eSports
CEO’s of FUBO, SE, GAN, FANS, Discuss New Growth Opportunities in E-Sports, Online Sports Wagering and Casinos
Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Sea Limited (NYSE: SE) FansUnite (OTC: FUNFF) (CSE: FANS) fuboTV (NYSE: FUBO) GAN Limited (NASDAQ: GAN) .
Accelerating digital transformation is driving new revenue growth opportunities in E-Sports, Online Casinos and Sports Wagering. Wall Street Reporter highlights the latest comments from industry thought leaders:
fuboTV (NYSE: FUBO) CEO David Gandler: ”At Intersection of Sports Streaming and Wagering”
“…From an execution standpoint, Q3 was by far the strongest quarter in the company’s history. Our results have exceeded previously raised guidance with solid growth across every KPI we track. Revenues were up 47% to $61 million. That’s well ahead of the guidance range we provided of $52 million to $55 million. …Paid subscribers at quarter end totaled 455,000, and that’s 58% above the 288,000 last year. Net additions came in at 167,000. That’s up almost 100% year-over-year…FUBO sits firmly at the intersection of 3 megatrends: The first is the secular decline of traditional television viewership; the second is the shift of TV ad dollars to connected devices; and the third is online sports wagering, a market we absolutely intend to enter. Our growth opportunities are numerous, and there are great many reasons for us to be optimistic given the optionality in the business…”
“We’re super excited about wagering. I would say that we’ve already started executing on our strategy. And at the appropriate time, we’ll provide more details. But the way we think about wagering is we look at it from a 3-bucket perspective: we have an acquisitions advantage, we have an engagement advantage and we have a monetization advantage. For acquisitions, you should think of it that we’re starting with 500,000 paying subscribers. And what you’ve heard from our ability to sell attachments this quarter, we think that we’re going to be able to also sell in a lot of wagering opportunities. Number two was on the engagement front. We have over 50,000 sporting events on the platform, and we’re getting people to watch over 120 hours per month. So there are going to be ample opportunities for us to really sort of drive that forward. And then I think the third piece is the monetization advantage. Obviously, getting players to play is important. But think about the value from a retention perspective, getting people to churn out less and also from a monetization perspective in terms of advertising sales. So we feel like we have everything that we need to sort of build a sizable business around this, and we’re already executing on that strategy.”
In a recent presentation at Wall Street Reporter’s NEXT SUPER STOCK livestream, FansUnite (OTC: FUNFF) (CSE: FANS) CEO Scott Burton explained how the company’s latest distribution deal with an online casino games aggregator, sets the stage for exponential revenue growth opportunities. In the next 12 months, FUNFF plans to expand its current line from three games to twelve – while adding multiple aggregators for each game – reaching millions of new online casino customers worldwide. With each game generating as much as $500,000 in revenue per month for FUNFF – per online casino – and the potential to be in hundreds of online casinos – these numbers can quickly add up.
Nov 5 – FUNFF’s wholly-owned UK Sportsbook McBookie achieves record 433% increase in revenue and 713% increase in gross margin in October 2020 compared to October 2019. Much of the growth was attributed to the unveiling of McBookie’s live casino games and increased activity in sports betting which resulted in $7.3M in total betting volume being placed during the month
“..While both the consumer attention and client demand remains focused on sports betting, the real core of the U.S. internet gambling profit opportunity lies inherently within the online casino, which is only unlocked by the mass market appeal of sports betting being a technical and operational capability, we will shortly possess…”
“When you combine online casino gaming with internet poker, and of course, internet sports betting, New Jersey generated in excess of $132 million of gross operating revenue in that single state in the single month of October. This amount would have seemed implausible just two years ago. New Jersey is now on a path where internet gambling revenues could be on a monthly run rate to exceed pre-COVID retail gaming revenues by the end of 2022. I’ll state this again, because it is incredibly important for everyone to understand the magnitude of the structural shift in the retail casino industry. New Jersey’s internet gambling market is on a growth path to exceed pre-COVID monthly retail casino gaming revenues within 18 months, possibly less. This all points to bright line a truth that COVID combined with the advent of internet sports betting and the associated strong cross-sell of sports gamblers into online casino gaming has manifestly altered expected future growth opportunities in this industry for decades to come…Our continuing mission is to bring retail casinos online with our technology platform focused principally on delivering all forms of internet gambling content, including casino gaming and sports betting.”
