Bet On It: Genius Sports introduces BetVision with NFL live games in U.S.

Welcome to the latest edition of “Bet On It,” where The Fly looks at news and activity in the sports betting and iGaming space.

SECTOR NEWS: Nevada reported August statewide gaming win up 0.07% to $1.21B. The state reported August Las Vegas Strip gaming win up 1.07% versus last year to $666.78M

Discussing NFL Sunday Ticket, YouTube’s (GOOGL) chief business officer Mary Ellen Coe told Deadline that “the feedback has been incredible: reliability, low latency, and Multiview. Multiview (which allows viewing of four games within the frame of a single screen) has been the biggest hit ever. So, great fan engagement on the experience. In terms of subscriber momentum, it’s exceeding our expectations. So, we feel great about the subscriber trajectory. And then we had a lot of (co-marketing) partnerships with third-party partners like Verizon (VZ), Comcast (CMCSA) and FanDuel (PDYPY). So, we’re actually feeling really bullish about how it’s trending, but we’re not out of the sign-up window. So, we’re two weekends in, and you’re still going to see a ramp, but we’re excited for the first year.” The executive also discussed the carriage dispute between Charter (CHTR) and Disney (DIS), saying that “We’re having incredible growth because of the Sunday Ticket relationship with YouTube TV. It is interesting that both Charter and Disney referred to YouTube TV as a place to go when they couldn’t get content. I think that’s an endorsement for the user experience on YouTube TV, which we appreciate.”

A number of operators launched in Kentucky this week. BetMGM, Caesars Sportsbook, FanDuel and DraftKings all made announcements announcing their respective arrivals in The Blue Grass State. 

MGM Resorts International announced that Osaka IR Corporation, a joint venture with Orix Corporation established to develop the Osaka IR Project, signed an agreement with Osaka Prefecture and Osaka City to implement the Specified Integrated Resort Facilities Area Development Plan for Yumeshima, Osaka. MGM and ORIX, together with Osaka IR Corporation, will contribute to the sustainable growth and development of tourism and the economy of Osaka and the Kansai region, as well as Japan through this first-of its-kind project in Japan.

Elys Game Technology (ELYS) announced the launch of its revamped online casino and sports betting site and mobile app for its core B2C operations in Italy, through its wholly owned subsidiary, Multigioco Srl. The upgraded www.newgioco.it platform made its debut on Wednesday, September 27, 2023, featuring a visually appealing and feature-rich design, and an extensive array of offerings, including 1,600 sports betting markets and approximately 2,200 online casino games. This enhanced platform provides users with enhanced graphics and simplified, ultra-fast online registration, ensuring a seamless and enjoyable experience for both sports betting and online casino gaming enthusiasts.

Gan Limited (GAN) announced that its board of directors has accepted the resignation of Dermot Smurfit from his position as the company’s CEO and as a director of the company and its operating subsidiaries. The company and Smurfit are evaluating a consulting arrangement for Smurfit, who remains a substantial stockholder in the company. The company has appointed Seamus McGill, its current chairman of the board, to the position of interim CEO effective as of September 26..McGill brings 25 years of experience in the gaming and technology industries and joined the board of GAN in April 2014.

Genius Sports (GENI) has unveiled BetVision with NFL live games in the U.S. BetVision will allow sportsbook customers to place wagers from within the live video player in the sportsbook app. These low latency live game video streams feature integrated betting odds and betslips and will be enhanced by in-game betting alerts and on-screen offers during breaks in game action to increase relevance, drive engagement and retain customers. NFL content is available on mobile and tablet devices and will include live augmentations such as data-driven insights, graphic overlays and visualizations already in use with a range of broadcast and streaming partners across North America. BetVision is a uniquely personalized product that allows users to toggle on and off content and stats to create a tailored viewing experience based on their individual preferences. In the initial launch, U.S. sports betting operators Caesars Sportsbook (CZR) and Fanatics Sportsbook are the first to be live with the product. Each operator will stream nationally distributed and local, regionalized live NFL games each week. Over the course of the 2023 NFL season, additional features and functionality will be added. Craig-Hallum called the new offering a “game changer with significant potential.” The firm, which noted that this product will be available for every nationally televised NFL game plus select games in specific markets through Caesars, Fanatics, and RSI (RSI) sportsbooks to begin, expects more sportsbooks to add the feature soon as this is not an exclusive deal. The firm, which expects an immediate benefit to both the sportsbooks and Genius with more in-game betting volume and a fixed technology fee, thinks this will also help with take rate negotiation over the medium term. Craig-Hallum has a Buy rating and $15 price target on Genius Sports shares.

