Genius Sports, Sportradar Seen Benefiting from Florida Sports Betting
Posted on: November 7, 2023, 04:12h.
Last updated on: November 7, 2023, 04:47h.
Sports wagering data providers Genius Sports (NYSE: GENI) and Sportradar (NASDAQ: SRAD) are seen as potential beneficiaries of regulated sports betting going live in Florida.
In a report to clients on Tuesday, Craig-Hallum analyst Ryan Sigdahl highlighted Genius and rival Sportradar as winners in a Florida online sports betting (OSB) scenario. To the surprise of analysts and industry observers, the Seminole Tribe relaunched the Hard Rock Bet mobile wagering application earlier today, though in limited form.
For now, the app is only available to existing users, though new clients can join a waitlist. The app was live for a period in 2021 before it was shut down amid legal challenges. Residents of the third-largest state by population can also place wagers at brick-and-mortar sportsbooks at Hard Rock casinos in Florida.
Sigdahl rates both Genius and Sportradar “buy” with a price target of $11 on the former, and $18 on the latter. That implies Genius can more than double from Tuesday’s close at $5.40. The analyst’s price forecast on Switerland-based Sportradar implies upside of 87.6% from Tuesday’s closing print.
Why Genius Sports, Sportradar Could Be Florida Winners
Should the Seminole Tribe eventually be able to broaden the scope of Hard Rock Bet in its home state, it’s likely the tribe will control a sports wagering monopoly in one of the most-coveted jurisdictions in the country.
While that means it’s unlikely Florida will soon be open to the likes of DraftKings and FanDuel, Genius and Sportradar could benefit because Hard Rock will need the data, services, and technology offered by those companies to feature expansive menus of sports bets. For Genius and Sportradar, the possible allure in Florida is easily explained: the incremental revenue to be accrued there will likely require no investments or upfront deployment of capital.
Genius sports an impressive client portfolio that includes the English Premier League and the NFL, along with the PGA Tour, Major League Baseball (MLB), the NCAA, and Euroleague Basketball, among others.
Both companies provide data to sportsbook operators, which is an essential part of the wagering equation, particularly as the industry expands in the US. Because of the business model, Genius and Sportradar are tied to the growth of regulated sports betting, but they’re not as consumer spending-dependent as are traditional sportsbook operators.
Genius Sports, Sportradar May Be Best Ways to Play Florida
With Florida likely committed to a single-operator sports wagering model for some time, that leaves Genius Sports and Sportradar as the best and only avenues for investors to potentially benefit from the growth of sports betting in the state.
Home to 7% of the US adult population and nine teams across the four major North American professional sports leagues, the Sunshine State is highly desired by online sportsbook operators.
The Seminoles have an exclusivity pact with the state — one that the US Supreme Court recently acknowledged as valid — leaving Genius and Sportradar as the only publicly traded beneficiaries of sports betting going live in the state.
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Source: casino.org
