Canada

“We see LatAm as a hugely promising region” – Exclusive interview with Betbazar CEO on LatAm Esports

Published

3 years ago

July 6, 2021

Alexandr Iaroshenko, CEO of Betbazar, gives Gaming Americas his two cents on how a quickly regulating Latin America is proving to be a huge opportunity for Esports – with a hugely diverse player base and a fast-growing interest proving to a key revenue driver.

Looking at the Americas, which markets are of most interest to Betbazar and where do you see the most growth?

We see LatAm as a hugely promising region in the Americas. We are looking very closely at it and are already active there through a number of our tier one partners. It’s no big surprise that Efootball has proven massively popular in many markets there, with Brazil being the most vibrant example of a future market with a huge amount of possible growth.

Indeed, when it comes to major markets, we estimate that 60% of Esports betting in Brazil will be on Efootball – and Argentina, which is already in the most part regulated, has proven very similar. However, in countries like Mexico there is more of a cultural split when it comes to player tastes. Football is still high on the menu, but that number is closer to 30%, with 25% betting on basketball and just as many preferring American football, rather than ‘soccer’.

Colombia is also an excellent market with a great growth trajectory, all though the tech can be limiting – and we still see this as early days as native platforms are proving an issue there, which we ideally need in order to deliver our best services. Only the major brands can do so platforms directly, such as Caliente and Salsa – which does limit scope.

Given the region’s unique segmentation, there is a lot to bear in mind as a result, but we’ve learned quickly. As well as regulation, economic trends and demographics, infrastructure is also key to powering the next decade. But all these things are moving in the right direction across large swathes of the region, spelling out a huge amount of opportunity there.

LatAm has certainly had to weather its fair share of challenges over the last 12 months – how has the market evolved and how do you see Betbazar as being able to make a difference for operators?

A lot of operators in LatAm were really prompt in reacting to the challenges of last year, they took the correct forward-thinking approach and invested in diversifying their portfolios quickly, with Esports being a big part of that.

If there is anything we should have learned about the last 18 months, it is that you never know what is around the corner and with the highly volatile nature of the ongoing situation – covering every base you can to entertain new players is essential. We know what players out there want, especially the new generation – and we’ve proven ourselves as key part of some of the major industry operators’ Esports set-up for some time now.

Looking to what is happening at this moment, audience demand has grown exponentially. LatAm has a huge young population that are far more likely to be tuned into Esports and the numbers have supported that. We’ve got a connected global generation like never before – and they’re very switched onto the Esports community already. Accordingly, we can offer popular games like Counter Strike, for example – which, according to our studies, accounts for almost 70% of bets in LatAm Esports.

It’s not hard to see why this number is so high, the game is very simple to understand. It’s a timeless tale of good guys vs bad guys that even the casual viewer can get their heads around very quickly. Helping operators to capitalise on this is one of our biggest priorities going forward. Betting that is easy to understand and simple to join in is key to retention and engagement in 2021.

How much does the nature of supply, and indeed, product requirements differ in LatAm from the likes of Europe?

The infrastructure of internet service is probably the biggest difference between the two regions, with regards to our offering. Due to the nature of our products – which rely on streaming and data, high quality mobile internet is vital, so that is the most important factor we will be keeping our eye on.

Connectivity can be a challenge. However, cheap, data-strong delivery is in existence already in many parts of the continent, where they are able to stream and bet simultaneously without any issues – we expect this to be the case across the continent soon. That is enough to make us confident about rollout there. We’re seeing tech and devices in LatAm evolve at a rapid pace and catching up with Europe, which means the best content can be integrated to really engage audiences.

However, as already mentioned in terms of B2B, platforms can be an issue as it is a closed ecosystem and still requires development. This can present challenges for integration, but native platforms from tier one operators are, of course, changing that – and the market will follow a natural course of evolution where far more availability comes with time.

Is it a case of offering a set of solutions that are specifically tailored to the market as opposed to a ‘one-size-fits-all’ for global delivery?

Generally speaking, there are two ways to supply Esports products. The first is direct integration with the platform. The odds and video streaming elements are integrated, the product is tested and has proved it’s functionality, the game’s fixtures are matched and from there you’re ready to go.

However, we like to keep things simple for our partners, and a much easier way is what we call ‘iFrame integration’. This is where you have everything on your site, and it appears as a pop-up window. So, all the work happens on our side. Design is included to the service we offer, the only thing that needs to be done by the operator is to connect their wallets and payment integrations. This kind of process solves a lot of pain points as it simply means providing a point of entry than can open the product on the site.

As well as that, it enables us to open another element of commercial communication, which promotes efficiency and scale as we help our partners to scale and manage their sportsbook directly through their sites. This means we, are able to have full clarity on betting activity, and fully support their growth

As well as this, the option for revenue share is available, which also makes the iFrame integration we offer an excellent way of dipping a toe in the water and seeing if the Esports landscape is what your business needs – and whether your audience is already familiar and ready for action.

