Tekkcorp Capital’s President and CEO, Matt Davey, has a firm belief that the gambling industry is stepping in the right direction after the disruption in the last year. He sat, along with Calvinayre.com lead reporter Becky Liggero Fontana, to share his thoughts regarding the industry.
As the industry has experienced many downturns due to the COVID-19 pandemic, Davey is now seeing hope at the end of the way for investors.
Davey said, “From a pure investing perspective with interest rates incredibly low, institutional investors are looking for where they can get growth, and so they’re prepared to pay a high multiple for today’s business on the basis that it’s going to grow rapidly. I think with online gaming and sports betting, you have that environment.”
Thus, the perspective of people who are investing finds the rate to be very low. Since the institutional investors are looking for major growth in various areas, they are preparing for a high return. On the other hand, this is pushing up rapid growth. Thus, Davey is quite optimistic, along with his views regarding the industry’s growth.
Davey comes up, along with his sound knowledge and wisdom, while saying that they are in the market of investment in capital for the last two years. Thus, they are looking at private and public deals. When it comes to focusing on significant deals, they typically look for partners who can execute the deals and organize both the sales and negotiating of the great agreement with the vendors. Well, negotiating with the capital seeks two sets of negotiations.
Davey is undoubtedly the first one to admit that there always exists some tension that comes into play when one goes to deal with a size greater than a billion dollars. However, this is not at all deterring Davey, who continued to say that he still searches out for some of the emerging companies of the industry.
According to Davey, the market is filled with companies. However, his concern shows that we are very much aware of the several companies, which are quite special due to the technologies they have developed, along with the management teams they have put together and the cultures that they have created. However, it is quite obvious that Davey was in the business to do something very interesting in various areas.
Though Davey is not negotiating the areas of potential tensions in the room, his optimistic tone is quite notable here. As the industry is emerging in various ways, it is opening up various opportunities in the market, which needs to get considered.
On the other hand, he also stresses the advancement of technology, which is a very important area to check on to understand the various prospect in the market. Thus, it is a matter of time to see what the industry is performing and how the industries are going to create an impact. However, it is worth mentioning that the business is getting interesting in various ways.