Elys Game Technology (ELYS) is headquartered in San Francisco but has its roots in Italy. It has a staff of about 100 people and is preparing to roll out its Business-to-Business Sports Betting and iGaming platform in regulated markets.
The company helps "drive results for casino and leisure gaming operators with retail and digital solutions for Europe, North America and around the globe." The company operates a direct-to-consumer betting business in Italy, and it also offers a business-to-business betting system in several countries, including the U.S. The company is currently kicking off its U.S. expansion strategy and has stated, "We anticipate a number of very meaningful near-term milestones and look forward to providing updates on our rollout as developments unfold."
In preparation for its upcoming events, the company filed its slide presentation with the SEC yesterday. It can be found here.
ELYS's technology allows tribal and non-tribal gaming operators to distribute their customized sports betting solution throughout their U.S. (and global) casino property network and nation territory through a single dashboard installed at the main casino operations center. ELYS is under contract in two states and is in progress for multijurisdictional licenses. It plans to enter the Washington, DC market shortly.
Preliminary, unaudited net gaming revenue was recently released. It showed an increase of 26% to approximately $13.1 million for the fourth quarter of 2020 compared to $10.4 million for the same period in the previous year. Additionally, web-based gross gaming revenue increased by approximately 69% in Q4 2020 compared to the same period in the previous year.
The company stated, "Our goal is to not only establish ourselves as one of the world's leading sports betting enterprises but, more importantly, aligning our product and service offerings to the needs of our B2B clients as well as B2C consumers to build a well-managed organization that is both highly profitable and sustainable. As a result, we believe we are extremely well-positioned heading into 2021 as we kick off our U.S. expansion strategy. In this regard, we anticipate a number of very meaningful near-term milestones and look forward to providing updates on our rollout as developments unfold."
Insiders have been big buyers of the stock in recent months. Details can be found here. In the fourth quarter, WhaleWisdom shows that there are 11 funds now holding shares up from five.
Technically the stock has been consolidating well just above the 50-day moving average. It is in good shape for a positive move on any news development. A close over $6.50 should bring in momentum buyers.
