RE:RE:RE:RE:RE:Stars Group Secures Access to 13 US STATESsolarman2013 wrote: it is absolutely an access to market deal. We are seeing states tie access for online to land-based Casinos. Its happening in the USA as it just did in Switzerland. So Stars is lining up its ducks nicely, working with Casinos is the best way to gain support politically and access to clients practically.
They keep mentioning "Media" in their PR. I suspect its because once they have enough states operational, media makes all the difference and SKYBET knows exactly how to make those deals work. The branding will be Stars no matter where.
From having secured a land-based partner, the next move is to get licensed in states amongst those listed where online bets are already being taken. Then its to partner with media which will then draw in the teams. Notice that the leagues are balking at "exclusive" deals. Stars can wait and see where they want to play. Prudent approach, though again, I feel they could have done more with a press conference and start to show their branding in the US more aggressively. That day will have to come because it then becomes an imperative to get consumers on board. The PokerStars brand was loved across the land once, it will be again soon.
You have to look at reality, just like the Kentucky judgement, this is very very forward looking.
RIght now just New Jersey and Nevada. A handful of other states allow sports betting (but not online) maybe that will change. Then a handful more have given the green light for sports betting to be legal in the future.
They bought a future which is a year to many more years away for 13 states (2 of which they can already offer bets for) and they paid 25 million now, 5 million on setup and rev share down the road because they are not likely (or it will be too expensive) to get their own license.
This deal makes sense and in no way should be correlated with the stock price correction today but lets get real here, this is not the kind of news that was likely to push the stock in a positive direction, it is another defensive move much like the Skybet acquisition.