Elys Game Technology Details US Expansion Efforts
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Posted on: November 28, 2023, 11:27h.
Last updated on: November 28, 2023, 12:08h.
Shares of Elys Game Technology (OTC PINK: ELYS), a gaming technology provider, rallied Tuesday after the company said it will add a third retail sportsbook in Washington, DC, adding that it plans to expand into several states.
The company provides sports betting kiosks to businesses such as bars and restaurants that hold permits to offer sports wagering to customers. Currently, Elys provides sports wagering services at the Grand Central Sportsbook and the Cloakroom Gentlemen’s Club Over Under Sportsbook Lounge. The company’s third location in the US capital city will be on H Street.
This model has already proved successful at Elys’ first U.S. location — Grand Central Sportsbook in Washington DC,” according to a statement. “The company reports that the location has been a significant revenue driver for the company, averaging $67,500 per month in Gross Gaming Revenue (GGR) for the operator, which is approximately 700% above initial expectations. Its success has also encouraged Elys to open two more locations in DC.”
Shares of Elys, which were recently delisted by Nasdaq, were higher by 5.15% in midday trading on the news.
Elys Focusing on Odds, Local Approach
The current state of the US sports betting landscape is one dominated by DraftKings (NASDAQ: DKNG) and FanDuel, operators that have the financial resources to rapidly amass scale.
That’s hard to compete with for smaller companies such as Elys, but the gaming firm believes it can win its share of market share by focusing on simple principles, including a local emphasis that encourages customer loyalty and attractive wagering odds.
“The ‘best odds’ model is an odds-making strategy aimed at attracting and retaining clients by providing the most competitive odds on various sporting events. This approach prioritizes long-term customer loyalty over short-term market share growth. It’s another example of how Elys is going against the grain of the industry,” added the operator in the statement.
That’s somewhat similar to the low-hold model employed by other sportsbook operators that cater to sharp bettors.
Elys Expansion Plans
Citing the popularity of the NFL, Elys sees opportunity as the domestic sports wagering market is poised to rapidly expand. By some estimates, by 2027, nearly 20% of the US adult population will participate in sports betting in some form with the market poised to reach $31.09 billion. That implies a compound annual growth rate of 12.89% from 2023 through 2027.
With those factors in mind, Elys is planning to expand into New Jersey, followed by Louisiana and Kentucky. After that, the company hopes to enter Colorado, Indiana, Illinois, and Michigan in that order.
“Once it has established a foothold in local bars/restaurants, Elys will have plenty of room to expand its offering outside of just sports betting,” according to Elys. “This is because it offers a full suite of omnichannel leisure gaming products and services including online casino and slot games, poker, bingo, lottery, and more interactive gambling games.”
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