The U.K. based company saw Q2 Casino betting volume increase 59% Year-over-Year (YOY) as well as strong sportsbook growth.
The pandemic has been a blessing and a curse for companies operating in the on-line gambling space.
People have been stuck at home with more time to gamble – but with all major pro sports leagues shuttered – there have been fewer live events to bet on.
FansUnite isn’t complicated,” reported Equity Guru’s Chris Parry on May 8, 2020, “ It’s a sports book. With their platform you can bet on sporting events ranging from cricket to e-sports, gaelic football to darts, tennis to boxing and beyond”.
On March 26, 2020, FANS completed its acquisition of McBookie, a leading UK White-label sportsbook and casino.
“McBookie is legit,” continued Parry, “It’s been around for a decade and has seen over $100 million gambled through its system in the last three years, which means it brings cash flow to FansUnite right out of the gate”.
“McBookie has a thriving ‘virtual sports’ space, where you can bet on sporting events happening in the cloud,” continued Parry, “It also offers standard online casino gaming; namely slots, poker, blackjack, roulette, and baccarat as well as gambling services as white label tools, which is where the real money is.”
Most of that revenue was delivered by the casino where YOY turnover in Q2 was up 59% from CAD $2.4 million to CAD $3.9 million, resulting in a gross margin increase of 191%.
“We have been consistently impressed with McBookie’s ability to navigate uncertain environments and the global pandemic this past few months has been no exception,” stated Darius Eghdami, Chairman and CEO of FansUnite.
According to a recent report by Grandview Research, the global online gambling market size was valued at USD $53.7 billion in 2019 and is expected to grow at a compound annual growth rate of 11.5% from 2020 to 2027.
“Gambling can stimulate the brain’s reward system much like drugs or alcohol,” confirms the Mayo Clinic.
True – although some cultural context is required. Outside of housing, food and job-site equipment (hardware and software) – addictive thinking drives most consumer purchases.
We buy the-shit-we-buy because we’re searching for comfort, for status, for the giddy high of owning the perfect object. When the shiny new artifact doesn’t deliver the hoped-for psychological benefit – we run out and buy more shit.
“Motivations for gambling have a strong temporal dimension,” confirms Psychology Today, “they do not remain stable over time”. An initial quest for “enjoyment, excitement and socialization,” can quickly devolve into a “preoccupation with winning money and chasing losses.”
If you are risking money you can afford to lose, on-line betting can provide a jolt of frisson to an otherwise mundane sports event.
This writer is currently staying in a Yurt in the Yukon, (thankyou Asus Wi-Fi signal booster). Two nights ago, my son and I bet $130 on UFC 251.
We decided to bet with our “hearts” not our “heads” – so that our financial fortunes would be aligned with our emotional desires.
The Parlay Bet predicted that Paige Vanzant (massive under-dog), Thug Rose, Max Holloway and Jose Masvidal (slight underdog) would all win. (any loss would wipe out the stake). If our prediction were correct, we would win $2,000.
Of that group, only Thug Rose won. She’s a bright, vicious little killer who also happens to grow tomatoes and play the piano beautifully.
Losing $130 and watching Thug Rose win made it a good night for us. There was no desire to “double down” on the next UFC fight or “chase our loses”.
“During Q2, the team showed an impressive 59% increase in casino betting,” confirmed Eghdami, “Further, the launch of a virtual sports offering in March was timely, delivering turnover in excess of $500,000 CAD and, together with the strong performance of the casino, has compensated for the lack of betting opportunities for customers in traditional sports.”
With the return of some sports such as the English Premier League, McBookie also grew sportsbook turnover in June by 45% YOY.
“We are now in a really good place to drive the business forward when the Scottish football season is set to return on August 1st,” stated McBookie founder and Director Paul Petrie.
“As 2020 rolls in, online gambling is set to be worth over 60 billion dollars and is expected to hit $94 billion in 2024,” stated Bit Rebels who cite various modernizations including Augmented & Virtual Reality making its way into the gambling world, where several players can share one environment.
“The most pleasing aspect of the current figures was the way the sportsbook bounced back in June,” stated Eghdamin, “McBookie is now in a very good position to deliver strong growth once the full complement of sports return in the fall.”