NetworkNewsWire
Editorial Coverage: This month the Supreme Court issued a
decision striking down a 1992 federal law banning commercials
sports betting in 46 states. In one fell swoop, the 6-3 decision
swung open the door for individual states to decide for themselves
whether to allow sports betting within state boundaries. The
decision, which may mean legalizing the estimated $150 billion in
illegal wagers on professional and amateur sports that Americans
make every year (http://nnw.fm/g6LGx), also has massive impact on sport
betting organizations such as SinglePoint, Inc. (OTCQB:
SING) (SING
Profile), which has been in the daily fantasy sports
arena since March 2016. Other companies that stand to benefit from
this milestone ruling include Caesars Entertainment
Corporation (NASDAQ: CZR), MGM
Resorts International (NYSE: MGM), Penn National
Gaming Inc. (NASDAQ: PENN) and Boyd Gaming
Corporation (NYSE: BYD).
Gross Gaming Revenues Could Hit Billions
The overturned law — the Professional and Amateur Sports
Protection Act — prohibited states from authorizing sports gambling
on the outcome of sports events. One of the law’s sponsors, Senator
Bill Bradley and a former college and professional basketball star,
claimed the regulation was needed to safeguard the integrity of
sports. However, the court ruled that the law was unconstitutional.
“It is as if federal officers were installed in state legislative
chambers and were armed with the authority to stop legislators from
voting on any offending proposals,” Justice Samuel A. Alito Jr.
said, writing for the majority. “A more direct affront to state
sovereignty is not easy to imagine.”
The ruling was met with enthusiasm by those in the gambling and
casino industries, including SinglePoint, Inc. (SING
Profile), a technology company with a focus on
acquiring companies that will benefit from the injection of growth
capital and technology integration. One analyst predicted the
industry's gross gaming revenue from sports betting could rise to
$5 to $10 billion in five years and noted that gaming technology
providers may also have an incremental $250 million to $1 billion
annual sales opportunity from the trend (http://nnw.fm/IoAE5).
Entering the Social Betting World
SinglePoint has been in the daily fantasy sports arena since
March 2016, when the company invested in GoDraft and DraftFury.
Following this month’s Supreme Court ruling, the company announced
it had invested in an additional betting platform, StakeHaul, the
No. 1 social betting app in the iTunes App Store (http://nnw.fm/d4Yht). SinglePoint plans to work
closely with StakeHaul, which focuses on peer-to-peer social
betting, to establish a strong position in the $150 billion betting
industry, SinglePoint already provides a payments option, and the
two companies are working to define the use of smart contracts
within the application. Smart contracts facilitate the exchange of
money, property, shares, or anything of value in a transparent,
conflict-free way while avoiding the services of a middleman
(http://nnw.fm/fNS6B).
Until now, the social betting market has been ruled by
DraftKings and FanDuel. Even before the Supreme Court decision,
SinglePoint saw an opportunity to enter — and make a sizeable dent
— in the huge social betting market through its investment in
StakeHaul. Dubbed as the social wagering for the next generation,
StakeHaul allows players to easily challenge their friends to games
of skill or even be a third-party judge between mutual friends.
Users can wager their hard-earned cash or even a night out on the
town.
SinglePoint will work collaboratively with StakeHaul to help
facilitate the opportunity of using SinglePoint’s crypto-based
payment solution within the application. Having the ability to
transact in crypto payments provides SinglePoint another avenue to
jumpstart users transacting with bitcoin.
Opening the DFS Realm
In addition to its efforts with StakeHaul, SinglePoint will also
be leveraging its investments in GoDraft and DraftFury, which now
become more viable opportunities for the acquisitions company. In
2016, SinglePoint acquired an ownership stake in GoDraft.com, a
Daily Fantasy Sports (DFS) enterprise featuring "one of the most
powerful Daily Fantasy Sports gameplay systems on the planet"
(http://nnw.fm/qJb3K). Using GoDraft, players
have an opportunity to win cash daily in the NFL, NBA, MLB and PGA.
The system also features a referral program that rewards players
with cash and credit.
At the time of the acquisition, SinglePoint CEO Greg Lambrecht
noted that “GoDraft is an ideal candidate with excellent growth
potential. There are 2,000-plus unique members, and they also have
the only friends and private league features in the daily fantasy
sports industry today, allowing you to play against people you know
easier than ever before.”
SinglePoint is one of the few publicly traded companies in the
United States that allows shareholders to be involved in the DFS
realm, and the GoDraft acquisition marked the first in
SinglePoint's DFS rollup initiative. “With nearly 57 million people
in the USA and Canada participating in fantasy sports last year,
demand for participation in DFS is on the rise,” Lambrecht
noted.
