TransUnion: Entry Into U.S. Sports Betting
Summary
- The company's extensive data capabilities play heavily into its potential to serve sports betting operators with everything from onboarding, to granular data sets, fraud detection, and marketing heft.
- Its technology in credit reporting can be marketed as an insurance policy against firewall breaching that can add to overall security.
- Its move raises the stakes for the entire subsector of pick-and-shovel tech providers to sports betting platforms.
TransUnion (NYSE:
TRU), yes,
that company, one of three whose score pronouncements from on high determine if you'll get that mortgage, qualify to buy that Maserati, get that SBA loan, etc. And now, who you are and what you bet. And ID's deadbeats in seconds.
TransUnion: Data is indeed the new oil
(Source: TRU archives)
This week TRU announced it was joining the US sports betting free for all through its operating subsidiary TransUnion Gaming Services LLC. The mission: To provide identity, fraud and marketing programs across many legal sports betting states. This is nothing new for TRU. They have been at the tech size of the sports betting game in the UK for over a decade. They will have no trouble getting licensed.
They see their role as a super-reliable data flow guide through the entire sports betting process beginning with onboarding, to verification, fraud detection and protection of player accounts with dramatically reduced login friction. The key is TRU's identify authentication data capabilities to validate a fortress identity program, which presumably offers the most steely of firewalls against fraud, underage or compulsive gambling and granularity of player data.
In the UK TRU says then have already serviced over 84m transactions for the top gaming brands in ID verification, responsible gaming and fraud.
The company drives its massive data machine through three subsidiaries: US data, International and Consumer, operating now in over 30 countries.
TransUnion trades at $93.81, ~ $90 before the sports betting announcement hit the market.
By entering the sector that provides the tech backbone of sports betting platforms, the TRU market cap dwarfs most of the pick and shovel companies pushing hard into the sector.
Sportradar, a sports data company controlled by the LA Dodger owners, is about to do a SPAC conversion by Horizon that will value its stock at debut at $10b.
GAN (
GAN) which already is in business trades at $20.01 at writing sporting a $737m market cap.
Kambi Group Ltd (
KAMBI), a Swedish based sports betting pick and shovel operator, trades at US $61.46.
There are many others. But the entry of TRU could be a game changer in that space:
>>>>>>>
All very interesting and very like the software that our little $21 gaming stock entain? had...Don't quote me on the name... THEY become take out fodder!!! >>>>
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