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00:03 - Okay, so now this is an interesting development here.
00:05 Fanatics, who I guess it was probably
00:10 early or late last year, essentially said,
00:12 nah, we don't want any part of New York.
00:14 The taxes are too high.
00:15 We're just gonna, we're gonna stay out of it.
00:17 Oh, and now the revenues come in and they're like,
00:19 oh, maybe we'll change our mind here.
00:21 Maybe we will go ahead and pay this 50% tax.
00:24 Is that indeed the case?
00:25 Or do you think that this is just them
00:28 talking a little bit about it?
00:29 - Yeah, Craig, so when they acquired PointsBet,
00:32 basically they got access to the 14 jurisdictions
00:35 and didn't have to pay the initial licensing fee.
00:37 New York, PointsBet paid 25 million,
00:39 in Pennsylvania they paid 10.
00:40 So, you know, in that $225 million price point,
00:43 you're talking about a lot of it is getting into that access
00:45 and, you know, not having to pay the state those fees.
00:47 Yeah, you're having to pay PointsBet, you know,
00:49 for their US business, but you hope you're kind of saving
00:51 some money at the end of the day,
00:52 'cause PointsBet spent millions of dollars
00:53 to get into these states.
00:54 So New York is one of them.
00:56 They're gonna have to go through a rigorous,
00:58 you know, review process.
00:59 Obviously the sale happened, the transaction happened.
01:02 Now in each state, Finatics is gonna be under review
01:05 to make sure they, you know, meet suitability requirements
01:08 for all these licenses.
01:08 So in New York, we'll see, we don't have a timeline.
01:10 They said, you know, some point in September,
01:12 NFL season starts September 7th.
01:14 Finatics would certainly like to be up by then.
01:16 I mean, that's when these sports books wanna acquire,
01:19 you know, market share, customers as well.
01:21 I mean, NFL is king with the sports betting,
01:23 so you wanna be up by then.
01:24 We'll see, you know, a lot of these
01:26 New York State Gaming Commissions,
01:27 not this one in August, but a lot of them happen
01:28 at the end of the month.
01:29 So we'll see whether it takes till, you know,
01:31 week three or four for them to be live in New York.
01:34 And then we don't know, are they gonna do the beta model
01:35 where they do subscribers only,
01:37 and then come in, you know, to the marketplace later,
01:40 going public, but yeah, nice development for them.
01:44 And, you know, we looked at all these other states,
01:47 right, as well.
01:48 I believe Iowa and Colorado, they're on the verge
01:50 of having review.
01:51 Kansas and Virginia end of August.
01:54 New Jersey seems like they're making progress.
01:56 I think they said they wanna be in 14 jurisdictions,
01:59 I believe, they're in four right now.
02:00 So things are ramping up.
02:02 They wanna be a major player.
02:03 They've said, you know, we're gonna compete our own way.
02:05 We're not gonna be competing with DraftKings and Fanduil
02:07 for market share and revenue share.
02:08 We'll see, you know, we'll see what it looks like
02:10 till they get to even where BetMGM is,
02:12 with, you know, third in the market share, rev share,
02:16 and then like maybe 10% across the board.
02:19 But Fanduil and DraftKings have had the lion's share
02:22 of the market and revenue share, like 70, 75%
02:24 in some of these states.
02:26 So it's been a two horse race.
02:28 Fanatix is an interesting player because of their database
02:30 and because of their all-in-one app.
02:32 And, you know, certainly the success
02:34 Michael Rubin's had in retail, people know their brand.
02:36 So we'll see if they become a major player
02:38 and if so, how that even looks.
02:40 But yeah, some positive developments
02:41 in New York here for them.
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