How Sports Betting Is Thriving Despite COVID-19 Lockdowns

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NEW YORK, July 17, 2020/ PRNewswire/ - In March 2020, the unique coronavirus swept through the U.S., requiring stay-at-home orders and service closures throughout the nation - including all but two of the country's nearly 1,000 gambling establishments. Mentioned in today's commentary includes: Wynn Resorts, Limited (NASDAQ: WYNN), Intel Corporation (NASDAQ: INTC), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), HUYA Inc. (NYSE: HUYA).


That exact same month, New Jersey, Delaware, Nevada, and Pennsylvania - the four U.S. states with legal online poker sites - all reported record-high online video gaming revenues. In particular, Nevada, the nation's betting center, reported more than a 90% boost from the very same month in 2015.


Even before COVID-19 struck, the online betting market has actually been growing exponentially for many years. In 2017, the global market was valued at around $45.8 billion. By 2024, some experts forecast international online gaming bets will hit almost $95 billion. And the global market for online betting is estimated to grow by 11.5% each year till 2027.


"There is a huge shift concerning online wagering and we are perfectly located to benefit from that," stated FansUnite CEO and co-founder Darius Eghdami in an exclusive interview.


While FansUnite (FANS.CN; FUNFF.PK) only went public on May 5, 2020, it's quickly emerging as a serious gamer (pun planned) in the public online betting market.


For something, it has a few of the most outstanding forward-facing sports betting technology in the industry. Its exclusive software application allows the business to market distinct product or services, and-more importantly-provide increased openness which permits regulatory oversight in a market that frantically needs it ... all while saving its customers cash.


Also, the business's management team-which consists of some of the finest gamers in the organization, with decades of combined experience-is pursuing aggressive growth through mergers and acquisitions; in a couple of short months, it's currently finished or signed numerous strategic deals to grow its user base and significantly broaden its service offerings ... and it's actively trying to find more.


Specifically, as increasingly more states legalize sports betting, FansUnite has its eye on recording the emerging U.S. sports wagering market.


A minute in history ... and a big potential driver


Due to an absence of policy and oversight, the U.S. sports wagering market has traditionally been shrouded in secret.


But in the last couple of years, that's begun to alter.


In May 2018, Delaware was the first U.S. state to legislate sports betting following a historical Supreme Court success. The win set a precedent for any other state that wanted to legislate sports wagering.


Ever since, other states have been quick to do the same. As of June 2020, 18 states had actually legislated sports betting, while 5 more (consisting of Washington, D.C.) have actually just recently passed expenses that would enable them to do so.


In the meantime, Congress has also been pondering sports betting legislation at the federal level. Although any major legislation has yet to be enacted, there's been talk: In September 2018, Congress held a hearing on standard sports wagering for the very first time in a decade.


"Sports wagering is inevitable-so let's make sure it's done right," Ex-Senator OrrinHatch said in the press release.


If passed, the bill could potentially act as a substantial tailwind for the sports wagering market.


Experts believe sports betting could be worth some $7-8 billion in the U.S. alone by 2025, up from $833 million in 2019.


The online betting boom is so big, in fact, that even Sin City giants are getting on board. Wynn Resorts (WYNN) is an iconic Las Vegas staple. Despite some setbacks from the COVID-19 pandemic, Wynn has actually performed well versus its rivals, even after a larger industry-level . And now it's seeking to broaden its online wagering footprint. Though the platform is only readily available in a few U.S. states at the moment, it will likely grow as more states legalize sports wagering.


Now, let's discuss the elephant in the room ...


If you've never ever become aware of esports ... well, you might be a little behind the curve. So let's capture up: Esports is an umbrella term for the blowing up expert video gaming market. Professional players complete, viewers see online (and wager), and brands advertise.


While it started as a niche-and frequently disparaged-hobby area, it's evolved into a billion-dollar market in its own right. Sports organizations like the NBA, as well as legends like Michael Jordan, have esports collaborations and recommendations, while major networks like ESPN have actually been giving it increased direct exposure.


