NEW YORK, Dec. 4, 2020 /PRNewswire/ -- 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.
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