Knightscope (KSCP) announced that it has signed an agreement with Penn Entertainment (PENN) to offer Knightscope technologies to its 43 gaming and racing properties nationwide. 

NFL WEEK 3: Based on Macquarie’s hold model, the firm calculated football market hold of 12% for the week of Sept 18–24, above its new long-term average of 9%. The firm estimated NFL represented 67% of football betting and college represented 33%. The model approximates total sports betting market hold of 11% for the week, assuming football hold of 12% and hold of 9% for all other sports.

STATE UPDATE: New York noted sports betting hold of 7% for Week 2, which was below Macquarie’s estimate of 10%. DraftKings (DKNG) estimated a 49% year-over-year spike in the online sports betting handle in New York, according to Benchmark. The company’s market share has expanded by an roughly 3% points YoY, reaching 37%.

TAKING STOCK: BofA noted DraftKings’ share of the sports betting market is at 35% in August for online sports betting gross gaming revenue, vs. 33% in July and 31% in Q2. The uptick was aided by lucky hold in New Jersey, where share reached 58% vs. their prior three-month average of 32%. The firm estimates FanDuel share at 37%, BetMGM at 8%, Caesars at 5% and Penn at 2%. App download share suggests “rising momentum” for Fanatics/PointsBet and “continued strength” for DraftKings and FanDuel. DraftKings also led iGaming downloads compared to FanDuel and BetMGM. 

AI IN SPORTS BETTING: “I think AI is going to be a significant opportunity for many industries and it certainly is for us. When I think about AI and the opportunities it’s really around personalization. So for us, AI will allow us to target the right customer at the right time with the right bet, and we can fast forward that and think broader around it – can we use both generative AI as well as conversational AI to really personalize that experience for the customer. And then you can think about automation of the front end, automation of CRM and developer productivity.” – Entain (GMVHF) CEO Jette Nygaard-Andersen said in a Bloomberg interview

WILL SPORTS BETTING IN FLORIDA RELAUNCH?:A Washington, D.C. appellate court would not stop a 30-year deal that gives the Seminole Tribe exclusive rights to provide sports betting in Florida on Thursday, but legal obstacles remain, Skyler Shepard of CBS12 News reported. Online sports betting in Florida has been put on pause for the past two years. “Some competing gaming operators brought a lawsuit arguing that this compact violated federal law because the authorization of online sports betting went beyond what federal law permitted, which was only to regulate gaming on Indian land,” Daniel Wallach, a South Florida gaming and sports betting attorney, said.

OTHER ANALYST COMMENTARY: JPMorgan upgraded DraftKings to Overweight from Neutral with a price target of $37, up from $26. The analyst recommended taking advantage of the 13% pullback in shares since late July. The firm continues to think gambling is an appealing sector, with attractive same-store and new market growth prospects, against the backdrop of an industry-wide improving operating expense control environment. DraftKings has a “strong moat” that should allow it to compete against new entrants like ESPNBet and Fanatics, much like it competed against Caesars, the analyst told investors in a research note.

Argus reiterated a Buy rating and $34 price target on DraftKings while noting that the recent share price weakness represents a buying opportunity. The declining customer acquisition costs bode well for the company’s long-term growth, the analyst tells investors in a research note, also forecasting its revenue to jump to $3.2B in 2023 from $2.2B in 2022 amid legalization of online sports betting in additional states.

JPMorgan lowered the firm’s price target on Entain to 1,800 GBp from 2,200 GBp and keeps an Overweight rating on the shares.

PUBLICLY TRADED COMPANIES IN THE SPACE INCLUDE: Accel Entertainment (ACEL), Bally’s (BALY), Boyd Gaming (BYD), Caesars (CZR), Churchill Downs (CHDN), DraftKings (DKNG), Flutter Entertainment (PDYPY), Gambling.com (GAMB), Gan Limited (GAN), Genius Sports (GENI), Las Vegas Sands (LVS), MGM Resorts (MGM), Penn Entertainment (PENN), Rush Street Interactive (RSI), Super Group (SGHC) and Wynn Resorts (WYNN).