Elys Game Technology (ELYS) is Betting on a Big Piece of The American Online Gaming Market Expected to Reach $100 Billion in Five Years
Good day everyone,
America is a complex society with infinite diversities and opinions. The one thing we all have in common is sports. We may differ on our favorite teams, but we like to spend time watching sporting events and we love to bet on them. Sports betting used to be illegal everywhere except smoke filled rooms in Nevada but now it’s gone mainstream and its coming to you from Elys Game Technology, Corp. (NASDAQ: ELYS) the B2B global gaming technology company operating in multiple countries worldwide, with B2C online and land-based gaming operations in Italy.
After opening the Wednesday session at a gapped $2.31/share ELYS seemed to mirror the moves in NASDAQ index throughout the day. The company shares gained on the day, reaching a high of $2.37/share.
Current price $2.29/share (+3.15% as of market close 4-6-22)
I know the NASDAQ is struggling this week and that can cause hesitation. After the huge gains in the index the past three weeks a back step was inevitable. But ELYS presents as a terrific opportunity, and I still have the opinion the company value could double and still looks like an opportunity. Here is why…
Outstanding shares -23.3M, Float- 14.9M
Insider holdings – 38.8%
FYE2021 revenues $45.5M (+22% Y0Y)
Market value – $54M (very low 1.20X P/S ratio)
Analyst’ consensus “buy” $7.91/share (252% upside)
52-week high – $6.72/share (off 65%)
Aggressive move into US gaming market
Total debt is only $808K
Online gaming 5-year CAGR of 17.4% (Research & Markets)
There are just too many positives at ELYS and the online gaming sector to think this company’s value will stay at its current level.
ELYS specializes in bringing gaming and sports betting solutions to small businesses. While the company has gotten most of its success in Europe, I want to focus on the ELYS entry into the North American Market where I expect the company to experience significant growth. ELYS is already active in five states with seven U.S. casino customers and in progress with multi-jurisdictional licenses for further expansion.
Cap Ex required for technology build-out for ELYS US operations is complete.
There are almost one thousand commercial/tribal casinos in the US and that number is down due to closures caused by the pandemic. Covid-19 has caused the migration of a part of the gaming industry to online platforms from their land-based predecessors and that is where ELYS lives.
Most states have a level of legalized gaming and ELYS is focused on the states with the lowest tax rates (15% or lower). ELYS estimates an addressable sports betting and i-gaming market of $100M within five years. With that market size approaching the competition will be fierce and there are sure to be a flurry of mergers and acquisitions as the players vie for market share.
The ELYS deal with Lottomatica, the huge online gambling company, announced just yesterday, and their acquisition of Nevada based USBookmaking last September, make the company a significant player in this huge market and perhaps even a target for acquisition.
If you’re a small business wanting to offer sports betting and online gaming to your customers or enhance your existing gaming platform, ELYS is a viable and profitable option. ELYS wants to be the platform you visit to place your bets on at a bar or restaurant. ELYS wants to be the platform you visit to play slots and table games on your phone, tablet, or laptop. And they plan to get you there with a superior digital product. Visit their website, look at their investor presentation and what they have to offer.
The Traders News Group
original reports below
Elys Game Technology (ELYS) Brings Its Online Gaming and Sports Betting Platform to the U.S. and is Posting Record Revenues
Good day everyone,
Elys Game Technology, Corp. (NASDAQ: ELYS) is a B2B global gaming technology company operating in multiple countries worldwide, with B2C online and land-based gaming operations in Italy.
Current price $2.22/share
ELYS is a growing online gaming company with B2B platforms as their primary business and the company has shown steady growth year YOY since 2018 but their growth in 2021 looks like its their biggest revenue gain in recent years. As I’m writing this, and as you will read below, the company revenues are running slightly behind their market cap creating a price to sales ratio of only 1.20X.
In my opinion and based on my due diligence, ELYS value could double and could still look like a value. The company is growing, is a leader in online gaming technology and that sector is on fire with a 17.34% CAGR ahead of it.
Last week, ELYS gave investors a heads up on data from its forthcoming FYE ended December 31, 2021 earnings report and 10-K filing. The big news is a 22% increase in revenues over FYE2020 to $45.5M. Additionally, the company expects web-based gross gaming revenue to increase by approximately 74% to approximately $54.9 million for FYE2021, compared to approximately $31.6 million for FYE2020.
These figures represent a big leap forward as the company expands geographically into North America. It was just 3 weeks ago that the company announced that Gaming Laboratories International, LLC (“GLI”) granted certification for the Product Development and Change Management Policies and Procedures on the Elys Gameboard sports wagering technology for Washington DC’s Gaming Control Board. GLI provides the gaming industry’s leading testing and certification services. They are the gold standard for certification in the online gaming industry.
The GLI certification is a big step as ELYS begins to expand its North American operations. The company is already a prominent player in the European online and land-based gaming market. While the company has already been operating on a limited basis in the U.S., the Washington DC project may launch them further into the North American market.
The United States online gambling market was valued at $2.1B in 2020, and it is projected to register a CAGR of 17.34% during for the period 2021-2026.
As stated by Michele Ciavarella, Executive Chairman, “we believe that we are extremely well positioned to convert investment in technology into revenue generating customer relationships in the U.S. and Canada heading into 2022, including our recent partnership to challenge for top position in North America by combining our leading-edge US. designed sportsbook technology with industry giant Lottomatica and their highly experienced and talented management team. We anticipate meaningful near-term milestones and look forward to providing updates on these developments as they unfold.”
ELYS statistics: Outstanding shares -23.3M, Float- 14.9M, FYE – December 31, Insider holdings – 38.8%, Cash (mrq) – $9.41M, 52-week high – $6.72/share, Revenue (ttm) $46.4M, Market value – $54M.
The three analysts below have a consensus price target of $7.91/share representing the potential for an upside of 239%.
10/6/2021 Fundamental Research Buy $5.72
8/24/2021 HC Wainwright Buy $8.00
7/26/2021 Maxim Group Buy $10.00
The chart below indicates shares that may be oversold. Having slipped below all the SMA levels and with an RSI (14) of 41.29 the company shares could be positioned for a significant swing. ELYS is a vibrant growing company and that doesn’t seem to be reflected in the PPS.
About Elys Game Technology, Corp.
Elys Game Technology, Corp., is a B2B global gaming technology company operating in multiple countries worldwide, with B2C online and land-based gaming operations in Italy. Elys offers its clients a full suite of leisure gaming products and services, such as sports betting, e-sports, virtual sports, online casino, poker, bingo, interactive games, and slots in Italy and has operations in five states as well as the District of Columbia in the U.S. market. Elys’ vision is to become a global leader in the gaming industry through the development of pioneering and innovative technology. The Company provides wagering solutions, services online operators, casinos, retail betting establishments and franchise distribution networks.
The Traders News Group
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