On July 27, 2020 FansUnite’s (FANS.C) acquisition target, Askott Entertainment announced that it has completed its second casino-themed video game, Crash Heist.
Fansunite is developing tech related to regulated and lawful online gaming and other related products.
Askott – a Vancouver based company – has produced the iGaming platform, Chameleon Gaming Platform, with an esports-first focus geared for the next generation of online bettors and casino players.
The platform includes products for pre-match betting, in-play betting, daily fantasy, content and a certified Random Number Generator (RNG) to produce casino style chance games.
This announced acquisition deal “brings Askott what it doesn’t already have – which is a sportsbook license and casino gaming – and brings Fans unite what it didn’t have – a solid e-sports gambling front with white label clients and a large membership base,” wrote Equity Guru’s Chris Parry a month ago, “The total of the two entities brought together makes for something much larger than the sum of their individual parts, with years in business, revenue incoming, and a shared level of respect”.
“The global online gaming market has expanded to represent one of the fastest growing segments of the gambling industry,” stated Financial Buzz, “In 2018 the market already produced more than USD 48.9 Billion in worldwide revenue and is projected to expand past USD 134.5 Billion by 2027.
After the acquisition, Askott CEO Scott Burton will become the CEO of the new entity, while former FansUnite CEO Darius Eghdami serve as company President.
“We wanted an e-sports arm,” explained Eghdami, “They’re an esports company looking for a sports betting arm. They’ve raised $9 million to date, their tech is strong, their team is world class. We realized the benefits of going together rather than splitting the same market and fundraising potential were just too obvious.”
After the successful launch of ‘Loothunter’, Askott is offering its 2nd game in what will be a series of video and esports-themed casino games for online sportsbooks and casinos to offer.
RNG/casino games represent a large piece of the online real money gaming industry. With the recent COVID-19 pandemic, the importance of having such games has been magnified.
Askott is developing games that will appeal to a broader target market that includes a growing younger demographic along with traditional gamers.
“We currently offer a betting solution for esports books and wanted to add RNG casino games to round out our partners’ betting offering to their customers,” stated Scott Burton, CEO of Askott, “These additional offerings will result in more engagement from bettors and higher retention on our platforms.”
“We have now developed two games that can be leveraged on various platforms,” continued Burton, “Our partners will now be able to access our full suite of games, and other operators can license these games as stand-alone products for their customers.”
The Askott suite of games blend pure-chance games with skill-element games.
In the Loothunter game, the player buys a key for a case and hopes to get an item/reward greater than the price of the key.
The Crash Heist concept has the users breaking into a bank vault for an entry fee of their choice. Once in the vault, their money rises steadily until they exit. If they get out of the vault before the police arrive, the money is theirs, if not they crash out.
“We look forward to our stage of growth with Askott games where we will target casino aggregator partners that serve as an additional channel to leverage and distribute our games to a much broader audience,” continued Mr. Burton.
Two weeks ago, FANS.C announced that its recently-acquired McBookie has emerged from the global pandemic with “a strong set of results”.
The pandemic has been a blessing and a curse for companies operating in the on-line gambling space.
People have been stuck at home with more time to gamble – but with all major pro sports leagues shuttered – there have been fewer live events to bet on.
McBookie delivered a YOY increase in Gross Gaming Revenue over the Q2 period of 131%.
Most of that revenue was delivered by the casino where YOY turnover in Q2 was up 59% from CAD $2.4 million to CAD $3.9 million, resulting in a gross margin increase of 191%.
“During Q2, the team showed an impressive 59% increase in casino betting,” confirmed Eghdami, “Further, the launch of a virtual sports offering in March was timely, delivering turnover in excess of $500,000 CAD and, together with the strong performance of the casino, has compensated for the lack of betting opportunities for customers in traditional sports.”
“As 2020 rolls in, online gambling is set to be worth over 60 billion dollars and is expected to hit $94 billion in 2024,” stated Bit Rebels who cite various modernizations including Augmented & Virtual Reality making its way into the gambling world, where several players can share one environment.
Askott’s “Crash Heist” is not dependent on a live esport event. It can be played 24/7 – allowing for more consistent betting and predictable revenue.
Full Disclosure: Fansunite is an Equity Guru marketing client.
