Attention esports fans, we have a harsh reality to face: esports as a business has been somewhat disappointing.
It was touted as the next big thing in 2018, mainly thanks to a strong performance in South Korea, Japan and a few other countries in Asia where this sort of thing is big business and every game pays off. silver.
All about the hype train around 2018:
But the same enthusiasm never materialized here. We cannot be entirely certain why.
Maybe it’s something inappropriate about trivializing a child’s play as work, or maybe it tends to raise ethical questions about power when the pursuit of profit is involved. Perhaps it’s the idea that watching other people play video games isn’t as big a selling point as developers thought. It’s definitely not for me.
That doesn’t mean there isn’t a market for it. Esports is definitely a cash cow – as evidenced by the success and prevalence of streaming sites like Twitch.tv and its many competitors – but it’s still niche, and therefore underwhelming compared to what we’ve been sold.
There has been another unexpected beneficiary of the relatively quiet esports craze and that is online gaming. He has seen incomes rise and interest take hold. So while it’s not filling stadiums as originally promised, esports has definitely found its footing, and now that Ontario’s internet gambling market has been open since April 4th, we’re starting to see the potential of this unexpected new market.
Here are two companies ready to make a splash.
FansUnite Entertainment (FANS.C) is a global sports and entertainment company. They focus on technology related to the regulated and legal online gambling industry. And why not? Canada has over 19.3 million active online gamers, making online gaming one of the fastest growing industries in Canada. It currently ranks eighth among the countries that spend the most money on online gambling.
Canadians spend over $4 billion at offshore gambling venues each year, and according to the Canadian Gambling Industry Report, Canadian gamblers distribute $16 billion at local casinos. This is a market that is absolutely ripe and ready for companies and savvy investors to take profits.
In 2021, the gaming industry in Canada generated revenues of $2.64, of which $1.2 billion came from online gaming. The disparity in numbers makes sense when you take into account the COVID-19 pandemic and its effects not only on salaries, but also on casino traffic. There’s also something to be said for the revenue-generating potential if the provincial government didn’t have such a grip on licensing potential game providers, but that’s something for another story.
FansUnite has an iGaming platform called Chameleon, which provides operators with sports and esports-focused gaming solutions aimed at attracting the attention (and money) of online gamblers and casino players. They provide business-to-business technology solutions, but also offer multiple business-to-consumer options, such as Scottish bookmaker McBookie and Brazilian bookmaker VamosGG, as well as casino-style games under its subsidiary Askott Games.
What are they doing?
The company’s latest wave of activity concerns expansion. In this case, they have signed a memorandum of understanding for a long-term license agreement with Lovell Brothers, owner of Dragon Bet, to launch an online sports betting portal called www.dragonbet.co.uk, which will operate on Fanunite’s Chameleon i-gaming platform.
While you’re here, check out our five easy questions with Maddy’s segment filmed earlier this month.
Here’s what I like about this configuration of numbers:
- Strong cash position at $8.1 million.
- $77.2 million in total equity.
- Well positioned to take a large chunk of Ontario’s recently opened legal and regulated online gambling market.
But here’s a look at their Q1 operational highlights:
- Total revenue of $9.67 million in the first quarter of fiscal 2022, an increase of approximately 804% compared to $1.07 million compared to the same period last fiscal year
- Gross margin of $5.90 million (61%) in the first quarter of fiscal 2022, compared to $0.54 million (51%) in the same period last fiscal Positive operating cash flow of $0.5 million in the first quarter of Fiscal 2022, compared to negative cash flow of $2.2 million in the first quarter of Fiscal 2021
- Net loss of $9.17 million in the first quarter of fiscal 2022, which includes non-cash expenses of $10.31 million, compared to $2.49 million in the same period last fiscal year, which includes non-cash expenses of $0.72 million As of March 31, 2022, the Company had net working capital of $13.6 million, compared to $14.9 million as of December 31, 2021.
It looks like FansUnite had a pretty nice pop at the end of May, capping off a dismal start to the year. This could be the start of something big.
Like FansUnite before, Tiidal Gaming (TIDL.C) is a media and technology platform for fans to indulge in e-sports and gaming. Unlike fans, however, they have an additional interactive element. What they offer is a mix of games, media and betting, and their partners have the ability to create experiences for fans and consumers using their media and technology offerings.
The first of Tiidal’s products is Sportsflare.
Sportsflare isn’t just a sportsbook for the esports era, it’s actually a bridge between the viewer sitting at home or behind their video screen and the action of what’s happening on screen. . If the size of big-name streamers like Twitch.tv is any indication, there’s a huge market for watching other people play video games. But if you’re like me, this kind of thing leaves you cold. Watching esports is like watching baseball: it’s slow, stats heavy, and can be hard to keep up with. But if you play or bet on baseball, it adds a whole new dimension.
This is the dimension that Sportsflare offers.
They have micromarkets, for example.
Micromarkets provide players with ultra-granular, high-frequency betting options, such as where in first-person shooter games to bet on where the next in-game kill will come from and which team will get the kill.
My favorite, however, is betting on yourself. I see myself wasting a lot of money on this.
This product is for the perfectionist. The person who must not only beat their opponent, but beat the performance metric they set yesterday. It’s different, new and exciting.
This level of progressive development could also lead to another type of lucrative career: professional esports stardom.
Then Tiidal has you covered.
Lazarus Esports has been around since 2010 and is considered the first established esports team in Canada. They are dedicated to growing their industry, developing the gaming market, and supporting professional gamers at the highest level to achieve their full potential. They support 50 digital athletes in ten countries.
If you love ESG like so many others, then Lazarus’ legacy of inclusivity and education may be worth your while. Video games and esports are traditionally male and this has given rise to some rather pernicious gender stereotypes. Lazarus, in kind, has established himself as a proponent of fairness for women and people of color. They’ve championed female players, creators, executives and staff for over a decade, and they continue to find ways to help support and amplify voices not normally heard in the industry. .
What are they doing?
As far as what they do as a company, they go around and get their name and symbol on as many boards and in front of as many potential investors as they can handle. In this case, it goes to the OTCQB markets in the United States and becomes eligible for electronic clearing and settlement in the United States through the Depository Trust Company.
These are more or less standard steps for companies at Tiidal’s level of development. Greater reach means better access to more investors.
What they really do are events like this:
More events means more people and more people means more revenue.
- They are positively a steal at a market cap of $9,366,000.
- An innovative technology used in an innovative way, namely the Bet On Yourself platform.
- Have strong shareholders with $4,116,662
- No debt.
- Well positioned to capture a good portion of Ontario’s online gaming market.
- 40% insider ownership.
Before saying goodbye, we should definitely take a look at Tiidal’s chart.
May was not necessarily the best month for Tiidal, which dipped early on to rebound where it is currently trading at $0.13. It’s still a penny less than the previous month, but it’s still early days and Tiidal’s story has only just begun.