dMY Technology Group II Transaction Call, October 27, 2020
We have a unique rights strategy, whereby, as I mentioned before, we work with a vast number of sports to
collect the underlying data thats required for sportsbooks through contra-relationships or swapping our software with those sportsbooks. It means that were very cost effective in the way that we collect our data, it means its very
scalable, and it gives us a very strong position in the market, where were giving a fair deal back to sports, and that theyre benefiting from the sportsbook betting revenues that are generating, and the sportsbooks are benefiting from
the value thats being offered to them by the sports leagues. On that basis, we will end up in a very competitive market with other players who are looking to acquire rights, but the benefits of our lower tier model, where were contra-ing our software in exchange for rights, give us the ability to be very insulated from any one particular win or loss of any Tier 1 event. You can see the results of this strategy and official data on this
slide. Over the last six or seven years, we have grown the number of official data rights that we have, from 2014, where we had very few, to over 170,000 now, which is the vast proportion of a sportsbooks official data requirements.
This slide really brings our business together. On the left-hand side, you have the sports leagues, where they are granting official rights to their data in
exchange for our technology. Taking that data, wrapping it in our software, providing it to sportsbooks creates an increased demand on that data, but also an increased demand for new data. That allows us to go back to the sports leagues, offer
further technology in exchange for official rights. This virtuous circle is something that weve been very successful in pioneering and, as Nick will speak to you about in the next few slides, we are only at the beginning of that journey.
Nick Taylor
Yes, hi. Thanks, Mark. Im Nick Taylor,
Im the CFO. Ive been with Genius a year now, and I just want to talk you through the next few slides.
As youve heard, were
uniquely placed to take advantage of the fast-growing sports betting market, and there are plenty of estimates out there about the size of the market, one of which is set out in Slide 15, going out to 2025, and you can just see that the TAM doubles
in those five years, but there are two important points to draw out of this.
Firstly, the U.S. market, although very nascent, will be the largest growing
market in the next five years, and Ill touch on our U.S. positioning in a second.
And secondly, and equally as important, and its sometimes
overlooked, given the excitement of the liberalization of the U.S. market, is that theres still significant growth in other markets, as you can see on the slide, including Europe, which you can see has still a very healthy double-digit CAGR
growth, and, as Mark explained, has been our core market to date and one of which we have been very successful in.
Looking at this through a U.S. lens,
this is about all the pieces of the jigsaw in place to replicate our success in Europe across the United States. I just want to spend a minute or two drawing out a couple of key points.
Firstly, we are in a strong position with high-profile rights.
Secondly, we have market-leading ad tech solutions in the U.S. market, which is set to explode as sportsbooks compete for customer acquisition with increased
marketing dollar spend and we are perfectly positioned to capture our share of this.
Thirdly, we have the right business model, which, through our
relationships with all key sportsbooks, means we share in the upside as our partners grow over time. In addition to this, we also have key relationships with other B2B technology suppliers. To Marks point earlier, these companies are competing
with each other and, to some extent, were agnostic to who wins, as we have relationships across the industry.
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