Las Vegas Sands is in a strange position. The business founded by the late Sheldon Adelson, a staunch Republican supporter, has not deviated from its pro-GOP line under the control of Miriam Adelson, Mr. Adelson’s wife.

LVS’ Stock Experiences the Jitters as Trump’s Chances Grow Steadily

Yet, as the polls continue to steadily increase in favor of Donald Trump, now the official GOP nominee for president, over the incumbent, Joe Biden, Las Vegas Sands’ stock is continuing to tumble.

Trading at $$53.96 on April 3, the stock has now dropped to $42.34 as of July 17. At least some of this is attributable to Mr. Trump’s reelection chances. This is not entirely surprising, as under Mr. Trump’s first stint at the highest office in the free world, gaming equities with exposure to China lost a quarter of their value.

This has mostly to do with Mr. Trump’s gung-ho approach towards China and his incessant saber-rattling that threatens hefty tariffs on import goods, along with tighter restrictions on access to American intellectual property and technology for the country’s arguably most serious geopolitical rival.

Yet, many of these politics have been introduced in his first time in office, and continued or even strengthened under Mr. Biden.

Fear Not, Mr. Musk and Mrs. Adelson Come to the Rescue

For Las Vegas Sands, this increasingly fraught relationship could mean choppier seas ahead with the company having to balance a tight diplomatic rope where it doesn’t end on the receiving end of Beijing’s retribution, because of the company’s exposure in Macau.

However, skeptics are moderately optimistic. Mr. Trump’s second turn would be surrounded by a mix of pundits and technocrats with a totalitarian streak, but he would also include important backers who have a stake in the Chinese market, such as Elon Musk, a technological entrepreneur behind Tesla, SpaceX, and as of a year now – X, a social media platform previously known as Twitter.

Mrs. Adelson has already vowed $100 million to Mr. Trump’s campaign, had she may too advocate for the normalization of ties between Beijing and Washington.

Mr. Musk has been given a rare exemption in China, allowing his Tesla cars to operate without restrictions across the country after Beijing previously said that it would limit Tesla models from parking near critical infrastructure, government buildings, and other places considered to be of national security relevance.

This change of heart could indicate that Beijing expects a second term for Mr. Trump in November and is willing to make sure that it does not burn all bridges there are. Gaming stocks may indeed take a hit, mostly because of skittish investors, but they should stabilize overall.

However, it’s still interesting to see that Mr. Trump’s chances of reelection, as envisioned by political betting exchanges and websites, are tied to at least a partial business downturn for his backers.

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Flutter Entertainment, the operator of FanDuel, has spent significant time preparing for this strategic move as it pivots its attention to the lucrative US market. The global gambling giant will maintain its listing on the London Stock Exchange, signifying its ongoing commitment to maintaining a presence in its core jurisdictions. However, the move to the NYSE heralds a new era for the company and should open significant growth opportunities.

The NYSE Listing Is Just a Few Steps Away

Flutter confirmed that its shares will be delisted from the Irish stock exchange as it prepares for the final step required for the US exchange listing, the migration of the settlement system of its shares from Euroclear Bank to the Depository Trust Company. This move has the full approval of shareholders and should be finalized by 6 am GMT on 29 January.

The decision to suspend trading on Euronext Dublin on 24 January aims to facilitate the settlement of pending trades and repositioning instructions ahead of the NYSE listing. This strategic move also aims to minimize regulatory complexities by retaining only two listings – one on the LSE and the other on the NYSE.

Flutter Entertainment shares will remain available on the London Stock Exchange (LSE) under the FLTR ticker symbol. For its NYSE listing, the company will use the symbol FLUT. The move to dual-listing is part of Flutter’s strategy to maximize its presence in the US market, which is responsible for an ever-growing share of its profits.

The Company Remains Focused on the US Market

Flutter’s decision to gradually shift its focus away from Europe comes amidst a series of setbacks on the Old Continent, primarily due to rising regulatory uncertainties. Meanwhile, Flutter’s preliminary Q4 2023 financial results highlighted its robust position in the US market, reporting a 43% share of the country’s sports betting market and a 26% share of the iGaming market. 

Flutter Entertainment CEO Peter Jackson outlined a three-year strategy for success in the US in a recent earnings call. FanDuel, Flutter’s US-facing brand, is ranked as the number one sports betting and number two online casino operator in the US and is uniquely positioned to capitalize on the growing number of jurisdictions offering regulated online gambling.

“The business is in a good place. We’ve got a great product and great momentum to exit the year in the States.”

Peter Jackson, Flutter Entertainment CEO

Investors and industry observers are keenly watching Flutter’s moves as it positions itself for success in the dynamic US gaming landscape. This move to dual-listing is a strategic step to enhance Flutter’s North American profile, recruit and retain US talent, and tap into deeper capital markets, seeking growth opportunities in the expanding American market.

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Chen Lip Keong, one of the richest men in Malaysia, has passed away at 76. His death occurred on December 8 and was announced by the NagaCorp board in a filing with the Hong Kong Stock Exchange.

Chen, who developed the NagaCorp casino and hospitality brand, suffered a stroke a decade ago, sparking speculations that his death might be related to this. However, the leisure corporation’s board provided no specifics about his passing.

Later reports by Chinese news outlets claim that Chen passed away while in the US. His remains will likely be returned to Malaysia after a formal clearance process.

Chen spent the last few years of his life developing NagaCorp, cementing it as a major casino and hospitality brand in Asia. The news of his passing caused the company’s stock to plummet, although the leadership is certain that the loss of Chen will not lead to long-term material impact on the group’s finances.

As of the time of this writing, NagaCorp’s shares are trading for HKD 2.96, representing a significant decline from January 2023, when they had reached HKD 7.75.

What’s Next for NagaCorp?

In the meantime, Chen Yiy Fon, one of Chen Lip Keong’s sons, has succeeded him as head of the company starting December 10. Chen Yiy Fon already boasts significant corporate experience and has previously served as NagaCorp’s chief executive officer of operations.

Chen Yiy Fon started work as the casino and hospitality company’s CEO of Operations on April 5, 2022. His appointment came amid efforts to divide responsibilities for the company among Chen Lip Keong’s three sons.

For reference, this move saw Chen Yiy Hwuan named as chief executive officer of hotels and Chen Cherchi as chief executive officer of finance and treasury.

In its filing, NagaCorp did not disclose whether the change of leadership will have an effect on the ongoing strike at NagaWorld, one of the company’s biggest properties. Located near Phnom Penh, Cambodia, the huge resort is one of the highlights of NagaCorp’s portfolio. However, the property is currently dealing with a strike following the ousting of NagaWorld’s previous leadership.

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Earlier in the week, the leading online sports betting and gaming company that operates some of the most innovative, versatile, and easily distinguishable brands, Flutter Entertainment, announced that its UK and Ireland division had committed up to £8 million ($10 million) to charitable initiatives in 2023. 

The gambling conglomerate also took the opportunity to announce upcoming funding campaigns in the books for its three main three brands, Paddy Power, Sky Betting & Gaming, and Betfair. 

During a Bloomberg podcast, Flutter’s chief executive operator, Peter Jackson, emphasized the company’s effective strategy and excellent capacity to branch out into new verticals while discussing FanDuel’s development and further plans aimed at the US market.

Now, the company that is determined to streamline its operations and minimize regulatory complexities has announced that it will only maintain two stock exchange listings. Here is a quick breakdown of the fresh information. 

Flutter to Cancel Its Euronext Dublin Listing by January 23, 2024

According to the latest news which follows the previous November announcement, Flutter’s ordinary shares will stop being traded on Euronext Dublin on January 23, 2024. After that, a trading suspension will be implemented to allow the settlement of all pending trades.

The impending delisting from the Dublin stock exchange will also translate to Flutter’s removal from the Eurostoxx index by Stoxx, which will go into effect starting December 18, 2023.

This does not, however, mean that Flutter’s premium listing on the London Stock Exchange will suffer. The same goes for the company’s inclusion in the FTSE 100 index.

In other words, Flutter Entertainment’s shares will keep being traded on the London Stock Exchange under the ticker symbol FLTR. 

Getting Ready for the NYSE Listing

While preparing to bid farewell to the Dublin stock exchange, Flutter is also getting ready to list its ordinary shares on the New York Stock Exchange (NYSE) by January 29, 2024.

This is a strategic decision that perfectly blends into Flutter’s plans to optimize its operations while capitalizing on the strengths of the NYSE market and still holding on to its presence in the UK market.

The NYSE listing is currently waiting for the US Securities and Exchange Commission’s ruling over the Form 20-F Registration Statement submitted by Flutter. 

Once it receives the green light for the NYSE, the company will trade under the symbol FLUT. On January 18, 2024, Flutter will also introduce a brief trading update for the three months ending December 21, as well as the full year 2023. 

The full-year results for the 12 months ending December 31, 2023, will be published under US GAAP on March 26, 2024.

