Thunderpick taps Jake Lucky as brand partner
Thunderpick taps Jake Lucky as brand partner
Sharpr is a weekly newsletter covering the intersection of esports, betting, and Gen Z.
Hi everyone, Cody here.
We’re back to regular programming starting this week (I promise this time), so expect more consistent coverage from now up until the holidays.
This week we take a look at Thunderpick and its newest slate of brand partners, esports betting developments in the US, and a lot more to catch up on.
Let’s jump into it.
In this week’s edition of Sharpr…
Thunderpick taps Jake Lucky as brand partner.
Kentucky greenlights esports in sports betting catalog.
Rivalry predicts profitability in 2024.
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Thunderpick taps Jake Lucky as brand partner
Crypto betting operator Thunderpick has signed a deal with esports and gaming industry influencer Jake Lucky.
Alongside Lucky, the operator has signed Counter-Strike esports players Jordan “N0thing” Gilbert, Austin “CooperTV” Abadir, and Ryan “Freakazoid” Abadir to join its roster of influencers.
The deal will add more than 2M followers across Twitch and X to Thunderpick’s reach.
Financial terms of the agreements were not disclosed.
The announcement comes on the heels of Thunderpick’s $600,000 CS:GO tournament and partnership with esports team Evil Geniuses. The operator offers betting on esports, traditional sports, and casino under a Curaçao license.
🔎 Between the lines: If you’re interested in gaming and esports you’ve probably heard of Jake Lucky.
The online influencer is one of the most-engaged gaming creators in the space with his posts on X generating millions of views each week.
That’s great for Thunderpick, but maybe not so much for everyone else.
Jake Lucky, and the other creators signed as part of this agreement, are all based in the US with predominantly US followers. And in case you missed this detail in the beginning, Thunderpick is licensed in Curaçao and unable to legally service bettors in the region.
But that won’t stop them from allowing US customers to create an account and bet, despite stating they aren’t permitted to access the site in its FAQ.
It’s not uncommon for offshore operators to quietly accept customers out-of-jurisdiction (with virtually no KYC, mind you), but it seems Thunderpick’s arrangement with its new creator partners actively has them promote it.
Kentucky greenlights esports in sports betting catalog
Kentucky is the latest state to include esports in its legal sports betting industry.
The Kentucky Horse Racing Commission approved a sports betting catalog containing an array of esports events in late-August, with retail betting launching today and online to follow on Sept. 28.
An extensive index of esports titles and leagues made the list, including the Call of Duty League, Dota 2, League of Legends, Valorant, and the NBA 2K League.
With the addition of Kentucky, 15 states currently permit esports wagering, while several others are currently in the process of enacting legislation which would allow it, including Pennsylvania and North Carolina.
🔎 Between the lines: Kentucky’s sports betting catalog greenlights eight different esports and leagues, from the most bet-on titles to developing games such as Valorant and Rainbow 6.
Whitelists seem to be the best option for regulating esports and navigating its nuance and how nascent the category is in the eyes of both lawmakers and operators. This leaves less to the imagination versus more ambiguous state legislation where I imagine broad language around esports is less helpful in understanding which games are actually worth offering and safe.
Esports is likely the last thing on everyone’s mind with the NFL season kicking off today, but Kentucky has certainly taken a step in the right direction for the segment to grow stateside in the future.
Rivalry predicts profitability in 1H24
Rivalry reported its Q2 2023 earnings last week, noting the company is expected to reach profitability in the first-half of next year. *
Betting handle reached $82M, up 192% year-over-year while marketing spend was down 6%.
Revenue was $6.2M, a 60% year-over-year increase.
Gross profit of $2.8M was up 86% from Q2 2022.
Rivalry noted that increased product depth and organic marketing helped build on user acquisition and engagement, allowing them to acquire 44% more new customers YoY at a 41% lower CAC. The uptick in customer registrations arrives ahead of tentpole esports events including The International and League of Legends World Championship in October. Esports made up 90% of Rivalry’s sportsbook handle in 2022.
Net loss increased 1% year-over-year to $4.6M in Q2, which CEO Steven Salz attributed in part to the betting behavior of Gen Z consumers which caused increased margin volatility. Salz said the company will market players toward higher-margin verticals, such its newly released esports same-game parlays product, and carry out other operational initiatives to normalize margin moving forward.
With these adjustments and the company’s ongoing momentum, Rivalry’s predicts that it will achieve profitability in H1 2024.
(Disclaimer: I am a full-time employee of Rivalry.)
🗞 In the news
Unikrn has rebranded less than a year after relaunching under Entain.
Polish operator STS has partnered with PandaScore to offer esports betting markets.
Rivalry CEO Steven Salz says sports betting must be more entertaining and interactive to capture Gen Z. *
📈 By the numbers
Stake has lost over $40M in a confirmed security breach.
More than half (53%) of sports bettors report seeing an increase in responsible gambling messaging in the last year.
Danish regulators have fined a Twitch streamer $1,500 for promoting unlicensed operators on the site.
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Reach me directly at luongomanagement@gmail.com 📩 or on Twitter 🐦
All figures are quoted in US Dollars at today’s current exchange rate, unless otherwise noted.
*Disclaimer: I am a full-time employee of Rivalry.