38%,” according to Dubai Casinos.

The research group added that, on average, each marquee news event pertaining to wagering in UAE sparks a 12.54% increase in related internet searches among citizens of the Emirates.

Interest is There for UAE Casinos

While Wynn Al Marjan Island is positioned as a tourist destination with gaming space occupying a scant percentage of overall square footage, it’s clear there’s burgeoning interest among locals in land-based gaming venues.

This is evident in the steady search volume for ‘Casino in Dubai’ and ‘Ras Al Khaimah Casino,’ suggesting that the public is eager to learn more about the possibility of brick-and-mortar gaming venues in these areas,” added Dubai Casinos.

Regulators haven’t commented on whether or not there will be limitations on local visitation to UAE gaming venues, but that could be a difficult, impractical task owing to the vast oil wealth in the Emirates.

The post Wynn UAE Casino Plan Building Momentum appeared first on Casino.org.

Betsson had been offering online sports betting in Colorado under the Betsafe brand for two-and-a-half years through a partnership with Dostal Alley Casino. That was the only state in the US in which Betsson operated, and it will halt that business at the end of this month. Betsson launched in Colorado two years after it legalized sports wagering.

Before launching Betsafe in Colorado, Betsson executives noted that when working with prospective clients on the B2B front, they were frequently asked where else they operated in North America, so it made sense for the company to have some consumer-facing presence on this continent. The operator later brought Betsafe to Ontario, Canada.

Betsson Joins Long List of Colorado Departures

Colorado fast became an enticing market for sportsbook operators because it has a favorable tax rate on that form of wagering and because it opened to a slew of competitors. Today, it’s one of the fastest-growing sports betting states in the country.

However, the state has followed a similar trajectory to others in that while there are more than a dozen gaming companies offering sports wagering services there, the market is largely dominated by the biggest names, including DraftKings and FanDuel.

Westgate’s SuperBook recently said it will cease offering mobile sports betting outside of its home state of Nevada, meaning it’s also leaving Colorado.

Betsson Just Latest ‘Victim’

Since the 2018 Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA), some trends have emerged that contribute to explanations regarding why so many operators have thrown in the towel on US sports wagering.

In addition to Betsson, recent departures among foreign operators from US sports betting, either by way of acquisition or closure of US operations, include Betfred, Betway, PointsBet, and Tipico.

The post Betsson Latest Sportsbook to Depart US Market appeared first on Casino.org.

In a note to clients on Thursday, Deutsche Bank analyst Carlo Santarelli observed that Red Rock’s property-level margin expansion is more sustainable than market participants perceive it to be. The analyst said multiple factors support that thesis.

These three drivers, each of which we break down on their own, are: 1) the current portfolio versus the 2019 portfolio, 2) gaming promotions, which are less structural, but nicely beneficial at present, and 3) the food and beverage segment,” wrote the analyst.

Indeed, Red Rock’s portfolio looks much different today than it did before the coronavirus pandemic. As a result of the global health crisis, the gaming company closed the Fiesta Henderson, Fiesta Rancho, and Texas Station, and never reopened those venues. It also sold the Palms, taking a loss on the deal. Conversely, Red Rock opened Durango in Southwest Las Vegas last December, and that new casino is off to an impressive start.

Market Doesn’t Appreciate Red Rock Changes

Following the pandemic, casino operators, including Red Rock, enjoyed immediate boosts to margins because many culled less profitable nongaming offerings, such as lower-end dining and entertainment options.

“While the most considerable pushback we get to our bullish view on RRR relates to valuation, we also believe there is considerable apprehension related to the margin outperformance, relative to 2019, when looking at RRR on a standalone basis, as well as looking at RRR relative to peers. In our view, the market is underappreciating the true structural changes that are driving the bulk of the margin improvement, changes that do not relate to operating performance, nor the broader competitive environment, to a great degree,” according to the analyst.

Santarelli added that Red Rock is likely to continue its margin expansion event if revenue growth encounters headwinds.

