Posted on: November 7, 2023, 04:12h.
Last updated on: November 7, 2023, 04:12h.
Sports betting data providers Genius Sports (NYSE: GENI) and Sportradar (NASDAQ: SRAD) stand to benefit from the launch of regulated sports betting in Florida.
Craig-Hallum analyst Ryan Sigdahl believes Genius and Sportradar to be winners in a Florida online sports betting scenario. The Seminole Tribe has relaunched the Hard Rock Bet mobile wagering app, albeit in a limited form.
The app is currently only accessible to existing users, with new clients being able to join a waitlist. The app was live for a period in 2021 before being shut down due to legal challenges. Residents of Florida can also place wagers at brick-and-mortar sportsbooks at Hard Rock casinos in the state.
Sigdahl rates both Genius and Sportradar as a “buy,” with a price target of $11 on the former and $18 on the latter. This implies potential stock gains of over 80% for both companies.
Why Genius Sports, Sportradar Could Dominate in Florida
If the Seminole Tribe has the scope to expand the Hard Rock Bet app in Florida, it’s expected to have a sports wagering monopoly in the state. However, this exclusivity doesn’t rule out opportunities for companies like Genius and Sportradar, who may play a key role in providing data and technology to support sports betting operations.
Genius boasts an impressive client portfolio, including the English Premier League, NFL, PGA Tour, MLB, NCAA, and Euroleague Basketball. Both companies provide data to sportsbook operators, which is vital as the industry grows in the US. Since Genius and Sportradar’s business model does not depend on consumer spending like traditional sportsbook operators, they stand to benefit from the growth of regulated sports betting.
Genius Sports, Sportradar Set to Benefit from Florida Expansion
With Florida likely to maintain a single-operator sports wagering model for some time, Genius Sports and Sportradar are well-positioned to benefit from the growth of sports betting in the state.
Home to 7% of the US adult population and nine professional sports teams, Florida is a highly desired market for online sportsbook operators. However, the Seminoles’ exclusivity pact with the state leaves Genius and Sportradar as the only publicly traded beneficiaries of sports betting in Florida.