So unless you're living under a rock, you heard the news today: the US Supreme Court ruled 6-3 in favor to legalize sports gambling on a state-by-state level. Obviously, there's a lot to unpack here, and I'm sure you'll see countless articles/editorials on this that are much more structured & in-depth, here's my hot take in 20 minutes or less of writing/research.
WAIT AND SEE....
Here is where things get really interesting....obviously, I this opens up tremendous opportunities for startups to move into the space. Here are some potential concepts/areas of interest:
Another potential huge winner? BARSTOOL SPORTS. Barstool is already making solid revenues doing advertising for gambling websites - this will have a huge multiplier on it come soon. But if Portnoy, Chernin & co want to pull a Scrooge McDuck and swim through gold coins, I think they have 3 options:
HIGH FIXED COSTS: Buy a tech startup in the gambling space, just to get ahold of their tech/talent. Probably gonna overpay a bit right now, but better do it now, because waiting will just allow Comcast to back up the Brinks truck. I can't see them hiring the talent to build their own - seems out of their strategic priorities/skill set. They don't need to buy a site with an existing following - just the good, solid technology. Their existing customer base will allow them to explode. [other option: buy into a round of a gambling startup to seek a long-term exit]. They lose out on those endorsement/ad revenues for other sites, but that's pennies on the dollar considering the upside.
MEDIUM FIXED COSTS: License out someone else's technology for a fee, and let them develop a white label website that's just branded as "Barstool Sports Gambling." Let them handle the back end/software updates, and just control the demand gen & messaging.
LOW FIXED COSTS: Another licensing deal; just the opposite. Barstool licenses out their name to a gambling site for a fixed annual fee. Allows them to have a take, but have no downside. That said, it severely limits their upside as well; it's not like they can offer up their name to multiple sites, so they lose out on multiple revenue streams.
Love to hear others' thoughts on today's ruling. Who do you think were the winners, and losers? And what does the future look like??
OTHER ARTICLES WRITTEN BY PEOPLE SMARTER THAN I IF YOU NEED MORE INFORMATION
We just sent you an email. Please click the link in the email to confirm your subscription!
OKSubscriptions powered by Strikingly