Customer Promotion - Fanatics will refund a customer's wager if the NFL player they bet on is injured in the first half of a game [1]

Rush Street Interactive (RSI) FY Conference Summary Company Overview - **Company**: Rush Street Interactive (RSI) - **Event**: FY Conference on August 13, 2025 - **Key Speakers**: Richard Schwartz (CEO), Kyle Sauers (CFO) Industry Insights - **iGaming Growth**: iGaming has been identified as the primary growth engine for the company, with growth rates reported at around 25% year-over-year in various states [8][10][12] - **Market Potential**: Only 5 US states currently allow legal online casinos, representing just 12% of the US population, compared to over 60% for sports betting, indicating significant growth potential for iGaming [12][13] - **Tax Revenue Generation**: States that legalize iGaming can generate hundreds of millions in tax revenues, as evidenced by Pennsylvania and Michigan [13][14] Company Strategy - **Technology Ownership**: RSI has developed its own technology platform, allowing for unique and differentiated gaming experiences, which is crucial for retaining customers [9][10][25] - **Customer Engagement**: The company focuses on creating a social and engaging environment for players, enhancing user experience through gamified promotional engines and community interactions [30][31] - **Live Dealer Strategy**: RSI offers a variety of live dealer games from multiple suppliers, enhancing player choice and experience [35][36] Market Performance - **User Growth**: Monthly active users in North America grew by 22%, with over 30% growth in iCasino markets [22][23] - **Revenue Growth**: The company reported a 15% year-over-year growth in sports betting, indicating a healthy performance despite lower marketing investments [75] Regional Focus - **Latin America**: The company is expanding its presence in Latin America, particularly in Colombia and Mexico, where it is gaining market share [84][85] - **Colombia's VAT Impact**: A temporary 19% VAT on deposits has affected net revenue, but gross gaming revenue has grown over 50% in the first half of the year [79][80] Regulatory Environment - **Legalization Challenges**: The company faces challenges in expanding iGaming due to various state regulations and interest groups, but financial pressures on states may lead to increased legalization efforts [46][50][52] - **Future Opportunities**: States with larger deficits and existing sports betting frameworks are seen as potential markets for iGaming legalization [60][61] Financial Guidance - **Conservative Outlook**: The company anticipates a deceleration in growth rates in the back half of the year due to tougher comparisons and existing VAT impacts in Colombia [90][92] Key Takeaways - **Unique Value Proposition**: RSI's focus on unique gaming experiences and customer trust is a significant differentiator in the competitive landscape [93][94] - **Cross-Selling Opportunities**: The introduction of poker is seen as a way to cross-sell to existing customers, enhancing overall engagement and retention [41][43] This summary encapsulates the key points discussed during the conference, highlighting the company's strategic focus, market performance, and future opportunities within the iGaming industry.

Market Trends - WNBA betting volume on dildos surpasses betting volume for who will win the game [1] - Polymarket reports the higher betting volume on dildos compared to game outcomes [1]

Core Insights - SharpLink Gaming, Inc. has reported a significant increase in its Ether (ETH) holdings, reaching 360,807 ETH, which is a 29% increase from the previous week [7] - The company purchased 79,949 ETH during the week, marking the highest weekly acquisition in its historical reporting [7] - The average purchase price for ETH during this period was $3,238, with an ETH concentration increase to 3.06, up 53% since the launch of its digital treasury strategy [7] Weekly ETH and Capital Summary - Beginning balance of ETH was 206,000 units, ending balance rose to 360,800 units [3] - Total ETH acquired during the week was 79,900 units, with staking rewards of 0.2 units [3] - The company issued 3.8 million ATM shares, generating net proceeds of $96.6 million [3] Commentary on the Genius Act - The signing of the Genius Act into law is seen as a pivotal moment for the digital asset and blockchain industries, providing a clear regulatory framework [5] - This legislation is expected to foster innovation, investment, and institutional adoption, aligning with SharpLink's growth strategies [5][6] - The regulatory clarity is anticipated to enhance the operational environment for companies like SharpLink, allowing them to leverage Ethereum's capabilities [6] Strategic Focus - SharpLink aims to strategically utilize its ATM facility to enhance its ETH treasury, supporting long-term growth objectives [4] - The company is focused on transforming the iGaming industry by leveraging blockchain technologies, aiming to create a more dynamic and equitable ecosystem [9] - The firm is positioned as a leader in the digital capital space, providing investors with direct exposure to Ethereum [8]

