In this podcast on Evolution, Speedwell Research draws on their 74-page report to cover everything from the company's inception experimenting with a single roulette wheel to a global business with 60%+ margins. Studying this extremely unique business will teach listeners about the importance of value chain positioning, using negotiating leverage, and how to maintain a very lucrative business in a highly competitive industry. Everyone says the house aways wins, but not in the online casino world where it is the supplier, and Evolution is the largest supplier. We hope you enjoy!   

Company Description: B2B supplier in the online casino space specializing in the live casino vertical.

Purchase the full Evolution Report here. 

Purchase a Speedwell Membership to gain access to all Reports here. 

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Show Notes

Section 1: History and Background

(0:00) Intro

(2:20) Evolution High-Level Business Description

(5:01) Evolution History and Background 

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Section 2: TAM and Market Differences 

(35:32) TAM Overview

(40:05) Grey and Black Markets

(44:38) Aggregators

(53:35) North America Regulation 

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Section 3: Business Model

(1:00:59) How they Make Money 

(1:05:07) How Evolution Differentiates

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Section 4: Competition

(1:17:55) Competition Overview

(1:22:33) Playtech

(1:31:42) Vertical Integration

(1:39:10) Pragmatic 

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Section 5: Capital Allocation, Valuation & Risks.

(1:47:30) Capital Allocation and ROIC

(1:51:35) Acquisitions and Slot Business

(1:59:37) Risks 

(2:04:47) Valuation

(2:06:39) Bull/ Bear Case

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Purchase Speedwell's EVO Report here: https://speedwellresearch.com/2023/12/19/evolution/ 

Become a full Speedwell Research Member here: https://speedwellresearch.com/subscribe/ 

Articles Mentioned

Speedwell’s Memo Introducing the Piton Idea: https://speedwellsnippets.substack.com/p/the-piton-network-decisions-that

Twitter: @Speedwell_LLC 

Threads: @speedwell_research

Email us at info@speedwellresearch.com for any questions, comments, or feedback

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Disclaimer

Nothing in this podcast is investment advice nor should be construed as such. At the time of publishing, one or more contributors to the podcast had a position in Evolution. Furthermore, accounts one or more contributors advise on may also have a position in Evolution. This may change without notice. Please see our full disclaimers here:  https://speedwellresearch.com/disclaimer/