FEATURED — MVB Financial, Bank to Sportsbooks, Avoids Silicon Valley Bank, Silvergate Calamity

Amid Great Depression-style bank building runs and the recent collapses of Silicon Valley Bank (NYSE: SVB) and SVB Financial (NYSE: SIVB), among other financial institutions, sports bettors tin quietus assured that their deposits with gaming companies are likely safe.

MVB Financial (NASDAQ: MVBF), the western United States Virginia-based community bank building that’s the dominant third-party financial institution for internet gambling casino and online sportsbook operators, saw its shares slump more than 15% for the week finish March 13 as some banks with cryptocurrency exposure and risky bank bases were forced to the brink. However, MVB is arguably a infant being thrown come out with the bathwater as some market place participants Greek fret near a echo of a 2008-style financial crisis.

MVB stands inward stark counterpoint to some of its banking peers with crypto exposure and, importantly, nearly all of the bank’s deposits measure up for Union soldier Deposit Insurance Corporation (FDIC) protection.

In comments made to Casino.org earlier today, KBW psychoanalyst Catherine Mealor said she doesn’t view gurgle personal effects from other banks impacting MVB, noting that just now $100 1000000 of MVB’s $2.6 one million million inwards deposits are inwards crypto piece adding that 94% of MVB deposits are insured compared with a 90% or more uninsured value at institutions such as SVB Financial and Signature Bank of New York, the latter of which was taken o'er by New House of York regulators endure weekend.

Short Sellers Ignoring MVB Financial for Now

In recent days, encouraged past the calamity at Silicon Valley Bank, bearish traders sank their teeth into a slew of financial services stocks, but they ignored MVB Financial.

S3 Partners Director St. Matthew Unterman told Casino.org that myopic involvement inward the preferred cant of sportsbooks is currently just 190,000 shares, or 1.69% of the shares outstanding. In notional one dollar bill terms, that’s a mere $4.07 million. MVB basics indicate shorts power manage substantially to avoid the name.

MVBF is fountainhead positioned for substantial profitability improvement o'er the line of 2023 (1.1% take on assets inward visual sense for 1Q23, upward from 0.47% inwards ‘22) as the companionship benefits from deeper penetration inward the gaming manufacture (deposits/payments), ontogeny inwards its scorecard getting business, fees and deposits from its partnership with Credit Karma,” wrote KBW’s Mealor inwards a note to clients.

She adds that National Insurance Board (NIB) deposits — the bulk of MVB’s alluviation pedestal — are “more worthful than ever.” That tribute is of import to the bank’s gaming clients and the bettors making deposits with those firms. The do good for MVB is that it doesn’t hold to make up stake on that capital, making its relationships with iGaming and sportsbook operators compelling from a perimeter perspective.

Sports Betting Looking Advantageous for MVB

At a clip when crypto exposure is harming some banks and Silicon Valley Bank’s decision to buy bonds in 2021 prior to the starting line of the Federal Reserve’s interestingness rank tightening regime now looks regrettable, MVB’s gaming ties could follow seen as attractive past analysts and investors.

“We believe that MVBFs gaming perpendicular has real chance for deposit and fee growth as more states acquire approval for online betting and the identity card acquiring stage business has also seen some impulse with unexampled accounts coming online and increased penetration from stream relationships (Fiserv and World Pay),” noted Mealor.

She adds that patch the bank’s gaming deposit pedestal is highly concentrated with DraftKings and FanDuel dominating the bulk of those deposits, MVB defrays some of that danger by pushing some of that great sour its equilibrise sheet. Additionally, the fair balance is around $150,000 — intimately within the parameters of FDIC protection.

Casino.org reached out to MVB Financial and DraftKings for comment. Neither company replied prior to publishing of this article.

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