Red Rock Solid By Comparison

Year to date, shares of Red Rock are higher by 9.43%. That’s good for one of the best showings among all small-cap casino equities and it far outpaces broader small-cap benchmarks. Since the start of the year, the Russell 2000 and S&P Small Cap 600 indexes are up 6.7% and 5%, respectively.

Santarelli rates the stock a “buy” with a $65 price target, implying upside of 13.3% from Thursday’s closing price.

The post Red Rock Has Margin Durability, Says Analyst appeared first on Casino.org.

In a recent report to clients, Deutsche Bank analyst Carlo Santarelli observed that 2024 and 2025 maturities among publicly traded gaming companies “are relatively limited,” adding that of the 12 casino companies the bank covers, just five have debt coming due this year or in 2025. That quintet is comprised of Gaming and Leisure Properties (NASDAQ: GLPI), Las Vegas Sands (NYSE: LVS), MGM Resorts International (NYSE: MGM), VICI Properties (NYSE: VICI), and Wynn Resorts (NASDAQ: WYNN).

Santarelli added that most of the debt the aforementioned quintet has coming due over the near term is at favorable interest rates, indicating the casino operators wouldn’t materially benefit from refinancing those obligations. That would remain the case even if interest rates decline significantly in the months ahead.

Lower Interest Rates Will Help Casino Debt

While some of the casino operators mentioned above don’t need to rush to refinance outstanding debt, there are benefits to be accrued in the industry from lower base rates.

We do believe the next 6-12 months will likely bring some relief to those with larger variable debt mixes. As evidenced in our analysis, a reduction in base rates will have the most notable and favorable impacts on discretionary free cash flow, based on our current 2025 discretionary free cash flow forecasts,” wrote Santarelli.

Boyd Gaming (NYSE: BYD), Caesars Entertainment (NASDAQ: CZR), Golden Entertainment (NASDAQ: GDEN), Light & Wonder (NASDAQ: LNW), Penn Entertainment (NASDAQ: PENN), Red Rock Resorts (NASDAQ: RRR), and Wynn could all experience increases of at least 3% to discretionary free cash flow if rates fall by 150 basis points throughout 2025, according to Santarelli.

At the high end of that range, Caesars would save $91.1 million in annual interest expenses if interest rates fall by 1.5%. That’s followed by Sands at $42.1 million, according to Deutsche Bank estimates. On a percentage basis of increased free cash flow assuming rates fall 150 basis points, Golden Entertainment is tops at 7.3%.

Casino Operators Facing Biggest Near-Term Maturities

Assuming no refinancing takes place over the near term, Las Vegas Sands and VICI face the largest 2025 maturities. Sands has $2.121 billion in bonds at a blended interest rate of 4.6% coming due next year while VICI has $2.050 billion at a blended interest rate of 4.2% maturing next year, according to Deutsche Bank.

Additionally, VICI’s contracts with gaming operator tenants are long term with gradual rent increases –two traits that provide earnings visibility.

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That’s a 30% jump from the trade group’s forecast of $26.7 billion at the start of the 2023 NFL season. Making that increase all the more notable is the point that just three states added mobile sports wagering since the conclusion of last season — Maine, North Carolina, and Vermont. Of that trio, only North Carolina is a large state.

Football is the most wagered-on sport in the US and that’s largely driven by the NFL. Should the AGA’s $35 billion projection prove accurate, it would be nearly 12x the amount that was wagered on the NCAA Men’s Tournament earlier this year, itself one of the most bet-on events in the country.

Beneficiaries of Football Betting Surge

It helps the football betting handle case that more states than ever before allow sports betting, but in terms of beneficiaries of the elevated football wagering scenario, the field is significantly smaller.

While the number of states allowing sports betting is at an all-time high entering the 2024 football campaign, the amount of sportsbook operators offering their services is not. Owing to recent attrition in the space, either by acquisition or departure, the number of regulated sportsbook operators available to bettors for the 2024 football season is below the levels seen last year.

That confirms that competing against the likes of DraftKings and FanDuel simply doesn’t make economic sense for some operators, particularly those with already low levels of market share.

