Specialist
Former director at DraftKings Inc
Agenda
- Online sports betting and iGaming industry trends, focusing on DraftKings (NASDAQ: DKNG)
- Tech stack positioning
- Implications of DraftKings' potential Entain (LON: ENT) acquisition
- Customer acquisition dynamics and mid-term outlook
Questions
1.
Could you outline some of the key participants’ product offerings and their positioning within the online sports betting and iGaming market?
2.
How might some of these industry participants become profitable? Do you have any thoughts or assumptions about who will be first and last to get there?
3.
What are your thoughts around the merits and drawbacks of tech stack insourcing vs outsourcing?
4.
Do you think the DraftKings-SBTech tech stack is a competitive one, or do you think it is falling behind?
5.
What are your assumptions on the strategic rationale behind the bid for Entain? Do you have reason to believe that DraftKings’ interest in Entain is to replace that SBTech tech stack with Entain’s tech stack, or if it represents the need for DraftKings to potentially add free cash flow and global revenues?
6.
How important is it for DraftKings acquire Entain? How does it bake in the BetMGM JV and MGM’s involvement at all here, and does it have any other options to really gain international presence?
7.
What might this transaction potentially imply about what DraftKings believes of its positioning without Entain? What might DraftKings be admitting to here?
8.
How willing would DraftKings be to entertain a solution to a deal where Entain, as a part of DraftKings, would support BetMGM with technology or operational know-how?
9.
In the scenario where DraftKings potentially needed to give up Entain’s 50% stake in BetMGM, do you think it would be willing to go that route as well, if that were a prerequisite to acquire Entain?
10.
Is BetMGM self-sufficient on the technology or operational know-how to keep operating in the US market, or does it require ongoing licensing or operational support from Entain?
11.
In a scenario where BetMGM has to come off the Entain tech stack, what other tech provider options are out there for BetMGM?
12.
Is it feasible for BetMGM to operate independently from Entain if Entain’s 50% BetMGM JV stake is sold to MGM as a part of the Entain-DraftKings potential transaction?
13.
If MGM turns out to be okay keeping BetMGM with a long-term licence, what are your thoughts on how long that would be and what comes after?
14.
Was there a scenario in which the Entain tech stack could be carved out, such that MGM could continue to use that platform in the US and then DraftKings continues to use SBTech in the US separately?
15.
Across some of the scenarios we’ve discussed, are there any potential antitrust hurdles that you envision?
16.
What are the potential impacts that the transaction can have on suppliers to the sports books, including Sportradar and Genius Sports?
17.
Do you have any thoughts around official league data rights?
18.
What do you think about Genius Sports winning the official NFL league data rights? How might DraftKings be forced to now work with Genius in a larger capacity, and will they work across multiple sports?
19.
Do you have any thoughts around in-game betting and how it’s been progressing in the US? Do you have any estimates around what the levels might be at maturity and if that’s changed at all?
20.
What is the probability of the DraftKings-Entain deal going through?
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