dMY Technology Group II – Transaction Call, October 27, 2020
We have a unique rights strategy, whereby, as I mentioned before,
we work with a vast number of sports to collect the underlying data
that’s required for sportsbooks through contra-relationships or
swapping our software with those sportsbooks. It means that we’re
very cost effective in the way that we collect our data, it means
it’s very scalable, and it gives us a very strong position in the
market, where we’re giving a fair deal back to sports, and that
they’re benefiting from the sportsbook betting revenues that are
generating, and the sportsbooks are benefiting from the value
that’s being offered to them by the sports leagues. On that basis,
we will end up in a very competitive market with other players who
are looking to acquire rights, but the benefits of our lower tier
model, where we’re contra-ing our software in exchange for
rights, give us the ability to be very insulated from any one
particular win or loss of any Tier 1 event. You can see the results
of this strategy and official data on this slide. Over the last six
or seven years, we have grown the number of official data rights
that we have, from 2014, where we had very few, to over 170,000
now, which is the vast proportion of a sportsbooks’ official data
This slide really brings our business together. On the left-hand
side, you have the sports leagues, where they are granting official
rights to their data in exchange for our technology. Taking that
data, wrapping it in our software, providing it to sportsbooks
creates an increased demand on that data, but also an increased
demand for new data. That allows us to go back to the sports
leagues, offer further technology in exchange for official rights.
This virtuous circle is something that we’ve been very successful
in pioneering and, as Nick will speak to you about in the next few
slides, we are only at the beginning of that journey.
Yes, hi. Thanks, Mark. I’m Nick Taylor, I’m the CFO. I’ve been with
Genius a year now, and I just want to talk you through the next few
As you’ve heard, we’re uniquely placed to take advantage of the
fast-growing sports betting market, and there are plenty of
estimates out there about the size of the market, one of which is
set out in Slide 15, going out to 2025, and you can just see that
the TAM doubles in those five years, but there are two important
points to draw out of this.
Firstly, the U.S. market, although very nascent, will be the
largest growing market in the next five years, and I’ll touch on
our U.S. positioning in a second.
And secondly, and equally as important, and it’s sometimes
overlooked, given the excitement of the liberalization of the U.S.
market, is that there’s still significant growth in other markets,
as you can see on the slide, including Europe, which you can see
has still a very healthy double-digit CAGR growth, and, as Mark
explained, has been our core market to date and one of which we
have been very successful in.
Looking at this through a U.S. lens, this is about all the pieces
of the jigsaw in place to replicate our success in Europe across
the United States. I just want to spend a minute or two drawing out
a couple of key points.
Firstly, we are in a strong position with high-profile rights.
Secondly, we have market-leading ad tech solutions in the U.S.
market, which is set to explode as sportsbooks compete for customer
acquisition with increased marketing dollar spend and we are
perfectly positioned to capture our share of this.
Thirdly, we have the right business model, which, through our
relationships with all key sportsbooks, means we share in the
upside as our partners grow over time. In addition to this, we also
have key relationships with other B2B technology suppliers. To
Mark’s point earlier, these companies are competing with each other
and, to some extent, we’re agnostic to who wins, as we have
relationships across the industry.
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