With oral presentations to begin next week from six online bidders for NY sports betting, Madison Square Garden Entertainment released its fourth quarter 2021 earnings (which ended on June 30) this week.
Although MSG is not directly involved with any of the six bidders vying for an application to expand NY gambling, MSGE president Andrew Lustgarten commented on how his company can be part of the process.
”We didn't submit an application to be an operator, right? That's for a few reasons. One of them is just simply certain lead roles restrict your ability if you're a direct operator to put up Knicks and Rangers games on your platform. So we didn't think that made sense,” Lustgarten said in a call right after earnings were reported.
The company reported revenue of $99.8 million, as compared to $9 million in revenue in the prior year quarter. In addition, the company had an operating loss of $102.4 million and an adjusted operating loss of $70.0 million in the fiscal 2021 fourth quarter, compared to operating income of $94.4 million and an adjusted operating loss of $103.5 million in the prior year quarter, according to its earnings report.
MSGE completed its acquisition of MSG Networks on July 9.
“In addition, as we've talked about, we're talking to everybody. We think we're the best way for any operator or operators to reach the market. We've got great relationships with the current market leaders through our current partnerships as well as ones that we — new entrants that are coming in,” Lustgarten said Monday, according to the earnings call transcript. “So we think we're in the best position once we know who's been selected to help drive those businesses. We talked about the assets we have, we're going to be able to blanket the market, and we'll be able to do it better than any other partner could.
”And so we think that, that's the right position for us to be in over the next short term as well the state works through the application process.”
NY Mobile Wagering Rules Approved
The New York State Gaming Commission (NYSGC) last week approved proposed mobile sports betting rules. They were first announced on July 9, the same day the request for application (RFA) for potential license holders went live.
The process continues next week on Sept. 1 when oral presentations from the six bidders can begin. In mid-August, the NYSGC released redacted applications for the six. All selections for licenses must be made by Dec. 6.
“Many of the leading online sports betting operators are participating in the process, which creates a competitive market that we believe bodes well for us," Lustgarten said "From entertainment and media assets that reach millions to potential fixed venue-based opportunities that include The Garden and Tao locations, we believe we're one of the best positioned companies to help partners succeed in connecting with consumers.
“We continue to be in active discussions with many of the potential market participants and are increasingly bullish about this opportunity for our company. In summary, while we know we're in a fluid environment, we're optimistic about the year ahead due to the strong pent-up demand we saw at our entertainment and Tao businesses in June, which has continued so far this summer; our progress with MSG Sphere in Las Vegas; and the powerful platform we have created with MSG Networks, which brings together our entertainment and media assets and positions us well for future opportunities."