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.

 

 

 

Dawn Staley:Philly Girls Rock!

As we continue to celebrate Womens History Month, I have to pay tribute to Philadelphia's own, Dawn Staley. Dawn is legendary in the city of brotherly love. Her legendary journey started back in high school as she led Dobbins to 3 Public League Championships. She was named the National High School Player of the year by the USA Today.

She went on to the University of Virginia where she led them to 3 consecutive Final Fours. She went on to play professionally in the ABL and the WNBA. In 2004, she was given the honor of carry the torch in the Olympics. In 2011, Staley was named one of the top 15 best players in WNBA History.

Staley began coaching while still playing in the WNBA. She started coaching at Temple University in 2000. She turned them into a top ranked program that went to 6 NCAA tournament and won 4 conference tournament titles. The success at Temple made other teams take notice. The University of South Carolina pursued her, and she became their head coach in 2001. Staley rebuilt the program. The Gamecocks improved every year and won the National Championship 2017. Staley was named the coach of the 2020 Olympic team that won the gold medal. 

Dawn is the only person to ever win the Naismith Award as a player and as a coach. She had a foundation that helps middle school children in the areas of academics and mentorship. So, with all these accolades to her credit, Staley is a real genuine person and is proud of her Philadelphia upbringing.

My favorite Dawn Staley moment is personal.  My daughters were attending her basketball camps at Temple University, Staley was going to play in the WNBA All Star Game in Washington DC. I made a request to her to have some of the players sign a basketball as a memento of my family attending the game.  I met her mother coincidentally after the game and she contacted Dawn. Dawn came out and got multiple players to sign the ball. That why I chose Dawn Staley to honor on my website & blog during Womens History Month. Because Philly Girls Rock!

Check out this video of the top women's teams heading into the 2021-2022 NCAA tournament.

Follow me on Twitter and Instagram for March Madness. #MarchMadness with Mims.

Black History Month and the NBA

During the NBA All Atar Weekend,the NBA is having the 1st ever NBA HBCU Classic on Saturday, Feb 19th. The teams participating are Morgan State University and Howard University, The NBA and AT&T will donate $100,000 to each school's atheletic department totaling $200,000. The game will be broadcast by TNT and ESPN2. The game will be attended by the NBA All Stars and the members of the 75th Anniversary Team. 

The NBA has shown that it understands the important responsibility they have to women and people of color. They recognize Black History Month and celebrate the HBCUs in a manner that will pay huge dividends beyond the money they donated. Every Professional Sports League should follow suit and find ways to pay homage to the ancestors that paved the way for the current players.  

If the NFL and MLB are watching, they should be formulating plans to do something.  Next year's Super Bowl game is played in February so there is an opportunity to celebrate Black History. The MLB normally starts spring training in February and celebrating Black History would create interest in their season.

If the leagues don;t evolve ,they will lose their appeal to women and people of color, There are so many entertainment options to chose from. No one can asume that the public will always patronize and support their brand or product. Diversity and Inclusion are the key components for all successful organizations. 

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Gaming Stocks to Watch in 2022

The gaming and casino industry took some hits during the last quarter of 2021 in the stock market. Most of this was attributed to the spread of the Omicron strain of Covid. The anticpation that we will go back to a period of less social engagement has made some investors leary of the hospitality industry. Keep in mind that the level of gaming online has never been higher. So while the 1st quarter of 2022 will require management adjustments based on restrictions and staffing, the top teams will still retain market share. You can find value by investing in companies that are historically resilient.

Rush Street Interactive: Current price is $16.78. The 52 week high is $26.55 while the low is $9.47. The recent ground breaking of a new property in Portsmouth Virginia and the prospect of expanding into Chicago Illinois are reasons for optimism. RSI has an outstanding reputation and a proven track record with sportsbooks and gaming in several jurisdictions. RSI is the retail market leader in the three most populous states that have legalized retail sports betting – Pennsylvania, Illinois and New York.

Penn National Gaming: Current price is $51.30. The 52 week high is $142.00 while the low is $43.36. Penn just opened a new casino in Morgantown,Virginia.Penn has been working with Barstool Sports on  opening sports bars in Philadelphia and Chicago as they promote the sports betting app.Louisiana is expected to offer additional sports betting licenses in January and Penn is in consideration.

Boyd Gaming Corporation: Current price is $65.39. The 52 week high is $71.00 while the low is $41.12. Boyd recieved 6 Buy reccomendations from a group of respected stock analysts. They project Boyd as having a high range of $88.00 over the next 6 months.

DraftKings:Current Price is $28.46. The 52 week high is $74.38 and the low is $25.80. DraftKings recieved an overwheming consensus to buy from 32 stock analyst. Name recognition has this as a brand that people are familar with when there is a conversation about sports betting. If the stock price goes up by 20% in 2022, you are looking at a price $34.15. If you purchase 100 shares today,your investment would increase in value by $569.00 in 2022.

