{"id":264158,"date":"2023-03-14T06:51:18","date_gmt":"2023-03-14T11:51:18","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=264158"},"modified":"2023-03-15T12:48:38","modified_gmt":"2023-03-15T17:48:38","slug":"mvb-financial-in-sturdier-position-than-some-banking-rivals","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/","title":{"rendered":"MVB Financial, Bank to Sportsbooks, Avoids Silicon Valley Bank, Silvergate Calamity"},"content":{"rendered":"<p>Amid Great Depression-style bank runs and the recent collapses of Silicon Valley Bank (NYSE: SVB) and SVB Financial (NYSE: SIVB), among other financial institutions, sports bettors can rest assured that their deposits with gaming companies are likely safe.<\/p>\n<figure id=\"attachment_264159\" aria-describedby=\"caption-attachment-264159\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-264159\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/MVB-142x107.jpg\" alt=\"MVB Financial\" width=\"1200\" height=\"900\" \/><figcaption  id=\"caption-attachment-264159\"class=\"text-description\">MVB Financial highlighted at the Nasdaq market site. The company isn&#8217;t as vulnerable as some of its banking peers. (Image: Twitter)<\/figcaption><\/figure>\n<p>MVB Financial (NASDAQ: MVBF) &#8212; the West Virginia-based community bank that\u2019s the dominant third-party financial institution for <a href=\"https:\/\/www.casino.org\/news\/mvb-financial-dominates-online-betting-deposits\/\">internet casino and online sportsbook operators &#8212;<\/a> saw its shares slump more than 15% for the week ending March 13. That&#8217;s as some banks with cryptocurrency exposure and risky deposit bases were forced to the brink. MVB is arguably a baby being thrown out with the bathwater, as some market participants fret about a repeat of a 2008-style financial crisis.<\/p>\n<p><strong>MVB stands in stark contrast to some of its banking peers with limited crypto exposure, and importantly, nearly all of the bank\u2019s deposits qualify for Federal Deposit Insurance Corporation (FDIC) protection.<\/strong><\/p>\n<p>In comments made to <em><a href=\"https:\/\/www.casino.org\/news\/\">Casino.org<\/a><\/em> earlier today, KBW analyst Catherine Mealor said she doesn\u2019t see ripple effects from other banks impacting MVB, noting that just $100 million of MVB\u2019s $2.6 billion in deposits are in crypto while adding that 94% of MVB deposits are insured compared to the 90% or more uninsured rate at institutions such as SVB Financial and Signature Bank of New York, the latter of which was taken over by New York regulators last weekend.<\/p>\n<h2>Short Sellers Ignoring MVB Financial for Now<\/h2>\n<p>In recent days, encouraged by the calamity at Silicon Valley Bank, <a href=\"https:\/\/www.casino.org\/news\/wynn-resorts-still-loved-by-short-sellers-even-as-stock-soars\/\">bearish traders<\/a> sank their teeth into a slew of financial services stocks, but they ignored MVB Financial.<\/p>\n<p>S3 Partners Director Matthew Unterman told <em>Casino.org<\/em> that short interest in the preferred bank of sportsbooks is currently just 190K shares or 1.69% of the shares outstanding. In notional dollar terms, that\u2019s a mere $4.07 million. MVB fundamentals indicate shorts might do well to avoid the name.<\/p>\n<blockquote class=\"main-blockquote\"><p><strong>MVBF is well positioned for substantial profitability improvement over the course of 2023 (1.1% return on assets in sight for 1Q23, up from 0.47% in \u201822) as the company benefits from deeper penetration in the gaming industry (deposits\/payments), growth in its card acquiring business, fees and deposits from its partnership with Credit Karma,\u201d<\/strong> wrote KBW\u2019s Mealor in a note to clients.<\/p><\/blockquote>\n<p>She adds that National Insurance Board (NIB) deposits &#8212; the bulk of MVB\u2019s deposit base &#8212; are \u201cmore valuable than ever.\u201d That protection is important to the bank\u2019s gaming clients and the bettors making deposits with those firms. The benefit for MVB is that it doesn\u2019t have to pay interest on that capital, making its relationships with iGaming and sportsbook operators compelling from a margin perspective.<\/p>\n<h2>Sports Betting Looking Advantageous for MVB<\/h2>\n<p>At a time when crypto exposure is harming some banks, and Silicon Valley Bank\u2019s decision to buy bonds in 2021 before the start of the <a href=\"https:\/\/www.casino.org\/news\/lvs-mgm-tabbed-as-rising-rates-winners-by-bofa\/\">Federal Reserve\u2019s<\/a> interest rate tightening regime now looking regrettable, MVB\u2019s gaming ties could be seen as attractive by analysts and investors.