Sports Betting: The Business of Risk

 

The business of Sports Betting is at an all-time high. Just 5 years ago, you could only make wagers on single games in Nevada. Now you can bet on a single game in over 30 states. Last year over 57 billion was bet legally by Americans on sports. I am not counting the illegal market that is still available to a segment of the gaming patrons.

So why is the stock market not reflecting this renaissance period? A review of the leading sports betting companies and gaming operators stock prices show dismal results over the past 6 months. While the amount of money wagered is staggering, the investors in the companies are seeing red digits on their portfolios.

While the slide could be due to global inflation, there are long term profitability concerns for the industry. Look for a merger or acquisition as a way for one or two operators to turn things around. CNBC Jim Cramer stated “But as we see what the reality looks like, there’s tons of competition for market share and little in the way of profits. Too bad because profits are what this market wants right now. That is why every single one of these stocks has been obliterated,”

According to Yahoo Finance, MGM Resorts International announced an offer to acquire the global gaming company Leovegas. MGM is attempting to build on the success of BetMGM in the United States with this acquisition allowing them to expand globally with an omnichannel strategy. I also found that MGM, as part of the Maryland Education Summit for Sports Betting, will offer a mentorship program to a qualified applicant that is pursuing a Class C sport betting license. This week, MGM was approved for a takeover of the Cosmopolitan amid questions about a monopoly on the Las Vegas Strip. MGM International is making progressive moves and has a stock price of 36.56.A year ago it was $51.17.

Any organization that has an established following on social media, does a high volume of sales and is known internationally may want to purchase a gaming company as a caveat to provide entertainment value to their customers. Imagine if Google or Facebook decided to offer sports betting to their followers. They would have to gain the trust of the public in a manner comparable to Uber and Disney. The patrons would have to be comfortable sharing their banking information and be guaranteed an enjoyable experience that is not based solely on winning.

Since gaining market share is the driver for the more renown operators, the winner of the Sports Betting race will be the operator with a brick-and-mortar venue in cities with a large population along with online gaming presence. The operator that provides visual content of the event to coincide with in game wagering will corner the market.

Check out my articles about sports betting in IGaming Player & Bettors Insider. Follow me on Twitter and Instagram.

 

 

 

Sports and Business Wagering this week

We will give you the latest news about Sports Business and Wagering that occurred in this calendar week. This will keep you current with the industry. These post will include trends about the sports betting market and information about what state is planning to offer it next. This will be a winning situation for a sophisticated operator and his constituents.

NFL Wild Card Weekend is about to start. Covers.com  reported that a bet of 100,000 was placed on the Cowboys within the last 24 hours. This wager was made at one of the MGM properties. 

Parx Casino is about to open it's Sports Book on Tuesday in Philadelphia. This will be the 2nd site to open in Philly. Both locations will benefit if the Eagles make it pass the 1st round.

The Sports Betting bill in Washington DC does not open itself to a fair trade environment. There should be an open bid for the privilege of being a platform operator. There should be the use of the mobile app of choice as long as the user is within the District. When there is a rush to get things done you normally do it wrong. 

Seventy Six Capital is participating in the CES in Las Vegas next week. This is a tremendous move that will advance Sports Business further into the technical and analytical aspects that the gaming industry has been slow to respond to. The Consumer Electronic Show brings the latest in cutting edge technology to the public. Follow Wayne Kimmel and his team via Twitter if you are not attending the show.

Each of the increasing popular Sports Betting 101 Series will be part of this so you can have each post together. Since we add a new post to that series every week you will always see the previous 3 with this feature. We encourage you to follow and stay relevant.  

Why the bettor should wager with a legal operator

The Las Vegas Experience

Straight Bets and Parlays

                                                      Enjoy the NFL games!

G2E countdown: The Players to Watch

In two weeks, the G2E 2017 will begin. We have decided that with so much information that you won't have time to network and have coffee with everyone. But there are a select group of people
and companies that always set trends and lead the way. We have chosen 5 that are listed in alphabetical order.

Calvin Ayre - The news coverage that they provide is totally comprehensive of the gaming conference.Rebecca Liggero gets interviews from innovative game makers and game changers in the casino industry.

Hard Rock Casino and Hotel - Hard Rock is making a big splash on the east coast with the opening of a 2000 room casino in Atlantic City in 2018. They announced that they will have a presence in the I gaming market in New Jersey sometime this year. Hard Rock is lookin to expand Atlantic City tourism market to week days. The brand is internationally known.

MGM - MGM is doing great numbers in Atlantic City at the Borgata and the National Harbor in Maryland. They continue to roll sevens as they enter and dominate major markets all over the world. They are currently looking at skill base gaming and e sports as a way to attract millennials.

Rush Street Gaming - Rush Street has shown a propensity for the urban market and has casinos in Pittsburgh, Philadelphia, Chicago and Schenectady. A model for what gaming should look like in a large metropolis. Check out the link to the Pittsburgh Property.

UNLV- This is the top gaming institution in the United States. They provide direction from top industry leaders along with statistics that cover revenue and historical data. UNLV also meshes the operations of casinos with the business acumen of what works in other facets of hospitality.

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This Week in Gaming Review

New York has moved it's online poker bill in their State Senate. This bill is now up for review in the Codes, Ways & Means and Rules Committees . While the chances are slim for passage this session, this is progress. If New York legalizes online gaming, poker will have the liquidity it needs to be successful in this region.

Pennsylvania Online Gaming legislation is moving forward despite one bone of contention. This involves VLTs. There should be a stipulation that no VLTs can be within a certain radius of a casino,school or church. This would protect the establish revenue operators and control the threat of underage gaming.Another requirement should involve the amount of seats available in the establishment where the owner is in possession of a liquor license. This would eliminate stop and go owners.

MGM welcome the NBA Golden State Warriors to Las Vegas to continue their Championship celebration. They attended the Ward - Kovalev Light Heavyweight Title Fight at the Mandalay Bay Event Center.

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This Week in Gaming Review

The news from Pennsylvania was bright as of this post. The Pennsylvania House added an amendment to a bill to fix unconstitutional taxes on casinos that will include online gaming and fantasy sports. There is a small window because the State Senate has a limited amount of days left in session during the month of November. If they do not concur, the entire process will start again in 2017. The logical thing to do is to pass the bill and work out the logistics in January. Then the Commonwealth  is guaranteed  new and current revenue streams.

DraftKings and FanDuel are planning to merge according to reports from ESPN Chalk. This was rumored earlier this year but it now appears imminent.

Las Vegas is courting the NBA. MGM CEO Jim Murren is looking at current teams that are looking at relocation. This report is cited by Las Vegas Review Journal. This news is on the heels of the NHL coming to Vegas in 2017 & the Raiders considering a move there as well. This would change the view that sports betting would be bad for the integrity of the games.

MGM Grand Las Vegas

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This Week in Gaming Review

New York has made a major move with authorizing the regulation of Daily Fantasy Sports. New York has 13% of the market of Fantasy Sports Players. This is great news for FanDuel and DraftKings. There was talk of these two merging. They may not have to if other states decide to follow New York.

The news was not as good for New Jersey and the quest for sports betting. The 3rd Circuit Court decided in a vote of 10-2 that the federal ban should be upheld. The next move is taking the challenge to the United States Supreme Court. There is no timetable or guarantee that the top judicial body would hear the case. An act of Congress may be a viable alternative. The American Gaming Association is in favor of having the sports betting ban repealed. Fantasy is clearing the way.

MGM is in Atlantic City doing auditions for dealers. They are mandated to hire a large percentage of their staff from the residents in the DC area where the casino is located. They have a sizable labor pool to choose from. Atlantic City is a great place to start.

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                                                        42 days until #G2E2016

Gaming News from Atlantic City

This week ,Atlantic City scored a 3 point shot with the announcement that Revel would be sold to Glenn Straub, the developer from Miami Florida.  Straub said after the hearing he has reached a deal to buy several casinos or former casinos in Atlantic City as part of a $500 million, multi-faceted deal. He said details would be revealed on Saturday, but added, "I've already bought them."
As part of his plans to purchase Revel, Mr. Straub intends to cancel all existing leases and contracts tied to the property, including those with the former tenants and with the operator of the property’s custom-built power plant, its only source of electricity and hot water.
“They have to understand, we can’t have them control our lives,” Mr. Straub told The Wall Street Journal Thursday. Straub's plan is said to include reopening the casino in Revel but on a smaller scale.