Huge Growth Potential
Also in 2016, SinglePoint announced that it had finalized an
acquisition deal for interest in DraftFury. DraftFury has a unique
seven-level referral program and an optimized interface that
provides a superior gaming experience for users. With a valuation
of $8 million and recognized as the first cash-flow positive DFS
enterprise, DraftFury offers daily, skill-based fantasy contests
for the NBA, NFL and MLB.
The system is known for its innovative offerings, and players
have credited it for originality among other platforms. A case in
point is the system’s Fury Arena, which uses DraftFury's
proprietary algorithm to match players of similar skill level so
that players have a chance to win regardless of ability or
skill.
With new regulations now in place, SinglePoint looks to these
acquisitions to resume their tremendous trajectories as states
throughout the nation move to legalize sports betting. “We have
placed the company into multiple emerging markets that have huge
growth potential,” states SinglePoint President Wil Ralston. “While
we will continue to focus on cannabis and blockchain opportunities,
we are excited that the Supreme Court has ruled in favor of sports
betting legalization, giving the companies we have a stake in the
opportunity to compete with the industry leaders again. We will
continue to look for opportunity in the newly legalized sports
betting arena.”
Eyeing the Potential Opportunities
SinglePoint isn’t the only organization intent on leveraging the
Supreme Court decision and making the most of the lucrative
opportunities now available in sports betting.
Caesars Entertainment Corporation
(NASDAQ: CZR) applauded the Supreme Court decision
as well. Caesars currently has licensed gaming operations in 13
states and manages a successful legal sports wagering business in
Nevada. In wake of the ruling, the company plans to expand its U.S.
sports betting business wherever secure and responsible wagering on
sporting events is legalized. "The Supreme Court's landmark PASPA
ruling creates a golden opportunity to end illegal sports wagering
once and for all by creating a well-regulated alternative that
sports fans can trust,” commented the company’s president and CEO,
Mark Frissora (http://nnw.fm/mo8Tq). “Caesars is a leader in
legalized gaming in the U.S. As a result, we expect to be able to
provide safe, exciting sports wagering experiences to consumers
across the country, as we do today in Nevada. We plan to announce
our specific approach to this business as we better understand the
opportunities and regulations which evolve from today's Supreme
Court decision."
MGM Resorts International (NYSE:
MGM) also commented on the Supreme Court ruling. A May 14
press released notes that "MGM Resorts International applauds the
Court's decision to allow states the opportunity to protect
consumers and benefit the public by regulating and taxing sports
betting (http://nnw.fm/hwH4t).” The release stated that the
company looks forward to working with legislators and policymakers
to achieve a regulatory outcome that benefits states and consumers
alike while ensuring the integrity of sports. IN a follow-up
interview (http://nnw.fm/C0P3a) MGM CEO Jim Murren stated that
the company has been waiting and planning for the day the U.S.
Supreme Court allowed sports betting. "We have already established
the architecture to deploy sports betting as soon as the states
allow us to do that," he said. "We have already the software. We
have our mobile app called PlayMGM that is already activated in
Nevada."
Penn National Gaming Inc. (NASDAQ:
PENN) owns, operates or has ownership interests in gaming
and racing facilities and video gaming terminal operations with a
focus on slot machine entertainment. In addition, the company is in
the process of acquiring Pinnacle Entertainment for $2.8 billion in
cash and stock, a deal which will add another 12 properties to its
collection. Following the acquisition of Pinnacle and the planned
divestiture of four of its properties to avoid regulatory
challenges, Penn National will have significantly greater
operational and geographic diversity and operate a combined 41
properties in 20 jurisdictions throughout North America (http://nnw.fm/ziV7I).
Boyd Gaming Corporation (NYSE:
BYD) is a leading geographically diversified operator of
24 gaming entertainment properties in seven states. Boyd currently
operates 1.36 million square feet of casino space, more than 30,000
gaming machines, 630 table games, 9,400 hotel rooms and more than
280 food and beverage outlets. This month the company announced
that it had entered into a definitive agreement to acquire Lattner
Entertainment Group, which currently operates nearly 1,000 gaming
units in 220 locations across the state of Illinois. With one of
the most experienced leadership teams in the casino industry, Boyd
Gaming prides itself on offering its guests an outstanding
entertainment experience, delivered with unwavering attention to
customer service.
Knowing that the nation’s highest court would be ruling on the
case soon, savvy gaming companies such as SinglePoint have been
eyeing the potential entry points and are prepared to move swiftly
now that the decision has been handed down.
For more information on SinglePoint, please visit SinglePoint, Inc. (OTCQB: SING).
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