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Bet On It: PlayUp SPAC deal terminated
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Bet On It: PlayUp SPAC deal terminated

IG Acquisition-PlayUp deal ends, Massachusetts may take strong stance against betting adveritising, and other notable stories in the sports betting and iGaming space.

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: IG Acquisition Corp. (IGAC), a special purpose acquisition company, announced in a regulatory filing last week that its proposed merger with global online betting operator PlayUp has been terminated. Accordingly, IG Acquisition will dissolve and liquidate pursuant to the terms of the Charter, effective as of the close of business on January 11, 2023, and will redeem all of the outstanding shares of Class A common stock that were included in the units issued in its initial public offering, at a per-share redemption price of approximately $10.12 after taking into account the removal of a portion of the accrued interest in the trust account to pay taxes and for dissolution expenses. As of the close of business on January 11, 2023, the Public Shares will be deemed cancelled and will represent only the right to receive the redemption amount.

In other news, Churchill Downs (CHDN) announced Monday that Presque Isle Downs & Casino, the company’s wholly-owned subsidiary, has entered into a multi-year agreement with a wholly-owned U.S. subsidiary of bet365 Group for online sports betting and iGaming market access in Pennsylvania, subject to necessary regulatory approvals. The bet365 agreement is consistent with CDI’s strategy to exit the online sports and casino business, monetize the company’s online sports and iGaming market access rights and remain focused on growing the TwinSpires online horseracing wagering business.

Additionally, Las Vegas Sands said yesterday that, with the recent release of the New York State Gaming Commission’s Request for Application for three downstate New York gaming licenses, it intends to pursue the development of a multi-billion-dollar flagship hospitality, entertainment and casino project on Long Island, New York. The company has entered into agreements to purchase the long-term lease of the site currently home to the Nassau Veterans Memorial Coliseum. These transactions, which still require certain approvals, would grant the company control of up to 80 acres in Nassau County, New York. The project would also provide thousands of quality union jobs in both construction and operations, the company said.

ANALYST COMMENTARY: On Wednesday, Truist analyst Barry Jonas lowered the firm’s price target on Penn Entertainment (PENN) to $36 from $40 but keeps a Buy rating on the shares as part of a broader research note previewing the 2023 US Gaming Sector Outlook. Gaming has proven its resiliency and 2023 is not expected to be much different, the analyst told investors in a research note, stating that gaming fundamentals will slow down only slightly and the improving Digital and the Vegas calendar could even drive some consolidated EBITDA growth. Jonas added, however, that while he is positive on Penn as a first mover and beneficiary of cashless gaming, he also sees some competitive threats impacting properties.

Meanwhile, Jonas also upgraded Gaming and Leisure Properties (GLPI) this week to Buy from Hold with a price target of $60, up from $54, as part of a broader research note previewing the 2023 US Gaming Sector Outlook. Gaming has proven its resiliency and 2023 is not expected to be much different, the analyst teold investors in a research note, stating that gaming fundamentals will slow down only slightly and the improving Digital and the Vegas calendar could even drive some consolidated EBITDA growth. Jonas adds that Gaming and Leisure Properties management continues to execute on deals to drive accretive growth as the stock is performing well despite substantial increases in yields.

The Truist upgrade follows Raymond James analyst RJ Milligan downgrading the stock to Outperform from Strong Buy with a price target of $55, down from $57. While Milligan remains positive on the gaming REITs, he believes Gaming and Leisure’s risk/reward profile no longer warrants the firm’s most constructive rating after their recent outperformance, the analyst tells investors in a research note. The gaming REITs will likely be the beneficiaries of capital moving into more "defensive" names moving into an uncertain/negative macro environment, Milligan contends.

MASSACHUSETTS: On Thursday, Massachusetts Gaming Commission indicated that they may take a strong stance on advertising, with regulators even considering the idea of not feature Massachusetts sports betting advertising in major sports stadiums, according to Legal Sports Report’s Mike Mazzeo. The harsher stance follows Ohio sports betting regulators maintaining tough state regulations since their January 1 launch, Mazzeo said. Meanwhile, Fanatics Sportsbook has been awarded an online sports betting licsense in Massachusetts, Mazzeo noted in a separate report.

MAINE: Maine Gambling Control Unit executive director Milton Champion announced this week the publishing of proposed rules for sports betting in the state, according to Legal Sports Report’s Pat Evans. Depending on public feedback, Champion told Legal Sports Report that it is possible for online sports gambling in Maine to go live as soon as this summer, but definitely not sooner. “I know this is a hot topic,” Champion said. “I know everybody wants it out during the Super Bowl or during March Madness. But let’s face it, it’s just not going to happen that quickly.”

TEXAS: Texas Lieutenant Governor Dan Patrick told local Austin TV station KXAN that he does not "see any movement" on expanded gambling laws in the state, such as legalizing sports betting, heading into this year’s legislative session. “I haven’t had anyone mention it to me, that they are interested in doing anything,” Patrick said. “A lot of talk out there, but I don’t see any movement on it.”

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), Gan Limited (GAN), Genius Sports (GENI), Las Vegas Sands (LVS), MGM Resorts (MGM), Penn Entertainment (PENN), Rush Street Interactive (RSI) and Wynn Resorts (WYNN).

Keywords: license, upgrade, downgrade, Massachusetts, Maine, Texas, sports betting, app, gambling, betting

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