 

I look at gaming stock as opportunities to invest in companies that have a presence in major markets that cater to tourism and city that have large populations.As more states add sports betting to their gaming offerings,the price and revenue of casino related stocks that have a strong online presence will go up. Do some research and find the stock and company that is right for you. Keep in mind that buying stock is an investment and should be viewed as long term speculation. Have a number in mind to sell any stock that is descending in price and value. 

If you are on LinkedIn, we can have a professional exchange there. If you chat on Twitter you can follow me for NFL & NBA.

The Metro Report: What's Next?

The year is winding down! as we approach the holidays I want to share with you what I have on my agenda. This is my personalize version of the Metro Report. I am covering the gaming in the following cities. Philadelphia,New York City and Washington DC. are taking center stage between now and Christmas.

In Philly, I had the opportunity to interview two of the top General Managers on the East Coast. I am strongly considering doing more of these. Two of the top restaurants in the city are mentioned and recommended. Check out the interview here. 

Next week in New York City and the Meadowlands Exposition Center in New Jersey. the SBC North America will convene. I am honored to be part of a panel that will tackled the question of How to nurture talent to your sports betting operations. The panel will be moderated by Bronwen Gregg, The other panel members include Allison Bassman,Director of People and Culture for Penn Interactive,Noemie Levy, Talent Acquisition Manager for Bet MGM and Holly Gagnon Co-CEO of Artemis Strategic Investment Corporation. Some of the subjects we will cover include job opportunities,working remotely vs. working on property and diversity. I may have a surprise interview while in NYC. Stay tuned!

Here is a look back at SBC 2019. It includes part of the team from SeventySix Capital. Former Governor of New Jersey Chris Christie and Newly Reelected Governor Phil Murphy attended this event.

 

Then I'll easy down 95 to Washington DC to the Capital One Arena. James Van Stone and the team at Monumental Sports and Entertainment are among the leaders in bringing sports betting to a stadium style venue.  They are the model to emulate and started trends with sports wagering centric broadcasts of Washington Wizards and Washington Capital games. I will be seeing how a world class organization does it first hand with a game day experience that you will not want to miss. The Wizards are currently 4th in the NBA Eastern Conference and will be playing the Utah Jazz.

So this is what's next for me. If you are on LinkedIn, we can have a professional exchange there. If you chat on Twitter,then follow me and we can tweet about gaming and professional sports like NFL & NBA.  Videos similar to what  you saw earlier can be found on Instagram and Facebook.  Stay with me and we can roll into 2022 together. 

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.

 

The G2E Experience in Espanol

 

Avance de G2E 2021: Mims se dirige a Las Vegas ya que la exposición de juegos será en vivo y virtual este año.

El G2E 2021 es la próxima semana. Estoy emocionado por la oportunidad de ir y tengo la suerte de ser parte de un equipo que valora mis esfuerzos y empeños. No tomo su compromiso conmigo a la ligera y me enorgullece ser miembro de una organización que ve la utilidad de una conferencia como esta.

 Este año, el G2E será un evento virtual y presencial. Empieza el 4 de octubre y termina el 7 de octubre. Los avances tecnológicos en la industria del juego aún estarán en exhibición en la Venetian Expo en Las Vegas, Nevada. Los seminarios educativos cubrirán temas como E Sports, Sports Betting & I Gaming. 

Algunas de las empresas y organizaciones notables que participan en el G2E de este año incluyen Rush Street Gaming, Scientific Games, Seventy-Six Capital, UNLV y Global Gaming Business. Daré más información sobre otros grupos antes del inicio de la conferencia.

 Hay 3 paneles en los que me he registrado: Asisto al panel moderado por Contessa Brewer sobre juegos y diversidad. El segundo panel al que voy a ir es Modernización de pagos de juegos. Este panel es un punto de énfasis que revolucionará la industria de los casinos. El tercer panel sobre dólares y sentido; La forma en que los deportes, las apuestas y los medios están impulsando los resultados es relevante para cualquier profesional de los juegos como yo. 

Anticipo varias oportunidades para establecer contactos mientras estoy en la sala de exposiciones y proporcionaré actualizaciones diarias en las redes sociales. Podrás ver mis tweets en Twitter y mis fotos y videos en Instagram. Mientras le proporciono cobertura y acceso, es posible que esté pensando en asistir. Existen mandatos y precauciones de seguridad vigentes con respecto a las máscaras, las pruebas de covid y las vacunas. Vaya al sitio web de G2E para obtener detalles e información. Tendré un resumen cuando regrese aquí en Bettors Insider.