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HEDGEYE EDGE

Vigorish is the fee charged by a bookmaker for accepting a gambler's wager, also known as the “vig” or “the juice”

Nary an investor nor analyst we’ve spoken to doesn’t think that the US sports betting (and iGaming) market is a big opportunity.  Estimates range from $10 billion to $45 billion, with various ways to getting to those numbers.  Just last Wednesday, we threw our hat in the ring and offered up our TAM estimates for both Sports and iGaming, as well highlighted a number of key points on the regional gaming industry. 

There are a lot of dogs in this sports betting fight that need to be fed and competition is likely to be heated over the next few years, at least until a few dominant players take over and costs can be rationalized.  While sports betting has certainly received a lot of attention by investors (check out the charts of PENN and DKNG), not enough work has been done on iGaming, in our opinion, and therefore we spent more time analyzing that market and addressing the potential huge upside it could bring for the B&M casino operators/owners.  These new business lines represent a big opportunity for regional casino operators who are already undergoing fundamental change, mostly for the better, and offer top line and juicy bottom line growth potential in this time of Covid – unusual in the gaming, lodging, and leisure sector. 

key points from THE CALL

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