MVB Financial and The Online Betting Industry
MVB Financial, a West Virginia-based financial institution, is shifting its focus towards becoming a premier option for the online gaming industry, shedding its image as a small-town bank. With a market value of nearly $325 million, MVB Financial is a leader in the internet wagering industry and is increasingly catching the attention of Wall Street analysts. JPMorgan analyst Steven Alexopoulos recently initiated coverage of the financial services stock with an “overweight” rating and a $35 price target, implying an upside of 40% from the February 24 close. Currently, MVB has about $900 million of deposits on its book from customers of sportsbook operators such as DraftKings and FanDuel. Additionally, CEO Larry Mazza’s ties to ProFootballTalk could be one reason why MVB already commands 85% of the market for banking in the regulated online betting industry. MVB is establishing a first mover position with players across the online gaming industry including operators, technology providers, alternative online gambling providers, as well as media partners, which presents a “blue ocean” opportunity for the bank.