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Gambling industry stakeholders are keenly observing the details surrounding the Dallas Mavericks purchase, as it fueled speculations about the future of legalized gambling and sports betting in Texas. The deal should be completed by the year’s end as the team changes hands to the Adelson family, one of the gambling industry’s most famous billionaire magnates.

The Sale Provided Much-Needed Capital

Even with this new venture, Miriam Adelson will retain the majority shareholder position at Sands. As per the SEC filing, Sands board director Irwin Chafetz, a director of the company since February 2005 and a close friend of the late Sheldon Adelson, the founding chairman of Sands, acts as the trustee for the family’s shares. 

This newest deal, initially announced in an SEC filing on 30 November, provides the financial means for Adelson to secure a majority ownership interest in the NBA franchise. Multiple reports suggest that the team will remain in Dallas, and the current owner, Mark Cuban, will continue overseeing basketball operations for the Mavericks.

The Mavericks Purchase Has Significant Implications

Miriam Adelson’s purchase of the majority stake in the Mavericks should be finalized by the year’s end. The deal requires approval from at least 75% of the NBA Board of Governors, consisting of the 30 team owners. If greenlit, Sands President and Chief COO Patrick Dumont, Miriam Adelson’s son-in-law, will join the Board of Governors as the Mavericks’ representative.

Sands has emphasized that ownership of the Mavericks will go directly to the Adelson family and will not impact the company. However, observers view this transaction as part of Sands’ strategy to persuade Texas legislators to take steps towards revising the state’s constitution, potentially allowing legalized gambling, thus advancing the company’s regional interests.

This Development Can Significantly Benefit Sands

Spearheading the introduction of legalized gambling in Texas would represent a significant victory for Las Vegas Sands as it reevaluates its market position and doubles down on its most promising markets. The company recently increased its stake in Sands China, bolstering its overseas presence. It counts on the region’s continued resurgence and the success of its high-profile Macau properties.

Despite Adelson’s efforts to separate the Dallas Mavericks deal from their primary Las Vegas Sands business, the purchase still has considerable implications on the broader gambling landscape. Many industry insiders believe the Mavericks can become the cornerstone of the Adelsons’ Texas efforts, significantly expanding their reach in the state.

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Last week marked the debut of ESPN Bet, the newly rebranded sports gaming app owned by Penn Entertainment. The new sports gambling app launched for 17 US states, entering important markets such as New Jersey, Pennsylvania, Colorado, Iowa, Maryland and Michigan, among others. The latest launch comes after a $1.5 billion deal announced between Penn Entertainment and ESPN, granting the gaming company the permit to use the name for the sports gambling app for the next decade.

The recent launch of ESPN Bet immediately impacted positively the stock of the leading gaming and entertainment company. On Monday, the Bank of America upgraded the rating for Penn’s stock from neutral to buy. Shaun Kelley, the leading analyst for Bank of America, highlighted the positive change and spoke about the strong launch of ESPN Bet across the country.

In a note to clients, he explained that the new sports gambling app is gaining popularity quickly, moving its way up charts and reaching more clients. Kelley outlined that ESPN Bet has been among the top apps on the Apple store since Tuesday last week. Moreover, he outlined that the sports gaming app has accumulated a 4.8 rating on the App Store along with a staggering 865,000 downloads.

“ESPN Bet is dominating initial download activity and charts, proving it is cutting through to customers. ESPN Bet has been #1 or #2 of all free apps on the iOS store since last Tuesday, with 865K cumulative downloads and a 4.8 app store rating, even without data from NFL Sunday.“

Shaun Kelley, analyst for Bank of America

Penn’s Stock Price Target Increases

The upgrade in Penn’s casino stock from neutral to buy by Bank of America undoubtedly underlines the expected growth of ESPN Bet and highlights its successful launch. When it comes to the price target, it increased from $27 to $30 as of Monday. Additionally, as of Monday, Penn Entertainment’s stock was more than 7% higher.

According to Kelley, ESPN Bet “creates an asymmetric risk-reward.” He explained that the app performed much stronger than expected when it came to initial downloads. Moreover, Kelley pointed out that its promotional offers showed discipline. Finally, he highlighted the importance of Penn’s core gaming business which demonstrated stable third quarter earnings.

While ESPN Bet is just penetrating the regulated gambling sector, it is up against fierce competition in the face of giants such as DraftKings, FanDuel and Caesars, among other sportsbooks that have already established their presence in different states across the country.

Yet, ESPN Bet anticipates offering a one-stop-shop experience for sports fans and bettors alike, offering not only betting options but highlights, scores and stories, a move that is likely going to help it engage with new customers.

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