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  "documentTitle": "Genius Sports Limited (GENI)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2021-08-05 00:00:00",
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  "notes": "Uses expert testimonials to debunk the bull case thesis regarding revenue share percentages.",
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      "text": "Revenue share rates fluctuate by league. For larger leagues representing a higher percentage of total dollars waged, the revenue share is less than 2%. Leagues with 5% revenue shares represent a much smaller share of total dollars waged.",
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      "text": "For larger leagues representing a higher percentage of total dollars waged, the revenue share is less than 2%",
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      "text": "revenue share rate: 2%",
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      "text": "The bull case is dependent on capturing a significant revenue share rate of the growing global betting market. We have found that not all sportsbook customers are on a revenue share plan, and those that do, are on a smaller percentage than portrayed for leagues with significant dollars waged (1-2% vs. 5%). Based on our conversations, sportsbooks will only agree to any revenue share with exclusive data, therefore limiting the potential upside. It is highly unlikely sportsbooks, who control the valuable relationships with bettors, will be willing to concede meaningful economics. The larger share of economics Genius and data providers demand, the more incentive for sportsbooks to go directly to sports leagues.",
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      "text": "With regards to what bookmakers spend with data providers, here is what a sportsbook will pay as a revenue share. The only way to reach 5% of GGR is for Genius to fully trade for the sportsbook (this is called outsourced trading services and is a tiny part of GSG's business). My sportsbook and every other one would never outsource their trading to Genius and not pay 5% of GGR.",
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      "text": "Sportsbooks don't pay a revenue share unless it's exclusive and valuable content. The English Premier League (EPL) is, but Genius' sportsbooks don't pay a revenue share for 110,000 bundled matches with said EPL. They pay revenue share in exclusive one-offs (e.g. NCAA data). There are minimum fees per month as Genius alludes to but this is not always revenue share.",
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      "text": "A data provider can charge 6% for a low tier exclusive esports game but only 1.5% for Premier League. The better the league, the higher the share but there is a cap of 2% for big sports. For small sports where a data provider has complete exclusivity, not televised and no one else can ever get in the stadium, you can get 6%. The total dollars of GGR on these are so low. Genius has increased their fixtures for such low tier esports. Many sports have no GGR attached anyway as there are competitor providers who charge a flat fee per month.",
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      "text": "With regards to what bookmakers spend with data providers, here is what a sportsbook will pay as a revenue share. The only way to reach 5% of GGR is for Genius to fully trade for the sportsbook (this is called outsourced trading services and is a tiny part of GSG's business). My sportsbook and every other one would never outsource their trading to Genius and not pay 5% of GGR. — Betting Industry Expert",
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