Is Whitney Tilson’s “Netstake” a Legit Opportunity?

Hi, and welcome. Today I’m looking into a presentation from Whitney Tilson of Empire Financial Research about an opportunity he’s calling “Netstake.”

According to the presentation, there’s one “little-known company” using Netflix’s blueprint to “help create America’s next big obsession” that could become a “$516 billion wealth exodus.”

What is Netstake? And is this a legitimate opportunity?

That’s what I wanted to know when I decided to look into Whitney Tilson’s claims. And in this post, I’ll show you everything I learned to help you determine if it’s worthwhile or just hype.

What Is Whitney Tilson’s “Netstake” About?

The “Netstake” presentation begins with host John Pierce talking about how those who invest in one “tiny company” that Whitney Tilson and his colleague, Enrique Abeyta, are bullish on could potentially make investors a lot of money.

Before long, John introduced Whitney, who said that “those who get in now could be doing their retirement account a million-dollar favor” by investing.

He also likens the opportunity to Netflix. As you most likely know, Netflix is a popular online streaming company. It’s also one of the most successful tech companies in the world, and according to Whitney Tilson, Netstake is “modeling itself on Netflix.”

How so?

According to Whitney, just as online streaming took off in the early 2,000s, a similar online industry is starting to explode right now, which he later reveals is online sports betting.

And he says there’s one company on the verge of dominating the entire online sports betting industry in a similar way that Netflix did with video streaming.

Long story short, Whitney believes “Netstake” could bring online sports betting into millions of American homes and make it so that virtually any adult can bet on sports whenever, wherever they want. He says it’s helping fuel a new obsession in America, one that could become an accepted type of “family entertainment” in the years ahead.

How is Netstake supposedly fuelling a new obsession?

During the presentation, Whitney Tilson talked about how the most successful tech companies in the world are those that get the largest share of our time, and he points out that Netflix is doing the best job of this, with Americans spending 612 hours on the service a year.

And according to Whitney, the company he’s interested in “already has access to 50 hours from every American” each year, which is more time than people spend on Amazon.

What’s with the name “Netstake?”

Well, for one thing, Whitney describes the company he’s interested in as the “Netflix of the sports betting industry,” so it seems to be a play on words. But according to the presentation, he came up with the name “Netstake” by combining “internet” and “stakes” (another word for bets).

Either way, Whitney Tilson says there’s one “tiny company” at the center of this trend. And in the next section, I’ll share my guess as to what this company could be.

What Is Whitney Tilson’s Netstake Stock?

Whitney Tilson doesn’t reveal the name of the “Netstake” company he’s bullish on in the presentation. However, he provides some clues about the company and talks about four main reasons he believes online sports betting is a good opportunity right now.

Here are some of the clues he shares about the stock:

And just like Netflix did, this company is moving into other countries as well – Canada, Latin America, UK, Bulgaria, Israel, Norway, Sweden, Iceland…

Also, ‘NETSTAKE’s’ technology is patented

113 U.S. casinos have already signed up with ‘NETSTAKE’ to build online gaming platforms.

9 of the 29 states have already signed on with this company thanks to its proprietary technology…

Source: empirefinancialresearch.com

Also worth mentioning are some of the clues Enrique Abeyta provides in an article on a Stansberry Investor website that leads to the presentation. Enrique is Whitney’s colleague, and according to the presentation, he’s the one who came up with the idea in the first place.

Instead of being the “house,” this microcap company focuses on being a supplier of technology to physical casinos looking to build out their own online gaming platforms and sportsbooks. It’s a “picks and shovels” play on sports betting.

And with a market cap of less than $500 million, the opportunity here is staggering. In fact, I think over the next few years, this company could easily rise 200%, 300%, or even 500%.

Source: stansberryinvestor.com

Based on these clues, it seems like the company Whitney Tilson is referring to could be GAN Limited (GAN). It’s not a perfect match, but it’s pretty close.

Gan Limited is an internet gaming software-as-a-service provider that describes itself as a technology platform that facilitates online gaming and sports betting.

And while it’s unclear how many individual casinos and states have signed up with the company, it does have operations across the globe in the countries mentioned. Most recently, it acquired a company called Silverback Gaming, which is based in Bulgaria and the UK.

And it does have a patent called The Bridge Framework™:

GAN’s loyalty linking patent technology allows players to earn on-property rewards through online play across GAN’s omni-channel offering, including Social Casino, Real-Money Casino, Online and Retail Sports

Also, at the time of writing, the company has a market cap of just under $365 million. So that matches up with Enrique’s clue about the company’s market capitalization.

Aside from going through the presentation and researching the clues myself, I also have to give credit to stockgumshoe.com for this one since they were first to write about this, and what I read did help me conclude that GAN Limited could be the stock Whitney’s teasing.

