BET, PBH and BBT have all pretty much halved from their most...

BET, PBH and BBT have all pretty much halved from their most recent highs. The Gaming sector especially those leveraging themselves to the US growth story is currently out of favour with investors. 6 to 8 months ago it was a different story and thematic was unstoppable. Since then news has slowed down and it has become apparent things may take longer and be more costly then expected. Online sports betting legislation took many years to finally break through, NJ being the first state in 2018 and the take up amongst other states has been a slow back and fourth process as they battle through red tape and legislation. The Sports betting mkt in the US is huge as is the potential for sport books and alike to make decent returns, but it might not happen in the smooth linear line some have hoped for.

Fixed odds horse racing is a new game in itself as the US has only just finalised law in NJ to place this type of bet. Betmakers has been lobbying for almost 2 years to get this law over the line and looks like first bets could be taken within weeks. it's a Huge achievement, but has proven a lengthy process. BET are luckily at the forefront here and have first mover advantage. If the take up is there and other states come on board then the upside could be significant. They would need to secure similar deals with other states once legislation allowed but one would think if BET can successfully prove the NJ model works for all parties, they would be a leading contender for other states.

Company speaking they have plenty of cash ~$120M and aren't burning through it like Sportsbooks who have the big advertising and market spend to attract new customers. Their Revenue is also growing very strong, So you can't say the company isn't performing financially.

News of late has been slow, Failed Tabcorp bid, Nil Strategic acquisitions, shorters have increased substantially, Gaming sector on the nose and fixed odds has taken longer then expected - All of these factors are likely contributing to where the current share price has fallen too. I guess the question to now ask - Is the mkt undervaluing or mis-pricing BETs future potential over the coming few years at current levels? US sports betting revenue is only going to continually grow in size and Fixed odds horse racing could be a game changer, but only time will tell if Betmakers can capitalise on the opportunity that lies ahead.