On the online side, they have deals with Flutter (58% owner of FanDuel), DraftKings, Caesars, Betway, bet365, Genting, and many others. These are typically revenue share deals. On the latest conference call, they stated that the revenue share of NGR was in the double digits for the DraftKings deal. They also said they have a huge pipeline of operators looking to integrate. So their online platform is really just beginning to scratch the surface in terms of exposure to mainstream users. For instance, DraftKings has not even launched Inspired’s products yet, and when they do it will start only in New Jersey I believe. So there is room for growth as more operators carry their platform, but also as these operators expand into additional jurisdictions (e.g. more U.S. states legalizing online bets).
To answer your direct question, I sincerely doubt they would move anywhere outside of the interactive gaming / wagering space. But the online virtual sports betting that people are recently hyping is a small part of the revenue the company earns today. However, it has a lot of growth potential because of the developing partnerships and pipeline of new operators getting involved with them.
I made a lot of money on DraftKings but i have sold and walked away as it is just a hype stock right now. They said in their prospectus for the reverse merger that they made $80m in the first 18 months in New Jersey. Now keep in mind New Jersey is by far the savviest sports betting state outside of Nevada with Las Vegas. Even with becoming the biggest online provider in what is likely the second biggest U.S. sports betting market they only made $80m over a year and a half. I have no doubt that DK will be a success in the long term, but they are years away from their earnings catching up to their valuation and there is tons of competition in the market including well-established casino empires that are competing for online share. The DK share price may continue to go up, but you won’t find me chasing it.
Inspired on the other hand is a stock I love. Even if everything else with the company stayed status quo, the share price will start rising significantly on the basis of UK pubs reopening (currently expected in early July). But by the time that core business is up and running again, they will also have a larger and stronger online business than they’ve ever had before. I suspect once DK actually launches Inspired’s games in NJ that they will PR it (DK has not made any mention yet), and that alone will probably drive the share price of INSE back up. There is a lot to love about this company right now, especially when you are buying in near all time lows.
Recent INSE News
- Inspired to Report First Quarter 2024 Results and Hold Conference Call on May 10 • GlobeNewswire Inc. • 05/02/2024 08:15:00 PM
- Inspired Expands VLT Footprint in Saskatchewan with 720 Additional Valor™ Terminals • GlobeNewswire Inc. • 04/16/2024 12:00:00 PM
- Inspired Reports Fourth Quarter and Full Year 2023 Results • GlobeNewswire Inc. • 04/15/2024 12:00:00 PM
- U.S. Index Futures Surge after Dow Jones’ Worst Week, Oil Prices Dip • IH Market News • 04/15/2024 11:08:21 AM
- Inspired to Report Fourth Quarter and Fiscal Year 2023 Results and Hold Conference Call on April 15 • GlobeNewswire Inc. • 04/09/2024 12:05:00 PM
- Inspired Entertainment, Inc. Receives Expected Nasdaq Notification Regarding Delayed Form 10-K • GlobeNewswire Inc. • 04/09/2024 12:00:00 PM
- MRC Global Announces Agreement with Engine Capital and Appointment of Daniel Silvers to the Board of Directors • GlobeNewswire Inc. • 04/02/2024 10:30:18 AM
- Inspired Announces Long-Term Contract Extension with Parkdean Resorts • GlobeNewswire Inc. • 03/26/2024 12:00:00 PM
- Inspired Launches Virtual NFLA Lottery Product End Zone Cash With the Pennsylvania Lottery • GlobeNewswire Inc. • 03/22/2024 12:00:00 PM
- Inspired Receives Affirmation of Credit Rating by Fitch • GlobeNewswire Inc. • 03/21/2024 12:30:00 PM
- Inspired Entertainment, Inc. Appoints Simona Camilleri as General Counsel • GlobeNewswire Inc. • 03/19/2024 08:15:00 PM
- Inspired Entertainment Provides Update on Fourth Quarter and Year End Reporting Timeline • GlobeNewswire Inc. • 03/18/2024 12:00:00 PM
- Inspired Launches Virtual Sports with Rush Street Interactive on BetRivers in NJ • GlobeNewswire Inc. • 03/12/2024 12:00:00 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 03/07/2024 10:29:56 PM
- Form 10-Q/A - Quarterly report [Sections 13 or 15(d)]: [Amend] • Edgar (US Regulatory) • 02/27/2024 09:18:02 PM
- Form 10-Q/A - Quarterly report [Sections 13 or 15(d)]: [Amend] • Edgar (US Regulatory) • 02/27/2024 09:16:38 PM
- Inspired Reports Third Quarter 2023 Results • GlobeNewswire Inc. • 02/27/2024 09:15:00 PM
- Inspired to Report Third Quarter 2023 Unaudited Results and Hold Conference Call on February 27 • GlobeNewswire Inc. • 02/23/2024 07:30:18 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/09/2024 07:27:17 PM
- Inspired Announces Partnership with Kambi to Provide Virtual Sports Offering to the Kambi Sportsbook • GlobeNewswire Inc. • 02/07/2024 01:00:00 PM
- Inspired Entertainment Announces Nasdaq Acceptance of Plan of Compliance • GlobeNewswire Inc. • 02/05/2024 01:00:00 PM
- Inspired Submits Plan to Address Nasdaq Compliance • GlobeNewswire Inc. • 01/23/2024 01:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 11:06:43 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 12:25:10 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/26/2023 01:00:29 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM