Newgioco Records 96% YTD Increase in Online Poker Betting and Gains Market Share

Newgioco Records 96% YTD Increase in Online Poker Betting and Gains Market Share| 11/29/2018

Newgioco Records 96% YTD Increase in Online Poker Betting and Gains Market Share

PR Newswire

NEW YORK, Nov. 29, 2018 /PRNewswire/ — Newgioco Group, Inc. (“Newgioco” or the “Company”) (OTCQB:NWGI), a company providing regulated online and land-based gaming and wagering through licensed subsidiaries in Italy and Austria, and headquartered in Toronto, Canada, is pleased to report that leading gambling, betting, and gaming news agency AGIMEG – Agenzia Giornalistica sul Mercato del Gioco (“AGIMEG”) shows a surge in Newgioco online poker betting turnover resulting in significantly improved market share.

Strong online poker turnover and market share growth
Newgioco Group, through its wholly owned subsidiary Multigioco S.R.L (“Multigioco”), continues its accelerating growth trend in fiscal year 2018 with online poker betting in Italy gaining significant ground. Multigioco reported online poker turnover growing by 96% since January 2018. AGIMEG also reports that Multigioco has increased its market share to 4.17% in October 2018 (from 2.4% in July 2018).

“Newgioco Group has made considerable progress since announcing the online poker strategy in December 2017, among the numerous highlights we recently announced, the company has signed several additional retail locations, significantly strengthened its roll out plan in the rapidly developing U.S. sports betting market, filled key executive and board positions and more than doubled its betting handle. The online poker strategy has performed extremely well with our subsidiary Multigioco now ranked 6th in poker betting turnover in the Italian gaming market,” stated Michele Ciavarella, CEO of Newgioco. “In addition, our powerful ELYS betting platform continues to attract a considerable number of new operators throughout Italy and has consistently delivered outstanding financial and operational results. We are quite confident that the steady expansion of Newgioco’s sports betting business in Italy and the entry in the U.S. market will reflect in our continued revenue growth and strong shareholder value.”

OPERATORS

MARKET SHARE

RANKING

POKERSTARS

37.84%

1

SKS365

7.01%

2

LOTTOMATICA

6.68%

3

SISAL

6.72%

4

SNAI

5.86%

5

MULTIGIOCO

4.17%

6

888

3.47%

7

EUROBET

3.20%

8

MICROGAME

3.12%

9

BETALAND

2.89%

10

BWIN

2.64%

11

BGAME

2.11%

12

STANLEYBET

1.89%

13

GOLDBET / INTRALOT

1.81%

14

ADMIRAL

1.47%

15

GRUPPO VINCITU’

1.36%

16

BETTING

0.90%

17

BET365

0.81%

18

E-PLAY24

0.81%

19

DOMUSBET

0.64%

20

Source: Agimeg processing on ADM (Agenzia delle Dogane e dei Monopoli) data – October 2018

About Newgioco Group, Inc.

Newgioco Group, Inc., together with its wholly-owned subsidiaries, is a fully licensed and integrated online and land-based leisure gaming operator. The Company conducts its business under the registered brand Newgioco primarily through its internet-based betting distribution network on its website, www.newgioco.it, as well as retail neighborhood betting shops situated throughout Italy.

The Company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots, as well as owning and operating an innovative betting platform (www.odissea.at) providing both B2B and B2C bet processing. Additional information is available on our corporate website at www.newgiocogroup.com.

Cautionary Note Concerning Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Newgioco Group: Make The Right Bet On Your Sports Book Provider

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Newgioco Reports 2018 Third Quarter Results

Newgioco Reports 2018 Third Quarter Results | 11/21/2018

NEW YORK, NY / ACCESSWIRE / November 21, 2018 / Newgioco Group, Inc. (“Newgioco” or the “Company”) (OTCQB: NWGI), a sports betting and gaming technology company providing regulated online and land-based gaming and wagering through licensed subsidiaries in Italy and Austria, and headquartered in Toronto, Canada, today reported its financial and operating results for the third quarter ended September 30, 2018.

