Online gambling for real money

Positions: $RSI 30 03/19 30C
Proof: https://imgur.com/a/swCCMjz

*This post is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice.*

TLDR: Rush Street Interactive ($RSI) is the #1 nationwide online casino company and the #3 or #4 sports book depending on the state. Short selling, unwarranted institutional wariness of share dilution and the general market focus on sports book instead of online casino has left $RSI grossly undervalued. A massive blow out at Q4 earnings will result in analyst upgrades and a rapid repricing by market makers and institutions seeking exposure to the emerging sector.

**Overview**
"Sports book is really just kind of a warm up in a lot of ways for an online casino where the real money is made" - Niccolo De Masi, CEO dMY technologies

Rush Street Interactive ($RSI) operates the BetRivers.com online casino and sports book. They are now fully licensed and operating in New Jersey, Pennsylvania, Michigan, Illinois, Indiana, Colorado, Iowa, and Virginia. They own and operate a casino in New York and already have a New York license making them well positioned for liberalization there. They merged with a dMY Technology Group SPAC on Dec. 31st 2020 with 240 million on the balance sheet to spend on growth.
The online casino business is fundamentally more profitable than sports betting because the average value of a casino player is estimated at $600 while a sports book player could be as little as $20. Estimates put the online casino market at DOUBLE the size of the online sports book market and the online casino industry is really just getting started as more states liberalize.
$RSI is expert at new market entry; they have been first to market in Pennsylvania, Illinois, Indiana, and Colorado and even when they aren't first they are capable of capturing market share in competitive markets such as New Jersey. They also have products which women play which accounts for at least half of the market in online casino. The female market is one that the pure sports book plays miss out on.
Also for some fucking reason they operate a casino and sports book in Colombia (rushbet.co) and may make large expansions into other parts of south America as legalization continues. This means they have the expertise necessary for global expansion in the future although the states remains their primary focus and growth driver.

**The Financials and Strategy**
Unlike other companies in the space Rush Street is already profitable in 2020 and has a strong focus on Return On Invested Capital (ROIC). Q3 gross revenue was $71.9 Million. Q4 revenue is going to be a blow out. Combing through state gambling revenue data and breaking that down by market share my estimate is that Q4 revenue could be as high as $120 Million.
Paired with this blow out will be a **guidance raise to $500 Million for 2021**, which is 2/3 of DraftKings 2021 guidance of $750M.
https://imgur.com/a/xkfcayC

What is striking when compared to $DKNG is that their advertising spend was only a quarter of revenue in Q3 while $DKNG spent 155% of their revenue. This will change as they begin to focus on growth, but it shows they are very good at getting return on ad spend. This company should actually be valued close to $DKNG based on growth potential once guidance is raised.
https://imgur.com/a/RQQXtGg

Their focus on attracting **female gamers** is also important to their long term growth potential. The sports book plays with cross sells to casino such as $DKNG will not be able to grow through the female demographic in the same way. **This cannot be understated** as one of the major strategic advantages of $RSI.
https://imgur.com/a/xzJj26n

As I said before I expect their trend of rapid growth to continue for Q4 earnings, certainly going to be a blow out based on looking at state gambling revenue numbers. My estimate is that their revenue will be around 110M for Q4. I also expect guidance to be raised to 500M for 2021 due to strong performance in existing markets and the recently opened Michigan market as well as their sports book launch in Virginia.
https://imgur.com/a/ckTqHhh

**Short sellers have entered the chat**
The short interest on $RSI sits at 5.08 M shares as of 01/14/21 representing a 30% increase. Now why would a company already valued at 2.8 Billion and with a comparative valuation of 8-10 Billion compared with $DKNG and $PENN be so heavily shorted at such a low market cap? My conclusion is that an institution with 10s of millions to throw at shorting this stock wants to take advantage of fear of share dilution from warrant calling or to establish a better entry prior to earnings.

**Commander in GILF Cathie Wood is Bullish on the sector**
On Feb. 2nd ARK disclosed that they had purchased 620,300 shares of $DKNG. This is extremely bullish for the sector. I am highly confident that after Q4 earnings ARK will be purchasing shares in $RSI as well due its strategic advantages relative to $DKNG and exposure to the female demographic. For such a small market cap company this will be a major catalyst.

