The US is now home to the largest sports betting market in the US. It’s no surprise to hear that so many companies are now trying to break into the country’s newest gambling industry. With new reports now surfacing, some are now asking whether or not it’s time to invest in Genius Sports.
We’ve seen several major sports betting operators merge recently. This industry is evolving rapidly and is offering investors some unique opportunities. Today, we’re going to discuss what exactly is happening with Genius Sports.
Let’s get into it!
European Sports Betting Companies Continue Moving into the US
Back in 2018, the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). Doing so immediately allowed every state in the country to set its own laws on sports betting. Several states immediately began allowing this popular form of gambling.
It’s been more than two years since the removal of PASPA and 24 states have now passed sports betting legislation. Most of these states are earning a huge amount of money from this industry in the form of taxes. New Jersey now has one of the largest sports betting markets in the world.
As more states legalize sports betting and revenue increases, more companies work to break into this market. That includes several of the biggest European-based sports betting companies. William Hill is now operating sportsbooks in several different states.
Not long ago, news broke that Caesars Entertainment had agreed to purchase William Hill for $3.7 billion. Caesars will soon take control of the company’s US assets. Apollo Global Management is expected to take over William Hill’s UK assets.
There’s a lot happening in the US sports betting industry. Several states have sports betting bills on the ballots in November. Many analysts believe that nearly every state in the country will have a regulated sports betting industry within the next few years.
According to new reports, another major UK-based company is making its way into the US sports betting market.
New Announcement Leads Many to Invest in Genius Sports
Sports betting revenue is increasing in the US every single year. That’s true even in the states without laws to regulate this industry. Many investors around the US are now looking for ways to capitalize on this growth.
There’s now a new opportunity emerging. News has broken that UK-based data firm Genius Sports is set to go public by merging with special purpose acquisition company dMY Technology Group. This deal values Genius Sports at $1.5 billion.
Some analysts now believe this is a great time to invest in Genius Sports. The company focuses on providing data management to major sports leagues and organizations. Several of the biggest US sports leagues use the company to acquire official data.
This data is used by sports betting companies. The information helps these sportsbooks to engage and better interact with their members. Genius Sports CEO Mark Locke spoke about this new deal to the media this week.
“The listing in the US was about us being a global company, with access to those markets,” he said. “London is fantastic, I think it has a great place in the market. This transaction will help us continue to expand and strengthen our position as a nexus of the global sports, betting and media ecosystem.”
Upon going public, Genius Sports will be trading on the New York Stock Exchange under the symbol “GENI.” It’s a huge move for this company and for other sports betting operators in the US. Stay tuned for more updates on this situation over the next few months.
US States Continue Breaking Sports Betting Revenue Records
For months, we’ve been reporting on the lowering of casino revenue around the country. Most major casinos are now open, yet these venues are struggling to bring in players. Even the biggest casino destinations in the United States are hurting right now.
Las Vegas continues to experience drops in revenue. Reports surfaced today that Red Rock Resorts has experienced a 24% drop in 2020’s third quarter. Officials within Las Vegas Sands have also announced today that the company is looking to sell its Las Vegas casinos.
The casino industry is hurting. Interestingly, sports betting revenue is surging right now. Many states have recently set new records in their sports betting earnings. That includes New Jersey, which set a US all-time record for sports betting handle in August.
Colorado has also just released its newest sports betting revenue reports. Once again, this state set another state handle record at $207.7 million. Mobile sports betting brought in the vast majority of this money.
No one knows how the country’s land-based casino industry will look a year from now. Most agree that sports betting operations will continue to grow, though. Stay tuned for more revenue news over the next few weeks.
Do you plan to invest in Genius Sports? Let us know in the comments section below!