“‘…The largest event in 2020 for shareholders appears not to be an admission to trading on NASDAQ, but the inflection point represented by or now announced acquisition of Coolbet with regulated operations in both Europe and Latin America…This acquisition accelerates our previously announced pathway to $100 million in topline revenues. It unlocks the shareholder value opportunity to become a B2B sports betting provider in the U.S. and provides us with a fast growing internal — international strategy, which is entirely incremental to our existing international market activity in Italy.”
GAN Limited (NASDAQ: GAN) Q3 2020 Earnings Highlights: https://bit.ly/32QlM0m
Sea Limited (NYSE: SE) Forrest Li, Chairman and Group CEO: “Digital Entertainment a Key Pillar of Growth”
“…Garena had another excellent quarter and achieved several historical highs. We reached more people than ever before, with close to 0.5 billion active users around the globe playing Garena games during the quarter. That represents an increase of 61% year-on-year…Our quarterly paying user number grew at a very strong rate of 91% year-on-year to reach 49.9 million…As a result of this strong user and paying user growth, adjusted revenue for the quarter reached $716.2 million, up 62% year-on-year. Our adjusted EBITDA margin also reached a new record high of 61%…”
“We are also partnering with other global IP holders to create memorable content experiences for our users…In July, we announced a partnership with Netflix for a special in-game crossover with its global hit show, Money Heist. For this, we have worked with Netflix to create a Money Heist-themed in-game takeover, which is expected to be launched in September. Users will be able to enjoy a new game mode inspired by the plot of Money Heist and can purchase virtual skins modelled after the iconic outfits in the TV series.”
“To further enhance user engagement, we have successfully migrated our esports activity online over the last few months. For example, in recent months, we held large scale esports events in both Asia and Latin America. In June, we held the Free Fire Asia all-stars event, featuring both professional players and popular online influencers from India, Indonesia, Thailand, and Vietnam competing across several tournaments. In early August, we hosted an online esports event in Latin America called Free Fire Gigantes, featuring the top teams from our pro leagues on the Brazil and Latin America servers…We continue to see strong momentum in user engagement entering into the third quarter even as many of our markets eased their restrictions on movement recently. In fact, in July, Garena hit a new record high in monthly adjusted revenue. Free Fire also hit a new record in monthly paying users in the same month, which more than doubled year-on-year…Looking ahead, we remain fully focused on bringing innovative content and enjoyable experiences to our users. We are confident that high quality and highly engaging content will strengthen their engagement and affinity with our games. This will continue to be the key driver of Garena’s long-term success.”
Sea Limited (NYSE: SE) Q2 2020 Earnings Call Highlights: https://bit.ly/2FOjWoC
eSports
Wamba Technologies signs Borderlands Developer Aaron Thibault to Esports Project
Wamba Technologies, a think tank consisting of leaders in the online gaming industry, is excited to announce the appointment of Aaron Thibault as oversight for its upcoming esports venture, Gamers Oasis. This key addition comes as they move to launch their Gamers Oasis platform which allows gamers to compete for real money directly from their mobile devices.
Thibault began his gaming industry career in 1998, initially working as a sound designer and cinematic director at EA/Origin Systems. Today, he brings over 30 years of experience in game development and education. Thibault spent 16 years at Gearbox Entertainment as Vice President. There, he led major projects, including developing the billion dollar Borderlands franchise. Borderlands 3 was nominated for Best Game Design and Best Art Direction. Currently, Thibault serves as the director of games and esports at Texas A&M University. His industry knowledge will play a significant role in driving the development of Gamers Oasis, which aims to revolutionize online esports competitions.
Meanwhile, a platform like “Gamers Oasis” is only possible due to a patent that gives Wamba Technologies and Gamers Oasis the exclusive capability to offer “real money” capabilities into skill-based video games in the United States where players can actually compete for real money online (Patent 10,424,160). Their patent allows them (and ONLY them) to offer a software feature which will allow gamers to pay an entry fee into tournaments online, compete against each other, and actually win money back (where such capability is integrated into the game in some fashion). This will ultimately give developers previously untapped revenue streams and players the ability to win large amounts of real money while utilizing their skills from the comfort of their very own homes.
“At Wamba Technologies, we are committed to making esports accessible to everyone,” said Denham. “With Aaron’s oversight and experience, we will be able to move into the next phase of development and make Gamers Oasis a reality for dedicated esports players everywhere”
“What Gary and I are going to do with Wamba Technologies and Gamers Oasis has never been done before in esports,” said Thibault. “There is so much incredible potential in this patent, and we can’t wait to start putting it to use and creating a product that is going to completely revolutionize the esports industry.”