With all that said, is “Netstake” a good opportunity?

I don’t provide stock recommendations on this site, so I’ll leave that up to you to decide. However, I can give you insight into why Whitney Tilson is bullish on Netstake. Specifically, there are four main reasons he points out in the presentation as to why he’s bullish:

• First, the presentation points out that sports gambling became legal at the federal level in 2018 through order No. 16-476. However, not all states have chosen to embrace online sports betting, so it’s still a mixed bag. As of writing, sports betting is legal in over two dozen states in America and Whitney believes this is only going to increase (i.e., lots of growth potential).
• Second, Whitney believes that the pandemic and subsequent work at home trend have only accelerated the trend towards online sports betting.
• Third, he mentions how blockchain technology is making online gaming faster, more secure, and more transparent which will only serve to accelerate the online gambling trend.
• And fourth, he says that some of the biggest names in entertainment are getting into this space, and specifically mentions Disney. I was surprised by this, but according to this article on Forbes, Disney is looking to expand into sports betting through ESPN.

So, that’s a summary of the clues Whitney Tilson provides about the company he’s bullish on and why he believes sports betting has a lot of potential for investors in the years ahead.

However, if you want to get the complete details of Whitney’s stock pick and his research on it, you’d need to join Empire Elite Growth through the presentation.

And the reason is that, when you do that, you get access to a report titled: “NETSTAKE” – The Netflix of Sports Betting: How to 10X Your Money Without Placing a Single Bet. And this report details the sports betting stock he and Enrique are recommending.

In the next section, I’ll give you an overview of what Empire Elite Growth is about and how it works to help you better understand what to expect before joining.

How Does Empire Elite Growth Work?

Empire Elite Growth is a stock advisory service edited by Enrique Abeyta and published by Empire Financial Research. According to the website, the service is focused on long-term, buy-and-hold U.S. companies and typically recommends small- or mid-cap stocks.

Like most stock advisories I come across, the core aspect of the service is the monthly newsletters; subscribers receive 12 issues over 12 months, and each issue outlines Enrique’s latest investment ideas and market insights.

You also get access to the Empire Elite Growth model portfolio, which contains all the active recommendations and four bonus reports if you join through the presentation:

• “NETSTAKE” – The Netflix of Sports Betting: How to 10X Your Money Without Placing a Single Bet.
• Another Way to Win as Sports Betting Goes Mainstream.
• The Robinhood of Crypto: How to Make 1,000% Without Ever Owning a Crypto.
• Three ‘NFT Royalty’ Companies to Play the Digital Collectibles Boom.

How much does it cost?

According to the Empire Financial Research website, the service usually costs $5,000 per year to join, but if you subscribe through the “Netstake” promo, it only costs $2,000.

Can you get a refund?

There are no cash refunds with this service, but the site says that if you’re. not satisfied during your first six months, you can request a credit to use on another service.

Who’s Behind Empire Elite Growth?

Whitney Tilson is the man in the presentation, but he says that his colleague, Enrique Abeyta, came up with the “Netstake” idea, and he’s the person behind the Empire Elite Growth service.

Whitney Tilson is the founder of Empire Financial Research and runs the company’s flagship advisory service, the Empire Investment Report. He’s also an investment expert with over 20 years of experience on Wall Street, has an MBA, and founded Kase Capital Management.

Enrique Abeyta is also a former Wall Street hedge fund manager who has more than two decades of experience and has managed billions of dollars in assets over the years. He’s also the founder of an e-commerce company called Project M Group. And, aside from Empire Elite Growth, he runs an advisory called Empire Elite Trader, which focuses on short-term trading.

Both Whitney and Enrique have established a strong track record in the stock advisory space over the years. Of course, that doesn’t mean everything they’ve recommended has worked out, but they are genuine experts at what they do and share a lot of value with subscribers.

Bottom Line

The “Netstake” presentation is about online sports betting and how both Whitney Tilson and Enrique Abeyta believe this could be a great opportunity for investors in the coming years.

On the one hand, I think Whitney made some excellent points in the presentation about the potential in the sports betting space. And there does appear to be a trend towards more and more people embracing online sports betting in the U.S. and abroad.

That doesn’t mean you’ll make money following Whitney and Enrique’s stock recommendations, though. It’s possible, but as with any investment, there are risks involved. So even though it could be a way to 10X your money as the presentation suggests, there’s no guarantee.

As far as the service goes, I haven’t joined it, but it does look legitimate. As a whole, Empire Financial Research has a good reputation, as does Whitney Tilson and Enrique Abeyta. So it could be worth joining, not just to find out what stock Whitney’s teasing and why, but also if you’re looking for a longer-term advisory service focused on small- to mid-cap stocks.