Core Insights - DraftKings Inc. (DKNG) is outperforming competitors in customer acquisition within the sports betting sector, showcasing strong user growth and retention strategies in Q1 2025 [1][5] Customer Acquisition and Marketing Efficiency - New customer acquisition met expectations, with a notable emphasis on the efficiency of scaling operations, optimizing marketing costs, and benefiting from brand equity and improved promotional targeting [2][4] - The company has achieved better gross margins and EBITDA performance despite facing challenging sports outcomes [2] Product Innovation and Engagement - Over 50% of the total handle in Q1 2025 originated from live betting, marking a significant milestone for DraftKings [3] - Successful integration of acquisitions like SimpleBet and Sports IQ has enhanced real-time wagering capabilities, leading to increased user engagement [3] - There is a notable rise in the adoption of parlay and same-game parlay bets, which are associated with higher structural hold rates [3] Profitability and User Maturity - Despite customer-friendly outcomes reducing actual sportsbook hold to 9.5%, structural hold increased to 10.4%, indicating strengthening profitability [4] - As newly acquired users mature, promotional intensity decreases while contribution profit rises, demonstrating effective management across jurisdictions [4] Competitive Landscape - DraftKings is gaining ground against FanDuel and BetMGM, with recent trends indicating a lead in live betting and product enhancements [6][7] - FanDuel, while still leading in market share, is experiencing pressure as DraftKings narrows the gap through efficient customer acquisition strategies [7] - BetMGM is lagging in sportsbook engagement despite strong iGaming performance, highlighting DraftKings' advantage in product innovation [8] Financial Performance and Valuation - DKNG shares have increased by 30.3% over the past three months, slightly trailing the industry's growth of 31.2% [9] - The company is currently trading at a premium with a forward 12-month price-to-sales ratio of 5.69X [12] - Zacks Consensus Estimates indicate a significant year-over-year earnings growth of 226.7% for 2025 and 61.3% for 2026 [15]

Trade & Tariffs - US imposes 35% tariffs on imports from Canada, effective August 1st [1] - Tariffs attributed to fentanyl concerns [1] Geopolitics & Diplomacy - US and China's foreign ministers meet in Malaysia to discuss trade tensions [2] - A summit between Presidents Trump and she is likely [2] Technology - Google reportedly reaches a deal to provide cloud computing services for the US government at a heavily discounted price [2] - Apple plans new product releases for the first half of 2026, including a new low-end iPhone, multiple iPads, and upgraded Mac computers [3] Mergers & Acquisitions - Flutter Entertainment acquires Boyd Gaming's 5% stake in FanDuel for $1.76 billion [3] - The deal values FanDuel at $31 billion [3] Market Share - FanDuel holds 43% of the sports betting market [3]

Sports Betting Industry - Trump's "One, Big, Beautiful Bill" signals a bold pivot in the politics of sports gambling, impacting the sports betting industry [1] Revenue & Financial Deals - Texas Tech's football recruit deal involves $5.1 million in revenue sharing [1] - The financial plays shaping the sports business, including the money behind the Tour de France, are ones to watch [1] Media & Partnerships - Matchroom Sport's partnership with DAZN focuses on the global growth of professional fighting [1] - Yahoo Finance and Yahoo Sports produce the "Yahoo Finance Sports Report" vodcast [1] MLB & Collective Bargaining - MLB collective bargaining agreement negotiations are a key topic [1]

Industry Overview - Sports betting is one of the fastest growing industries in America, dominated by DraftKings and Flutter Entertainment (parent of FanDuel) [1] Legislative Change - A provision in the budget bill changes the way gambling income is taxed [2] - The change is located on page 237 of the 870-page bill [2] Tax Implications - Current law allows deduction of gambling losses from winnings, taxing only net winnings [3] - Starting next year, only 90% of gambling losses can be deducted [4] - Example: With $1,000 winnings and $1,000 losses, only $900 in losses can be deducted, resulting in taxes on the remaining $100 [4]

Regulatory Changes & Impact - Illinois legislature imposed a $050 per wager tax increase, described as "illconceived" [1][2] - The tax increase is set to take effect on September 1st [1] - The company was not warned about the tax increase, which was decided unexpectedly [2][3] Business Strategy & Consumer Behavior - The company intends to pass the $050 tax on to consumers [2] - The company anticipates the tax will drive consumers to illegal markets or encourage them to bet more [2] - The company hopes for public reaction that will lead to reconsideration of the tax [3] Financial Implications - The $050 per wager tax makes it unprofitable for the company to accept small bets (e g, $1, $050, $5, or $10) [2] - The company is implementing the tax pass-through to continue offering its product in Illinois [3]

Core Insights - International Game Technology PLC (IGT) has signed a new three-year sports betting technology agreement with Boyd Gaming Corporation, extending their partnership through August 2028 [1][2] - The agreement allows IGT's PlaySports platform to continue powering Boyd Gaming's retail and mobile sports betting offerings in Nevada, building on a partnership that began in 2018 [1][2] Company Overview - IGT is a global leader in gaming, providing a wide range of gaming experiences across various channels, including lotteries, gaming machines, sports betting, and digital platforms [4] - The company emphasizes innovation, player insights, and operational expertise to deliver engaging gaming experiences and drive growth [4] - IGT has a significant presence in over 100 jurisdictions worldwide and employs approximately 11,000 people [4] Technology and Performance - IGT PlaySports technology is also utilized in Boyd Gaming-owned casinos across multiple states, including Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Ohio, and Pennsylvania [3] - IGT PlaySports was recognized as the "Sportsbook Platform Provider of the Year" at the 2024 EGR North America Awards, highlighting its industry leadership [3]