The digital gaming and sports betting industries experienced a period of rapid growth and substantial investment between 2020 and 2022. However, the landscape has shifted significantly since then. Despite a few notable exits, overall returns have been underwhelming. As the industry transitions towards 2025, a more cautious and disciplined approach is emerging, with a greater emphasis on profitability over aggressive growth.

XST Capital spoke with five private capital firms to get their takes on what has transpired over the last few years, key trends in the industry right now, and what may lie ahead. Hear from Evan Meyer (Astralis Capital), Alan Resnikoff (Coral Tree Partners), Davis Catlin (Discerning Capital), Wayne Kimmel (SeventySix Capital), and David VanEgmond and Peter Heneghan (Bettor Capital), to see what’s going on in the digital gaming investment space.

Key Trends Discussed:

  • Profitability Over Growth 📈: Investors are prioritizing sustainable growth and profitability over aggressive expansion
  • Cautious Capital Raising 🏦: The capital-raising environment is becoming more selective, with investors demanding robust business models and realistic projections
  • Strategic Exits 🤝: Strategic acquisitions are expected to dominate the exit landscape, as IPOs and sales to financial sponsors become less frequent
  • The Rise of Sweepstakes 🎰: The pre-regulated sweepstakes industry could attract significant investment, potentially diverting funds from the regulated sector
  • B2B Opportunities 💼: The B2B supply chain is emerging as a promising area for investment, offering opportunities to capitalize on the highly competitive B2C market
  • AI-Driven Innovation 🤖: AI-powered personalization and player engagement are expected to drive innovation and attract investment
  • Customer Retention and Reactivation 🔄: As the pace of new state launches slows, retaining and reactivating existing customers will become increasingly important
  • The Rollup Phenomenon 🌀: Consolidation through rollups is expected to gain momentum, as companies seek to leverage synergies and drive value

Join us as we delve deeper into these trends and explore the investment opportunities that lie ahead.

Read the full discussion here: What’s NXST