Online, real money competition (online esports) is still in its infancy, but Wamba Technologies is currently engaging with gamers, game designers, coders, programmers, esports influencers and financial consultants to aid in the development of Gamers Oasis.
In the United States alone, 215 million people play mobile video games and globally, more than 700 million people are involved with esports. Among those 700 million people worldwide, only a very small percentage are competing online when real money is involved, while the rest of the players are competing in real life (IRL) at physical locations. Wamba anticipates that when offered and monetized properly, a mere 10% of the global market share could generate $13B-$15B in annual revenue from tournament buy-ins and ad revenues alone.
Aaron is not the first major player recently signed on board by Wamba Technologies. Wamba has also previously signed Andy Ashcraft (God of War 2, God of War 3, Disney’s Cars 2, and more), Brian Upton (Lead game designer for Tom Clancy: Rainbow 6, Tom Clancy: Ghost Recon), Marty Denham (genius mind behind the Pentium wafers for Intel), Joe Bagdon (CSO, formerly Military Intelligence Cyber Security in Afghanistan), Jared Goetz (former Lionsgate VP), and a number of other “rock star” individuals behind, or working with, multi-billion dollar products/companies.
Canada
Cutting-edge esports betting solutions empower BET99’s expansion into the booming vertical
PandaScore, the premier provider of esports betting odds, data, and innovative products, has announced an exciting new collaboration with BET99, one of Ontario’s top-ranking sportsbook and casino operators. This marks another major milestone for PandaScore as it continues to build its network of high-profile operators.
The deal gives BET99 access to PandaScore’s industry-leading Odds feed, which delivers comprehensive coverage of the world’s most popular esports titles, including Counter-Strike 2 (CS2), Dota 2, and League of Legends (LoL). Powered by advanced algorithms and supported by a team of specialized traders, PandaScore’s feed enables operators like BET99 to offer competitive odds while hitting a standard-setting margin of 6%.
In addition to PandaScore’s Odds feed, BET99 will integrate cutting-edge features such as BetBuilder and MicroBetting markets. These tools empower players to customize their wagers and enjoy dynamic, fast-paced betting experiences, aligning perfectly with the demands of today’s esports audiences.
The move into esports betting comes at a pivotal moment for the sector, which continues to see exponential growth. PandaScore recently surpassed €1 billion in esports bets processed through its platform, underscoring its expertise and leadership in this space.
Oliver Niner, Head of B2B, PandaScore, said: “Esports betting is rapidly becoming a cornerstone of the betting industry, and we’re thrilled to support BET99 as they take this exciting step. With our powerful Odds feed and innovative products like BetBuilder, BET99 is uniquely positioned to deliver a premium esports betting experience to players across Ontario.
“Our collaboration with BET99 is representative of the incredible momentum PandaScore has built in expanding our operator network. We’re excited to collaborate with BET99 and support their ambitious plans to become a leader in esports betting.”
Andre Bewerungen, Head of Sportsbook, BET99, added: “At BET99, our mission has always been to deliver a world-class player experience through personalization and innovation. With esports rapidly emerging as a key vertical, we see an incredible opportunity to engage the next generation of bettors who are passionate about this dynamic space.
By collaborating with PandaScore, we can provide tailored, engaging, and cutting-edge betting options that resonate with esports fans. Their comprehensive odds feed and advanced betting tools allow us to create a seamless, interactive experience that enhances player engagement and builds lasting connections with this growing audience. We’re excited to collaborate with PandaScore and take esports betting to the next level in Ontario.”
eSports
Influencers, Content and eSports: Unleashing the Power of Dynamic Strategies in the eSports Ecosystem
The sports betting industry is undergoing significant growth worldwide with restrictions loosening and new markets emerging. New opportunities create fierce competition among sportsbooks, and this has led to them devising increasingly expensive and aggressive advertising campaigns.
Public figures and influencers have become a popular go-to for sportsbooks promotions, such as Michael Jordan partnering with DraftKings or Jamie Foxx with BetMGM. Big names are costly, and sportsbooks haven’t realised the ad spend used on these campaigns is going to waste. Without the right precautions in place, up to 22% of ad spend is lost to fraud according to Juniper Research.
