FansUnite Entertainment Inc. (FANS : CSE) (FUNFF : OTC) is uniquely positioned to capitalize on the boom the online gambling sector is currently experiencing. Recent catalysts include the opening of the U.S. market to sports betting, the rapid rise in popularity of eSports betting and gambling, and the significant increase of mobile device-access to online gambling platforms.
A software and technology company offering both B2B and B2C solutions to the online gaming and gambling markets, FANS’ B2C offerings include owned and operated sports betting and casino platforms that already produce significant and growing revenues. Their unique B2B offerings are differentiated by their immersive eSports real-time gambling experience and their video game-themed, interactive casino games. Additionally, FANS provides turnkey solutions to all possible features of any gambling platform, which can easily be customized to suit a particular platform’s distinct needs.
This all represents a get-in-on-the-ground-floor of a blue-sky opportunity as the company is well positioned to potentially service the entirety of the online gambling space. But let’s dig deeper by examining the top five reasons why FansUnite’s US $25 million current valuation is well below fair market value.
Five Reasons FansUnite Is Undervalued
- FANS’ B2C platforms have organically doubled revenues absent any marketing from 2019, with management projecting that the company will do the same again in the next 12 months. Their McBookie sports betting platform alone has seen 400% YoY revenue growth. These B2C platforms not only provide revenue growth to the young company but also serve to validate their technology and consequently de-risk the investment in relation to their software and B2B services.
- FANS’ four B2C platforms—McBookie, ESPORTS BETS, FansUnite and VAMOSGG—have generated more than $350M in betting volume since inception AND boast a staggering 300,000-plus registered user base. In the gambling industry customer acquisition costs can run upwards of $100 per user (this can be up to 5x higher in some markets) which potentially makes this user database alone worth more than the current FANS’ market cap.
- Fans’ recent partnership with GameCo provides the company with a crucial entry into the white hot U.S. betting market. This comes on the heels of extreme success of DraftKings (Nasdaq : DKNG) and Penn Gaming (Nasdaq : PENN), both of which catapulted into valuations in the $10s of billions, demonstrating the demand in the U.S. market for betting service providers by both consumers and investors alike. And note that unlike FansUnite, neither of these behemoths offer eSports gambling.
- Last April DraftKings acquired SBTech in a US $700 million deal, with the company citing the need for tech stack as their biggest cost and its subsequent acquisition of SBTech filling that need. With eSports projected to soon capture 10% of the sports betting market, FANS’ turnkey tech stack solutions, combined with their video game-themed casino games that appeal to the younger eSports demographic, it’s not a stretch to see how FANS’ technology could gain a strong foothold on a LARGE section of this market. Oh, and that deal DraftKings did with SBTech is worth more than 25 times the current market cap of FansUnite.
- Last but not least, it’s a question of “when,” not “if,” FANS will harness significant traction on their B2B offerings. They currently have 4 signed B2B deals, two of which are live, and this week signed an agreement with global gaming leader Pinnacle Solutions to offer that company’s eSports data and odds feed into FANS’ Chameleon Gaming Platform. FANS management believes the partnership significantly boosts its B2B eSports solution, as the deal allows FANS to offer Chameleon Gaming Platform partners the best odds on eSports betting, which serves as a competitive advantage over other turnkey B2B eSports betting products.
Not only are FANS’ software and tech already validated by their existing B2B partners and B2C platforms, but the small company is backed by an extremely impressive board of directors and prominent investors. These veteran industry experts presumably recognize that existing online gambling platforms need FANS’ products and services, and that FANS’ value is significantly enhanced by the company’s ability to engage the younger demographic of bettors. The guidance these experts provide the company will undoubtedly prove invaluable, but their combined reach, influence, and connections in the sector are what should really capture investors’ attention. This is a group that will undoubtedly play a huge role in helping FANS get a foot in the door with B2B gambling platforms. And when the feet in the doors lead to sales, FANS business model will scale seamlessly because it relies on existing software. This means that every new contract significantly boosts revenues without the overhang of large capital costs.
Gambling Credentials and Sentiments of FANS’ Directors and Investors
Harish Narayanan, board of directors—former president of PaddyPower Betfair (OTC : PDYPY) Asia, the world’s largest online gaming company. “FansUnite has developed strong betting technology and is quickly gaining global recognition through their recent successful M&A transaction with McBookie. I look forward to providing my knowledge and expertise to assist in the growth of FansUnite.”
James Keane, board of directors—founder of Paradise Poker and current CEO of King Show Games LLC. “As someone who has been in the gaming industry for the past 20 years, I am an advocate in backing teams that have the opportunity for global scale and mass adoption.”
Chris Grove, board of directors—head of the Sports & Emerging Verticals division at Eilers & Krejcik Gaming. “The explosion of legal online betting in the U.S. is opening an array of opportunities for suppliers like FansUnite that understand the importance of nimble technology, customer-driven brands, and deep integration of eSports.”
Jackson Vaughan, Konvoy Ventures, major investor—”we invested in Askott [FansUnite] because they provide a core technology infrastructure for the adoption of betting and gambling in eSports. More than just a clear belief in the technology and growing opportunity of gambling in eSports and video gaming, we were incredibly impressed with [FansUnite CEO] Scott Burton and [FansUnite CTO] Jeremy Hutchins as operators and business builders.”
Check Out Demonstrations of Fans Software and Technology
Catch a glimpse of FANS’ immersive eSports gambling below. Notice how new betting options roll in on the right of the screen every 30-60 seconds as you watch your favorite gamer compete.
You can see full length demos at https://demo.askottentertainment.com/streams
Gone are the days of simple sitting at the slot machine and watching the reels spin. Now there are interactive, video-game-like casino games.
You can actually play FANS’ games here: https://demo.askottentertainment.com/games
You can check out FANS’ most recent investor deck here.
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