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Esports Entertainment: The Alpha Of The Pack In Online Gambling
Feb. 22, 2021 11:14 AMEsports Entertainment Group, Inc. (GMBL)
Summary
Three-pillar business strategy utilization equates to long runway growth potential in the making.
Recent acquisitions showcase management's ability to branch into all areas of Esports.
Eruptive growth in competitive gaming and the legalization of online gambling in the US provide a vast addressable market.
Esports Entertainment (GMBL) delivered $2.4 million of revenues during Q2:21 and raised full-year revenue guidance to $18 million, growing to $70 million (pro forma) next year. We reiterate our Buy Long-term rating and raise our price target to $20 from $8.
Data by YCharts
Q2:21 Highlights
The gaming market consists of 2.7 billion gamers globally and almost 500 million of these gamers are esports fans. Surveys indicate that given the chance, 50% of gamers would like to wager on game outcomes, creating a $750 million esports wagering market projected to expand to $3 billion in five years.
GMBL owns the only esports-focused wagering platform, which it plans to launch in the US in April, initially in New Jersey and eventually expanding into other US states that allow online gaming.
Deal highlights for GMBL during the December quarter include an agreement to serve as the esports platform provider for the Philadelphia Eagles. GMBL already has similar agreements with the Philadelphia Union, LA Kings, LA Galaxy, and Baltimore Ravens professional sports teams. Each has millions of fans who may be converted to esports wagerers.
GMBL is acquiring Malta online casino operator Lucky Dino and has acquisitions pending for Helix and ggCircuit. Lucky Dino expands GMBL's foothold in Europe and Helix and ggCircuit provide esports gaming facilities, analytical software and a player-vs-player wagering platform. Due to acquisitions, the company increased guidance for FY:21 revenues to $18 million from $13 million. FY:22 revenues are
😒🚬🈁
Esports Entertainment: The Alpha Of The Pack In Online Gambling
Feb. 22, 2021 11:14 AMEsports Entertainment Group, Inc. (GMBL)
Summary
Three-pillar business strategy utilization equates to long runway growth potential in the making.
Recent acquisitions showcase management's ability to branch into all areas of Esports.
Eruptive growth in competitive gaming and the legalization of online gambling in the US provide a vast addressable market.
Esports Entertainment (GMBL) delivered $2.4 million of revenues during Q2:21 and raised full-year revenue guidance to $18 million, growing to $70 million (pro forma) next year. We reiterate our Buy Long-term rating and raise our price target to $20 from $8.
Data by YCharts
Q2:21 Highlights
The gaming market consists of 2.7 billion gamers globally and almost 500 million of these gamers are esports fans. Surveys indicate that given the chance, 50% of gamers would like to wager on game outcomes, creating a $750 million esports wagering market projected to expand to $3 billion in five years.
GMBL owns the only esports-focused wagering platform, which it plans to launch in the US in April, initially in New Jersey and eventually expanding into other US states that allow online gaming.
Deal highlights for GMBL during the December quarter include an agreement to serve as the esports platform provider for the Philadelphia Eagles. GMBL already has similar agreements with the Philadelphia Union, LA Kings, LA Galaxy, and Baltimore Ravens professional sports teams. Each has millions of fans who may be converted to esports wagerers.
GMBL is acquiring Malta online casino operator Lucky Dino and has acquisitions pending for Helix and ggCircuit. Lucky Dino expands GMBL's foothold in Europe and Helix and ggCircuit provide esports gaming facilities, analytical software and a player-vs-player wagering platform. Due to acquisitions, the company increased guidance for FY:21 revenues to $18 million from $13 million. FY:22 revenues are