Betbazar offers a real specialisation across Esports, how popular has this vertical proven in LatAm and what kind of games are proving to be the most popular?

The two main demographics we have seen in Europe and the US are those who joined during the pandemic and those who were interested in Esports beforehand. This has proved to be the same in LatAm. The first group is those who subsequently joined and tend to be drawn to sports simulators.

Such a demographic tends not to be big fans of RNG games including slots and likely shuns virtuals also, despite last year’s hype. The question, once acquired, is how to keep this group engaged going forward. A really important factor is to make it clear to players that the game is happening in realtime and they aren’t watching a recorded one – as live action is what it’s all about. As a result, a stream of the players in-play is important to communicate that sense of here-and-now, as well as the thrill of getting involved in what’s happening at that very moment, creating a real FOMO effect.

The second group are those already interested in the vertical and tend to enjoy the Battle Royale and deathmatch-style games, including Counter-Strike and Fortnite. They are typically under 30 and are used to playing these games and will continue to be interested post-COVID as this is a key part of their entertainment, whether or not there’s a lockdown.

We also have a schedule of the games and the players for each event on our website, so bettors can check ahead of time. Just like you’ll see in the likes of horse racing and US prop-bets, it’s all about the statistics – which is why we’ve emulated that by providing the same historical statistics for Esports players, and it’s proven incredibly popular.

Looking to the next 12 months, how would you forecast LatAm’s continued growth and what do you plan to bring to the table to support that?

The market is clearly opening up. There are plenty of new regions that are going to be regulated in the next year and we’re getting ready to support our partners there.

LatAm has always been treated as an emerging market, but the more it develops, the more regulation we see will ensure the market becomes more mature. This means we can expand our presence with the existing major players there and really start to capitalise on places like Brazil and Argentina.

We’re in close communication with the major local platform providers, so do stay tuned for plenty more from us!

Andrew Cochrane Chief Business Officer of GiG

GiG increases Ontario market presence, powering the launch of Casino Time

Published

2 days ago

April 18, 2024

GamingAmericas.com

gig-increases-ontario-market-presence,-powering-the-launch-of-casino-time

Gaming Innovation Group Inc. (GiG), has announced the launch of Casino Time, powered by its award winning iGaming platform and pioneering real-time rules engine LogicX, with revolutionary sportsbook, SportX soon to follow, to further extend its footprint in the regulated Canadian province of Ontario.

The launch of Casino Time carries extra significance, marking only the second time that on-demand, regulated online Bingo has been made available in Ontario. The new Bingo product vertical, launched alongside a strong Casino offering, will be boosted by GiG’s new sportsbook, SportX, as part of a planned release later this year.

GiG has focused its solutions on driving exponential growth in revenue for operators with its highly scalable iGaming platform, offering localised third party content and leading suppliers for the Ontarian market. GiGs peerless gamification layer creates an optimised and immersive casino experience tailored to regional preferences, swelling client retention and player engagement.

Canadian owned and operated, Casino Time is a joint venture amongst leading retail operators in Ontario’s Charitable Gaming sector, delivering Bingo, Slots and Live Dealer Casino Games. Promising a personalised service and community experience, Casino Time is continuing its long-standing partnership with local charities, introducing its joint fundraising model into the iGaming space for the first time.

Now coming towards the end of its second year of licensed operations, Ontario has emerged as one of the largest iGaming markets in North America, second only to New Jersey according to data supplied by Vixio. The first and as yet only Canadian province to launch a regulated market, Ontario boasts more than 1.6 million active player accounts spread over 40 plus operators, generating €1.3 billion in Gross Gaming Revenue (GGR) in its first year of trading, with this data supplied by iGaming Ontario.

Andrew Cochrane, Chief Business Officer of GiG, said: “GiG continues to set the pace with a strong cadence of brand launches in 2024, and I’m pleased that when operators are seeking platform solutions in regulated markets, GiG is leading the pack. Our partnership with Casino Time, will help deliver something new and exciting to the Ontarian market, and further helps to demonstrate the flexibility of our solutions, adapting to match the regional aspirations of our partners to deliver growth.”

D’Arcy Stuart, CEO of Casino Time, said: “We are thrilled to partner with GiG as the core technology provider of our iGaming platform. Their powerful suite of player engagement tools, as well as diverse content and regulatory integrations, underpin our ability to serve and delight our player community. Our hybrid online and offline customer network, as well as unique bingo offerings, will drive exciting opportunities as the platform and the marketplace continues to grow.”

