Sports Betting Technology Provider, Newgioco CEO Releases Letter to Stockholders and Potential Investors
- On 5 June 2019
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NEW YORK, NY / ACCESSWIRE / June 5, 2019 / Newgioco Group, Inc. (“Newgioco” or the “Company”) (OTCQB: NWGI), a global sports betting and gaming technology company providing fully integrated software solutions to regulated online and land-based gaming and sports betting operators, today announced that its Chief Executive Officer, Mr. Michele (Mike) Ciavarella, released a Letter to Stockholders highlighting current activities and outlining its updated corporate strategy for 2019. The letter is included in its entirety below:
Dear Friends and Valued Stockholders,
I would like to take this opportunity to report the progress we have made in penetrating and monetizing the Italian sports betting market and to discuss Newgioco’s vision for prosperity.
As you may recall, about five years ago Newgioco set out on a mission to roll up our distributed agency and partner-based retail betting operations in Italy while testing and preparing our new, leading-edge betting platform, ELYS, that was commercially launched in August 2017. The launch of ELYS was an unequivocal success, as our handle grew from about $200 million in 2017 to over $400 million in 2018 through a variety of access points such as coffee shops, betting shops, bars, restaurants and taverns. The Italian markets’ favorable attestation to ELYS reflects the remarkable work and integrity of our operations and development team in Europe and corporate leadership.
With the U.S. Supreme Court repeal of PASPA in May 2018, we have the golden opportunity of replicating our success established in Italy in the United States. Newgioco has invested opportunistically to capitalize on the U.S. sports betting market and we believe we are now well poised to gain solid returns on this invested capital.
Through the early stages, we were fortunate to have had sage guidance from highly respected experts along with disciplined management and experienced non-executive directors. While we thank our past relationships, we now move forward on the strength of our proven betting software – ELYS; and renewed discipline in driving sustainable earnings and profitability. The next step in driving investor and stockholder value is a plan to list our company shares on a national stock exchange where Newgioco could attract long-term institutional sponsorship. To help achieve this, the corporation has taken steps to attract a new and experienced CFO and independent, non-executive members of the board all of whom have significant U.S. exchange listed experience and reporting know-how. These additions to corporate management should enhance our operational and technology teams led by Alessandro Marcelli and Luca Pasquini, respectively.
The remarkable similarities in addressable market between our core operations in Italy and the United States should put Newgioco in an enviable position ahead of a projected 15-year secular trend in the $500 billion global gaming industry. We are increasingly confident in the viability of our U.S. deployment plan and its two-pronged strategy, the first of which is already underway with traditional licensed Tribal and non-Tribal casinos and commercial gaming establishments comprised of a broad network of about 1,500 such locations. Our second pathway focuses on approximately 700,000 commercial access points throughout regulated and specific non-regulated states.
Compared to well-established standards, ELYS is now viewed by many industry experts and analysts around the world as a disruptive, leading-edge betting system with one of the most unique and dynamic risk management processors available to betting operators globally.
Our unique distribution-model ELYS architecture, designed, built and proven in the highly-contested and savvy Italian retail betting market, is how Newgioco stands apart against all major established industry brands in the U.S. With this leading-edge bet risk-management technology, strong operational and technology talent in Europe, and the sound business guidance of highly reputable executives in sync with prudent corporate governance, we believe our market value offers a significant discount to comparable peer value. We also believe Newgioco is now better positioned than ever to step on to the next rung of the ladder to success and to drive shareholder value through an upgraded exchange listing and renewed commitment to profitability.
With your continued confidence, I look forward to performing on this next exciting stage.
Mike Ciavarella, CEO
About Newgioco Group, Inc.
Newgioco Group, Inc., is a global sports betting and gaming technology company, with fully licensed online and land-based gaming operations and innovative betting technology platforms that provide bet processing for casinos and other gaming operators. The Company conducts its business under the registered brand Newgioco primarily through its internet-based betting distribution network on its website, www.newgioco.itas well as in retail neighborhood betting shops.
Newgioco offers clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots. Newgioco also owns and operates innovative betting platform software providing both B2B and B2C bet processing for land-based casinos, sports betting and other online and land-based gaming operators. Additional information is available on our corporate website at www.newgiocogroup.com.
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 and includes statements such as being well poised to gain solid returns on invested capital, the plan to list our company shares on a national stock exchange to attract long-term institutional sponsorship, the additions to our corporate management enhancing our operational and technology teams, the similarities in addressable market between our core operations in Italy and the United States placing Newgioco in an enviable position, our market value offering a significant discount to comparable peer value, and Newgioco being better positioned than ever to step on to the next rung of the ladder to success and to drive stockholder value through an upgraded exchange listing and renewed commitment to profitability to step on to the next rung of the ladder to success. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include our ability to gain solid returns on capital invested in the U.S. market, our ability to effect an upgrade to an exchange listing and attract long-term institutional sponsorship, our ability to attract and secure a new CPA experienced CFO and non-executive directors with U.S. exchange listed experience and their contribution to our operational and technology teams, our ability to use the similarities in addressable market between Italy and the United States to place Newgioco in an enviable position, our ability to grow our market value, and our ability to drive stockholder value through an upgraded exchange listing and renewed commitment to profitability and the risk factors described in our Annual Report on Form 10-K and subsequent filings with the U.S. Securities and Exchange Commission, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and 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, except as required by law.
For further information, please contact:
Brett Maas (646) 536-7331