Catalysts for Elevated NFL Wagering

The NFL has some advantages when it comes to wooing bettors, including standalone games on Sunday, Monday, and Thursday nights. Those contests, particularly the Sunday and Monday night affairs, are usually among the highest-rated television programs for their respective weeks and, in some cases, for the year in which those games are played.

Those games have a knack of luring big bets and when those “whale” wagers grab media attention, smaller bettors often tail, boosting handle on those games.

Sportsbook operators also have new avenues for tempting bettors. While pregame spreads, totals, and moneyline wagers remain the most popular avenues for wagering on the NFL, gaming companies are expanding their football betting menus to include same-game parlays, in-game wagering, and microbetting, all of which are being widely embraced by clients.

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Speculation recently surfaced that Genius, a data provider to sportsbooks, was mulling a takeover of Sweden-based Kambi, but Anders Str?m, chairman of the Kambi board of directors, said no such conversations have taken place.

While Kambi tends not to comment on rumour and speculation, I can confirm that Kambi is not engaged in any such discussions,” he said in a statement.

With its shares up 15.35% year to date, Genius has the currency with which to hunt for deals. It has a market capitalization of $1.5 billion, which is well above Kambi’s market value of $370.1 million.

Kambi Takeover Rumors Getting Old

Rumors about Kambi being a target aren’t new. In fact, they date back to at least the second quarter of 2023, and the purveyors of the chatter have some factors to hang their hats on.

Furthering the speculation is the fact that Kambi recently pulled its longer-ranging financial targets, in part citing regulatory issues in Brazil. That prompted the resignation of then-CEO Kristian Nylén. High-level executive departures often stoke takeover talk.

Additionally, more gaming companies are looking to bring sports wagering technology in-house, which could further the allure of Kambi as a takeover candidate. The company’s North American clients include Bally’s, Churchill Downs, Penn Entertainment, and Rush Street Interactive, among others. Kambi also works with gaming companies throughout Australia, Europe, and Latin America. The corporation recently extended its partnership with Rush Street.

Genius Sports Denies Rumor, Too

Genius Sports also denied the scuttlebutt.

As policy, we do not comment on unfounded and ill-informed rumors. To prevent any further speculation, we can confirm that we are not involved in any discussions of this nature with Kambi,” said CEO Mark Locke in a statement.

While Genius might not be interested in Kambi, there could be an ample number of other potential suitors should the firm put itself up for sale. After the company adopted the poison pill provision in 2022, Alinea Capital Management, a Norwegian hedge fund, said there could be as many as six US-based companies interested in buying Kambi.

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In a report to clients issued on Tuesday, Benchmark analyst Mike Hickey hit Sphere with the ominous rating and a $40 price target, which implies downside of about 9% from current levels. His bearish call on the Sphere comes in the midst of a pullback that’s seen the stock shed 9.54% over the past week. Still, the shares are higher by 15.9% over the past month and 30.55% year to date. Hickey noted there are significant risks to the Sphere investment thesis.

With only one screen to recoup these significant investments, the financial risk is substantial,” he observed.

The Las Vegas entertainment venue got off to a stellar start last year thanks to a series of live U2 concerts, but Sphere Entertainment needs to display proficiency in landing top-tier acts and programming to ensure “economic viability,” according to Hickey. Besides Benchmark, seven other sell-side firms cover Sphere, with three rating the stock “buy” or “strong buy,” and four rating it “hold.”

Don’t Expect More Spheres Soon

Las Vegas is arguably the ideal city for the Sphere, which is massive and emits constant light and noise. That’s the case with many venues on the Strip, and while those traits are common in Sin City, they’re not necessarily appealing to other cities.

“Given that the original Sphere took five years and $2.3B to construct, rapid expansion seems impractical,” noted Hickey, adding that smaller versions of the Las Vegas Sphere probably aren’t attractive because they would lack appeal due to their diminutive stature, and economic opportunity could be threatened as a result.

