How Sports Betting Is Thriving Despite COVID-19 Lockdowns

NEW YORK, July 17, 2020/ PRNewswire/ - In March 2020, the unique coronavirus swept through the U.S., forcing stay-at-home orders and organization closures across the country - consisting of all however two of the country's nearly 1,000 casinos. Mentioned in today's commentary consists of: 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 earnings. In particular, Nevada, the nation's gambling hub, reported more than a 90% boost from the exact same month in 2015.


Even before COVID-19 struck, the online betting industry has been growing exponentially for several years. In 2017, the worldwide market was valued at around $45.8 billion. By 2024, some experts predict worldwide online gaming bets will strike almost $95 billion. And the global market for online betting is estimated to grow by 11.5% every year until 2027.


"There is a substantial shift coming to online betting and we are completely located to take benefit of that," said FansUnite CEO and co-founder Darius Eghdami in an unique interview.


While FansUnite (FANS.CN; FUNFF.PK) just went public on May 5, 2020, it's rapidly becoming a major player (pun intended) in the general public online gambling market.


For one thing, it has some of the most outstanding forward-facing sports betting technology in the industry. Its exclusive software allows the company to market distinct items and services, and-more importantly-provide increased transparency which enables regulative oversight in an industry that desperately requires it ... all while saving its clients cash.


Also, the company's management team-which consists of some of the best gamers in the service, with years of combined experience-is pursuing aggressive growth through mergers and acquisitions; in a couple of brief months, it's already finished or signed numerous tactical deals to grow its user base and significantly expand its service offerings ... and it's actively searching for more.


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


A minute in history ... and a huge potential catalyst


Due to an absence of guideline and oversight, the U.S. sports betting industry has actually historically been shrouded in secret.


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


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


Since then, other states have actually been quick to follow match. Since June 2020, 18 states had actually legislated sports wagering, while 5 more (including Washington, D.C.) have recently passed bills that would permit them to do so.


In the meantime, Congress has actually likewise been considering 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 conventional sports wagering for the very first time in a years.


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


If passed, the expense could potentially function as a huge tailwind for the sports betting 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 wagering boom is so big, in fact, that even Sin City giants are getting on board. Wynn Resorts (WYNN) is a renowned Las Vegas staple. Despite some setbacks from the COVID-19 pandemic, Wynn has actually carried out well versus its competitors, even after a larger industry-level decline. And now it's looking to broaden its online betting footprint. Though the platform is only available in a few U.S. states at the moment, it will likely grow as more states legalize sports wagering.


Now, let's speak about the elephant in the space ...


If you have actually never heard of esports ... well, you may be a little behind the curve. So let's capture up: Esports is an umbrella term for the taking off expert video gaming market. Professional players compete, viewers enjoy online (and wager), and brand names advertise.


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


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


This is why Amazon (AMZN) paid almost $1 billion to acquire streaming giant Twitch. Amazon's Twitch.tv, as the de facto leader in the area, with over 15 million special visitors each day, has become so engrained in the market that brand-new computer game consoles even have the platform's streaming performance integrated in. It's so dominant, in reality, that it accounts for 1.8 percent of peak internet traffic.


Looking to follow in Twitch's footsteps, however, Chinese streaming huge Huya (HUYA)is aiming to sculpt out its location in the esports market. As a part of its ambitious and aggressive plan to dive into Western markets, Huya is aiming to partner with a few of the top teams in business, and it's got a significant war chest to assist its cause.


Even tech giant Microsoft (MSFT) is getting on board. The maker of the Xbox and publisher behind such revolutionary titles as Halo and Destiny, Microsoft all of a sudden became a heavy-hitter in the video gaming industry in the early 2000s. More just recently, the business's video game department has hit a few snags - like the remainder of the market, profits were held back by spiraling costs. Despite this, however, Microsoft has actually grown, and could even end up being the world's first $2 trillion company.


And it would be difficult to neglect the hardware producers in this industry. Intel Corporation (INTC) is a leader in numerous fields of innovation. The forward-thinking market giant is the foundation of lots of laptops and PCs running the Windows operating system. The business has been so effective 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 way we understand it now. The chipmaker is all over, and while there is some emerging competitors, it stays the de facto leader in its field.


And FansUnite just 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) revealed that it signed an offer to acquire Askott Entertainment, Inc., a betting software application company based out of Vancouver. Askott is a recognized leader of the esports gambling market, supplying betting software for numerous dream sports leagues, casino-style 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 move in, FansUnite might easily become a substantial recipient of this rapidly blowing up growth trend.


An attempted and true development strategy & industry-leading tech


Back in March, FansUnite (FANS.CN; FUNFF.PK) formally got McBookie-a white-label virtual sportsbook that largely serves the Scottish market. The acquisition was a smart tactical move by the business. The purchase featured a built-in active user base of 10,000 people, in addition to $100 million in over the previous three years.


Aside from its gotten properties, FansUnite boasts its own proprietary innovation. In addition to its own business-to-customer (B2C) sportsbook, set to launch later this year, properly branded Sportsbook, the company will offer its "white label" technology to business-to-business (B2B) consumers (i.e., companies that wish to establish their own gambling platforms). In return, FansUnite would get a portion of their consumers' "house" earnings.


The bottom line


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


Recently IPOed FansUnite has actually 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 development strategy. It's got a management group with years of experience, and sponsorship from major financiers.


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


FansUnite (FANS.CN; FUNFF.PK) currently has a market cap of simply $30. Given what we're seeing in the market, it's impossible to tell where that might go. But with its revealed corporate method, FansUnite could provide the ideal early phase entry indicate a market anticipated to grow much larger in simply a couple of brief years.


By. Chloe Hawthorne