Financial Highlights

  • Non-GAAP gaming turnover increased by 82.6% to approximately USD $87.9 million for the three months ended September 30, 2018 as compared to approximately USD $48.1 million during the same period last year;
  • Non-GAAP gaming turnover increased 85.2% to approximately USD $278.5 million for the nine months ended September 30, 2018 as compared to approximately USD $150.4 million during the same period last year;
  • GAAP revenue for the nine months ended September 30, 2018 increased 92.8% to $25.2 million on a year over year basis from $13.1 million for the nine months ended September 30, 2017 and increased 52.7% year over year to approximately USD $7.8 million for the three months ended September 30, 2018 as compared to approximately USD $5.1 million for the three months ended September 2017;
  • Total assets grew by 84.8% to approximately USD $22.6 million, compared to approximately USD $12.2 million at December 31, 2017; and
  • Cash position remained strong at approximately USD $5.8 million at September 30, 2018, compared to approximately USD $6.5 million at December 31, 2017.

Corporate Highlights

  • Substantial design and development work on new, innovative technologies with new products expected to go to market in Q4;
  • Significant personnel additions including additions to the Company’s board of directors and management team; and
  • Technological readiness for expansion into the U.S. sports betting market.

“In the third quarter of 2018, which is seasonably a weak quarter for us, we again delivered strong year over year sales growth while continuing to invest in our cutting-edge sports betting platform, ELYS, a one-stop sports betting solution for licensed casinos and gaming retailers. On the back of this strong operational performance, the Company is increasing its non-GAAP betting turnover guidance to $325 million for the 2018 fiscal year. With industry-leading capabilities, Newgioco’s betting platform which offers a cutting-edge risk managed sports book with fully integrated land-based, mobile and online applications, built-in AI and BI technology and operator-centered gaming architecture, along with unique features and rich graphics we believe that are well-positioned for future growth in 2019,” stated Michele Ciavarella, Newgioco’s Chief Executive Officer.

Growth Initiatives and Milestones Achieved in 2018

  • Submits Application for NASDAQ Listing (April 2018): Newgioco submitted its application to list its shares of common stock on the NASDAQ stock market;
  • Raises USD $7.5 million in Private Placement Financing (June 2018): Newgioco announced the over-subscribed closing of its private placement of convertible debentures. To accommodate investor demand, the Company increased the size of the initial debenture offering from $1.5 million to $7.5 million. Together with the first two financing rounds completed in February and April 2018, the private placement of debentures, which are convertible into shares of the Company’s common stock at a fixed price of $0.40 per share, resulted in aggregate gross proceeds of approximately $8 million consisting of approximately $7 million in cash and approximately $1 million in conversions from debentures issued in 2017.
  • Appointment of New Board of Directors (July 2018): Newgioco announced the appointment of three new independent board members, Russel McMeekin, Harold Wolkin and William Rutsey. Each of the new directors brings a wealth of global experience across a variety of different industry groups along with extensive experience in gaming operations and strategy.
  • Entry into U.S. Sports Betting Market (September 2018): Newgioco announced its intention to enter the U.S. sports betting market following the repeal of the Professional and Amateur Sports Protection Act (PASPA) in May 2018. Newgioco aims to enter the U.S. gaming industry by combining its longstanding track record of success within Italy’s highly regulated gaming market and introducing its cost-effective, highly-scalable and customizable sports betting technology platform to a select partner network of U.S. land-based licensed gaming operators.
  • Begins GLI Certification (September 2018): Newgioco announced that the Company began coding to obtain the latest standard of GLI (Gaming Labs International, LLC) certification of its ELYS betting platform in preparation to launch its U.S. sports betting business. Newgioco’s ELYS betting platform is a proven, powerful and efficient betting engine in the Company’s core Italian market. ELYS features seamless, integrated gaming account and transaction processing for B2B operators, and Newgioco believes it will resonate with casino operators in the U.S. when compared to other platforms and products being offered by certain established competitors.
  • Launches Business Development Initiatives in U.S. Market (October 2018): Newgioco attended the 2018 Global Gaming Expo (“G2E”) held in Las Vegas, Nevada from October 8-11, 2018. At G2E, the Company meet with numerous U.S. based casino operators and demonstrated the newest release of its sports betting platform, ELYS. ELYS provides a fully automated and managed sports book, with an increased number of markets offered (both pre-match and live “in-game” betting), real-time risk monitoring with risk acceptance and bet monitoring tools, virtual sports betting, multi-channel payment methods and integration with multiple casinos and slot content providers.
  • Newgioco Announces the Effectiveness of its Resale Registration Statement on Form S-1 (November 2018):Newgioco announced the effectiveness of its resale registration statement on Form S-1 relating to the resale of up to 3,892,379 shares of the Company’s common stock issuable upon exercise of warrants held by certain selling shareholders.
  • Strengthens Management Team (September 2018): Newgioco announced several key additions to its leadership and management team. Key management additions included Elizabeth J. MacLean (Vice President Finance and Accounting), Alessandro Marcelli, (Chief Operating Officer), Ralph M. Garcea (Vice President Corporate and Business Development), Jay Cardwell (Interim Chief Financial Officer) and Bill Mitoulas (Vice President of Communications and Investor Relations).
  • Recognized by CIOReview Magazine (October 2018): Newgioco recognized by CIOReview Magazine as ” 20 Most Promising Technology Solutions Providers for Casinos in 2018″.
  • “Newgioco has made significant progress and achieved numerous operational, technological and financial milestones over the past year. We have built a strong, profitable and sophisticated gaming organization, while positioning the Company in 2019 to reach its long-term strategic goal and vision of continued organic growth in Italy and strategic entry into the U.S. gaming market,” stated Michele Ciavarella, Chief Executive Officer of Newgioco.