MSG Networks Could Weight on Sphere Stock, Too

When Sphere was spun off from Madison Square Entertainment (NYSE: MSGE), regional sports networks (RSNs) MSG Networks and the YES Network were included with the former. That could be problematic because MSG Networks has $850 million in debt coming due next month.

Hickey called Sphere Entertainment essentially an exhibitor business while adding that MSG Networks is a debt-ridden entity in a declining industry.

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Miami-based Betr has market access for online sports betting in six states, and has an extensive media division that includes betting and sports podcasts. Welch’s “Talk Tuah” weekly podcast will be part of the Betr Media unit and is scheduled to debut on September 10.

Betr Media’s deal with Welch comes on the heels of the company’s latest strategic expansions to its monetized content portfolio, including the acquisition of the Caps Off and Hot Corner podcasts from The Game Day,” according to a statement.

Financial terms of the agreement weren’t disclosed and the extent to which Welch will discuss betting isn’t yet known. In July, the Tennessee native’s 16 Minutes LLC filed a variety of trademark applications, including one for “Bet On That Thang” — a spin on a provocative comment made by Welch in the video that launched her to internet stardom.

Betr, Welch Could Be an Ideal Pair

Betr, which emphasizes microbetting, could be the ideal avenue through which Welch can extend and grow her fame.

“Betr Media is one of the fastest growing sports betting media brands in the United States that has grown to over 7.3 million followers, 4 billion impressions, and 209 million engagements across its social channels since publicly launching in August 2022,” according to the company.

Internet celebrities, such as Welch, are often popular with the 21 to 35 age demographic, particularly males – a group that’s highly coveted by gaming companies. In announcing the deal with Welch, Betr didn’t comment on the media arm’s ability to drive visitors to the company’s betting offerings.

‘Talk Tuah’ Could Be a Smorgasbord

As noted above, how much wagering content will be featured on “Talk Tuah” remains to be seen, but Welch provided some insight as to how the podcast will shape up.

My show will have a little of everything – great guests, laughs, chit-chats about your pets, relationship pointers, sports, and of course, some down-home southern charm,” she said in the press release.

Betr added that its fantasy sports pick ‘em offering is available in 25 states and Washington, DC — a figure that’s expected to increase to 33 states in the weeks ahead. Welch’s home state of Tennessee permits mobile sports betting.

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In a note out on Tuesday, analyst Dan Wasiolek initiated coverage of the FanDuel parent with a four-star rating (five is the highest) and a fair value estimate of $250. That implies potential upside of 18.4% from Tuesday’s closing price.

Flutter’s construction of a daily fantasy sports product in July 2009 provided a first-mover lead to take advantage of a 2018 Supreme Court ruling that allowed for legalized sports and iGaming wagering in the US. As a result, Flutter holds a commanding 40% digital revenue share in the US,” wrote Wasiolek.

Flutter owns 95% of FanDuel, which is half of the US online sports betting (OSB) duopoly, with DraftKings (NASDAQ: DKNG) representing the other half. While the two companies are often joined at the hip, their share price performance hasn’t been in lockstep. Year to date, shares of the FanDuel owner are up nearly 18% while DraftKings is lower by 4.54%.

Flutter’s Non-US Operations Help Stock’s Case

The FanDuel brand is one of the most valuable in the gaming industry and highly recognizable to US daily fantasy sports (DFS) participants and sports bettors. Even so, many American bettors and some investors don’t know that Flutter has significant operations outside of this country.

Outside the US, Flutter’s decades of expertise in product development and risk management have also led to top revenue share. “The company holds 29% and 46% online gaming revenue share in its most mature markets of UK and Ireland (26% of 2023 sales) and Australia (12%), respectively,” added Wasiolek.

The analyst pointed out that Flutter has smartly integrated its parlay offerings and tech stack into Sisal since acquiring that firm in 2022, allowing it to increase revenue share in Italy. Italy is an important market for Flutter because it’s the Eurozone’s third-largest economy and Europe’s largest regulated gaming market after the UK.