Total esports viewership struck 454 million in 2019 ... and is expected to grow at a compound annual growth rate (CAGR) of 9% to hit 646 million in 2023. The market is also seeing significant development in sponsorship. Investments in 2017 were at about $490 million ... while in 2018, they strike around $4.5 billion-marking a mindblowing 837% YoY boost.


This is why Amazon (AMZN) paid nearly $1 billion to acquire streaming giant Twitch. Amazon's Twitch.tv, as the de facto leader in the area, with over 15 million unique visitors per day, has become so engrained in the market that brand-new computer game consoles even have the platform's streaming performance constructed in. It's so dominant, in truth, that it represents 1.8 percent of peak web traffic.


Wanting to follow in Twitch's footsteps, nevertheless, Chinese streaming huge Huya (HUYA)is seeking to sculpt out its location in the esports industry. As a part of its enthusiastic and aggressive plan to dive into Western markets, Huya is seeking to partner with some of the leading teams in the organization, and it's got a substantial war chest to assist its cause.


Even tech huge Microsoft (MSFT) is getting on board. The maker of the Xbox and publisher behind such cutting-edge titles as Halo and Destiny, Microsoft suddenly ended up being a heavy-hitter in the gaming market in the early 2000s. More just recently, the business's computer game department has actually struck a few snags - like the rest of the market, revenues were kept back by spiraling costs. Despite this, nevertheless, Microsoft has actually grown, and might even become the world's very first $2 trillion company.


And it would be difficult to ignore the hardware manufacturers in this industry. Intel Corporation (INTC) is a leader in multiple fields of technology. The forward-thinking industry giant is the foundation of many laptop computers and PCs running the Windows os. The business has been so successful in its deal-making and advertising that it is impossible to escape its influence. Without Intel, esports and even online betting may not exist in the method we know it now. The chipmaker is everywhere, and while there is some emerging competitors, it remains the de facto leader in its field.


And FansUnite simply made a game-winning acquisition into the esports market ...


At the end of June, just over a month after going public, FansUnite (FANS.CN; FUNFF.PK) announced that it signed a deal to get Askott Entertainment, Inc., a betting software application company based out of Vancouver. Askott is a recognized leader of the esports betting market, providing wagering software application for several fantasy sports leagues, casino-style video games, and different other esports.


The Askott acquisition should offer FansUnite the best entry point into esports wagering. And as more U.S. mentions legalize the practice, opening up the market for companies to relocate, FansUnite might easily become a big beneficiary of this rapidly exploding growth trend.


An attempted and true development technique & industry-leading tech


Back in March, FansUnite (FANS.CN; FUNFF.PK) officially got McBookie-a white-label virtual sportsbook that mostly serves the Scottish market. The acquisition was a smart tactical relocation by the company. The purchase included an integrated active user base of 10,000 individuals, along with $100 million in cumulative turnover over the previous 3 years.


Aside from its acquired possessions, FansUnite boasts its own exclusive technology. In addition to its own business-to-customer (B2C) sportsbook, set to launch later this year, appropriately branded Sportsbook, the company will offer its "white label" technology to business-to-business (B2B) clients (i.e., business that want to establish their own gambling platforms). In return, FansUnite would get a part of their clients' "home" earnings.


The bottom line


Online betting is already booming-and it's set to take off even higher in years to come.


Recently IPOed FansUnite has been running in the industry for years. It's got an established user base and industry-recognized technology ... it's scaling its B2B and B2C business segments ... and it's focused on an aggressive M&A growth method. It's got a leadership group with years of experience, and sponsorship from major financiers.


As sports wagering becomes legalized throughout the U.S., FansUnite has a strategy to move into the marketplace. And even as we question the status of our favorite professional sports leagues in a post-COVID-19 world ... and how that might impact the sports wagering industry ... the company has actually got that covered, with an eye on the growing esports market.


FansUnite (FANS.CN; FUNFF.PK) currently has a market cap of simply $30. Given what we're seeing in the industry, it's impossible to tell where that could go. But with its declared corporate strategy, FansUnite could supply the ideal early phase entry indicate a market anticipated to grow much bigger in simply a few short years.


By. Chloe Hawthorne

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