2020 Has Set the Online Gambling Industry Up for Exponential Growth in 2021
FN Media Group Presents Microsmallcap.com Market Commentary
New York, NY – December 4, 2020 – 2020 was a rough year for nearly everyone, but not for the world of online betting. As the pandemic confined millions of people to their homes on nights where they would otherwise be going out in search of fun and excitement, many turned to online gaming. While traditional in-person casinos felt the pain, online betting platforms have surged in popularity, reaching a record 20 percent of the overall gambling revenue in 2020. This year set up regulatory development and customer-base expansion that could see stocks surging in 2021. This is good news for online gambling stocks like Bragg Gaming Group (TSXV:BRAG) (OTCQX:BRGGF), Penn National Gaming (NASDAQ:PENN), Landcadia Holdings II (NASDAQ:LCA), FansUnite Entertainment Inc. (CSE:FANS) (OTCQB:FUNFF), and Flutter Entertainment (OTCPK:PDYPF).
Adding to the headwind, governments are finding themselves in need of revenue, making online gaming legalization and taxation an attractive proposition. Six states had online gaming legislation on the 2020 election ballot in November, and all six voted in favor. To top it off, President-Elect Joe Biden has gone on record indicating that his administration will not support imposing unnecessary restrictions to the gambling industry, a positive sign for companies like Bragg Gaming Group as they expand into these new markets.
Bragg Gaming Group Sees Major Growth Opportunity
Bragg Gaming Group (TSXV:BRAG) (OTC:BRGGF) is an industry-leading gaming technology company specializing in providing turnkey business-to-business solutions to online casino operators. Bragg is one of the gaming companies looking to seize this opportunity with fast growth going into 2021. Bragg is looking to strategically expand into new markets as they open up legally to online casinos. 2020’s ballot wins have given the company significant new opportunities for 2021.
Bragg’s ORYX Gaming subsidiary brings together a wide array of gaming content from numerous developers along with nearly everything else online casino operators need to get started. This includes sportsbook, lottery, marketing, and operational services in one omni-channel retail, online, and mobile iGaming platform. As new casino operators go online looking to ride the sector’s surge in 2021, ORYX could find its services in high demand.
On November 23, Bragg released its financial results for the three months up to September 30. These results indicate clear upward momentum for the company, achieving C$18.1M in group revenue, which equates to a 72 percent revenue growth year-over-year, and generating Adjusted EBITDA of C$2.8M, up from $0.3M achieved in the same period in 2019.
“We’ve made extraordinary progress in 2020 and are very pleased with the substantial revenue and EBITDA growth that we’ve delivered,” Bragg Gaming Group CEO Adam Arviv said in the company’s release. “We continue to expand globally, enhancing our content portfolio and technology offering, and securing new customers across key geographies.”
Online Gambling Companies Set Up for a Big Year
Traditional casino operator Penn National Gaming (NASDAQ:PENN) has given strong indications that online sports betting will be an increasingly large part of its business going forward. In January, Penn National acquired sports publisher Barstool Sports and the company launched a Barstool-branded betting app called Barstool Sportsbook in September. The company says that it will be improving the app’s technology and expanding the service into 2021.
Landcadia Holdings II (NASDAQ:LCA) received regulatory approval from the state of New Jersey to acquire Golden Nugget Online Gaming, Inc in November, and is awaiting further approval from the SEC. Golden Nugget Online Gaming is currently the online division of Golden Nugget casinos. When the acquisition by Landcadia becomes final, the combined company will be the second publicly traded purely online casino operator in the United States.
Canadian gaming technology company FansUnite Entertainment Inc. (CSE:FANS) (OTC:FUNFF) announced on November 25 that the company had become a member of the Canadian Gaming Association. Earlier in November, the company announced that it saw a record month in October, with a 433 percent increase in revenue over October 2019.
UK-based company Flutter Entertainment (OTC:PDYPF) has several online gaming brands including FanDuel, Paddy Power, Betfair, and FOX Bet. In May, the company projected year-over-year revenue growth of 10 percent, with 61 percent growth in the United States. The company added 450,000 active users in quarter three and expects to carry on that growth into the next year.
2021 is shaping up to be a big year for online betting, and companies like Bragg Gaming Group are looking to capture the headwind.
Disclaimer: Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Bragg Gaming Group
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.
FN Media Group, LLC