Flutter Thriving in Multiple Countries

At a time when smaller operators are frequently waving the white flag in the US OSB space, and some midsized players are failing to grab share from FanDuel and DraftKings, Flutter is asserting earnings prowess in this country and others.

It’s doing so in such a way that earnings before interest, taxes, depreciation, and amortization (EBITDA) margins are expanding at an impressive pace.

“The company’s UK and Australian segments still see over 20% EBITDA margins, despite stringent regulation and industry maturation in these regions,” concluded Wasiolek. “ESPN Bet’s aggressive entry into the US market in the past several months has not prevented share gains or expanding EBITDA margins at Flutter’s FanDuel brand.”

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The largest operator of casino resorts on the Las Vegas Strip is selling bonds “in aggregate principal amount of 6.125% senior notes due 2029 at par.” That transaction is expected to close on September 17. MGM will use some of the proceeds to pay an issue that comes due in 2025.

The Company intends to use the net proceeds from the offering of the notes to (i) repay indebtedness, including its outstanding 5.750% senior notes due 2025, and (ii) pay transaction-related fees and expenses, with the remainder for general corporate purposes,” according to a statement. “Pending such use, the Company may invest the net proceeds in short-term interest-bearing accounts, securities or similar investments.”

As is the case with many of its peers, Las Vegas-based MGM sports junk credit ratings, but in the case of the Bellagio operator, it has one of the strongest balance sheets in the industry. The company had $2.41 billion in cash and cash equivalents as of the end of the second quarter.

MGM Bonds Not Highly Risky

S&P Global Ratings rated MGM’s latest bond sale “BB-,” noting there would be a high recovery percentage in the event of a default. The ratings agency used a model to run various default scenarios, but didn’t say the gaming company is a candidate to default on its debt obligations.

“We assigned our ‘BB-‘ issue-level rating and ‘2’ recovery rating to the company’s proposed $675 million senior unsecured notes due 2029. The ‘2’ recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 80%) recovery for noteholders in the event of a default. This is in line with our issue-level and recovery rating on MGM’s existing unsecured debt,” observed the research firm.

Buyers of corporate bonds typically focus on credit and default risks, which are amplified when evaluating junk-rated debt. The new MGM bonds fit that bill.

As such, issuers of noninvestment-grade corporates must sell those bonds with higher interest rates than higher quality equivalents to compensate bondholders for the elevated risk. The current 30-day SEC yield on the widely followed Markit iBoxx USD Liquid High Yield Index is 6.96%. More than 52% of the bonds in that index carry one of the three “BB” grades — the spectrum in which S&P rates MGM’s newest debt sale.

Eliminating 2025 Bonds is a Smart Move by MGM

Using the newest issue to take care of some of its debt maturing in 2025 could prove to be a shrewd move by MGM. Before the news of the MGM bond sale, Deutsche Bank estimated the gaming company had $1.175 billion in debt at a blended interest rate of 5.5% maturing next year.

Highlighting MGM’s strong positioning on the Las Vegas Strip, free cash flow capabilities, and share repurchases, some analysts are bullish on the operator’s corporate debt.

The post MGM Resorts Upsizes Debt Sale to $850M appeared first on Casino.org.

The deal includes the land, building, and select other operating assets. It’s a two-pronged deal in which the buyer will pay $7 million for the real estate assets and $2 million for the operating rights. The property part of the transaction is expected to close later this month. After that, Full House will pay monthly rent of $50K to Clarity until the sale of the operating rights is finalized. When that part of the deal is completed, all operating responsibilities will be transferred to Clarity.

Stockman’s Casino has more than 10K square feet of gaming space and two restaurants. It’s one of three casinos in Fallon, a town of about 9,300 in Churchill County. The other two are the Bonanza Casino and the Fallon Nugget.

Sale Part of Full House Transition

The sale of Stockman’s Casino is part of Full House Resorts’ transition — one that’s seeing the regional gaming operator focus on newer, glitzier venues.

As we have continued to grow in size, we find it prudent to focus on our larger properties in our portfolio, including our newly-opened Chamonix and American Place casinos. We are proud of our transformation of Stockman’s Casino over the years,” said Full House CEO Daniel Lee in a statement.

