Specialist
Former Head, Strategy & Corporate Development at Barstool Sports Inc
Agenda
- Q2 2021 trends and developments in North America OSB (online sports betting) and iGaming
- Handles and growth outlook across key US states
- Competitive landscape and potential market share shifts
- Customer acquisition outlook
Questions
1.
What are some Q2 2021 highlights for the online sports betting and iGaming industry? What 2-3 developments should investors pay attention to?
2.
Among the US states where sports betting has been legalised, what are the top five with the biggest sports betting handles over the course of Q2 2021?
3.
You mentioned the state landscape is largely the same vs Q1 2021, but is there anything we can draw from that? Have you noticed any movements, growth or declines from the top grossing states vs one year ago or Q1 2021?
4.
What is the hold average for the top five states over Q2 2021?
5.
Have you noticed anything significant in how the holds are performing vs one year ago or sequentially?
6.
Is there anything to highlight around the top three states that drove the highest holds over Q2 2021?
7.
Could you discuss any competitive landscape shifts during Q2 2021, especially the newest states to launch online sports betting?
8.
Is there anything specific about the competitive dynamics across the top three grossing states over Q2 2021? What’s your outlook for each?
9.
How should we consider the implied CAC [customer acquisition cost] as a function of launching in a new state over Q2 2021?
10.
Could you estimate the CAC in new states vs states with established markets in Q2 2021? What’s your outlook for Q3 2021?
11.
How much higher or lower would you estimate the top three players’ sequential or YoY CAC to be during Q2 2021? What’s your outlook for June 2021?
12.
What’s your CAC outlook for the next 5-6 months and during the 2021-22 NFL season?
13.
What are your thoughts on LTV [lifetime value]? It seems to be a misunderstood concept. BetMGM and DraftKings commented on massive LTV for their Q1 2021 earnings, given the US sports betting industry’s stickiness.
14.
What are your thoughts on FanDuel’s comment that US bettors are 80% more valuable than their EU counterparts? What could this mean for the states?
15.
What do you think the average US customer will ultimately be? You mentioned there isn’t one yet.
16.
Is there reason to believe that certain players have a foothold on more valuable players?
17.
There are two US sports book markets to understand. One market, such as in Michigan and Tennessee, is where sport bettors are early adopters and they’re considered most valuable to operators, as you mentioned. Other markets such as New Jersey and Pennsylvania have been characterized for having less loyal users – they collect the bonuses and then later decide who they like best. What are your thoughts on this dichotomy? What can we make of it for some operators navigating the two environments?
18.
You characterised a customer base that is not as willing to give up their Social Security number to more than two platforms. If we assume that consumers will eventually make the landscape more fragmented, who do you think could be the winners there? Some believe that it will be the players with real structural advantages, so those with a DFS [daily fantasy sports] database, casino database and loyalty via a media asset. Is that fundamentally true?
19.
How does a player such as DraftKings leverage its database to really get people to bet?
20.
Does DraftKings have any structural advantages with the mechanics you referenced vs peers?
21.
What are your incremental thoughts on marketing spend for CAC? Are companies making optimistic assumptions about customers’ LTV to support that elevated spending?
22.
How important or valuable is it to have an integrated tech stack vs relying on a third party? Is this much more important now, given the M&A activity in the industry?
23.
What are your thoughts on Diamond Sports Group – a subsidiary of Sinclair which operates Bally Sports – and its OTT [over-the-top] app roll-out? What do you think is a realistic time frame for rolling out live betting and betting integration features in the app across legal markets? What are some potential hidden or under- appreciated hurdles?
24.
Are there any further agreements with leagues or teams to allow an OTT streaming app to include gambling?
25.
What are your thoughts on Bally’s arrangement with Boot Hill Casino & Resort to launch a mobile sports book in Kansas?
26.
Is there any merit to a recent report that questions the legality of DraftKings’ business, particularly SBTech’s involvement in black market operations?
27.
What’s the potential risk for DraftKings following the report on SBTech’s alleged involvement in black market operations? You said that you believe DraftKings will shut down SBTech’s B2B business, assuming it was purchased more for the tech and not for the revenue stream. Would SBTech’s revenues dropping to zero have no impact on DraftKings?
28.
Are there any other headline risks for DraftKings around the SBTech developments or findings?
29.
How much of a risk to Barstool or Penn National Gaming is David Portnoy’s [Founder, Barstool Sports] recent Twitter ban, given how social the industry is?
30.
You mentioned Penn’s Michigan sports betting market share dropping to 8% from 22%. Do you expect that trend to reverse or continue declining?
31.
What are your thoughts on Wynn’s decision to take its online betting business public under the name Wynn Interactive via a SPAC [special purpose acquisition company]?
32.
What is your outlook for Wynn Interactive? Do you have any concerns or are there any opportunities you’d like to highlight?
33.
Michigan experienced its first-ever month-over-month decline in sports betting since launching online sports betting. Is this significant or telling of any shifts ahead?
34.
What are your thoughts on FanDuel CEO Matthew King’s exit? What do you think happened there? Are there any reasons to be concerned?
35.
What are your thoughts on the timing of a potential FanDuel listing in the US and the Murdoch arbitration resolution?
36.
What are your thoughts on Flutter and its relationship with FanDuel? Is there anything we should fundamentally understand about the implications of the latter’s potential move towards a US public listing?
37.
What is your outlook for the continued TAM expansion you highlighted? How would you assess the TAM for OSB [online sports betting] vs iGaming vs our last conversation on the matter?
38.
What is your outlook for Canada, given sports wagering has been legalised? What are the implications of this? Could you discuss or estimate the opportunities there?
39.
What is your outlook for Canadian operators? Could you comment on the competitive landscape there? Who’s best-positioned for that opportunity?
40.
What is your opinion on Betway and its SPAC? What’s your outlook for the company’s plan to go public?
41.
You mentioned there were no new iGaming states over Q2 2021. What is underlying this? Is there anything potentially hampering new iGaming legislation?
42.
Which of the states next in line for legislation are you following? What’s your outlook for some of these key states? Who do you think will be the winning and losing platforms?
43.
Do you expect any significant market share shifts for online sports betting over H2 2021?
44.
Is there anything you think we should expand on or highlight? What will you be tracking over Q3 2021?