**Institutions are bullish**
Fidelity has increased their holdings to 14% as of today: https://d18rn0p25nwr6d.cloudfront.net/CIK-0001793659/8f10b0d8-a3d2-447c-bc75-87587d0a4670.pdf
Alliance Bernstein holds a 6% position reported today: http://d18rn0p25nwr6d.cloudfront.net/CIK-0001793659/e883778d-e759-4a85-91c1-3242ed110720.pdf

**Final notes**
Jerome "The Bus" Bettis, Steelers legend and hall of fame running back, is their brand ambassador... This company knows their target audience and how to appeal to them, likely more 'classic' ambassadors to come to attract even more boomer and Gen X degenerates. Keep in mind these are the gamblers with big money to spend, the average age of an online casino gambler is 42.
This stock has been grossly underpriced due to short selling. The terms of the SPAC deal were not unfavorable and all the insiders held their shares through the merger banking on growth in the market - **management owns 77% of the company**. This is a true value play on a well managed company in an emerging industry with a market size in the hundreds of billions. I plan to hold shares long term.

I will post a part 2 breaking down their latest S-1 filing and Q4 revenue by state when they release their Q4 earnings date.

Do your own research.
References:
https://www.legalsportsreport.com/sports-betting/revenue/
https://fintel.io/doc/sec-rush-street-interactive-inc-ex991-2021-january-05-18632-947
https://s26.q4cdn.com/794539746/files/doc_presentations/2020/RSI-Investor-Presentation-15-Oct-2020.pdf
https://ir.rushstreetinteractive.com/news/news-details/2020/RUSH-STREET-INTERACTIVE-ANNOUNCES-THIRD-QUARTER-2020-RESULTS-AND-RAISES-FULL-YEAR-GUIDANCE/default.aspx
https://www.youtube.com/watch?v=SQWEhWuPmzU
https://www.thestreet.com/investing/draftkings-surges-as-stake-bought-by-ark-next-generation

Positions: $RSI 30 03/19 30C
I will be adding 3/19 25cs each week until earnings.
Exit strategy: "What's an exit strategy?" - u/deepfuckingvalue

The #1 online casino company $RSI is primed for ingress.

