FansUnite Entertainment poised to become a global leader in the iGaming industry

Revenue generating asset that has operated for over 10 years Innovative B2B and B2C technology Growth strategy through mergers & acquisitions What FansUnite Entertainment does: FansUnite Entertainment Inc (CSE:FANS) (OTCMKTS:FUNFF) is a sports and entertainment company, focused on its technology related to online sports betting and related products. The company also provides technological solutions and services in the global gaming and entertainment industries. Its technology includes fixed/parimutuel odds, in-stream betting, live betting, casino-style games, cryptocurrency wallet and news content. FansUnite Entertainment has three divisions. First is FansUnite, which owns the FansUnite Sportsbook that will take wagers on all pro, college and regulated sporting events, as well as BetMaker Labs, a B2B sports betting technology to launch new sportsbooks. Second, is Askott Entertainment, which owns the B2B Chameleon Gaming esports platform, casino-style Askott Games, esports betting site ESP.bet, esports fantasy site Esportspools.com, and LATAM-focused Vamosgg.com. Finally, McBookie.com provides a B2C betting service that focuses on the Scottish market. McBookie has over 20,000 active members and has placed more than $100 million in bets during the past three years. FansUnite Entertainment has a strong management team led by CEO Scott Burton, former chief executive at Askott Entertainment, who co-founded Tedbets.com, an award-winning, peer-to-peer wagering platform. As CEO of Askott Entertainment, Scott successfully secured and controlled multiple gaming licences in several jurisdictions. How is it doing: In April 2021, FansUnite Entertainment said its betting volume hit a record C$28.3 million in the first quarter of the new year as its McBookie sportsbook and casino business realized a record gross gaming revenue of C$982,000, a 136% year-over-year increase.  At its peak betting volume during the quarter, McBookie had over 1,000 unique customers on the casino alone, as well as 23,000 bets placed in a single week on the sportsbook - the highest number of wagers in a week since its inception in 2009.  The company also noted its gross margins for the period increased by about 138% as compared to the first quarter of 2020. Meanwhile, FansUnite Entertainment announced recently that it had entered into a strategic partnership with esports solutions provider TGS Esports Inc (CVE:TGS) (FRA:5RH) to launch live esports tournament prediction games. The company said it will incorporate its wagering solutions into TGS events to establish a new platform where a live audience can win prizes based on predictions that can be placed on multiple match outcomes within every white-label esports event run by TGS.  FansUnite believes the partnership will showcase the company’s ability to incorporate its proprietary stream prediction platform into any esports event or tournament, whether online or live in-stadium. Earlier in the year, the company announced that its subsidiaries, Askott Entertainment (Malta) Limited and E.G.G. Ltd, had applied for Business-to-Business (B2B) and Business-to-Consumer (B2C) gambling licenses, respectively, with the United Kingdom (UK) Gambling Commission.  FansUnite said the applications to become a B2C gambling operator and a B2B technology provider represent a critical step for the company to expand its operations into the UK, a jurisdiction that is considered to be one of the largest gambling markets in the world.  The company also applied for a remote gambling software license, which it expects will unlock its suite of betting products to operators in the UK online gambling market. As well, through its subsidiary Askott Entertainment, FansUnite said it had signed an agreement with Gaming Laboratories International (GLI) to assess its online betting offerings for compliance and certification with GLI-19 Standards for Interactive Gaming Systems and GLI-33 Standards for Event Wagering Systems.  To complete GLI’s assessment, Askott Entertainment will undergo world-class testing procedures for its leading iGaming and sports betting solutions, such as the Chameleon Gaming Platform and Askott’s suite of random number generator (RNG) games.  FansUnite said the GLI-19 and GLI-33 standards certification will allow it to deliver its online gambling products to various US states and provinces in Canada that require gambling firms to be compliant with GLI standards. The company also revealed that it had hired prominent US gaming law firm Ifrah Law PLLC to assist it with its US licensing strategy. Ifrah Law will guide FansUnite in navigating multiple state licenses in 2021, starting with New Jersey. On the financial front, FansUnite closed an oversubscribed private placement equity financing in January, raising total gross proceeds of $13.4 million, which will be used for working capital and general corporate purposes. Inflection points: US expansion Mergers & acquisitions activity Revenue opportunities in esports wagering What the boss says: Commenting on the company’s strategic partnership with esports solutions provider TGS Esports, FansUnite Entertainment CEO Scott Burton said in a statement: “The partnership with TGS Esports brings forth a new platform that will enable us to capture new opportunities within the fast-growing esports market."  Burton added: “TGS collaborates with numerous esports event organizers who have a large following of enthusiastic esports gamers that participate in their events. Our online betting solutions coupled with TGS esports platform will enable us to attract a new and widening audience from these events.” Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham