Turismo
2021 Expected to See Opportunities Climb for Online Gambling Stocks
In Germany , where new regulation on online gambling will enter into force in July 2021 , has enhanced its position in the German market through a new partnership with -owned brand to provide content through wholly-owned subsidiary .
Through the deal, has not only solidified its position in the German market, but will also further expand its EU footprint. is licensed by the Malta Gaming Authority (MGA) and is currently compliant, certified, or approved in 18 other major jurisdictions, including Schleswig-Holstein ( Germany ).
The announcement comes on the heels of a series of deals involving EU markets (including Nordic markets, and Switzerland ). It's been a year of positive momentum for , which recently announced an exceptional revenue growth of 72% in Q3 2020 . By continuing to focus on expanding its market presence, the company onboarded 14 new customers in the third quarter alone.
Earlier in December , signed on with international operator to provide exclusive Remote Games Server (RGS) content across several regulated markets and brands, including online casinos in Sweden , Estonia , Spain , Latvia , and its home nation of Finland .
Turnover for the in 2019 amounted to €114.2 million (more than US$139 million ). Earlier this year, was named Sweden's most sustainable gaming company at the annual Swedish Gambling Awards. generated profits are used to benefit the society every year.
The benefits from tax revenues generated from gaming are undeniable. However, COVID-related restrictions are indeed hurting this revenue source, as witnessed by the 33% decline in November in Massachusetts where curfews were enacted.
States are stepping up their efforts to make up revenues in this field, as the casino industry's national trade group, the American Gaming Association, acknowledges that 44 states plus Washington, D.C. , have now legalized some form of casino gaming, including sports betting. Even to the north in Canada , attitudes are shifting on sports betting, in particular single-event wagers, for which recently spoke out to support.
Groups such as and help to facilitate gaming institutions by providing RGS services, which help to securely publish and distribute content across social and real-money gaming channels around the world.
During his company's Q3 2020 Financial Report call , CEO Dermot Smurfit spoke about his company's "Super RGS" for content delivery in New Jersey and Pennsylvania , as well as preparing for a launch in Michigan as well.
"The significance of the Super RGS is that it will permit internet gambling companies who are operating on a proprietary or competing third-party platform [to integrate] Super RGS and launch our entire games portfolio on their website and mobile apps," said Smurfit on the call. "This creates a technical and commercial vehicle for GAN to deliver its casino content across the entirety [of] the relevant US intra-state markets and not just onto our platform client's websites and mobile apps."
Not stopping at just the North American market, recently made a splash by buying one of the fastest-growing iGaming and sportsbook operators in Europe , , for $175 million .
As large as the deal was, it was the $3.9 billion deal whereby acquired British sportsbook experts that may have created a bigger splash. After much criticism for its cold feet, it appears that is finally beginning to take online gambling seriously . Costly as the deal was, it was a risk that the resort owner felt it needed to take.
"We're looking at different activities and bolt-on acquisitions. This ( William Hill's European business) can definitely fall under that category," Caesar's CEO Itai Pazner told Reuters.
Since the lows observed in March, has seen its shares surge 200% . Primarily, those lows were due to working out the strategic arrangements of its deal with for sports betting and online gaming platforms.
Overall, the US online gaming and sports betting market is expected to reach a staggering $40 billion , which was wise to get ahead on through the deal. However, after a subsequent deal with was struck later in the year, is only retaining 5% ownership of moving forward—perhaps leaving with less of the reward should the valuation reach new heights.
It now appears that and their shareholders are in the final stages of a reverse merger with
Weeks prior, the approved a license for the proposed merger entity, making the new brand a publicly traded entity. Already, has said it's entering into an agreement to access the West Virginia market, and will later enter Michigan and Pennsylvania next year.
Upon its Nasdaq debut, will become the second pure-play online gaming company in the US, joining in that distinction.
With its ongoing success in the European gambling market, has the potential to start seeing opportunities to expand overseas and become another strong contender in the US market.
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