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On Monday, Citizens JMP Securities offered fresh insights into the online sports betting landscape, emphasizing the significant role of offshore betting platforms in the industry. In a client note, the firm highlighted the importance of understanding the diverse betting markets which include regulated, offshore, and bookie operations. According to InvestingPro data, the sports betting sector continues to show strong growth potential, with key players like Sportradar projecting 24% revenue growth for 2024.
The research was based on state-by-state data from Juice Reel, which helped Citizens JMP Securities analyze real-time betting patterns. The firm’s findings revealed that the offshore market, which includes platforms like Bovada and online bookies, is a major contributor to the sports betting economy. Despite the growing interest in Daily Fantasy Sports (DFS), player prop markets, and sweepstakes, the offshore segment remains a substantial source of funds outside of traditional sportsbooks. This market evolution has contributed to impressive performance metrics, with Sportradar achieving $1.17 billion in revenue over the last twelve months and maintaining a strong financial health score according to InvestingPro analysis.
The report by Citizens JMP Securities suggests that while the offshore betting market could offer additional revenue to legal books, it is unlikely to provide a significant boost to overall revenue. The firm estimates that in 2024, the offshore sports betting market, combining offshore and bookie bets, accounted for $163 billion in handle, or $9.8 billion in gaming revenue within the United States. This figure surpasses the $150 billion that was legally wagered during the same period.
The note from Citizens JMP Securities serves to shed light on the current dynamics within the sports betting industry. By dissecting betting patterns across various markets, the firm provides a clearer picture of where the money is flowing and how different segments contribute to the industry’s financial ecosystem. The offshore betting market, as highlighted in the report, plays a crucial role in the broader sports betting landscape.
In other recent news, Sportradar Group AG has been the focus of several analyst updates and strategic partnerships. The company reported robust revenue growth and margin expansion in the last quarter of 2024, prompting Benchmark to raise its price target from $16 to $24 while maintaining a Buy rating. Guggenheim also initiated coverage with a Buy rating and set a price target of $27, citing Sportradar’s strong financial profile and market position. Craig-Hallum increased its price target to $25, reflecting confidence in Sportradar’s momentum and a newly extended partnership with Major League Baseball (MLB) through 2032.
This MLB deal enhances Sportradar’s rights to distribute official data and audiovisual content, including an equity stake for MLB in Sportradar. The partnership aims to leverage the global popularity of baseball and the expanding sports betting market. JMP Securities maintained a Market Outperform rating with a $19 target, noting the resilience of Sportradar amidst regulatory changes in sports betting taxes in Illinois.
The firm’s ability to withstand these changes is seen as a positive indicator for its revenue streams. Sportradar’s strategic initiatives and analyst ratings suggest a positive outlook for the company’s future growth in the sports data industry. The upcoming Analyst Day on April 1, 2025, is anticipated to provide further insights into Sportradar’s strategic direction.
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