Positions: $RSI 03/19 30C
Proof: https://imgur.com/a/swCCMjz
This post is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice.
TLDR: Rush Street Interactive ($RSI) is the #1 nationwide online casino company and the #3 or #4 sports book depending on the state. Short selling, unwarranted institutional wariness of share dilution and the general market focus on sports book instead of online casino has left $RSI grossly undervalued. A massive blow out at Q4 earnings will result in analyst upgrades and a rapid repricing by market makers and institutions seeking exposure to the emerging sector.
Overview
"Sports book is really just kind of a warm up in a lot of ways for an online casino where the real money is made" - Niccolo De Masi, CEO dMY technologies
Rush Street Interactive ($RSI) operates the BetRivers.com online casino and sports book. They are now fully licensed and operating in New Jersey, Pennsylvania, Michigan, Illinois, Indiana, Colorado, Iowa, and Virginia. They own and operate a casino in New York and already have a New York license making them well positioned for liberalization there. They merged with a dMY Technology Group SPAC on Dec. 31st 2020 with 240 million on the balance sheet to spend on growth.
The online casino business is fundamentally more profitable than sports betting because the average value of a casino player is estimated at $600 while a sports book player could be as little as $20. Estimates put the online casino market at DOUBLE the size of the online sports book market and the online casino industry is really just getting started as more states liberalize.
$RSI is expert at new market entry; they have been first to market in Pennsylvania, Illinois, Indiana, and Colorado and even when they aren't first they are capable of capturing market share in competitive markets such as New Jersey. They also have products which women play which accounts for at least half of the market in online casino. The female market is one that the pure sports book plays miss out on.
Also for some fucking reason they operate a casino and sports book in Colombia (rushbet.co) and may make large expansions into other parts of south America as legalization continues. This means they have the expertise necessary for global expansion in the future although the states remains their primary focus and growth driver.
The Financials and Strategy
Unlike other companies in the space Rush Street is already profitable in 2020 and has a strong focus on Return On Invested Capital (ROIC). Q3 gross revenue was $71.9 Million. Q4 revenue is going to be a blow out. Combing through state gambling revenue data and breaking that down by market share my estimate is that Q4 revenue could be as high as $120 Million.
Paired with this blow out will be a **guidance raise to $500 Million for 2021**, which is 2/3 of DraftKings 2021 guidance of $750M.
https://imgur.com/a/xkfcayC
What is striking when compared to $DKNG is that their advertising spend was only a quarter of revenue in Q3 while $DKNG spent 155% of their revenue. This will change as they begin to focus on growth, but it shows they are very good at getting return on ad spend. This company should actually be valued close to $DKNG based on growth potential once guidance is raised.
https://imgur.com/a/RQQXtGg
Their focus on attracting **female gamers** is also important to their long term growth potential. The sports book plays with cross sells to casino such as $DKNG will not be able to grow through the female demographic in the same way. **This cannot be understated** as one of the major strategic advantages of $RSI.
https://imgur.com/a/xzJj26n
As I said before I expect their trend of rapid growth to continue for Q4 earnings, certainly going to be a blow out based on looking at state gambling revenue numbers. My estimate is that their revenue will be around 110M for Q4. I also expect guidance to be raised to 500M for 2021 due to strong performance in existing markets and the recently opened Michigan market as well as their sports book launch in Virginia.
https://imgur.com/a/ckTqHhh
Short sellers have entered the chat
The short interest on $RSI sits at 5.08 M shares as of 01/14/21 representing a 30% increase. Now why would a company already valued at 2.8 Billion and with a comparative valuation of 8-10 Billion compared with $DKNG and $PENN be so heavily shorted at such a low market cap? My conclusion is that an institution with 10s of millions to throw at shorting this stock wants to take advantage of fear of share dilution from warrant calling or to establish a better entry prior to earnings.
Cathie Wood is Bullish on the sector
On Feb. 2nd ARK disclosed that they had purchased 620,300 shares of $DKNG. This is extremely bullish for the sector. I am highly confident that after Q4 earnings ARK will be purchasing shares in $RSI as well due its strategic advantages relative to $DKNG and exposure to the female demographic. For such a small market cap company this will be a major catalyst.
Final notes
Jerome "The Bus" Bettis, Steelers legend and hall of fame running back, is their brand ambassador... This company knows their target audience and how to appeal to them, likely more 'classic' ambassadors to come to attract even more boomer and Gen X degenerates. Keep in mind these are the gamblers with big money to spend, the average age of an online casino gambler is 42.
This stock has been grossly underpriced due to short selling. The terms of the SPAC deal were not unfavorable and all the insiders held their shares through the merger banking on growth in the market - **management owns 77% of the company**. This is a true value play on a well managed company in an emerging industry with a market size in the hundreds of billions. I plan to hold shares long term.
I will post a part 2 breaking down their latest S-1 filing and Q4 revenue by state when they release their Q4 earnings date.
Do your own research.
References:
https://www.legalsportsreport.com/sports-betting/revenue/
https://fintel.io/doc/sec-rush-street-interactive-inc-ex991-2021-january-05-18632-947
https://s26.q4cdn.com/794539746/files/doc_presentations/2020/RSI-Investor-Presentation-15-Oct-2020.pdf
https://ir.rushstreetinteractive.com/news/news-details/2020/RUSH-STREET-INTERACTIVE-ANNOUNCES-THIRD-QUARTER-2020-RESULTS-AND-RAISES-FULL-YEAR-GUIDANCE/default.aspx
https://www.youtube.com/watch?v=SQWEhWuPmzU
https://www.thestreet.com/investing/draftkings-surges-as-stake-bought-by-ark-next-generation
Positions: $RSI 03/19 30C
I will be adding 3/19 25cs each week until earnings.
Exit strategy: "What's an exit strategy?" - u/deepfuckingvalue
Forgot to add: http://d18rn0p25nwr6d.cloudfront.net/CIK-0001793659/8f10b0d8-a3d2-447c-bc75-87587d0a4670.pdf Fidelity just doubled their position to almost 15%

