Business By The Books: Q3 Sports Betting Earnings Start This Week

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Third quarter earnings season runs now through mid-November with calls concerning sports betting kicking off this week.

PointsBet will hold its fiscal fourth quarter earnings call Wednesday morning in Australia, or 7:30 pm Eastern Tuesday night in the US. The call could skew heavily toward the Australian business that will remain intact after PointsBet completes the sale of its US assets to Fanatics sometime in the first quarter of 2024.

Two other companies that are not directly involved in sports betting, Boyd and Churchill Downs, also report this week.

Boyd, which holds a 5% stake in Flutter-owned FanDuel, will report earnings at 5 pm Tuesday. Churchill Downs could give an update recently launched Kentucky sports betting when it holds its investor call 9 am Thursday.

Smarkets pausing US rollout

Smarkets is taking a step back from the US market until it can re-engage with a “better and stronger product,” CEO Jason Trost said in the company’s 2022 annual report.

The company’s SBK sportsbook is only live in Colorado and Indiana. While the company saw a 7.1% increase in average active monthly users to 48,670 across all jurisdictions, its annual loss before taxes widened to $21.6 million.

“While we acknowledge the challenges encountered in our international expansion during 2022, we have made the decision to temporarily pause our US expansion. However, this is not a goodbye to the American market. We are committed to reengaging with better and stronger product, and we remain optimistic about the opportunities it holds. Our focus on 2023 will be narrower and centered on product development.”

Smarkets had to cut costs, which led to reducing its workforce. The company said that will put it on a “clear path toward profitability.”

The company could also be forced to raise funds if back taxes from 2012-2017 totaling nearly $16 million are demanded in full. Smarkets reported cash and cash equivalents of $44.5 million at the end of 2022.

Tipico updates top-ranked casino app

Tipico launched an updated iGaming platform in New Jersey, which adds “market-leading speed” and simplicity across the board.

Deposit processing speeds are up 50% and withdrawal speeds up 7 times, the company said.

Tipico’s casino app ranked first out of 32 brands in an Eilers & Krejcik review in September. The consultancy noted the app “doesn’t do much wrong” before the quality-of-life improvements in the new update.

GAN gains NV sports betting tech license

GAN received a Nevada license to provide sports betting technology for Red Rock‘s in-person sportsbooks and STN mobile app.

The hearing also brought to light new details of why longtime CEO Dermot Smurfit stepped down in September.

The Nevada Independent reported Nevada Gaming Commissioner Ogonna Brown mentioned an investigation into the “non-disclosure of certain assets and sexual harassment allegations.”

Nevada’s licensing process led to GAN discovering some of the issues, chief legal officer Sylvia Tiscareño said.

VA sports betting update this week

The Virginia Lottery Board meets at 9:30 am Wednesday for its quarterly board meeting and a rare look into sports betting details by operator.

Virginia only reports totals in its monthly reports. These quarterly reports usually give a breakdown of handle and promotional share by operator since the beginning of the year.

The most interesting data will likely be about whether international giant bet365 is eating into the market share of leaders FanDuel and DraftKings.

Elsewhere, SuperBook launched its mobile Virginia sportsbook on Thursday to give it nine live states.

Inspired appoints new CCO of virtual sports

Ian Freeman is joining Inspired as the chief commercial officer of Virtuals effective Nov. 16. He is replacing Steve Rogers, who spent 25 years with Inspired.

Freeman will be responsible for “the innovation, delivery and growth of Inspired’s Virtual Sports products.”

Inspired recently announced a deal with the NBA to create a virtual sport centered around archive footage.

Virtual sports are not a widespread offering in the US but are a popular sports betting alternative in some European markets.

ELYS shares suspended

Elys Game Technology saw its shares suspended from trading on the Nasdaq market last Tuesday.

The sports betting tech provider failed to maintain the minimum bid price requirement of $1.

Elys is currently considering whether an appeal is warranted. The company called out annual listing costs of $1.6 million that are expected to rise, and delisting and deregistration could create opportunities to “streamline operations.”

Elys has begun transferring its stock to an over-the-counter market. A Nasdaq delisting would not impact the company’s operations.