{"id":271684,"date":"2023-05-03T11:50:18","date_gmt":"2023-05-03T16:50:18","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=271684"},"modified":"2023-05-03T14:04:53","modified_gmt":"2023-05-03T19:04:53","slug":"sports-betting-consolidation-could-benefit-big-players","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/sports-betting-consolidation-could-benefit-big-players\/","title":{"rendered":"Expect More Sports Betting Consolidation, Says Morgan Stanley"},"content":{"rendered":"

Speculation regarding sports wagering industry mergers and acquisitions activity, particularly on the operator side, remains intense, and some analysts believe deal-making could perk up as 2023 progresses.<\/p>\n

\"Sports
The famous charging bull on Wall Street. Sports betting consolidation is expected to increase this year. (Image: Reuters<\/em>)<\/figcaption><\/figure>\n

In a Monday note to clients, Morgan Stanley analysts observed that over the past seven years, revenue for the world\u2019s five largest sportsbook operators more than quadrupled with a big assist from acquisitions. They added that Flutter Entertainment (OTC: PDYPY) will post more revenue this year than the five biggest operators combined in 2015.<\/p>\n

This change has been driven partly by market growth, but has come from M&A, as operators seek to diversify their revenues and achieve scale benefits in the face of rising tax and regulatory headwinds,\u201d observed the analysts. \u201cWe expect regulatory drivers for consolidation to endure.\u201d<\/p><\/blockquote>\n

It\u2019s likely that the biggest sportsbook operators, such as Flutter and Entain Plc (OTC: GMVHY), will grow via acquisitions. Flutter, the parent company of FanDuel<\/a>, arrived at its current composition via at least a dozen acquisitions over the past decade. Entain has been one of the most acquisitive firms in the industry over the past several years.<\/p>\n

\u201cThe M&A opportunity set for the largest operators appears to be broadening as diversification, scale, technological capability, cash flow generation, and balance sheet capacity is increasingly in contrast to smaller scale competitors, \u201c added Morgan Stanley.<\/p>\n

US Could Be Epicenter of Sports Betting Consolidation<\/h2>\n

Not surprisingly, the US could be a hub of sports betting industry consolidation activity. At the very least, this country will be a hotbed of related rumors.<\/p>\n

\n

For example, PointsBet (OTC: PBTHF) recently confirmed it\u2019s in advanced discussions<\/a> to sell its US operations. Its Australia arm has also been the subject of takeover speculation. Rush Street Interactive (NYSE: RSI), another smaller domestic sportsbook company, has long been viewed as a potential target, too.<\/p>\n<\/div>\n

\u201cThe potential of the US market has driven a significant initial phase of consolidation, focused on ownership\/control of US entities, insourcing technology, and gain an edge in customer acquisition through media and database deals,\u201d noted Morgan Stanley. \u201cAs the market transitions into its next (profitability) stage, we expect some of these to endure with additional impetus from new\/late entrants.\u201d<\/p>\n

With just three operators, FanDuel, DraftKings, and BetMGM<\/a>, controlling more than three-quarters of the US online sports wagering market, smaller rivals may have no choice but to merge with each other in a bid to cobble together market share.<\/p>\n

Sports Betting Consolidation Negative for Data Providers<\/h2>\n

If there are potential losers by way of more sports wagering industry mergers and acquisitions activity, it could be data providers such as Genius Sports (NYSE: GENI) and Sportradar (NASDAQ: SRAD),\u00a0 according to Morgan Stanley.<\/p>\n

The analysts say that if the number of gaming operators declines, the existing firms will gain leverage in negotiations with data providers.<\/strong><\/p>\n

That doesn\u2019t imply the relevance of Genius ad Sportradar is vulnerable, but those firms could experience diminished pricing power if the number of potential clients declines.<\/p>\n","protected":false},"excerpt":{"rendered":"

Speculation regarding sports wagering industry mergers and acquisitions activity, particularly on the operator side, remains intense, and some analysts believe deal-making could perk up as 2023 progresses. In a Monday note to clients, Morgan Stanley analysts observed that over the past seven years, revenue for the world\u2019s five largest sportsbook operators more than quadrupled with […]<\/p>\n","protected":false},"author":46,"featured_media":251111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,1,1074],"tags":[81903,81966,81967,80968],"acf":[],"yoast_head":"\nSports Betting Consolidation Could Benefit Big Players<\/title>\n<meta name=\"description\" content=\"Sports betting consolidation will be a theme going forward, says Morgan Stanley.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sports Betting Consolidation Could Benefit Big Players\" \/>\n<meta property=\"og:description\" content=\"Sports betting consolidation will be a theme going forward, says Morgan Stanley.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/sports-betting-consolidation-could-benefit-big-players\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-03T16:50:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-03T19:04:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/bull-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/sports-betting-consolidation-could-benefit-big-players\/\",\"url\":\"https:\/\/www.casino.org\/news\/sports-betting-consolidation-could-benefit-big-players\/\",\"name\":\"Sports Betting Consolidation Could Benefit Big Players\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/sports-betting-consolidation-could-benefit-big-players\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/sports-betting-consolidation-could-benefit-big-players\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/bull-scaled.jpg\",\"datePublished\":\"2023-05-03T16:50:18+00:00\",\"dateModified\":\"2023-05-03T19:04:53+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Sports betting consolidation will be a theme going forward, says Morgan Stanley.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/sports-betting-consolidation-could-benefit-big-players\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/sports-betting-consolidation-could-benefit-big-players\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/sports-betting-consolidation-could-benefit-big-players\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/bull-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/bull-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"The famous charging bull on Wall Street. Some betting stocks could benefit from the start of the 2023 NFL season. 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