Chamonix is the operator’s newest property in Cripple Creek, Colo. It opened last December and is widely viewed as the most upscale gaming venue in that town. American Place refers to the Full House venue in Waukegan, Ill., where the operator currently runs a temporary version of the casino while it works through some legal challenges brought by rival bidders.

Including American Place, Chamonix, and Stockman’s, Full House runs seven gaming venues. The others are Bronco Billy’s in Cripple Creek, Colo., the Silver Slipper Casino and Hotel in Hancock County, Miss., Rising Star Casino Resort in Rising Sun, Ind., and the Grand Lodge Casino in Lake Tahoe, Nev.

Clarity, Full House Neighbors in Cripple Creek

Before the Stockman’s sale announcement, Clarity Game and Full House were neighbors and rivals in Cripple Creek. Last December, Michael Gaughan and a group of partners formed Rocky Mountain Gaming to acquire two casinos in the Colorado town.

Gaughn, who also owns the South Point Las Vegas, and his Rocky Mountain Gaming partners are behind privately held Clarity Game LLC.

Gaughn also owns the operating rights for the more than 1,400 gaming machines located inside Harry Reid International Airport.

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That according to recent estimates by Stifel analyst Jeffrey Stantial. DraftKings and FanDuel have long held a duopoly in the US sports wagering scene in which they account for more than 70% market share. On a month-to-month basis, the two frequently rotate occupancy of the top spot with neither ever dropping below second place. That trend remained in place in the seventh month of the year.

FanDuel appears to have regained market share in July with OSB handle share up +0-3% month-over-month in most states – consistent with seasonality observed last year, though potentially also a function of higher promo reinvestment,” wrote Stantial.

The analyst added that as measured by handle, DraftKing was the biggest loser in July, shedding as much as 3% in some markets. BetMGM and Caesars Sportsbook ceded modest handle share in July while market share in the iGaming arena was steady.

It’s That Time of Year Again for Promo Spending

College football commenced in earnest over the weekend and the 2024 NFL season starts on Thursday. So with football being the most wagered on sport in the US, it’s not surprising that there’s evidence of increased promotional spending by sportsbook operators.

“Based on the three ‘mature’ and competitive states that have reported July OSB promotional figures, reinvestment by operator ranged 1-6% of handle – up +10 basis points month-over-month and flat year-over-year on average. Interestingly, the data shows FanDuel reinvestment up ~80 basis points year-over-year (as a % of handle) on average, with DraftKings up a more modest ~40 basis points,” observed Stantial.

In recent months, BetMGM has been one of the biggest promotional spenders, according to Stantial and the analyst forecasts large expenditures from ESPN Bet over the course of the 2024 football season.

Upside Drivers, Lingering Risks

Stantial left his state-level iGaming and sports wagering forecasts unchanged, but acknowledged the segments have both positive catalysts and risks.

“Healthy underlying user acquisition and monetization (increasingly weighted to the former), 2) increasing competition boasting wider user bases (ESPN Bet; Fanatics), 3) improvements to product from omnichannel operators, 4) incremental customer acquisition tools, and 5) continued product-driven improvements to hold-rate,” he wrote.

On the risk side, the analyst sees the possibility of more smaller players exiting the US market, lethargy on the legislative front, regulatory changes, the possibility some states will raise gaming taxes, and consumer fatigue when it comes to high hold wagers as issues to monitor in the months ahead.

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The casino giant and the online sportsbook operator will increase exposure of the GameSense platform at nine NFL stadiums in jurisdictions in which sports wagering is legal. GameSense was developed by the British Columbia Lottery Corporation (BCLC) and originally licensed to MGM in 2017.

The program focuses on positive, transparent, and proactive engagements with guests and customers about how to gamble responsibly. With this development, GameSense marketing will appear more often and in more prominent venue locations during each game,” according to a statement.

Last year, BetMGM and MGM were among the first gaming operators to actively promote responsible wagering habits at NFL stadiums. The other half of BetMGM is controlled by UK-based Entain Plc.

