Bet On It: Competition Starting To Heat Up North Of The Border

This week in the sports betting and iGaming space a dry summer is expected for sports betting and new partnerships form.

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New Jersey's Division of Gaming Enforcement reported total gaming revenue for June was $392.8M, compared to $97.6M in June 2020, reflecting a 302.7% increase. Internet gaming win was $107.1M in June, compared to $84.9M in the prior period, reflecting an increase of 26.1%. Sports wagering gross revenue was $71.3M for the month. Casino win for June was $214.5M. The NJ DGE noted: "Due to COVID-19, Atlantic City casinos closed at 8:00 PM on March 16, 2020. Internet casino gaming and Online sports wagering operations continued, however, most sports wagering events were cancelled beginning in mid-March 2020. As a result, casino win and sports wagering revenue for the month and the year-to-date period ended June 2021 are not comparable to 2020. Additionally, the Atlantic City casino hotel properties continue to operate under certain COVID-19 restrictions since reopening in July 2020."

Play NJ noted that online and retail sportsbooks took in $766.9M in bets in June, according to official data released Friday. That is down 5.8% from $814.3M in May, but up from $117.8M in June 2020. June's action yielded $71.3M in gross gaming revenue, the most in operator revenue since sportsbooks posted a record $82.6M in January. Operator revenue was up 34.7% from $52.9M in May and up exponentially over $12.6M in June 2020. All told, June's betting yielded $10.5M in state and local taxes. In total, 89.1%, or $734.7M, of June's handle came through an online operator. FanDuel (PDYPY) Sportsbook/PointsBet commanded the market lead once again with $38.1M in gross revenue, up from $29.8M in May. Meanwhile, retail sportsbooks continued to benefit from loosening restrictions with $83.9M wagers in June, up from $79.6M in May. Meadowlands/FanDuel led all retail books with $6.4M in revenue in June.

Scientific Games (SGMS) announced that it has submitted to the board of directors of SciPlay (SCPL) a proposal for Scientific Games to acquire the remaining 19% equity interest in SciPlay that it does not currently own in an all-stock transaction, following which SciPlay would become a wholly-owned subsidiary of Scientific Games. In its letter proposing the transaction, Scientific Games said SciPlay shareholders, other than SGMS and its subsidiaries, would receive 0.250 shares of SGMS common stock for each share of SciPlay Class A common stock they own, which would imply an enterprise value of $1.9B and purchase multiple of 2021E consensus EBITDA of 10.1x and 2022E consensus EBITDA of 9.4x.

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