Looking to build the infrastructure to connect the world’s gaming platforms…
You either like Las Vegas, or you don’t. And you either go to Vegas to gamble or you go for the shows….so you say!
The online gambling industry has grown in leaps and bounds over the past decade. Latest figures indicate that in 2017, the size of the online gambling market was almost US$46 billion. It is expected to as much as double by 2024, according to industry research. The internet is not just for streaming movies and porn anymore, with the increase in power and usage of smartphones and tablets.
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The online gambling industry is fragmented, presenting an opportunity for consolidation and the usage of new and improved technology. In addition, the shift to a seemingly more favourable regulatory environment could be supportive of significant future growth.
FansUnite is looking to capitalize on this improving environment. Just listed on the Canadian Securities Exchange (CSE: FANS) on May 5, 2020, the company is focusing on technology related to regulated and lawful online sports betting, casino and other related products. “FansUnite is building global infrastructure to connect the world’s gaming platforms through new technology”.
The company is pursuing multiple revenue streams, but all are associated with some form of online betting. Currently, the company’s principal business is operating the McBookie website, offering regulated and lawful online sports betting to the UK market which generates revenue and is marginally profitable. FansUnite is also a provider of technology solutions, products and services in the global gaming and entertainment industries. FansUnite focuses on both the regulated B2C and B2B sales fronts and develops, operates and looks to acquire technology platforms and assets with high-growth potential in new regulated markets or developing verticals.
The board of directors and management of the company are well-experienced in the fields of traditional sportsbook management as well as casino and gaming and data analytics – people are always a key asset.
Is there downside risk? Of course. Online betting requires events to bet on – the current global shutdown makes that a problem and eSports is still a developing industry. Online betting IS prohibited from Canada and illegal in the US, limiting market penetration. The company is looking to offer the potential of a cryptocurrency-based sports book in a cryptocurrency market which is volatile and problematic.
On the positive side, FansUnite has a head start with its management and existing product line. The company is looking for strategic acquisitions and launching new B2B clients in 2020 as well as obtaining a UK Gaming License, none of which are assured. The question is will this be enough as the online gambling and gaming industry grows.