The Bullish Podcast discusses why Thematic ETFs have become popular with retail and institutional investors and their popularity for emerging industries like online betting with Roundhill Investments’ CEO and founder Will Hershey.

What is it?

In The Bullish Podcast, Hershey talks about the transition to digital with sports betting, iGaming, and other forms of online gambling. 

Who is it?

Will Hershey, CEO, Roundhill Investments

Brain Hanly, Founder, Bullish

What is being said?

Hershey: “When you look at the gaming/gambling industry you are talking about $500bn in gross gaming revenues per year. By that definition it is actually the largest form of entertainment in the world. Only about 10 per cent of that right now is taking place online and we think that over the coming period measured in years not decades that that will continue to shift in a somewhat meaningful fashion. 

“Really when we look at it we said it’s a really interesting market and it is also a market that is at the top and centre for US investors who ultimately are our clients at the ends of the day. It’s one we think we can put together a basket, no one else is doing it which is surprising to us so it made a lot of sense.

“I think a lot of the excitement right now is focusing on sports betting in particular in the US and its kind of this arms race in terms of who is going to win the US market. 

“When you look at the kind of business model right now it’s all about acquiring users. A couple of years back it felt like every single commercial on TV was either DraftKings or FanDuel and now you have bigger players getting into the market as well, BetMGM is one example. 

“Really it’s all about customer acquisition right now which works in today’s market because these companies are still investing in the future and aren’t turning a profit yet. When you look longer term these can be really profitable businesses.

“It’s really difficult to try and pin a number on US regulated betting because it’s taken place in this unregulated market for so long. We can look to countries such as Australia, the UK that have these developed betting markets and we’re talking about billions of dollars in terms of revenues, who knows where it’s going to be in its maturity.”

Why should I watch it?

To see why investors are interested in the gambling industry.

Where can I see more?

Source: Bullish YouTube Channel

The Bullish Podcast: Getting ahead in the US sports betting ‘arms race’