Just a few months since announcing they were merging with Askott Entertainment, a deal that brought casino gaming and daily fantasy sports access to FansUnite’s (FANS.C) sports betting platform, FANS has announced another partnership, this time with Pinnacle Solutions, an award-winning online B2B e-sports betting platform.
The deal will add Pinnacle’s e-sports data and odds feeds to the FansUnite Chameleon Gaming Platform, creating a well-rounded, soup-to-nuts, all-in-one betting and gaming service that will be licensed to third parties for a piece of the action.
According to the company, “In partnering with Pinnacle, FansUnite can now offer the best odds on esports bets for its Chameleon Gaming Platform partners, giving it a competitive advantage over other turnkey B2B esports betting products.”
To be sure, one good contract with a decent sized gaming/gambling company could bring FANS a significant monthly recurring revenue, as well as initial set up fees.
i-Gaming betting 101:
Currently there exist several sub-sectors within the i-Gaming world where a company can make money. You can offer online casino games, e-sports tournaments, sports betting, e-sports betting, and even something as mundane as financial processing and compliance services.
Fans Unite opened its life with a purchase of McBookie, a Scottish online sports betting service that has growing revenue. Joining with Askott brought the ability to add online gambling solutions to the mix, and the Pinnacle partnership brings e-sports bookmaking.
If you’re a company looking to enter the online gambling/gaming world, FANS/Askott/McBookie/Pinnacle now offers something close to a complete turnkey package, which should bring some serious interest from existing and new entities that would rather carve off a percentage to a reliable data supplier than to have to go build everything from scratch.
FansUnite is, now, a complete solution.
“The next step is to effectively market the Chameleon Gaming Platform to sportsbooks,” continued [FANS CEO] Scott Burton. “We want to ramp up our B2B segment and get a guaranteed licensing fee when sportsbooks use our services. In addition, we generate additional income as our partners grow as we share in a percentage of the net gaming revenue giving us unlimited upside revenue potential. Partnering with Pinnacle will help take our B2B esports solution to a new level.”
The FANS stock price hasn’t kept track with the happenings at head office, where the early promise, of building a complete betting solution, has more or less now been completed. While it debuted at $0.40 and quickly moved up to $0.53, ongoing selling has bled the stock down to a very stable and attractive entry point at $0.23 today, good for a $36 million market cap, which is a bargain considering the Askott merger was priced in at $26 million.
Frankly, with all of the technical side of things now secured, all the remains for FansUnite to complete the mission they set out on, is to build out a sales force and deliver licensing deals going forward.
— Chris Parry
FULL DISCLOSURE: Fans Unite is an Equity.Guru marketing client, and we’ve purchased shares in the company.