From Barclays From Barclays:
We note that we value the US sports betting business of PPB to be worth £2 a share, we value GVC€™s US sports betting business to be worth c. 99p a share, we value WMH US to be worth 54p a share and we value The Stars group€™s US sports betting business to be worth $2 a share. However, we value these US sports businesses by focusing on the potential cash flows from sports betting, not online gaming (that is a potential upside to valuation) and given we do not think this ruling applies to sports betting, share price weakness should present a buying opportunity. We note the Department of Justice€™s ruling appears to be related to the Wire Act applying to online gaming and suggests to us that cross-state gaming (e.g. cross state pooling of poker liquidity may be under pressure which is clearly bad for online gaming focused operators) but we don€™t see (at this time) how this materially impacts US sports betting as the Wire Act already applies to product. Broadly, we think this is possibly worst news for The Stars Group out of the four companies we cover given the company€™s exposure to online gaming but even then we do not view it as necessarily material.