3 Takeaways from the G2E 2021

These are my 3 Takeaways from the 2021 G2E. This was my 1st trip to Las Vegas in 2 years so I could have easily added more to my list. But these three are areas I envision that will gain traction over the next 18 months. Watch the video and read my commentary, Tell me what you think about where the gaming industry is going.

1). CashLess Transactions: Even before Covid 19 changed the way we interact with each other,cashless gaming transactions were available in Europe & the UK. Covid is expediting the transition to having those transactions here in the United States. As oppose to counting  a large sum of money and transfering it from your facility to a finacial institution, a digital trnsaction would save time and money. Jonathan Micheals,SVP for Strategic Development of Sightline Payments is instrumental in the conversation about the advantages associated with going cashless.

2). Mobile Technology expansion to the casino floor: Remember the days when using your phone in the sports book or near a table game was totally prohibited. Well look for the advent of a mobile expierience that the casinos will welcome. Resorts World Las Vegas has a loyalty system that a player can utilize if they did not bring their player's card to the casino. If the player has his phone the play can be tracked and the player can recieve an accurate rating of his action. This saves money because the casino does not have to print up a new loyalty card everytime the guest forgets to bring it. It also allows the marketing team to know when you are playing and increases the opportunities for the casino to connect with the guest. A player could have match play downloaded to his phone while playing blackjack or an odd boost tailored to his favorite team after a score.

3).The Importance of Media: The sucessful operators are partnering with media companies to promote brand awareness. So the way to stand out is to have content that is engaging and spurs conversation. How is your message extending beyond your facility? Is it being communicated within your building? The use of social media is imperative to reach outside of your geographical radius. There is a substantial gain associated with a strategic digital marketing plan that operators & media collectively work toward. The propect of gaming and media has me at the perfect intersection.

Follow me on Twitter for more gaming and sports betting related content. During the NBA & NFL season,you can access my work with the hashtag #GTLivechat. Join me and my cohost @KeshisCuties during prime time telecasts when games are on ESPN,TNT,NBC, ABC & NFL Network.

 

Gaming and Entertainment Stocks: Investing in Sports Betting

Many of us have recently recieved stimulus money from the federal government.This is also income tax season. There will be millions of Americans entitled to tax refunds. If you are in a position to speculate on the stock market, the stimulus money and /or the income tax return can jump start that initiative. Looking for reasons and an industry to invest in? Read more!

The economy is slowly returning to Pre Covid levels. Restaurants are expanding their capacity and hours of operations. Casinos are allowing food and beverages to be served in gaming areas. Alcohol has returned to the pit table games. The states are looking to expand revenue options thru gaming.

Sports Betting and online gaming are two popular concepts that have been adopted by as many as 22 states presently.  This is the ideal time to look at investing opportunities in gaming and sports wagering companies. 

I look for stocks based on affordability and profit magin. I research what the price is presently and look at the historical trends of the stock. If a stock is trading at $25 and a year earlier  had a purchase price of $50, I see a potential growth. I will look at the business plans of that company and determine if they are a good buy. I also set a price that I would be content to sell the stock at. If I bought 100 shares at $25, I would be happy to have the stock reach $35 a share. Contrastly, I have a depreciation price where I would sell and cut my losses. If the stock goes under 20 and has never done that in a 3 year period, I will sell and look to start again with another stock.Looking for the hottest deals and best gaming stocks?  continue reading after the video.

Draft Kings: The current price is $48. The median expected price in the next 12 months is $75. It has a high estimate of 105 and a low of 41. Draft Kings made a recent acquisition of VSIN Network. “VSiN creates authentic and credible content that resonates with sports bettors at every level, whether they’re experienced or new to sports betting,” said Jason Robins, DraftKings’ co-founder, CEO and Chairman of the Board. CNN Money grade this stock as a buy.