About Newgioco Group, Inc.

Newgioco Group, Inc., together with its wholly-owned subsidiaries, is a fully licensed and integrated online and land-based leisure gaming operator. The Company conducts its business under the registered brand Newgioco primarily through its internet-based betting distribution network on its website, www.newgioco.it as well as retail neighborhood betting shops situated throughout Italy.

The Company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots, as well as owning and operating an innovative betting platform (www.odissea.at) providing both B2B and B2C bet processing. Additional information is available on our corporate website at www.newgiocogroup.com.

Cautionary Note Concerning Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

For further information, please contact:
investor@newgiocogroup.com

Bill Mitoulas
Investor Relations
bill.m@newgiocogroup.com
Office: +1 (416) 479-9547

Newgioco Announces Effective Date of Resale Registration Statement on Form S-1

Newgioco Announces Effective Date of Resale Registration Statement on Form S-1| 11/14/2018

NEW YORK, NY / ACCESSWIRE / November 14, 2018 / Newgioco Group, Inc. (”Newgioco” or the ”Company”) (OTCQB: NWGI), a sports betting and gaming technology company providing regulated online and land-based gaming and wagering through licensed subsidiaries in Italy and Austria, and headquartered in Toronto, Canada, announced today that its resale registration statement on Form S-1 (the “Registration Statement”) relating to the resale of up to 3,892,379 shares (the ”Shares”) of the Company’s common stock issuable upon exercise of warrants (the ”Warrants”) held by certain selling shareholders was declared effective by the Securities and Exchange Commission (”SEC”) on November 6, 2018.

Although Newgioco will not receive any proceeds from the resale of the Shares, it will receive gross proceeds of US$0.50 per share upon the exercise of the Warrants. The Registration Statement, while effective, will allow the selling shareholders named therein to publicly resell the Shares subject to the prospectus delivery requirements of the Securities Act of 1933, as amended, in connection with any such resale.

The offering of the Shares may only be made by means of a prospectus. The Registration Statement and prospectus may be obtained electronically through the SEC’s website at www.sec.gov. A copy of the prospectus relating to the offering may be obtained by writing to Newgioco Group, Inc. at Suite 701, 130 Adelaide St. W. Toronto, Ontario, M5H 2K4, by calling (416) 306-1771 or by e-mailing investor@newgiocogroup.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Newgioco, nor shall there be any sales of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The effectiveness of the Resale Registration Statement and commitment to transparency for shareholders is the culmination of years of strategic, technological and operational progress. As part of the long-term growth plan to enter and develop our operations in the U.S. sports betting market, Newgioco has significantly enhanced its board of directors and executive management team, which now includes the following:

  • Harold Wolkin as Chairman of the Board and independent director;
  • William Rutsey as independent director;
  • Russel McMeeken as independent director;
  • Alessandro Marcelli as Chief Operating Officer;
  • Elizabeth J. MacLean as Vice President Finance and Accounting;
  • Ralph M. Garcea as Vice President Corporate and Business Development;
  • Jay Cardwell as Interim Chief Financial Officer;
  • Bill Mitoulas as Vice President of Communications and Investor Relations; and
  • Luca Pasquini, as our Chief Technology Officer and director.