Points bet

I'm in the u.s. but have been dipping into Australian stocks using foreign ordinaries on the u.s. side because there seems to be more value overseas.
I've found a few posts on here about 5 months ago about points bet, but I need to bring up what is going on in the u.s. now. We've finally decided to stop protecting people from themselves and legalized gambling so states are slowly bringing gambling online.
Each state is bringing it on according to their own rules and they are all different and chaotic (naturally). In the u.s. most states are allowing casino operators to operate a limited number of "skins". These are rights to operate an online sports book casino and poker room. Casinos own the skins and decide what software they will use on each of these skins.
In Michigan we decided to have a single skin for all these gaming types. That means that each casino can only have one sports book, casino and poker room. The fact that one of them chose points bet is actually pretty big.
They also have market share in other states that have legalized gambling (5 others right now). They have positive net gaming revenue, which doesn't sound significant, but with heavy promotions going on right now things are pretty tight for the operators. For example there's a Canadian based online sports book here in the u.s. (score media) that delivered negative net gaming revenue for the year in similar markets as points bet and is still commanding a ~1.3b usd valuation (although they have some potential upside in Canadian single game sports betting being legalized).
All that said: here's a few big points why the stock is going higher.
Right now all these gaming stocks in the u.s. are blowing up as people finally start to realize that there's going to be huge opportunity here as all these states bring gaming online.
Points bet owns their own code and has a unique feature which differentiates itself from other books. I think this has gotten the attention of casino operators and how some australian company no one here has heard of got a skin in the single skin Michigan market.
They have a deal with nbc which will almost guarantee their adoption in other u.s. states as the network will promote their book to a national audience.
They will bring an online casino to Michigan later this year to compliment the sports book. It's already in new jersey and I imagine will come to other states soon.
If this thing was trading in the u.s. market at a more significant clip than 10,000 shares a day I think the valuation would be much more significant.
Tldr: points bet has big potential in the u.s. market that is understated. 🚀🚀
Edit words and: been to Melbourne and Sydney a couple times and lost money betting on the Sidney giants. Can't remember if it was them or the team they were playing but one of them have the same fight song as notre dame in the u.s.

FUNFF - Canadian Sports Betting expanding into US

Hello all!
Something that popped up on my radar since I invested into Draftkings. As title says, sports betting with pretty good foothold in Canada. Per an article i got through TD, says they've applied for betting in New Jersey.
I'm long on Draftkings, and while i wouldn't want to see a lot of competition... dkng trades at 50-60$ and FUNFF is at .80 at the moment. Small jump of 15% this morning, consolidating at .80 at the news, but could snowball in the short term! here's text of the article:
"Canadian online sports betting platform, announced Wednesday it had engaged gaming law firm, Ifrah Law PLLC, to pursue entering the U.S. through a licensing strategy.
What Happened: FansUnite plans to expand rapidly this year into the U.S., starting in New Jersey. In a press release, the company said the decision is due to interest in its sports betting and iGaming solutions from casino and gambling operators in the U.S. FansUnite will be working with Jeff Ifrah, founder of Ifrah Law, to pursue expansion.
Ifrah is a lawyer who is well known for his legal involvement in the North American iGaming industry.
Why It Matters: Online sports betting has become a big deal during COVID-19 pandemic lockdowns as casinos have been closed or open with limited capacity. Sports fans in the U.S. and in Canada have moved online to continue their gambling and multiple online betting companies have caught the eye of investors.
I'm in at 4,000 shares at .8 -- Didn't see any other posts about this, so figured I'd share!
Good lookin website
https://fansunite.com/

BFT/PaySafe, safest SPAC bet thus far?

