Elys Game Technology sets out expansion plans in Washington and U.S.
Shares of gaming technology provider Elys Game Technology (OTC PINK: ELYS ) rose on Tuesday after the company announced it would be headquartered in Washington, D.C. A third sportsbook retail store will be opening, with plans to expand to multiple states.
The company provides Sports Betting Kiosks to businesses such as bars and restaurants that are licensed to offer sports betting to customers. Elys currently offers sports betting at the Grand Central Sportsbook and Cloakroom Gentlemen’s Club Over Under Sportsbook Lounge. The company's third location in the nation's capital will be located on H Street.
“This model has been successful at Elys’ first U.S. store, Grand Central Sportsbook in Washington, D.C.,” the company said in a statement. “The company reports that the location has been an important one for the company. The revenue driver provided the operator with average gross gaming revenue (GGR) of $67,500 per month, approximately 700% higher than initial expectations. This success also encouraged Elys to open two additional stores in Washington, D.C."
Shares of Elys, which recently delisted from Nasdaq, were up 5.15% in midday trading on the news.
Elys focuses on opportunities and local approaches
The U.S. sports betting landscape is currently dominated by DraftKings (NASDAQ: DKNG ) and FanDuel, two operators with enough financial muscle to scale quickly.
This is difficult for a small company like Elys to compete. Still, the gaming company believes it can win market share by focusing on simple principles, including a local focus that encourages customer loyalty and attractive betting odds.
"The 'Best Odds' model is an odds strategy designed to attract and retain customers by offering the most competitive odds on a variety of sporting events. This approach prioritizes long-term customer loyalty over the short term Market share grew. The operator added in a statement: “This is yet another example of Elys going against the rules of the industry. "
This is somewhat similar to the low holding model used by other sportsbooks, targeting smart bettors.
Elys expansion plan
Ellis sees opportunity in the rapidly growing domestic sports betting market, citing the popularity of the National Football League (NFL). It is estimated that nearly 20% of U.S. adults will engage in some form of sports betting by 2027, with the market expected to reach $31.09 billion. This implies a CAGR of 12.89% from 2023 to 2027.
With these factors in mind, Elys plans to expand into New Jersey, then Louisiana and Kentucky. After that, the company hopes to enter Colorado, Indiana, Illinois and Michigan, in that order.
“Once Elys establishes itself in local bars/restaurants, it will have ample room to expand its offerings beyond sports betting,” Elys said. "This is because the company offers a comprehensive range of omni-channel entertainment gaming products and services, including online casino and slot games, poker, bingo, lotteries and other interactive games."
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Source: www.casino.org
