The launch of Europe’s first Sports Betting and iGaming on the HANetf platform will deliver exposure to the sports betting and iGaming and betting industry as it tracks a selection of leading companies within the sector.
The Sports Betting and iGaming UCITS ETF (LSE ticker: BETZ) will list on London Stock Exchange in June and will be passported for sale across Europe.
Online gambling had largely been illegal in the United States, however recent regulatory changes allowing individual US states to legalise sports betting and iGaming (online activities that include poker and online casinos games such as blackjack, slots and fantasy sports), has been a major growth catalyst for the market.
Other growth drivers have included a wider social acceptance of sports betting as an entertainment activity; sports betting support from sports leagues, teams and media companies; technological improvements that allow an enhanced online experience; and more generally, greater time spent on mobile devices.
In their March 2021 equity research report, Goldman Sachs forecast the expansion of the US sports betting and iGaming market by 23 times, from $2.3b in 2020 to $53b in 2033. The industry is expected to generate high EBITDA margins, according to estimates by Morgan Stanley and Draftkings.
These high margins combined with relatively low capital expenditures will also support strong Free Cash Flow generation and high Return On Investment (ROI) for the industry.
The ETF will track the Solactive Fischer Sports Betting and iGaming Index which is focused on companies that generate the majority of their current and/or expected revenues via Sports Betting and iGaming. The index- back-tested performance shows it achieved 121.17% net total returns from 29/05/20 to 10/05/21. The ETF will have a Total Expense Ratio of 0.69%.
Aaron Fischer co-Founder of BETZ has 15 years of experience in the gaming industry, including his previous role as Chief Strategy Officer at MGM Resorts International and he was a leading equity research analyst at CLSA/Citic and Goldman Sachs. He has applied all this experience in constructing a truly unique and innovative index.
Past performance is no guarantee of future results. When you trade ETFs your capital is at risk.
Aaron Fischer, co-founder of the Sports Betting and iGaming UCITS ETF, said
“Having witnessed a huge uptick in the take-up of sports betting and iGaming boosted by favourable regulatory changes, we feel that now is the perfect time to launch our Sports Betting and iGaming UCITS ETF. The growth forecasts for this sector are hugely promising and we are excited to offer European investors the opportunity to gain exposure to this exciting and evolving market.”
“Our index includes a range of companies from the larger consumer facing companies that include Caesars Entertainment, DraftKings, Flutter, Entain, MGM Resorts International and PointsBet. We also include some “picks and shovels” companies that provide other services to the industry and form an important part of the industry value chain. Some examples include Evolution Gaming, IGT, Playtech and Kambi.
Hector McNeil co-Founder and co-CEO at HANetf
“HANetf has consistently been at the forefront of innovation within the European ETF market and the addition of the Sports Betting and iGaming UCITS ETF (BETZ) only adds further credence to that claim. We’re delighted to finally offer the European investor a seat at the Sports Betting and iGaming table, having watched from the side-lines as their North American counterparts have taken advantage of this exciting growth market.
HANetf is continually building out the range of thematic ETFs it offers with the objective of being the deepest in Europe backed by true experts in their fields such as Aaron with over 15 years of experience in the sports betting and iGaming sectors. This brings a true insight to investors.”