Bet On It: Genius Sports scores with NFL extension

Welcome to the latest edition of “Bet On It,” where The Fly looks at news and activity in the sports betting and iGaming space. 

SECTOR NEWS: Caesars Entertainment (CZR) announced that its Caesars Sportsbook mobile sports betting app is accepting its first mobile sports wagers in Puerto Rico, complementing the opening of Caesars Sportsbook at Casino Metro in December 2022. 

On Thursday, Genius Sports (GENI) and the National Football League, or NFL, agreed to a multi-year extension of their existing strategic partnership to power the next generation of NFL fan experiences through official data and video distribution. The new extended deal will run through the end of the 2027-28 season. Genius Sports will remain the NFL’s exclusive distributor of real-time, official play-by-play statistics, proprietary Next Gen Stats data and the NFL’s official sports betting data feed to media companies and sports betting operators globally. The expansion of this partnership follows the launch and integration of official NFL data throughout the sports betting, media and broadcast ecosystem. Genius Sports powers over 98% of the legalized U.S. sports betting market with official NFL data. This extended partnership also includes the exclusive right to distribute official NFL Watch & Bet low latency live game video feeds to sportsbooks internationally. Beginning with the 2023-24 season, Genius Sports and the NFL have reached a multi-year agreement to distribute Watch & Bet in the U.S. and Canada. This coming after Cathie Wood’s ARK Investment bought 225.2K shares of Genius Sports the previous night. Additionally, Craig-Hallum raised the firm’s price target on Genius Sports to $12 from $10 and reiterated a Buy rating on the shares. This extension and expansion removes the biggest risk and stock overhang given it is Genius’ most important league partnership, the firm told investors in a research note. In addition to the extension and expansion with Football DataCo in late June, the NFL agreement supports the thesis that Genius is a “value-add technology partner which is becoming increasingly important for league partners and sportsbook/media customers,” said the firm. Its “conviction remains high in the company and the stock.” Shares were up as much as 17% following the extension. 

The South American Football Confederation has selected Sportradar (SRAD) as the successful bidder for exclusive global audio and video and betting data rights, that will enhance the accessibility and engagement of South American football for a broader global audience. Under the terms of the agreement, the rights encompass the major regional club tournaments organized by CONMEBOL, including the prestigious CONMEBOL Libertadores, CONMEBOL Sudamericana and CONMEBOL Recopa, for the next four seasons. It also marks the first time that domestic AV betting rights for CONMEBOL club competitions are offered in the region.

Bragg Gaming (BRAG) announced that its proprietary and third-party content is now live in Georgia exclusively to customers of Adjarabet, the country’s online gaming operator and a subsidiary of Flutter Entertainment (PDYPY). This furthers Bragg’s ongoing expansion into regulated markets across Europe, including Italy, the UK, the Netherlands, Greece, the Czech Republic, Germany and Switzerland.

Macau’s gaming bureau reported June gross revenue from games of fortune in the region was up 513.9% year-over-year to 15.207B patacas.

POTENTIAL NORTH CAROLINA START DATE: Regulators have started the process to launch North Carolina sports betting and it could go live as soon as January 8, 2024, of Bookies.com wrote. This comes after Governor Roy Cooper signed the bill that legalizes sports wagering in-person and online sports betting statewide. The law calls for the North Carolina Lottery Commission to oversee sports betting off Indian lands and parimutuel wagering on horse racing. This reportedly includes North Carolina betting apps. “This commission and the staff have been tasked with the enormous responsibility of licensing and regulating the newly enacted wagering activities while at the same time maintaining the quality work and highest standards of integrity with the lottery,” North Carolina State Lottery Commission Chair Ripley Rand said in statement.

ADDITIONAL ANALYST COMMENTARY: Deutsche Bank raised the firm’s price target on DraftKings (DKNG) to $24 from $22 and kept a Hold rating on the shares. The analyst increased estimates ahead of the Q2 results, saying higher holds and share growth will drive upside.

PUBLICLY TRADED COMPANIES IN THE SPACE INCLUDE: Accel Entertainment (ACEL), Bally’s (BALY), Boyd Gaming (BYD), Caesars (CZR), Churchill Downs (CHDN), DraftKings (DKNG), Flutter Entertainment (PDYPY), Gambling.com (GAMB), Gan Limited (GAN), Genius Sports (GENI), Las Vegas Sands (LVS), MGM Resorts (MGM), Penn Entertainment (PENN), Rush Street Interactive (RSI), Super Group (SGHC) and Wynn Resorts (WYNN).