In its frenetic effort to gain market share in the U.S., Fanatics has cut a deal with outgoing PointsBet. For the relatively cheap price of $150 million, it is buying the American (but not Canadian) operations of PointsBet, which tells you something about how badly PointsBet wants to get out of the Land of the Free. Fanatics beat Penn Entertainment and Bally’s Corp. to the punch, although it’s not clear what Bally’s inchoate sports-betting operation would have gained from yet another acquisition. PointsBet’s reason for quitting the scene is quite simple: It just doesn’t have the moolah to stay the course to profitability, so it’s getting out while it’s behind. Among those taking a bat on their PointsBet investment will be NBC Universal, which backed a loser. If the PointsBet gaming licenses currently valid devolve to Fanatics, the latter will have made a head start toward getting into 12 states by late August. Fanatics claims it has a 10-year business plan but OSB moves fast. It’s already five years old in this country and the market share has ossified around four or five operators.

Continue reading Fanatics and freeloaders; Texas fails twice over

New product lifted Illinois‘ gambling grosses last month, as same-store revenues slipped 1%. The overall haul was $128 million and much of the propulsion came from The Temporary at American Place in Waukegan and its $7 million take. Hard Rock Rockford rocketed 21.5% to $6 million, while Rivers Des Plaines dipped 2% but still lapped its competitors with $45.5 million. Among the older riverboats, Grand Victoria was down 2.5% to $13.5 million, Hollywood Aurora did the same for $9 million and Hollywood Joliet actually gained 4% to $8 million. (Yes, we’re somewhat surprised.) Harrah’s Joliet nudged down a percentage point to $12 million.

Continue reading Illinois up, Missouri down; Golden fails to glitter

Penn Entertainment stock collapsed 13% Wednesday afternoon after Barstool Sports founder Dave Portnoy took to Twitter to rant and rave about the firing of Ben Mintz, a ‘Stool fool who dropped the N-word on air for all the world to hear. A panicky Portnoy simultaneously trashed Penn’s decision whilst pretending to rationalize it by saying the company could lose all its gaming licenses over the Mintz matter. Not bloody likely, although it would certainly imperil Penn’s provisional OSB license in Massachusetts, where it just squeaked by the last time—possibly in Ohio, as well, where it had been running a scofflaw operation.

So stupid is Portnoy that he scored an own-goal on his personal stock holdings, being heavily invested in Penn. He quickly tried to spin his gaffe, tweeting that it’s “Great time to buy. It’ll bounce back in my humble non financial advise [sic] opinion.” What an idiot. As Credit Suisse analyst Ben Chaiken diplomatically put it, “well publicized Barstool personnel changes likely drove the stock reaction.”

Continue reading Portnoy torches Penn; Station “outstanding”; DraftKings improves; Alabama betting brouhaha; Derby gone to the dogs