Bragg Gaming Group

Bragg Gaming Announces Resignation of Chief Financial Officer

Published

2 weeks ago

April 9, 2024

GamingAmericas.com

bragg-gaming-announces-resignation-of-chief-financial-officer

Bragg Gaming Group Inc., a global B2B gaming technology and content provider, announced that Chief Financial Officer (CFO), Ronen Kannor, has notified Bragg’s board of directors (Board) that he will resign from his position to pursue other career opportunities, effective June 3, 2024. The Company confirms that the search for a replacement CFO has commenced.

Matevž Mazij, Chief Executive Officer and Chair of the Board, commented: “We thank Ronen for his dedication and commitment to Bragg over the past four years and for his unwavering service as a pivotal member of the leadership team.

“During his tenure as CFO, the Company has undergone huge positive transformation including being uplisted to the Toronto Stock Exchange, dual listed on the NASDAQ and successfully completing two acquisitions, all while reporting consecutive years of revenue, gross profit and adjusted EBITDA growth. We wish Ronen all the very best in his future endeavors.”

Ronen Kannor commented: “It has been an honor to be part of the Bragg team which has successfully navigated many challenges and continued to deliver consistent growth over the past four years. I thank the Board for their support throughout my time with Bragg, and I am now fully focused on ensuring a smooth handover to my successor.

“Special thanks goes to my finance team, who work tirelessly to deliver the positive change and financial growth that the Company continues to achieve. I wish them and all of my colleagues continued success with Bragg now and in the future.”

Canada

Rivalry Reports Preliminary Fourth Quarter and Year-End 2023 Results

Published

2 weeks ago

April 5, 2024

GamingAmericas.com

rivalry-reports-preliminary-fourth-quarter-and-year-end-2023-results

Betting handle of $423.2 million in FY 2023¹ increased 82% year-over-year, while reducing marketing spend 15%.
Revenue of $35.7 million in FY 2023 increased 34%.
Gross profit of $16.2 million in FY 2023, up 66% year-over-year.
FY23 sets all-time records for average handle per customer, up nearly 30% year-over-year, average revenue per customer up 38% year-over-year, and record low cost of customer acquisition, down 15% year-over-year.
Total player registrations eclipsed 2 million in FY23 while extending Gen Z market leadership.
FY24 off to a strong start as the capital raised late Q4 is being effectively deployed – delivering strong KPIs, supported by betting margin trending toward a more than 20% increase over the average of FY23.
To meet growing consumer demand the Company is adding greater support for cryptocurrency and exploring implementation of adjacent crypto-enabled technologies.
Rivalry is seeing a rise in demand to license its in-house casino games, accelerating the advancement of its B2B vertical.
Company re-affirms guidance, anticipates achieving profitability in H1 2024.

Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for Gen Z, today announced preliminary and unaudited financial results for the three and 12-month periods ended December 31, 2023. All dollar figures are quoted in Canadian dollars.

“Rivalry exited 2023 as an increasingly diversified company – both geographically and across our product suite,” said Steven Salz, Co-Founder and CEO of Rivalry. “Last year we gained meaningful traction in new segments such as traditional sports, casino, and fantasy, which is widening our opportunity set and positioning us for sustainable growth in the medium- to long-term. We’re happy to have finished the year with all-time high customer economics, diversified revenue streams, and a reinforced competitive moat around Gen Z betting entertainment and experiences.”

“During Q1 we have been strategically deploying capital from our fourth quarter investment in areas that are driving customer acquisition and revenue – such as amplifying proven marketing strategies, releasing higher margin products, and developing proprietary betting experiences – that we expect will begin materializing in our results throughout the first half of 2024 and beyond,” added Salz.

“Our operational excellence across product and brand marketing last year are seen across positive KPI trends and continued year-over-year growth. Ultimately, we are proving that we can acquire and retain a coveted Gen Z demographic through an entertainment-led product set, culturally relevant brand, and a team unafraid of pushing past a long-standing industry status quo.”

Preliminary Full-Year 2023 Highlights²

Betting handle was $423.2 million in the year ended December 31, 2023, an increase of $190.4 million or 82% from $232.8 million in 2022.
Revenue was $35.7 million in 2023, an increase of $9.0 million or 34% compared to $26.6 million in the previous year.
Gross profit was $16.2 million in 2023, an increase of $6.4 million or 66% from $9.8 million of gross profit in 2022.
The Casino segment was a significant driver of growth in 2023, with revenues of $6.4 million up 92% from 2022, and representing 52% of betting handle in the year.
The Company expanded its casino offering significantly during 2023, including the release of a new original game Cash & Dash in September, entry into the slots category in October, and the launch of its iOS mobile app in Ontario, enhancing the mobile casino experience and its accessibility.
Diversified revenue streams through new segments including traditional sports, which has grown by 60% since FY22, and fantasy, highlighting the elasticity of Rivalry’s brand among Gen Z and broadening TAM.
Total operating expenses of $38.9 million in 2023 decreased by $1.0 million year-over-year. The decrease was driven by a reduction in marketing expense, offsetting increases in general & administration and technology & content expense incurred to support the growth of the business.
Net loss was $24.3 million for 2023, a reduction of 22% or $6.9 million from the net loss of $31.1 million in 2022.