Michele Ciavarella, Chief Executive Officer of Newgioco stated, “We have made significant progress over the past year and built a strong, profitable and sophisticated gaming organization. Each new member of the Newgioco team brings a wealth of global experience across a variety of different industry groups along with extensive experience in gaming operations and strategy, which will further assist the Company in reaching its long-term strategic goal and vision of continued organic growth in Italy and entry into the U.S. gaming market.”

About Newgioco Group, Inc.

Newgioco Group, Inc., together with its wholly-owned subsidiaries, is a fully licensed and integrated online and land-based leisure gaming operator. The Company conducts its business under the registered brand Newgioco primarily through its internet-based betting distribution network on its website, www.newgioco.it as well as retail neighborhood betting shops situated throughout Italy.

The Company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots, as well as owning and operating an innovative betting platform (www.odissea.at) providing both B2B and B2C bet processing. Additional information is available on our corporate website at www.newgiocogroup.com.

Cautionary NoteConcerning Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

For further information, please contact:
investor@newgiocogroup.com

Bill Mitoulas
Investor Relations
bill.m@newgiocogroup.com
Office: +1 (416) 479-9547

Online gaming, Ciavarella (CEO Empire Global): “Acquisition of Multigioco first step; 50 million to invest in Italy”

ROME – It was the first major hit of the year in the online gaming industry, with signs of a series of mergers and acquisitions in the coming months. Empire Global Corporation – a company based in Toronto and quoted on the OTC Market in New York – in a one million euro transaction, has discreetly acquired Multigioco Srl. a licenced online gaming operator in Italy, with five physical gaming centres in Italy made up of corners and agencies and more than 700 online web shops that produced over 71 million euro in turnover through 2013. Agipronews met the CEO of Empire Global, Michele “Mike” Ciavarella; an Italian-American entrepreneur in Rome outlining goals for Italy.

Mr. Ciavarella, why has Empire Global decided to enter the Italian market?

The Italian gaming market is a large, maturing and well-regulated market. We believe it is the right framework for a company like Empire Global, listed on an international stock exchange, seeking a safe and regulated gaming environment. The acquisition of a company such as Multigioco – with an excellent reputation and a young and capable management – is in our opinion the best way to enter the Italian gaming space. In addition to Italy, we have plans to expand into other countries in Europe and beyond.

What are Empire’s first objectives in Italy?

We want to be a forerunner in this market, for this – after Multigioco – we have ongoing negotiations with another major operator rich in human capital and experience, which is enthusiastic about the idea of having a foreign shareholder and capital sources. We plan to become one of the top five players in the Italian gaming space, always keeping in mind the need to offer a responsible gaming product to the consumer. We know that the most difficult part is yet to come; after the acquisitions, we will need to continue to invest resourcefully to reap the large rewards this market has to offer.

Which brand will you use to manage your business in Italy?

We will have three main areas of action: online web-based gaming; corners and agencies. We believe that we will maintain a specific brand for each sector, but we have not yet made a decision to that end. In any case, it will be clear to the consumer that the location is a part of the Empire Global group of companies. Our stores will be well organized and recognizable even from an aesthetic point of view. We plan to invest aggressively on this part of our business.

Speaking of money, how much is the investment of Empire in the Italian market?

Our forecast is to invest 50 million by the end of 2015, with at target of 100 – 120 physical betting locations as well as the development of our online web based business.

Do you plan to participate in the tender for betting licences in 2016?

Certainly yes, it will be mandatory for us, we will choose the areas in which to implement our existing network carefully.

Are you worried about the presence of thousands of unauthorized operator centers in the market?

Very much. We want to enter the market by following the rules, but we ask that those rules apply equally to all participants. To reassure investors, both the courts and the Italian authorities must ensure that laws are respected, otherwise, it will be increasingly difficult to attract international investors to Italy.