<\/p>\n<p>\u201cWe believe that MVBFs gaming vertical has substantial opportunity for deposit and fee growth as more states get approval for online betting, and the card-acquiring business has also seen some momentum, with new accounts coming online and increased penetration from current relationships (Fiserv and World Pay),\u201d noted Mealor.<\/p>\n<div class=\"callout\">\n<p>She adds that while the bank\u2019s gaming deposit base is highly concentrated, with DraftKings and FanDuel commanding the bulk of those deposits, MVB defrays some of that risk by pushing some of that capital off its balance sheet. Average balances of around $150K &#8212; well within the parameters of FDIC protection &#8212; also offer some protection.<\/p>\n<\/div>\n<p><em>Casino.org<\/em> reached out to MVB Financial and DraftKings for comment. Neither company replied before publication of this article.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid Great Depression-style bank runs and the recent collapses of Silicon Valley Bank (NYSE: SVB) and SVB Financial (NYSE: SIVB), among other financial institutions, sports bettors can rest assured that their deposits with gaming companies are likely safe. MVB Financial (NASDAQ: MVBF) &#8212; the West Virginia-based community bank that\u2019s the dominant third-party financial institution for [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":264159,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24066,10,1074],"tags":[81892,81903,80968],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MVB Financial In Sturdier Position Than Some Banking Rivals<\/title>\n<meta name=\"description\" content=\"Bank of sportsbooks MVB Financial viewed as stronger than some rivals.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MVB Financial In Sturdier Position Than Some Banking Rivals\" \/>\n<meta property=\"og:description\" content=\"Bank of sportsbooks MVB Financial viewed as stronger than some rivals.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-14T11:51:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-15T17:48:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/MVB.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"768\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/\",\"url\":\"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/\",\"name\":\"MVB Financial In Sturdier Position Than Some Banking Rivals\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/MVB.jpg\",\"datePublished\":\"2023-03-14T11:51:18+00:00\",\"dateModified\":\"2023-03-15T17:48:38+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bank of sportsbooks MVB Financial viewed as stronger than some rivals.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/MVB.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/MVB.jpg\",\"width\":1024,\"height\":768,\"caption\":\"MVB Financial highlighted at the Nasdaq market site. Citing online gaming, JPMorgan is bullish on the stock. 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Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"MVB Financial In Sturdier Position Than Some Banking Rivals","description":"Bank of sportsbooks MVB Financial viewed as stronger than some rivals.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/","og_locale":"en_US","og_type":"article","og_title":"MVB Financial In Sturdier Position Than Some Banking Rivals","og_description":"Bank of sportsbooks MVB Financial viewed as stronger than some rivals.","og_url":"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-03-14T11:51:18+00:00","article_modified_time":"2023-03-15T17:48:38+00:00","og_image":[{"width":1024,"height":768,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/MVB.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/","url":"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/","name":"MVB Financial In Sturdier Position Than Some Banking Rivals","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/MVB.jpg","datePublished":"2023-03-14T11:51:18+00:00","dateModified":"2023-03-15T17:48:38+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Bank of sportsbooks MVB Financial viewed as stronger than some rivals.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/mvb-financial-in-sturdier-position-than-some-banking-rivals\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/MVB.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/MVB.jpg","width":1024,"height":768,"caption":"MVB Financial highlighted at the Nasdaq market site. Citing online gaming, JPMorgan is bullish on the stock. 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Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. 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