BetMGM Responsible Betting Initiative Practical

The plan by BetMGM and MGM to increase awareness and visibility of GameSense at NFL stadiums is practical on multiple. Not only does the 2024 season start Thursday, but bettors are expected to wager more than ever before on NFL games this year.

NFL players are prohibited from wagering on any NFL event and they cannot use proxies to do so on their behalves. They also cannot wager in any form at team facilities, while traveling to a road game or at a team hotel.

As part of Responsible Gaming Education Month, “MGM Resorts is announcing a $440,000 contribution to fund responsible gaming research through the International Center for Responsible Gaming and Kindbridge Research Institute.”

Variety of Venues to See Responsible Betting Ads

The stadiums that will see increased responsible betting ads this year are Acrisure Stadium, Allegiant Stadium, Empower Field at Mile High, Ford Field, GHEA Field at Arrowhead Stadium, M&T Bank Stadium, MetLife Stadium, Nissan Stadium, and State Farm Stadium.

Those are the homes of the Pittsburgh Steelers, Las Vegas Raiders, Denver Broncos, Detroit Lions, Kansas City Chiefs, Baltimore Ravens, New York Giants and New York Jets, Tennessee Titans, and the Arizona Cardinals. Online sports betting is legal in all of the states in which those stadiums are located with the exception of the Chiefs’ home field.

“BetMGM will also add to its catalogue of advertisements in the coming months that highlight its comprehensive responsible gaming resources. The spots will feature brand ambassadors sharing engaging messaging, similar to its highly regarded responsible gaming commercial featuring NHL MVP Connor McDavid,” concluded the gaming company.

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Quinn, now the chief executive officer of Women in Need (WIN), a non-profit group, endorsed the gaming venue because she believes it can be a jobs creator will driving revenue that could be used to ameliorate New York’s homeless problem. The former politician said Wynn New York City could generate tax receipts needed to address homelessness among families and women.

I am supporting Related and Wynn New York City’s bid for the Hudson Yards because it is the one that most recognizes that the biggest problem facing this city is that of homeless families with children,” said Quinn in a video posted on the Wynn New York City website. “I am ready for thousands of jobs for homeless moms working with Wynn New York City.”

Last week, Related and Wynn released updated renderings of the proposed $12 billion project on the West Side of Manhattan, noting it would likely create 35,000 construction jobs and 5,000 permanent union roles.

Wynn New York Casino Faces Plenty of Opposition

As is the case with nearly all of the other New York City-area casino bids, the Related/Wynn proposal faces opposition. Quinn, who started her career in Big Apple politics in 1999, didn’t comment on objections to the West Side gaming venue, but it is there.

More recently, the High Line, a non-profit group named after the historic park, said it objects to the Related/Wynn pitch because it could threaten the views in the Western Rail Yards area and also because the promised number of housing units is far less than hoped for. In 2009, Related reached an agreement with the city under which it would build between 3,454 and 5,700 housing units as part of its ongoing development of Hudson Yards. The plans released last week call for 1,500 units, including 324 affordable apartments.

The project also calls for a new K-8 public school, which has elicited concern about its proximity to casino. As for park space, Related and Wynn are looking to allay those fears, promising a 5.6 acre park that the two companies compare to the historic Bryant Park.

Quinn Sees Wynn Casino as Help for Homelessness

For her part, Quinn believes Wynn New York City could go a long way towards improving the city’s homeless problem. By some estimates, New York’s current rate of homelessness is as high as it’s been at any time since the Great Depression.

Whether or not a new gaming venue on the West Side will put a positive dent in that problem remains to be seen, but data confirm Quinn is right to call attention to homeless issue among families and women.

“In June 2024,?71 percent of those in shelters were members of homeless families, including?45,745 children,” according to the Coalition for the Homeless. “119,320?NYC schoolchildren experienced homelessness at some point during the 2022–2023 school year, representing?more than 11% of all NYC public school kids.”

