The newly minted Roundhill Sports Betting & iGaming ETF (NYSE: BETZ) is already making some adjustments to its roster due to what the issuer deemed “extraordinary demand” for some securities.
What Happened: BETZ debuted on June 4 as the first exchange-traded fund dedicated to the rapidly growing sports betting landscape. At that time, it was also the first ETF to offer investors prominent positions in newly public companies in the industry, including DraftKings (NASDAQ: DKNG) and GAN Ltd. (NASDAQ: GAN).
Since its debut, BETZ is rapidly gaining a following, vaulting to $70 million in assets under management as of June 12. Said another way, BETZ got to that level in seven trading days, meaning it average inflows of $10 million per day during its first seven days on the market. That's a stellar start for any new ETF, particularly one from an independent issuer.
Why It's Important: Amid the enthusiasm for BETZ, some adjustments were made to the fund's lineup. For example, GAN vaulted into the top spot ahead of DraftKings. GAN, a gaming software provider, now accounts for 6.61% of the BETZ lineup, just ahead of DraftKings at 6.50%.
The largest percentage increases resulting from the extraordinary rebalance were for sportsbook operators GVC Plc and Kindred Group Plc. Those stocks now combine for 12.64% of the BETZ roster. GVC is the company that partners with MGM Resorts International (NYSE: MGM) on the ROAR Digital betting app.
No companies were deleted from BETZ during the rebalance, but weights to smaller, less liquid companies, such as Betmakers, Kami and Australia-listed PointsBet were reduced.
What's Next: BETZ also made several new additions, including Gamesys, Swedish mobile gaming firm LeoVegas, NetEnt – another Swedish company – and Wynn Resorts (NASDAQ: WYNN).
Wynn joins Boyd Gaming (NYSE: BYD), Caesars Entertainment (NASDAQ: CZR), Eldorado Resorts (NASDAQ: ERI), MGM and Penn National Gaming (NASDAQ: PENN) as the traditional casino operators on the BETZ roster.
Of that group, Wynn has the most modest sports betting exposure. Outside of Las Vegas, Wynn will add sports wagering footprints in Colorado and Indiana through a deal with Full House Resorts (NASDAQ: FLL).
Wynn could get a big sports gambling lift if Massachusetts, where the company owns Encore Boston Harbor, signs off on sports wagering.
Disclosure: The author owns shares of DKNG and GAN.
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