Global Health Crisis Fuels Growth in Online Gaming Industry

NEW YORK, Dec. 1, 2020 /PRNewswire/ -- Even as people are getting back to work in the midst of the global public health crisis, people are still staying home more than ever. More people are working from home and fewer are going out over the weekend. This means that there is more demand than ever for an easy source of excitement from the comfort of our own homes. This is fueling the online gaming industry. Online poker has seen an unprecedented increase in first-time players of 255 percent this year, while virtual sports betting has seen a 30 percent increase. This situation has created a major growth opportunity for online gaming technology-focused companies like Bragg Gaming Group (TSXV: BRAG) (OTCPK: BRGGF), DraftKings Inc (NASDAQ: DKNG), Scientific Games Corp (NASDAQ: SGMS), and International Game Technology PLC (NYSE: IGT). Meanwhile, some of the biggest names in the traditional gaming industry, like MGM Resorts International (NYSE: MGM), are moving into online gaming as well.

Bragg Gaming Group Sees a Massive Growth Opportunity

Among the online gaming companies working to get the most out of this headwind is Bragg Gaming Group (TSXV: BRAG) (OTC: BRGGF) . Bragg is an industry-leading business-to-business-focused provider of turnkey solutions to operators of online casinos. Through its subsidiary, ORYX Gaming, the company offers an omni-channel retail, online, and mobile iGaming platform, as well as advanced casino content aggregator, sportsbook, lottery, marketing, and operational services.

Online gaming is now legal in 15 US states plus Washington DC, and six more have put legalization on the ballot for election day. The overwhelming trend in the US is towards legal online gaming, and as more states legalize, Bragg Gaming Group's potential customer base grows by leaps and bounds. In states that have legalized, more online gaming applications are coming daily.

Bragg just released its third quarter financial results on November 23. Perhaps unsurprisingly in an environment where people are spending more time at home, the company has seen an upward trajectory throughout 2020. Bragg saw 72% revenue growth year-over-year in Q3, which amounted to C$18.1 million in revenue for the quarter, and generated Adjusted EBITDA of C$2.8 million, compared to C$300,000 for 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," said Bragg  Interim CEO Adam Arviv. "We continue to expand globally, enhancing our content portfolio and technology offering, and securing new customers across key geographies."

In October, Bragg Gaming Group announced relationships with several partners to bring new content to the company's ORYX Gaming platform. These included games studios Arcadem, Iforium, and Peter & Sons. Bragg also signed a distribution agreement with Microgaming that will see ORYX Gaming launched in Microgaming's aggregation platform.

Online Gaming Thrives While Traditional Casinos Face Tough Times

This boom period can be seen across the online gaming industry. DraftKings Inc's (NASDAQ: DKNG) stock price skyrocketed by an incredible 66.4 percent in September, and the online gaming giant's stock is up by approximately 500 percent year to date. DraftKings' rise is in part due to the industry's momentum, along with other developments for the company such as the announcement of NBA legend Michael Jordan taking an equity interest in the company.

International Game Technology PLC (NYSE: IGT) has seen its share price rise by more than 20 percent in recent months. Adding to the company's stock price rise, International Game Technology announced a sports betting partnership with the NBA on October 14.

In contrast, Scientific Games Corp (NASDAQ: SGMS), a company that relies heavily on revenue from its physical casino machines in addition to its lottery and online gaming products, recorded a net loss of $198 million in the company's 2020 second-quarter trading update. The loss is largely attributed to casino closures for public health purposes throughout the year. In response, Scientific Games is working to strengthen the digital gaming side of the company's business.

InterActive Corp, which now owns a sizable stake in casino giant MGM Resorts International (NYSE: MGM), is reportedly pushing for MGM to further develop its presence in the online gaming market. As part of this push, in partnership with British gaming company GVC Holdings, MGM already operates online poker and sport betting on the digital gaming website BetMGM through its ROAR Digital subsidiary.

While consumers avoid bars, restaurants, and traditional casinos in the midst of a public health crisis, online gaming is becoming a hot spot for people looking for a way to blow off some steam in troubled times. For online gaming technology companies like Bragg Gaming Group, it's an unprecedented opportunity for growth that could last long after things return to normal.

Disclaimer:  Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Bragg Gaming Group

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.

Media Contact:
FN Media Group, LLC
info@financialnewsmedia.com
+1(561)325-8757

 

 

Cision View original content:http://www.prnewswire.com/news-releases/global-health-crisis-fuels-growth-in-online-gaming-industry-301182195.html

SOURCE Microsmallcap.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.