One of the most interesting themes to emerge so far in 2018 is the huge potential that lies ahead in the world of fantasy sports betting.
With the Supreme Court’s recent May ruling – the state of New Jersey won its US Supreme Court case, as a majority of justices declared that the federal ban on sports wagering was unconstitutional – the potential for stocks well-aligned with this theme could be exceptional right now.
We will cover a few possible stars here: one traditional casino with a potential revenue growth opportunity ahead in fantasy sports gambling, one extremely speculative play that has recently taken a big step to marry blockchain with fantasy sports betting, and one equipment supplier with downstream prospects on the same theme.
Wynn Resorts, Limited (NASDAQ:WYNN) develops, owns, and operates destination casino resorts. As of February 15, 2018, the company’s Wynn Macau segment had approximately 273,000 square feet of casino space, which offered 316 table games and 988 slot machines, private gaming salons, sky casinos, and a poker pit; 2 luxury hotel towers with a total of 1,008 guest rooms and suites; 8 food and beverage outlets; 59,000 square feet of retail space; 31,000 square feet of meeting and convention space; recreation and leisure facilities comprising 2 health clubs, spas, a salon, and a pool; and a rotunda show, a Chinese zodiac-inspired ceiling.
Its Wynn Palace segment had approximately 420,000 square feet of casino space that offers 323 table games and 1,115 slot machines, private gaming salons, and sky casinos; a luxury hotel with a total of 1,706 guest rooms, suites, and villas; 11 food and beverage outlets; 106,000 square feet of retail space; 37,000 square feet of meeting and convention space; recreation and leisure facilities, including a gondola ride, health club, spa, salon, and pool; and public attractions, such as a performance lake and floral art displays.
The company’s Las Vegas Operations segment had approximately 192,000 square feet of casino space, which provide 247 table games and 1,829 slot machines, private gaming salons, a sky casino, a poker room, and a race and sports book; 2 luxury hotel towers with a total of 4,748 guest rooms, suites, and villas; 33 food and beverage outlets; 110,000 square feet of retail space; 290,000 square feet of meeting and convention space; 3 nightclubs and a beach club; recreation and leisure facilities, including swimming pools, private cabanas, 2 full service spas and salons, and a wedding chapel; and Le Rêve-The Dream, a water-based theatrical production and a theater presenting entertainment productions and various headliner entertainment acts.
WYNN shares have been pulling back in the context of a powerful bullish trend that came into existence in early 2016. Since then, we have seen a steady rise of as much as nearly 300%. However, at this moment, we have a pullback underway that recent broke underneath the 200-day simple moving average.
Epazz Inc (OTCMKTS:EPAZ) is one of the newest entrants into the gaming space. The company is employing a blockchain solution for fantasy sports gambling that could be extremely interesting. The stock is also trading at bargain-basement prices right now, which makes this one even more interesting right now.
The company just announced that it has filed a provisional patent for a blockchain Fantasy Sport Gambling Solution. As noted there, because the recent Supreme Court decision resulted in fifty separate state laws, the average individual will not have time to look up each state law to determine if he or she is in compliance. In other words, the company is looking to be able to enable people to participate in fantasy sports gambling within the law, which is difficult considering the many different state laws that apply to the space.
Generally, the company specializes in enterprise cryptocurrency blockchain mobile apps and cloud business process software with over 500 repeat customers. New Bitcoin Mobile app is a financial technology company that offers a unique Bitcoin and Ethereum payment mobile app software, allowing consumers to acquire Bitcoin at the point-of-sale. The consumer can then use the cryptocurrency or digital currency to make a purchase at the store with ease.
Epazz technology makes it easy to convert legacy systems into cloud business process software, for which the company then charges an annual subscription fee. Epazz has acquired eleven software companies that have converted or are in the process of converting their legacy software products to cloud software using Epazz’s technology. Epazz then markets the new cloud-based solutions to new and existing customers.
Shares of EPAZ have been consolidating above the nickel/share level in a broad range following an explosion higher to close out last year. Volume has been generally rising, suggesting some potential that strong handed accumulation is underway. The stock has been going sideways for about 6 months, but is still about 300% of its highs from last year.
On its face, this seems like a constructive and healthy consolidation within the context of a newly established potential upward trend over a large timeframe. The recent ruling in sports betting and the company’s move to create possibly valuation IP in that space all support that basic view.
Given that the stock is trading on a tight float (under 20M shares), there is every reason to believe another explosion to the upside is possible from here.
International Game Technology PLC (NYSE:IGT) operates and provides technology products and services across lotteries, electronic gaming machines, sports betting, and interactive gaming markets worldwide. The company operates through: North America Gaming and Interactive, North America Lottery, International, and Italy segments.
It designs, sells, and operates a suite of point-of-sale terminals that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services. The company also provides video lottery terminals (VLT), VLT central systems, and VLT games to government customers; and amusement with prize machines and games to licensed operators. In addition, it provides sports betting platform that offers betting on sports and motor sports events, as well as non-sporting events; interactive and social gaming, which enables game play through the Internet; gaming management systems for casino management, customer relationship management, patron management, and server-based gaming; and designs, develops, manufactures, and provides cabinets, games, systems, and software.
Further, the company processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, and stamp duty and money transfers services. Additionally, it designs, manufactures, and distributes poker, table games, slot games, bingo, iLottery, virtual reality, mobile-to-retail products, player management systems, and market intelligence services.
IGT shares have been working through an extended trading range that has roots in the action from 2016, when it put in a high above $30/share. The stock has been tracing out a sideways pattern ever since, with wide swings, but no decisive breakout. The recent move is a pullback that broke under support at $25, but could be excessive, based on reading from oscillators such as RSI, which just tested a 30 print (generally seen as “extremely oversold”).