The Supreme Court of the United States lifted the federal ban on May 14, 2018. Since the ruling, 19 states have passed bills legalizing sports betting, including Colorado, North Carolina and Illinois.
In total, today, there are 42 states in various stages of legalizing sports betting.
With more and more states passing bills, the market is expanding at an unprecedented pace. And some deals have taken place and funds launched in the country.
Below, we feature some meaningful operations.
When sports betting mutual funds the Nevada Sports Investment Group and Contrarian Investments had complaints filed against them in September 2018 by the Securities and Exchange Commission for. Now, popular ETF provider VanEck has launched a fund which focuses on the electronic sports (eSports) industry. The VanEck Vectors Video Gaming and eSports ETF is designed to track an index of 25.
One of the most important deals was the agreement between The Stars Group Inc. (Nasdaq: TSG)(TSX: TSGI) and Fox Sports, a unit of Fox Corporation (Nasdaq: FOXA, FOX), which launched Fox Bet, a national media and sports wagering partnership. Its two first products are:
– a nationwide free-to-play game, awarding cash prizes to players who correctly predict the outcome of sports games, and
– Fox Bet, which will give customers in states with regulated betting the opportunity to place real money wagers on the outcome of a wide range of sporting events in accordance with the applicable laws and regulations.
Another important deal tool place in November 2019, with global sports betting company William Hill acquiring the sports book assets of CG Technology, including its Nevada and Bahamas operations. Led by Parikshat Khanna, CEO, CG Technology is one of the largest licensed bookmakers in Nevada and operator of seven Nevada sportsbooks at six prime Las Vegas resorts.
In addition, a wave of innovative startups is emerging with products, services, and solutions designed to tap the estimated $17 billion dollar opportunity that legal U.S. sports betting represents.
And some deals have alreasy taken place, including the following ones:
– in February 2019, The Action Network, a Los Angeles, CA-based sports media company that provides in-depth betting content, tools and analytics for sports fans, closed on $17.5m in Series B funding. Launched in January of 2018 by Patrick Keane, CEO, the company provides premium storytelling and analysis, real-time odds, in-depth information on betting websites which feature offers (e.g., like Maxfreebets Bet 10 Get 30) and markets, personalized alerts for users, as well as the ability to track bets via its website and sports app. The mobile application, available for free on iOS and Android, also allows users to track bets, receive alerts corresponding to picks and see how much money is placed on each side of every wager; and
– in October 2019, ZenSports, a San Francisco, CA-based mobile peer-to-peer sports betting marketplace where anyone can create and accept sports bets, raised $675K in seed funding.
ZenSports is a decentralized marketplace, which enables bettors to create their own bets with their own odds and terms, or accept bets that others have created. The company has also created its own cryptocurrency utility token called SPORTS, which customers can use for placing bets, earning discounted betting fees, and getting cash back, bonuses, and other rewards.
With this emergence of the trend, specialized venture capital firms approaching the industry, as well.
Among others, dedicated funds include:
– Sports Gaming Investment Fund (SGIF), which is focused on startups that support the emerging U.S. market for legal sports betting; and
– Vice Ventures, a fund dedicated to investing in “vice” industries.
Sports Betting Investment Fund
Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund's prospectus. Read the prospectus carefully before investing.
Sports Gambling Investment Funds
Investing involves risk, including possible loss of principal. Risks include those related to investments in the highly-competitive sports betting industry, including from illegal or unregulated companies. Expansion of sports betting (both regulated and unregulated), including the award of additional licenses or expansion or relocation of existing sports betting companies, and competition from other leisure and entertainment activities, could impact these companies' finances. Small and midcapitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. Fund investments are concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Investments in foreign securities involve social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more develop countries. Depositary Receipts involve risks similar to those associated with investments in foreign securities, but may not provide a return that corresponds precisely with that of the underlying shares. Please see the prospectus for details of these and other risks.
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