The big budgets behind high-profile brand campaigns need to translate into real user engagement. To achieve this, sportsbooks must ensure their digital channels are optimised to capture the surge in interest these campaigns generate. Without proper management, this potential can be lost to inefficiencies like invalid traffic, diluting the impact of their investments.
Ad Budgets Going to Waste
In today’s competitive landscape, sportsbooks need to make every click count. In 2023 alone, The American Gaming Association estimated that over $1.9 billion was spent on advertising campaigns in the US. With such a large amount of spend in play, it’s crucial that sportsbooks see as big a Return on Advertising Spend (ROAS) as possible.
Pay-Per-Click (PPC) campaigns are vital for sportsbook growth but can be disrupted by invalid traffic (IVT). IVT includes both malicious activity, like fraudulent bots, and unintentional actions, such as users repeatedly clicking on ads without intent to convert. These interactions inflate impressions and skew campaign performance data, leading to higher customer acquisition costs (CACs) and inefficient allocation of ad spend. Effectively managing IVT ensures that ad budgets drive genuine engagement and measurable growth.
Investing into influencers and celebrities also forces sportsbooks to bid on brand keywords to prevent their competitors stealing potential users searching for them. Up to 29% of PPC budgets are spent on this bidding according to Wordstream. As competition for brand keywords increases, PPC budgets are depleted without generating any new net revenue.
As campaigns become more expensive than ever, sportsbooks can’t afford to let profits fall to ad fraud. Instead of cutting budgets, sportsbooks should focus on analysing their campaign strategy.
Problematic Navigational Traffic
Navigational traffic is also presenting a significant challenge to sportsbooks alongside ad fraud. Navigational traffic refers to existing customers clicking on branded keywords to log into their accounts. While this seems convenient and harmless enough, this behaviour drastically inflates CACs. Like ad fraud, this can skew the effectiveness of PPC campaigns. By utilising paid search results instead of organic links to navigate to the site, costs are driven up without contributing to new user acquisition.
In addition to the challenges posed by navigational traffic and ad fraud, the competitive landscape for first-time depositors intensifies the need for strategic bidding on Google search. Brands investing heavily in influencers or sponsorships of major sporting events to generate awareness and drive potential users to search for them. However, without securing top placements in paid search results, these prospective customers may be intercepted by competitors before reaching the organic search listings. This creates a critical juncture where the effectiveness of a brand campaign hinges on converting that intent-driven traffic into first-time depositors, ensuring marketing spend achieves its goal of meaningful user acquisition.
First-time depositors are a critical metric for sportsbooks, and this issue directly impacts the cost efficiency of acquiring them. High CACs make marketing budgets less effective, reducing overall ROI.
Shoring Up Your Defences
Before launching costly ad campaigns, sportsbooks should adopt a multi-faceted approach to address ad fraud. IVT typically goes unnoticed, so to prevent this sportsbooks should monitor and analyse their campaign traffic for any suspicious activity. It is possible to identify IVT by looking out for signs such as irregular spikes in traffic from unknown locations or high pageviews. Fraudulent traffic can then by highlighted and removed.
The advancement of technology has made ad fraud more difficult to identify, and legacy fraud tools fail to detect IVT. They don’t analyse traffic at the impression level or consider the context of the business advertising. Sportsbooks can leverage ad-verification platforms to compensate for this. This allows sportsbooks to analyse and report suspicious traffic in real-time. Fraud can then be blocked before it has a chance to harm budgets.
Sportsbooks can also deploy tactics to reduce the impact of navigational traffic on CACs. Methods include encouraging existing customers to use mobile apps or direct bookmarks to log into their accounts instead of paid search campaigns. This decreases their reliance on PPC campaigns for navigation and protects budgets.
Keeping Profits in Sportsbooks’ Hands
Influencer and celebrity campaigns have proven to be a popular and useful tool in reeling new users and profits. However, if sportsbooks don’t have the essential precautions in place, they risk losing these profits to advertising fraud.
To make the most of their advertising efforts, sportsbooks need to prioritise their traffic. Implementing sophisticated tools to analyse traffic and filter out fraud will allow sportsbooks to protect their interests and focus on driving future growth. This way, they can secure their position in an increasingly competitive landscape.
Written by: Chad Kinlay, Chief Marketing Officer, TrafficGuard
A driven, open-minded, creative senior marketer with a strong sense of dedication and commitment. With over 15 years of progressive international experience in marketing and communications management, Kinlay has a credible history of commercial success.
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