- Online gaming is rapidly growing around the world and the demand for at-home entertainment during the COVID-19 pandemic has helped the industry
- The merger of FansUnite with Askott Entertainment and development of the Chameleon Gaming Platform, positions the company for major growth, especially in the U.S.
- FansUnite is making noise in iGaming by providing products to consumers such as games and an online sportsbook
The global COVID-19 pandemic caused runs on toilet paper and cleaning supplies, turned parents into homeschooling teachers, challenged — and sometimes killed — longstanding businesses, from restaurants to manufacturers to clothing retailers.
But it also presented some enterprises an opportunity at a time when people were hunkering down in their homes — and because people were hunkering down in their homes.
“Video gaming, both playing video games and watching people play video games, went up significantly during this time. It got a lot of interest and eyeballs back on the space, which was good for us and our business.”
— Scott Burton, CEO of FansUnite Entertainment Inc.
For FansUnite Entertainment Inc. (CSE: FANS | OTC: FUNFF), a technology company providing online gaming solutions, both for consumers and other gaming businesses, the increase in the number of people looking to be entertained in their own homes accelerated its growth and revenue as well as its opportunities to expand into new markets.
When bricks-and-mortar casinos temporarily closed their doors and traditional professional sports that attract fans’ attention and gambling dollars suspended play, FansUnite was ready to emerge as a competitor in the USD$150 billion online legal gambling market, especially with its expertise in and experience with esports and sports betting.
FansUnite’s video game experience handy during a pandemic
“Video gaming, both playing video games and watching people play video games, went up significantly during this time. It got a lot of interest and eyeballs back on the space, which was good for us and our business,” says Scott Burton, CEO of FansUnite.
“We'd really built out a business to business (“B2B”) product and we've been selling licensing software to other gambling operators who want to get into esports betting,” Burton explains. “All of a sudden, with the lack of traditional sport, they all looked at other betting offerings and the immediate one was esports. Given the online nature of esports, games were still being played online which led to a lot of inbound interest and has resulted in us getting some significant deals done and conversations started.”
With the merger of FansUnite and Askott Entertainment, the acquisition of Scotland-based McBookie.com — a direct-to-consumer site (“B2C”) that experienced a 412% year-over-year increase in gross gaming revenue even during the absence of pro sports due to COVID-19 — and the development of the B2B Chameleon Gaming Platform, not to mention having banking set up around the world and physical servers located in different jurisdictions, the company is poised for growth.
Burton notes that the company’s sites — both web and mobile web — have more than 300,000 registered users and FansUnite platforms have had combined betting volume of $350 million since its inception.
Partnerships with major players GameCo and 10star boost U.S. exposure
In addition, the B2C FansUnite Sportsbook, which handles lawful online sports betting, recently partnered with the sportsbook risk-management firm 10star and GameCo LLC, whose focus is cabinet games of skill focused on a younger demographic than the traditional casino customer.
“I think the other exciting aspect of our business is that we're not setting out to build things anymore. Our platforms are built and have been validated in the market and are now revenue-generating and really in a growth phase. So, we expect revenue to be ramping up quite significantly,” Burton explains.
He adds, “Further, we have achieved many milestones and accelerated our roadmap. We thought we would be making a major U.S. entrance announcement in the next 6-12 months — instead, we made it a couple of weeks ago. We'll also be getting more gaming licenses in the next few weeks. In our roadmap, we actually didn't have a license from the U.K. as an example, but now we’re on the path to obtaining U.K. licensing so we can expand our offerings in one of the biggest gaming jurisdictions in the world.”
FansUnite’s plan is to be a full iGaming solution, offering clients a foot in the door to the enormously popular esports market while also boasting some 6,000 online casino games and traditional sports. In essence, a one-stop shop for all your gaming needs. Thus, while it is expanding its B2C offerings in the U.S. and around the world, it is also providing services to other gaming companies, helping sportsbooks bridge the divide into esports to go with their traditional professional sports betting. Globe Newswire reported the sports betting market was valued at USD$85.047 billion last year.
Technology is built and revenue streams are producing
It seems to be a good time for a company ready for growth. FinSMEs, Forbes’ blog about venture capital news stated recently, “As one of the fastest-growing sectors at present, this is a good time for investors to enter the online iGaming industry. This exponential rise, which has taken off like a rocket over these past few years, has been due to strong backing by people with money, governments, technology, and game manufacturers.”
And Burton and company — including President Darius Eghdami and one of its new directors, Chris Grove, a well-known gambling industry strategist and partner in the gaming research firm Eilers & Krejcik Gaming LLC — are both bullish on FansUnite’s immediate prospects and its long-term future, especially given its recently announced GameCo and 10star partnerships and others that are in the works, along with a planned full U.S. introduction of Askott Games Studio and its roster of quick games and casino-style games.
In addition, FansUnite is working on agreements to have its games available via online aggregators, which expose offerings from different publishers to a massive audience.
“Step one is it's not just considered a startup. We don't have to build any tech, we don't have to get licenses, we don't have to get infrastructure — that's all there. We're at this point in the company where basically all of our revenue streams are turning on. It’s a great time to get in for growth,” Burton notes.
A lower entry point for investors to get into booming gaming market
“If you look at what's happened in some of these gaming stocks and the valuations of the companies during the pandemic, I think we're at a much lower entry point for people with bigger upside potential.”
“And then the fact that we've got some significant partnerships with GameCo, 10star and a few others that point to the quality of what we have. Our platforms are live and have been through technical audit and been out there. It’s a good market to get into as it's proven to be a bit pandemic-proof.”
With a potential second wave of the pandemic coming, it will be interesting to see how gaming consumption increases.
Learn even more about FansUnite by visiting its website here.