Do you believe that the proposed amnesty for foreign operators will help the market in this sense?

It is not just a matter of paying or not paying taxes, the key is to have an equal playing field for all. There should be no parallel network; all operators – even those that operate in the Italian market thanks to the amnesty proposal – must be transparent.

How to Play PASPA from Canada

Online Gaming Update — UNITED STATES

Until recently, the Interstate Wire Act of 1961, combined with the Professional and Amateur Sport Protection Act (PASPA) of 1992, prohibited sports betting in the U.S. in all but four grand- fathered states (Montana, Oregon, Nevada, Delaware). Despite its illegal status, sports betting has been a thriving underground busi- ness, with the American Gaming Association (AGA) estimating that in 2015, $149B was wagered illegally on U.S. sports – the 2016 Super Bowl 50 alone attracted $4.1B in illegal wagers, with only ~$100M placed legally.

In mid-May 2018, the U.S. Supreme Court overturned PASPA in a decision that found PASPA unconstitutional in a 7-2 decision. What this means is it will be up to individual states to decide whether to allow its residents to bet on sports. Many are expected to move quickly to establish sports betting as a means to increase their respective coffers. We have since seen a number of states pass legislation to allow online gambling. We believe the U.S. market will take 3-5 years to fully develop.

Online Gaming Update — CANADA

The legality of online betting in Canada is currently a grey area. Provincial govern- ments have a monopoly on gambling services, and civilians aren’t permitted to offer or use private gambling services. At present, the Canadian Criminal Code explicitly pro- hibits Canadian civilians from marketing or offering betting services to other Canadians. Provincial governments are permitted to offer a variety of gambling services, includ- ing parlay betting on sports. In practice, the vague nature of Canadian gambling laws and the limited sports betting options offered by provincial governments have resulted in extensive online sports betting activity. It’s estimated that Canadians bet over $2B with offshore bookmakers every year.

Brian Masse, NDP MP of Windsor West, tabled Bill C-221 in 2016 to repeal paragraph 207(4)(b) of the Criminal Code to make it law- ful for the government of a province, or a person or entity licensed by the Lieutenant Governor in Council of that province, to conduct and manage a lottery scheme in the province that involves betting on a race or fight or on a single sport event or athletic contest. Bill C-221 was defeated on September 21, 2016; 156 “nay” votes to 133 “yay” votes. We expect a revisit or a new Bill to be tabled in due course in light of the recent SCOTUS ruling on PASPA.

How to Play PASPA from Canada

We believe the best way to play PASPA from Canada is through the Stars Group (TSG- US, Buy, US$43 PT) and Newgioco Group (NWGI-US, Spec Buy, US$1.80 PT).

Sportsbook represents 50% of the global online gambling market. The Stars Group officially rolled out its sportsbook product, BetStars, in a limited capacity in December 2015 in anticipation of the Euro 2016 soccer competition. The sports betting product will launch within the PokerStars poker client in certain markets, and PokerStars will gradually add more markets as well as web and mobile versions over time. We think the CrownBet, William Hill Australia and SkyBet acquisitions are a meaningful expansion in this verti- cal, with focus now on integration and growth in their respective markets.

TSGI reported Q218 revenue of $412M (EWP: $385M) (Cons: $381M), Adj. EBITDA of $168M (EWP: $156M) (Cons: $152M), and Adj. EPS of $0.60 (EWP: $0.56) (Cons: $0.54). Its newly segmented International and Australia divisions contributed $350M and $61M, respectively, to revenue. Organic growth in the Q was 15%. Consolidated Poker, Casino and Sportsbook revenues in the quar- ter were $217M, $102M, and $81M, respec- tively. International and Australia quarterly real-money active uniques (QAUs) were down 5.2%. 2018 guidance was updated including the recent CrownBet, WMH Australia and SkyBet acquisitions with 2018 revenue between $1,995-2,145M (prev. $1,390-1,470M), Adj. EBITDA between $755-810M (prev. $625- 650M), and Adj. EPS between $1.99-2.22 (prev. $2.33-2.47). International net deposits were $322M in the quarter, an increase of 19.3% y/y. If the three sportsbook acquisitions were considered from the beginning of 2017, the revenue mix by product would have been: Poker (37%), Sportsbook (34%), and Casino (26%), with 75% of 2017 revenues from locally regulated or taxed markets.