Penn National Gaming: The current price is $86. The outlook for Penn National is good because they own Barstool Sports. Barstool is presently in 3 states and projecting to be in as many as 10 by the end of the year. The Street's Jim Cramer gave Penn a definite buy on 5/7/21. Jay Snowden,CEO of Penn National Gaming, expess optimism because of Barstool approach to player acquisition and the reopening of the economy.

Rush Street Interactive: RSI rang the opening bell on Wall Street on 1/5/21.The current price is $13. The recent moves by Rush Street are the signs of encouragement. Rush Street was nominated for the Operator of the Year by the EGR Awards for 2021. Then the announcement of Lauren Seiler as Associate Vice President of Investor Relations and Development. She brings expertise in i-gaming,sports wagering, land based operations and finance. BetRivers.com is thriving in Pennsylvania and is postioned in several new jurisdictions. Growth opportunity at the current price.

Several sports and gaming stocks have made major acquisitions. Caesars Entertainment acquired William Hill within the last two weeks.MGM Grand with  it's sports betting app, Bet MGM ,have stated they are in the top 3 in the each of the markets where the platform is available. Fan Duel or Flutter Entertainment is a definite watch because of the name recognition of the brand. PointsBet has extended into a partnership with Penn National that will include 7 states. 

There are several prominent companies that are not mentioned. You should take time to research the gaming ,sports betting and i gaming industries to find the best buy for your buck. There is a synergy between the three that offers value to the stock holder. I hold shares of several of the companies mentioned in this post.

Follow me on Twitter where I discuss #sportsbetting and #gaming entertainment.  Check out my articles in Bettors Insider and in the January edition of Igaming player. 

5 Gaming Predictions for 2021

The New Year is all of 4 days old. I decided to look into my crystal ball and make 5 bold predictions for gaming in 2021. Check back on December 31th and we can talk about how I did.

New York will authorize mobile betting. The amount of money New York is watching go from New York City into the Meadowlands is absurd. If you could bet on mobile device that would eliminate trips into New Jersey and Pennsylvania. There is a legislative push to approve mobile wagering. It will bring tax revenue. but not at the rate that will fix up the state deficit.  

The Media Blitz of Sports Betting Ads will exceed 2015   In 2015,FanDuel and DraftKings were trying to convince everybody that playing Daily Fantasy Football was not gambling. The opening week of football season those operators spent 27 million for 8,000 television spots. Fast forward to this year when every game will have references to wagering pre game and at the end of the each quarter or inning. Major market teams will emulate the Wizards and NBC Sports with sports wagering centric telecasts.

The rebirth of Las Vegas and Atlantic City will start on the 4th of July. That weekend will be a coming out party for all of the high rollers that have stayed away from the action since March 2020. This month will coincide with 26 weeks of vaccinations across the country. People that have not traveled or been to concerts and gambled, will be thrilled to have a get a way! The emphasis on a having the cleanest rooms, along with a social distance and mask required environment, will solidify the reservation. A lack of planning will stifle responses.

The 2021 Olympics will be the most watched event in history. It will be streamed, on cable, part of social media apps and part of NBC Sports Prime Time Evening coverage.  NBC & Twitter will collaborate on several live events. The global ramifications will have all of the major advertisers paying 1.25 Billion for sponsorships for the 2021 Tokyo Games. Watch out for several brands that you may not have heard of.

There will be a resurgent in radio listenership The satellite radio stations like Sirius and I Heart Radio will provide information and music to a new younger audience that wants to experience both. The amount of I Heart listeners grew to 8% of Americans with a global audience of 168 million people in 2019. Look for the number to push slightly over 10%. A partnership between I Heart and VSIN Sports was just announced. I see an alliance with epic growth opportunities. 

Regional shows will push local content to engage their audiences during morning drive times and evening commutes. The shows that will have the most success are ones that have entertaining guests and interactive audience engagement. Think 97.5 The Fanatic and you will have the recipe.

                             Follow me for more insights on Twitter and LinkedIn.