Now

A $50 million makeover of The Pier Shops will turn the underperforming beachside mall into an all-American party palace called The Playground, and make it “the music capital of the East Coast,” Philadelphia developer Bart Blatstein announced at a long-awaited press conference Wednesday. This will heighten the interest in Atlantic City will additional music and entertainment venues in the center of the Boardwalk. One way, he said, is that his plans call for providing far more views of the beach, ocean and Boardwalk than currently exist. He added that more restaurants and "high-end shops" are planned in addition to the 14 music venues.

 IN THE FUTURE

The target market will be millennials that are single and under 40.  Blatstein has a proven track record based on his success with Northern Liberties in Philadelphia. Night life similar to the Piazza.

The Stars come out at night

Straub and Blatstein share a view that a renaissance is in order for the struggling resort. The revitalization will have less emphasis on gaming and more on food, beverage and retail. Sounds like a mini Las Vegas East. They still need more hotel rooms and a direct route that consist of rail or air travel.  I would like to see another gaming operator enter the market with a boutique casino style. One that has 200 to 500 rooms with no more  than 1000 slots and 70 tables games, including poker. That operator would also engage an online partner to have an I Gaming presence.

 

  

 

 

 

                                                        Anyone interested?

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March Madness is Crazy!!

 

I love this time of year. College basketball on television all day long into the late evening. Great match ups between teams that would never play against each other ordinarily. A one seed vs. a 16 is like David against Goliath. David can only win with divine intervention. The domination of a 2 vs. a 15 is not as prevalent. The 15 has pulled off an upset in the past. Ask Duke.

 

What I don't care for is the speculation of the last 4 in, last 4 out. The selection committee has to explain why certain teams were not selected. So to spend energy wondering who will get in and who will be left out a month before is a waste to me. No disrespect to ESPN and Joe Lunardi.

LAS VEGAS in the NIGHT

The best place to watch the tournament is in Las Vegas. If you can get a seat at the sports book. you are in a gambler paradise all day. The games start at 9:00am their time. You have to be up early but it's worth it. Some books let you reserve an area for your group for a fee.

 

 

MGM GRAND

I 'm not thrilled that some novice may be in line in front of me and not know how to bet. This is why they have parlay cards dude. Make your wagers the night before. You can do me a favor and be in line after me.

 

I am enamoured with the parity that the tournament has. Any game that is a match up from 4-12 thru 7-8 has a chance to win. This is straight up. If you are in Vegas, you may want to look at a money line bet if you like the underdog. Look at teams that have upper classmen and go seven or eight deep. The experience will prevail if the game is close.

What really makes me mad is I 'm not going to Las Vegas this year. 1st time in last 6 years, I 'm missing round one. If they had sports betting in New Jersey, this would be a mute point. I could ride down to Atlantic City or use a sports betting mobile app to pick my winners. But since I can't, I must resort to picking against other people. I'll be in a bracket pool that I won't win because someone will pick a 13 seed that will go to the elite eight. I will have that same team exiting in the 1st round. Then the block pool for the championship game will be won by someone who doesn't even follow college basketball. Another 20 bucks donated to someone I hardly know.

    Have you notice the range of emotions I have displayed writing this?  I'll close with a video.

                                         That why March Madness is CRAZY!!!


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Online Gaming and Poker

New York has expressed interest in the online gaming market. Poker is gaining support from legislators and casino lobbyists. This is not surprising. The state of New York sees the opportunity to capitalize on a growing appetite for gaming.

Poker is an established community where skill out weighs luck. Unlike slots or other casino games, Poker players can largely determine their fate. The game is socially acceptable with conservatives and is extremely popular.

 

If  New York is successful, poker could be part of the online landscape by 2015-16. This would allow

more quantified data of how things are working in the states that current offer an online experience.

New Jersey,Nevada and Delaware are the three states where you can game online. When you factor states like California and Pennsylvania into the mix of possible online gaming jurisdictions, instant

liquidity is obtain. The compact agreement between Delaware and Nevada could be modeled and include other interested parties. This would be no different than playing a national lottery game like Mega Millions where wagers are taken all over. You can play Mega Millions in 44 states plus the District of Columbia and the U. S. Virgin Islands. The odds of winning are just more favorable.

 

The online experience is the future of gaming. Poker is just the easy lift to get things started. When gaming first expanded into Pennsylvania, the intention was to only allow slot play. Delaware and West Virginia  did the same thing. When West Virginia offered table games, Delaware and Pennsylvania followed suit. Once Poker is introduced, the landscape will open up to other casino offerings.

A winning hand!

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