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Some analysts believe the sports betting data provider has more upside in store for investors. In a note to clients today, B. Riley analyst David Bain reiterated a “buy” rating on Genius with a $10 price target, implying upside of 31.2% from today’s close.

On its 2Q24 earnings call, GENI stated it expects 20%-plus revenue growth for the ‘foreseeable future,’” wrote Bain. “However, calendar year (CY) 25E consensus sales growth is 14%. 20% growth from CY24E estimates implies an additional $29M of CY25E revenue versus consensus. Using GENI’s general midpoint flow-through guidance implies an additional $12M of EBITDA, 11% higher than CY25E consensus EBITDA estimates.”

With the arrival of football season, Genius could further be in focus because it is the exclusive provider of the NFL’s real-time, official play-by-play statistics, which are in high demand by sportsbook operators because football is the most wagered on sport in the US.

Genius Sports Could Notch Near-Term Upside

The arrival of football season is seen as a boon for a variety of gaming companies and while Genius is a business-to-business firm, expectations that bettors will wager more than ever before on the NFL could be a legitimate catalyst for the already high-flying stock.

“We estimate a 500 bps mix shift to U.S. OSB NFL-only in-play from pre-match wagering equates to an additional $3M of EBITDA to GENI. Operators have been transparent about increasing the in-play mix of betting with additional propositions, placing in-play betting opportunities, and using low-latency technology (including GENI’s BetVision),” noted Bain.

The analyst added that markets may not yet be fully appreciating the potential positive impact in-game wagering expansion could have on Genius shares.

Genius Sports Has Other Catalysts

In July, Genius announced a deal with X (formerly Twitter), one of the largest social media platforms in the world. Under the terms of the agreement, Genius will leverage its ad-tech products to deliver advertisements specific to conversations taking place on X.

With more media rights negotiations coming up, ad-tech could be unheralded catalyst for Genius shares while diversifying the company’s revenue stream.

“While more difficult to quantify, we believe many of GENI’s new ad tech offerings — ads placed directly into live streams or a self-service platform offering GENI’s unique data for advertisers to use in ad buys (100% margin business for GENI) — are potential levers for media growth relative to consensus. We believe some U.S. take-rate negotiations will benefit GENI’s media division with higher go-forward commitments,” concluded Bain.

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In a media session earlier this week following a Cowboys practice, Jones said he thinks the Lone Star state will eventually have sports betting, but until then, Texas is missing out on an opportunity to generate significant tax receipts.

I think ultimately you’ll have sports betting in the state of Texas. Until that time, the state does lose an opportunity for huge amounts of revenue,” the Cowboys boss said.

Jones didn’t speculate as to when the state could approve mobile sports betting, but it appears that is highly unlikely to happen prior to the 2027 legislative session. If it happens then and the matter is approved by voters later that year, it’s possible Texas would have mobile sports wagering in advance of the 2028 football season.

Jones Wants Transparency in Texas Sports Betting

Jones and other owners of professional teams located in Texas have been vocal supporters of regulated sports wagering coming to the state because it’d be a money-maker not only for the state, but for their franchises as well.

“I think that properly, properly supervised, by the people that play the games and people that have the teams that play the games and the individual athletes — you’ve got to make sure that the perception is and the reality is that there’s just no compromising on it all being very competitive and up-and-up,” he told the press. “I think that takes some time in some places more than it does others.”

Jones has some gaming investments, including ties to an Arkansas casino plan. Along with several other professional team owners, he was an early investor in DraftKings (NASDAQ: DKNG).

Texas Sports Betting Outlook

In 2023, both casino gaming and sports wagering made more progress than the issues previously had in Texas, but both ultimately perished because there wasn’t momentum in the state Senate to take up the related bills.

Lt. Gov. Dan Patrick (R) controls what bills are heard in the Senate and his opposition to gaming expansion is well-documented.

Due to this being an election year, the Texas legislature had a brief schedule, making it difficult to consider gaming issues. The legislature is scheduled to reconvene in January, but the prevailing wisdom in sports betting circles is that politicians there won’t prioritize sports wagering.

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