Here’s my question. Can anybody come up with a bear case scenario analysis on BFT? I’ve tried to assess every SPAC investor presentation since Virgin Galactic last year. I have found reason to be excited about a bull case scenario on a couple dozen probably. But I could always come up with a bear case, even if I felt like I was trying to force it. For example, without too much description, QuantumScape lack of revs for a while, OpenDoor higher valuation than competitors, Golden Nugget only in New Jersey so far and Fertitta needs money, Virgin Galactic no commercial flights yet, Nikola Milton trying to be too slick, infrastructure not built yet, MP Materials commodity prices fluctuate. Just saying, I could get into detail. But that’s not my intent. Those were all good plays, good risk/reward, the market decided that, and I believe they were right in each case, up to a point anyway. My issue is, I can’t come up with an argument against PaySafe being valued much higher. I’d have to get really creative, like Foley’s 75, or PayPal and Square have moved up a lot in the last year and PaySafe is riding coattails. But those are BS bullet points for a bear case. I literally don’t see a bear case. Fair Value for PaySafe is $22.50 to about $55 in my opinion, depending on how many states legalize online gambling in the US, and how quickly. How much of the market PaySafe gets, whether the Coinbase/crypto card and payments adds value, whether Foley can grab added value in M&A like he’s done consistently in the past with other firms. But these variables are whether fair value is closer to low $20s or $50s or somewhere in between in my opinion. Market cap at $22.50 is about $20 billion, $55 would be about $50 billion. $22.50 would put it on a price/sales multiple at the low end of any potential comparison. The number of potential ways PaySafe could capitalize on opportunities in gaming, crypto, etc make it seem more likely that the upside is closer to $50 something is maybe the most likely. Anything I’m missing? I know the buyers bought PaySafe a few years ago for half of what they’re selling it for. But a lot has changed since then.

new jersey legal online gambling video

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or Legal Sports Betting Age in New Jersey. The legal age for sports betting in New Jersey is 21 years – both online and at real-life locations. Casinos carry the same age limit of 21, although minors can go inside, so long as they don’t drink or gamble. Underage gambling can carry a fine of up to $1000 and up to 6 months of jail time. 18-year ... Other forms of legal online betting in New Jersey include casino and poker sites, daily fantasy sports sites, horse racing betting, and lottery games. In-person betting is similarly widespread with Atlantic City casinos, retail sportsbooks, racetracks, off-track betting parlors (OTBs) and the state lottery all open for business. New Jersey is the unquestionable leader when it comes to land-based gambling on the East Coast and has more legal gambling options than any other state. Residents and visitors of the Garden State can choose between dozens of live and online casinos and sports betting sites. Most of the high-profile gambling establishments are located on … New Jersey Legal Gambling Guide Read More » Online gambling is a part of an industry that sees growth nearly every day. Since New Jersey is one of the few states where you can find safe gambling operators and regulated gaming enforcement, you might be wondering which are the best.NJ online casinos, poker sites, online sports betting, daily fantasy, lottery, you name it; we’ve compiled an in-depth guide that caters to all gambling ... More than 80% of legal sports bets in New Jersey last year were online. Source: New Jersey Division of Gaming Enforcement Through November 2019. New Jersey, like other states that allow online ... Internet gaming site approvals will be issued on a rolling basis. Any site not included on this list is NOT approved to offer New Jersey’s first legal and regulated online casinos launched back in November 2013. Since then, dozens of NJ online casinos have gone live, allowing you to play hundreds of casino games and slots online.. A handful of NJ casinos offer more than 500 games, allowing you to choose from developers like Bally, IGT and Ainsworth, just to name a few. New Jersey legalized online gambling in February 2013 with a law allowing each of the state’s casinos to partner with software providers to offer casino games and poker to players located within state lines. Pennsylvania online gambling has reached biggest success within public, promoting numerous events and games. It is 100% legal and secure. If Vegas is mecca for rich people, spending thousands on hotel, planes and restaurants, we can call PA online gambling is a starting point for everyone. No matter how luxurious your clothes are, no matter in what town you live and how you look, there's a ...

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Legal Online Gambling in New Jersey – Uber is the Cool Way to Make Some Extra Cash

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Nevada has beaten their casino rivals from New Jersey to become the first US state to legalize online gambling and open doors to a potential national market of $4 billion to $10 billion per year

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Is online gambling legal in New Jersey? In 2011, the state constitution only allowed casino gambling in Atlantic City

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Are you Ready for Legal and Regulated Online Gambling in the US? Internet gambling in New Jersey gets online test

Are you Ready for Legal and Regulated Online Gambling in the US? Internet gambling in New Jersey gets online test

The #1 online casino company $RSI is primed for autism

The #1 online casino company $RSI is primed for ingress.

Points bet

FUNFF - Canadian Sports Betting expanding into US

BFT/PaySafe, safest SPAC bet thus far?

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