TSGI is strategically evaluating opportuni- ties to partner with various gaming opera- tors and media companies in New Jersey (extended existing poker/casino partnership with Resorts Casino to launch an online and mobile sportsbook in the near future) and Pennsylvania (announced a partnership with Mount Airy Casino Resort to offer betting and gaming products subject to regulatory approval). As the US market evolves, TSGI will seek to secure leading market positions by combining its expertise and brand aware- ness with strategic focus on: (1) selectively partnering with land based gaming operators and/or lotteries in key U.S. states; (2) providing a multi-vertical offering of poker, casino and betting; and (3) following CMA approval of the SkyBet acquisition, TSGI intends to export to the U.S. SkyBet’s deep expertise with respect to the integration of media and sports.

Newgioco engages in the operation of licensed gaming, providing retail web-based and land-based gaming services in Italy. The Company offers online casino, sports betting, virtual sports betting, horse racing, and physical slots. The Company was founded on August 26, 1998, and is headquartered in Toronto, Canada, with wholly owned subsidiaries in Italy and Austria. Subsidiaries include: Multigioco Srl (acquired on August 15, 2014), Rifa Srl (acquired on January 1, 2015), as well as Ulisse Gmbh and Odissea Betriebsinformatik Beratung Gmbh (both acquired on July 1, 2016).

NWGI had a strong Q218 which included 15 days of the 2018 World Cup – Q218 rev- enue was $8.8M, with adj. EBITDA of $1.1M (excl. the non-cash derivative liability related to the convertible debenture and share price volatility through Q218). Non-GAAP betting turnover in Q218 was $100M (+101.6% y/y), and $190.6M (+86.3% y/y) for the H118.NWGI is on track to exceed its 2018 pro- jected turnover target of ~$300M. NWGI has obtained final SOGEI certification just in time for the start of the 2018/2019 Italian soccer season. Odissea is now independently connected to the regulator and completely free from third party processing.

Several reasons why we like Newgioco are:

(1) NWGI currently has the 20th largest share of the Italian online market – a tremendous opportunity exists in rolling up smaller opera- tors beneath it while staying under the radar of the larger players. (2) With over 150,000 events per season and more than 90,000 events in Live mode, Newgioco has a highly competi- tive game offering for bets and sporting events through its Odissea platform. (3) Newgioco’s management team has a combined 100+ years’ experience in gaming and technology devel- opment. An extensive network in the Italian marketplace among operators and government regulators should be beneficial as Newgioco expands in the region and seeks opportunities abroad. (4) Newgioco launched the first phase of its Artificial Intelligence (AI) technology on its ELYS Odissea gaming platform with the release of CHATBOT – CHATBOT is an AI betting technology using customized pat- tern recognition and machine-learning algo- rithms to determine the relevant features of customer interactions and to develop a com- prehensive customer betting profile. (5) We expect Newgioco to start showing business-to- business (B2B) revenue on white-labelling its platform by the end of this year, and use it as a vehicle for international expansion – including the US sports betting market.

Is an amendment to the Federal WIre act oF 1961 next?

Despite the PASPA ruling, it would still be illegal to bet across state lines – even if the respective states in question have legalized online sports- betting. Evidence has shown that a high number of gaming and gambling companies have used blockchain technology to raise money and fund startups. In total, more than $4B has been raised via ICOs, according to Autonomous NEXT. Business Insider reported a $500M ICO to build a floating cryptocurrency casino in Macau. Gambling with cryptocurrencies – as opposed to fiat money – can currently be conducted without the need to provide identification docu- ments, or in some cases, without the need to create an account. Demand for anonymous gambling is evident in the relatively high use of pre-paid cards – such as the paysafecard– on gambling websites, and in consumer behaviour surveys. What about setting up a blockchain platform, to allow sports betting across state lines via smart contracts between the bettor, operator and respective states involved where betting is legal and taxes are collected. We note that both Stars Group and Newgioco have blockchain and AI capabilities already in place.

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