Bet On It: Senator says FanDuel, DraftKings should face antitrust probe

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: Senator Mike Lee of Utah stated in a post to X: “We can’t allow online gambling companies like @FanDuel (FLUT) & @DraftKings (DKNG) to violate anti-trust laws, especially as more Americans grapple with the effects of this industry on our society. Glad to join @SenPeterWelch requesting that @linakhanFTC investigate and protect consumers.”

Boyd Gaming (BYD) announced that its board of directors has authorized an additional $500M under the company’s share repurchase program. Considering the additional authorization, the company had approximately $843M remaining in repurchase authority as of September 30.

MGM Resorts (MGM) announced the promotion of Ari Kastrati to chief content, hospitality and development officer, effective immediately. In his new role, Kastrati, who joined MGM Resorts in 2010 and most recently served as chief hospitality officer, will oversee the company’s global design and development efforts and sports and entertainment partnerships. He also will continue to drive the company’s hospitality strategy, including the development of food and beverage and nightlife concepts, and lead the company’s lifestyle, retail, leasing, and arts divisions, the company stated.

The holding company formed to acquire International Game Technology’s (IGT) Gaming & Digital Business and Everi Holdings (EVRI) in connection with the previously announced acquisitions by funds managed by affiliates of Apollo Global Management (APO) announced that Hector Fernandez will lead the combined enterprise as CEO. Fernandez most recently served as CEO of Aristocrat Gaming, Aristocrat Leisure’s global land-based gaming content and technology business. Fernandez will join the combined enterprise by the fourth quarter of 2025 after expiration of a customary non-compete period. Following the transaction close, Nick Khin, president, global gaming at IGT, will lead the combined enterprise as interim CEO until Fernandez assumes the CEO role. Following closing, the combined enterprise will be organized into three business units: gaming, digital, and fintech. Upon Fernandez joining the combined enterprise, Khin will step into the newly formed role of CEO, gaming, and will oversee the land-based gaming businesses of the combined enterprise. Gil Rotem, current president of IGT PlayDigital, will serve as CEO, digital, and Darren Simmons, current executive VP and fintech business leader at Everi, will serve as CEO, fintech. These appointments expand on the previously announced leadership for the combined enterprise. The previously announced acquisitions of IGT Gaming and Everi are still expected to be completed by the end of the third quarter of 2025, assuming the timely satisfaction of closing conditions, including certain gaming and regulatory approvals. On November 14, Everi stockholders approved the transaction. On November 20, the waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976 expired. The separation of the IGT Gaming business remains on track and is expected to be complete in early 2025. Integration planning for the combined enterprise is underway, led by a dedicated team comprising representatives of the Apollo Funds, Everi and IGT Gaming.

Nevada reported October statewide gaming win was down 2.19% to $1.29B. The state’s Gaming Control Board also reported October Las Vegas Strip gaming win was down 3.12% to $692.07M compared to last year.

TNT Sports’ networks and platforms will showcase Knockout Rounds action of the 2024 Emirates NBA Cup with multiple viewing experiences available for fans across TNT, truTV and Max (WBD). TNT Sports in collaboration with NBA 2K (TTWO) and Genius Sports (GENI), will offer an NBA 2K25 DataCast viewing experience on truTV and Max. This alternative telecast will be available during all of TNT Sports’ 2024 Emirates NBA Cup Quarterfinals and Semifinal live game coverage and will blur the lines between the video game and the real NBA experience. Viewers will see NBA 2K25 overlays such as the Shot Meter, 2K Badges, official 2K camera angles and more, with split-second game insights powered by Genius Sports’ GeniusIQ – including player tracking, shot probability, and shot distance – embedded throughout the telecasts. The alternative viewing experience will feature contributions from Vince Carter, Candace Parker, Channing Frye, Adam Lefkoe, Kirk Goldsberry and others. Fans that tune into all NBA 2K25 DataCast broadcasts will also have the opportunity to redeem six total NBA 2K25 Locker Codes each unlocking an Amethyst MyTEAM pack, allowing players to choose one of 11 NBA superstars to build the ultimate MyTEAM lineup.

In a regulatory filing, Las Vegas Sands (LVS) CEO Robert Goldstein disclosed the sale of 60.2K common shares of the company on November 29th in a total transaction size of $3.19M.

DraftKings co-founder and CEO Jason Robins, speaking at the 4th Annual Craig-Hallum Online Gaming Conference, says November was a more typical month, even a little on the positive side, noted that “yesterday was not.” Says “kind of goes up and down, depending on the day.”

Macau’s gaming bureau reported November gross revenue from games of fortune in the region was up 14.9% year-over-year to 18.438B patacas.

ROBINHOOD LOOKING IN: Robinhood (HOOD) CEO Vlad Tenev said in reply to a question at the company’s investor day that the company is “keenly looking into” the sports betting space. Tenev suggested this could take the form of event contracts, similar to markets Robinhood introduced during the presidential election, where users trade with each other rather than betting against the house. He emphasized that while no official plans are in place, the concept aligns with cultural trends and customer interests. Benchmark said that Robinhood could leverage its existing trading platform infrastructure and user base to integrate event-based contracts, positioning itself uniquely compared to traditional sportsbooks. By offering peer-to-peer betting systems, the company might avoid regulatory hurdles and attract customers seeking a new betting model, according to Benchmark.

NFL WEEK 13: The remainder of Q4 will be marked by a busier schedule for major sports, including Week 13 of the NFL season, a critical period for sportsbooks, according to Canaccord. This week featured the two traditional Thanksgiving Day games, the newer Thanksgiving Night and Black Friday games, and a total of six standalone matchups, driving increased engagement among bettors. Last week brought mixed results for operators, the firm noted. However, six favorites—the most in a single week this season—won but failed to cover the spread. In New York, engagement remained robust despite total handle declining approximately 5% year-over-year to $490M in Week 12 partly due to the Thanksgiving holiday occurring a week earlier last year. This decline was more than offset by favorable outcomes and the lapping of last year’s unfavorable results, driving total gross gaming revenue up 133% year-over-year to $51M last week, Canaccord told investors. FanDuel continues to lead the New York market in handle share, capturing 41% compared to DraftKings’ 33%. Fanatics remains the fastest-growing operator, with its share climbing 640 basis points year-over-year to 7.7%. FanDuel’s top-tier hold percentage further solidified its dominance in GGR share, commanding 45% of the total, followed by DraftKings at 37%., the firm concluded

OCTOBER IGAMING: October marked a record month for iGaming, with all states now reporting data. Total gross gaming revenue, or GGR, increased by 34% year-over-year to an all-time high of $759M, with every state achieving record performance. This 34% growth represents the fastest rate of same-state iGaming expansion since early 2022. The acceleration was likely influenced in part by customers recycling winnings from sports betting given October’s particularly customer-friendly sports outcomes, according to Jefferies. For context, iGaming GGR was flat month-over-month from September to October last year when sports margins remained steady. This year, however, iGaming GGR rose 6% month-over-month despite a 3.9 percentage point decline in sports margins. West Virginia, the state with the largest iGaming growth, also experienced the steepest drop in sports margins, Jefferies told investors. FanDuel led the iGaming market in October, claiming the number one position in GGR share with a 25% market share, up 2.3 percentage points year-over-year and 0.7 points month-over-month. DraftKings, including Golden Nugget, ranked second at 24.1%, down 1.9 points year-over-year, while BetMGM placed third at 19.0%, down 1.3 points. FanDuel’s 0.8-point lead over DraftKings marked its largest advantage since April. By operator, GGR growth for October reached 47% for FanDuel, 24% for DraftKings, and 22% for BetMGM.

CONFIRMED: Missouri officially became the 39th state to legalize sports betting on Thursday, following the certification of the 2024 sports betting ballot referendum, Devin O’Connor of Casino.org reported. The decision came after a narrow victory for proponents of the measure in the November election. Missouri Secretary of State John Ashcroft’s office confirmed that Amendment 2 passed with 50.05% of the vote. Out of 2,954,343 total votes cast, 1,478,652 supported legalizing sports betting, while 1,475,691 opposed it, with a margin of fewer than 3,000 votes deciding the outcome. The approval of Amendment 2 paves the way for legal sportsbooks to launch in Missouri next year, making it the eighth state in the region to regulate sports betting. Meanwhile, voters decisively rejected a separate gaming measure that would have permitted Bally’s (BALY) to open a casino at the Lake of the Ozarks.

ADDITIONAL ANALYST COMMENTARY: Citi raised the firm’s price target on Flutter Entertainment to 26,000 GBp from 22,000 GBp and maintained a Buy rating on the shares.

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 (FLUT), 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).