2021 Expected to See Opportunities Climb for Online Gambling Stocks

NEW YORK, Dec. 31, 2020 /PRNewswire/ -- Gathering restrictions have hit casinos hard in 2020, including in Atlantic City, where the city's nine casino operators reported a $89 million drop in profits during Q3 2020. According to data from New Jersey gaming regulators, the jurisdiction is embracing online gaming to help offset the tax revenue losses from these land-based casinos. Atlantic City isn't alone in this shift, as several legal gambling districts are looking to online gambling service providers to provide secure, smooth, and fun transitions into the digital area, including from Bragg Gaming Group (TSXV: BRAG) (OTCQX: BRGGF), Boyd Gaming (NYSE: BYD), Landcadia Holdings II (NASDAQ: LCA), Caesars Entertainment (NASDAQ: CZR), and GAN Limited (NASDAQ: GAN).

In Germany, where new regulation on online gambling will enter into force in July 2021, Bragg Gaming Group (TSXV:BRAG) (OTC:BRGGF) has enhanced its position in the German market through a new partnership with Greentube-owned brand StarGames to provide content through Bragg's wholly-owned subsidiary ORYX Gaming.

Through the deal, Bragg/ORYX has not only solidified its position in the German market, but will also further expand its EU footprint. ORYX is licensed by the Malta Gaming Authority (MGA) and is currently compliant, certified, or approved in 18 other major jurisdictions, including Schleswig-Holstein (Germany).

The StarGames announcement comes on the heels of a series of Bragg's deals involving EU markets (including Nordic markets, and Switzerland). It's been a year of positive momentum for Bragg Gaming Group, which recently announced an exceptional revenue growth of 72% in Q3 2020. By continuing to focus on expanding its market presence, the company onboarded 14 new customers in the third quarter alone.

Earlier in December, Bragg/ORYX signed on with international operator Paf to provide exclusive Remote Games Server (RGS) content across several regulated markets and brands, including Paf's online casinos in Sweden, Estonia, Spain, Latvia, and its home nation of Finland.

Turnover for the Paf Group in 2019 amounted to EUR114.2 million (more than US$139 million). Earlier this year, Paf was named Sweden's most sustainable gaming company at the annual Swedish Gambling Awards. Paf's generated profits are used to benefit the society every year.

The benefits from tax revenues generated from gaming are undeniable. However, COVID-related restrictions are indeed hurting this revenue source, as witnessed by the 33% decline in November in Massachusetts where curfews were enacted.

States are stepping up their efforts to make up revenues in this field, as the casino industry's national trade group, the American Gaming Association, acknowledges that 44 states plus Washington, D.C., have now legalized some form of casino gaming, including sports betting. Even to the north in Canada, attitudes are shifting on sports betting, in particular single-event wagers, for which Bragg Gaming Group recently spoke out to support.

Groups such as Bragg and GAN Limited (NASDAQ:GAN) help to facilitate gaming institutions by providing RGS services, which help to securely publish and distribute content across social and real-money gaming channels around the world.

During his company's Q3 2020 Financial Report call, GAN CEO Dermot Smurfit spoke about his company's "Super RGS" for content delivery in New Jersey and Pennsylvania, as well as preparing for a launch in Michigan as well.

"The significance of the Super RGS is that it will permit internet gambling companies who are operating on a proprietary or competing third-party platform [to integrate] GAN Super RGS and launch our entire games portfolio on their website and mobile apps," said Smurfit on the call. "This creates a technical and commercial vehicle for GAN to deliver its casino content across the entirety [of] the relevant US intra-state markets and not just onto our platform client's websites and mobile apps."

Not stopping at just the North American market, GAN recently made a splash by buying one of the fastest-growing iGaming and sportsbook operators in Europe, Coolbet, for $175 million.

As large as the Coolbet deal was, it was the $3.9 billion deal whereby Caesars Entertainment, Inc. (NASDAQ:CZR) acquired British sportsbook experts William Hill that may have created a bigger splash. After much criticism for its cold feet, it appears that Caesars is finally beginning to take online gambling seriously. Costly as the deal was, it was a risk that the resort owner felt it needed to take.

"We're looking at different activities and bolt-on acquisitions. This (William Hill's European business) can definitely fall under that category," Caesar's CEO Itai Pazner told Reuters.

Since the lows observed in March, Boyd Gaming (NYSE:BYD) has seen its shares surge 200%. Primarily, those lows were due to working out the strategic arrangements of its deal with FanDuel for sports betting and online gaming platforms.

Overall, the US online gaming and sports betting market is expected to reach a staggering $40 billion, which Boyd was wise to get ahead on through the FanDuel deal. However, after a subsequent deal with Flutter Entertainment was struck later in the year, Boyd Gaming is only retaining 5% ownership of FanDuel moving forward--perhaps leaving Boyd with less of the reward should the FanDuel valuation reach new heights.

It now appears that Landcadia Holdings II (NASDAQ:LCA) and their shareholders are in the final stages of a reverse merger with Golden Nugget Online Gaming, Inc.

Weeks prior, the New Jersey Casino Control Commission (CCC) approved a license for the proposed merger entity, making the new Golden Nugget Online Gaming (GNOG) brand a publicly traded entity. Already, GNOG has said it's entering into an agreement to access the West Virginia market, and will later enter Michigan and Pennsylvania next year.

Upon its Nasdaq debut, GNOG will become the second pure-play online gaming company in the US, joining DraftKings in that distinction.

With its ongoing success in the European gambling market, Bragg Gaming Group has the potential to start seeing opportunities to expand overseas and become another strong contender in the US market.

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


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

View original content:http://www.prnewswire.com/news-releases/2021-expected-to-see-opportunities-climb-for-online-gambling-stocks-301199495.html

SOURCE Microsmallcap.com