Fourth Quarter 2023 Highlights

Betting handle for the three-month period ended December 31, 2023 was $85.2 million, an increase of $1.2 million or 1.5% from $83.9 million in the fourth quarter of 2022 while marketing spend decreased by 32%.
Revenue was $6.5 million in the Q4 2023, representing a decrease of $3.0 million or 32% from $9.4 million of revenue in Q4 2022 due to less favorable sportsbook outcomes compared against an abnormally favorable result experienced in Q4 2022. The Company notes that revenue as a percentage of betting handle was near the average achieved throughout FY23, highlighting the abnormally favorable margin outcome in the comparable quarter, Q4 2022.
Gross profit was $3.0 million in Q4 2023, a decrease of $2.0 million or 40% from $5.0 million of gross profit in Q4 2022. The year-over-year decline follows the relative margin impact noted previously. Gross profit as a percentage of betting handle in Q4 2023 was equal to the average in FY23. Rivalry is also pleased to note that its ongoing efforts to stabilize and improve margin are yielding results, with Q1 2024 trending toward a more than 20% improvement over the average in FY23.
Net loss was $9.0 million in Q4 2023, a reduction of $3.3 million compared to a net loss of $12.3 million in Q4 2022. Net loss adjusting for accruals, other non-cash items, and one-time expenses, would have been approximately $7.0 million.
On November 15, 2023, Rivalry strengthened its balance sheet with the announcement of a private placement offering of $14 million principal amount senior secured convertible debentures to scale several strategic verticals across marketing, product development, and geographic expansion.
Released Rivalry Ultimate Fan, a free-to-play NBA fantasy app, to acquire new users and engage existing customers within the product suite.
First-party game ‘Cash & Dash’ released in September demonstrated next generation appeal as it became the fifth most-played casino game on our platform and among the top ten highest-grossing by revenue with momentum carrying into Q1, creating downstream licensing opportunities for Rivalry’s IP.

Outlook

“The year ahead is rife with new, innovative product releases arriving in Q2 and continuing throughout 2024,” Salz added. “In addition to the strength of our core roadmap, we are in the process of unlocking what we believe to be two of the most material developments to our business model since launching Rivalry in 2018. The first is a B2B vertical to license our in-house developed games, and the second is exploration and development within the crypto ecosystem – each representing an impactful growth catalyst on our path to profitability this year.”

“I have never had more confidence in our product roadmap and what Rivalry is building this year. Apart from new products, original games, and proprietary features, we have been working to dial-up the overall feel and entertainment value of our core product to provide a tech-savvy, next generation customer with a tailored experience that is well-differentiated within the larger sports betting marketplace.”

Investor Conference Call

Management will host a conference call at 10:00 a.m. EDT on Friday, April 5, 2024 to discuss the Company’s preliminary unaudited year-end and fourth quarter 2023 financial results.

Dial-in:		800-717-1738 (toll free) or (+1) 289-514-5100 (local or international calls)
		Webcast: A live webcast can be accessed from the Events section of the Company’s website
		A replay of the webcast will be archived on the Company’s website for one year.

Rivalry expects to file its audited financial statements and management discussion and analysis for the period ended December 31, 2023 by the end of April 2024. The documents will be available on SEDAR+ at sedarplus.ca, and on the Company’s website.

Related Party Transaction

On April 17, 2022 the Company entered into a secured demand loan (the “Loan”) with Kevin Wimer, the Chief Operating Officer and a Director of the Company. Pursuant to the terms of the Loan, the Company loaned Mr. Wimer US$385,000 which amount bears interest at 3.2% per annum and was repayable on demand by the Company and in any event by April 17, 2024 (the “Maturity Date”). The Loan was entered into to assist Mr. Wimer with the funding of certain tax obligations and is secured by a pledge of Mr. Wimer’s subordinate voting shares of the Company. The Company announces today that it has entered into an amendment to the Loan (the “Loan Amendment”) to extend the Maturity Date to April 17, 2026. The Loan Amendment was approved by the non-interested directors of the Company.

Mr. Wimer is a “related party” of the Company within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). As a result, the Loan Amendment is considered to be a “related party transaction” as such term is defined by MI 61-101. The Company is relying on an exemption from the minority shareholder approval requirement set out in MI 61-101 as the fair market value of the transaction does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report more than 21 days before entering into the closing of the Loan Amendment as the details of the Loan Amendment were not settled until shortly prior to the entering into thereof.