Global eSports Betting Is a $66 Billion Dollar Industry Still Expected to Grow As Latest Technology Enhances Consumer Experience
Dec 01, 2021, 11:00 ET
PALM BEACH, Fla., Dec. 1, 2021 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - The global sports betting market has been growing in recent years and is expected to continue for years to come. A report from Grand View Research projected that the global sports betting market size was valued at USD 66.98 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 10.1% from 2021 to 2028. It said that the application of AI and blockchain technologies is anticipated to boost market growth in the coming years. For instance, to legalize commercial gambling in Great Britain, the Gambling Commission introduced the Gambling Act 2005. Moreover, the same act was reviewed recently in December 2020, where the government directed platform providers to comply with the technological changes. The report said: "The online segment accounted for the largest revenue share of over 50.0% in 2020 and is anticipated to maintain its lead over the forecast period. The online segment is expected to witness the fastest growth over the forecast period. In terms of platform, the market has been divided into online and offline sports betting. The growth of the online betting segment can be attributed to the increase in the penetration of smartphones and connected devices across the world. For instance, according to H2 Gambling Capital, a betting and gaming consultancy, in 2018, 43% of online bets were placed through mobile devices and 57% were placed using desktops." Active companies in the markets today include: Esports Technologies (NASDAQ: EBET), DraftKings Inc. (NASDAQ: DKNG), Skillz Inc. (NYSE: SKLZ), Elys Game Technology, Corp. (NASDAQ: ELYS), Rush Street Interactive, Inc. (NYSE: RSI).
Grand View Research added: "The fixed odds wagering segment accounted for the largest revenue share of over 25.0% in 2020 and is expected to maintain its lead throughout the forecast period. This can be attributed to the familiarity of this betting type among people that bet on sports, such as baseball, football, hockey, horse racing, and basketball globally. Fixed-odds wagering can be further segmented into numerous sub-types, such as point spread, proposition bets, fractional odds, in-game betting, and parlays. The competitive landscape of the market is fragmented, featuring several global as well as regional players. The key participants are entering into strategic collaborations, partnerships, and mergers & acquisitions to expand their business footprint and survive the highly competitive environment. Moreover, service providers are spending considerably on research & development activities to incorporate new technologies in their offerings and develop advanced products to gain a competitive advantage over other market players."
Esports Technologies (NASDAQ: EBET) – BREAKING NEWS - Esports Technologies Completes Acquisition of Aspire Global's B2C Business with $1.86 Billion in Annual Wagers and $183 Million in Cash Deposits - Revenue Grew 43% in Most Recent 12-Month Period from 1.25 Million Customers - Esports Technologies, a leading global provider of award-winning advanced esports wagering products and technologies, announced today the successful closing of its acquisition of Aspire Global's (STO: ASPIRE) B2C business for $75.9 million.
Under the terms of the deal, Esports Technologies has now closed on the acquisition of Aspire's portfolio of B2C proprietary online casino and sportsbook brands, including Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, and GenerationVIP. Additionally, Esports Technologies secures gaming licensing in Tier 1 regulated markets including the United Kingdom, Germany, Ireland, Malta, and Denmark.
Strategically, Esports Technologies plans to leverage the increased market access from the multiple-brand acquisition to cross-sell esports wagering opportunities to increase its esports revenue, player bet transactions, and customer base.
In the most recent 12-month period ending September 2021, Aspire Global's B2C revenue was $78.3 million and its EBITDA was $7.9 million, a 43% and 30% gain over the same period in the prior year, respectively. During the same period, the B2C business recorded wagering of $1.86 billion and $183 million in cash deposits from 1.25 million customers.
Aspire Global will serve as the back-end provider for the acquired B2C brands, ensuring operational continuity, and will offer Esports Technologies wagering products on its platform.
Aaron Speach, CEO, Esports Technologies, said, "Acquiring Aspire Global's portfolio of innovative B2C brands, access to new markets, and its 1.25 million deposited customers is a strategic leap in our journey to become a world leader in esports wagering. We look forward to our partnership with Aspire as we continue to scale."
Tsachi Maimon, CEO of Aspire Global, said, "Esports Technologies has rapidly established itself as one of the foremost innovators in esports wagering. Acquiring the world-class B2C portfolio we've built will further expand their reach in this skyrocketing global market." CONTINUED… READ THIS AND MORE NEWS FOR EBET BY VISITING: https://esportstechnologies.com/news/
In other technology recent news of interest:
The Boston Bruins and DraftKings Inc. (NASDAQ: DKNG) recently announced a new multi-year deal, which will make DraftKings the exclusive, Official Daily Fantasy Sports Partner of the team and TD Garden, and the exclusive presenting sponsor of the Boston Bruins Foundation 50/50 charitable raffle.
The parties have also agreed that DraftKings will be an Official Sports Betting Partner of the Boston Bruins and TD Garden, should sports betting become legal in Massachusetts. The new deal marks another strategic agreement with an NHL team for DraftKings, further advancing DraftKings' relationship with the league as an official daily fantasy partner and an official sports betting partner of the NHL.
"The Boston Bruins are excited to announce this new partnership with DraftKings, a Boston-based company that has established itself as the premier hub for daily fantasy sports," said Boston Bruins President Cam Neely. "We are looking forward to collaborating with DraftKings to continue to provide the best possible sports and entertainment experience for our fans at TD Garden."
Skillz Inc. (NYSE: SKLZ), the leading mobile games platform bringing fair competition to players worldwide, recently announced financial results for the third quarter ended September 30, 2021.
"Skillz delivered another quarter of strong results, achieving 70% year-over-year revenue growth," said Andrew Paradise, Founder and CEO at Skillz. "We're so proud to see our new content exceeding expectations, with Big Buck Hunter: Marksman hitting the number one spot in the sports category of the App Store last month."
Q3 Financial Highlights Were: Revenue was $102.1 million in the third quarter of 2021, up 70% over the prior period. This was driven by 47% growth in Paying MAU over the prior year period; Gross profit was $94.4 million in the third quarter of 2021, up 66% over the prior year period; Net income was $50.8 million in the third quarter of 2021, compared with $(42.9) million in the prior year period. The increase was primarily driven by $113.6 million of income attributable to the decrease in the estimated fair value of the Private Common Stock Warrants and the redemption of Public Common Stock Warrants and a $18.9 million income tax benefit in the period; Adjusted EBITDA was $(41.7) million in the third quarter of 2021, $17.3 million lower than the prior year period; and Cash on balance sheet of $540.3 million and no debt at the end of third quarter 2021.
Elys Game Technology, Corp. (NASDAQ: ELYS), an interactive gaming and sports betting technology company, recently reported its financial and operating results for the nine and three months ended September 30, 2021.
"The Company continues to grow its core business that is reflected by robust increases in handle and record revenues of $37.3 million for the first nine months of the year and $8 million in the third quarter of 2021. Sportsbook operations continued to perform remarkably well resulting in consecutive double-digit quarterly sportsbook hold," stated Michele Ciavarella Elys' Executive Chairman. "Expenditures during the first nine months remained focused on technology development and product preparation for expansion of our operations in the U.S. and Canada."
Mr. Ciavarella continued, "In the third quarter of 2021, we also achieved key milestones with the closing of the acquisition of Bookmakers Company US LLC and onboarding of their trading and risk management team, and the granting of our first U.S. license, which led to the commencement of our first U.S. operations at Grand Central Restaurant and Bar in Washington, DC. Additionally, subsequent to the quarter period, we also reported major developments regarding our U.S. expansion through the partnership with Ocean Casino Resort in New Jersey, and completion of our agreement with Jefferies, LLC."
RushBet, the sportsbook in Colombia operated by Rush Street Interactive, Inc. (NYSE: RSI), has recently teamed up with LaLiga to become the prominent Spanish soccer league's exclusive wagering partner in Colombia.
The deal enables RushBet to co-brand with the two top divisions of LaLiga — LaLiga Santander and LaLiga Smartbank. RushBet may use all LaLiga IP, including team logos and jerseys, as well as have certain LaLiga players such as Colombia natives Radamel Falcao, Jeison Murillo and Carlos Bacca, participate in RushBet promotions and advertisements. Additionally, Rushbet will have access to exclusive "money can't buy" hospitality packages for its bettors—VIP experiences such as attending top rivalry games, including Real Madrid vs. Barcelona and Atletico Bilbao vs. Real Sociedad.
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