B2B gaming technology company Elys Game Technology has reported a new record year-to-date betting handle of $626.9 million for the first nine months of 2021, up 77% from the same period in 2020. Meanwhile, quarter-specific handle totaled $163.7 million, yielding year-to-date gross gaming revenue of $42.6 million.
The gaming and sports betting technology business further announced a year-to-date total revenue increase of 37.3% to $33.9 million and net loss from operations of $6.4 million, increased 371.1%. In contrast, GGR for Q3 decreased 9.3% to $10.3 million, and total revenue was down 17.2% to 8 million when compared to third quarter 2020, attributable to costs related to platform development and building of US and Canada infrastructure.
Reflecting on the financial results, Elys’ Executive Chairman, Michele Ciavarella, said the company “continues to grow its core business,” reflected by robust increases in handle and record revenues for the first nine months of the year. Sportsbook operations also continued “to perform remarkably well,” resulting in consecutive double-digit quarterly sportsbook hold.
“What we’ve created with Elys Game Technology is an Advanced Sportsbook Ecosystem,” Ciavarella said in a call to investors. It is made of three components: core technology, which is the betting platform; the software development team; and a B2B arm. “What we’ve created is essentially a feedback mechanism that knows exactly what the market offers, in exchange for what players are looking for.”
Expenditures during the first nine months remained focused on technology development and product preparation “for expansion of operations” in the U.S. and Canada. Moreover, during the third quarter of 2021, the company also achieved a series of key milestones, expected to better position Elys for future endeavors.
These highlights include the closing of the acquisition of Bookmakers Company US and onboarding of their trading and risk management team. The business also secured its first US license, leading to the commencement of its first operations at Grand Central Restaurant and Bar in Washington, DC. Additionally, subsequent to the quarter end, a partnership was signed with Ocean Casino Resort in New Jersey and an agreement with Jefferies, LLC was completed.
The technology company has described the US launch as showing “encouraging results” through November. Elys was granted a provisional MSP license and Grand Central Restaurant was granted a license to operate a sportsbook within its bar, opening on October 4. Grand Central sportsbook posted a hold of 21%, according to the DC Lottery.
This model, new to the US, where food and beverage establishments engage in sports betting, is considered a promising one by Elys. The company has entered into a Memorandum of Understanding with the New York State Restaurant Association to promote this business opportunity.
Despite much focus now shifted to growing its North America operations, the business has also reported strong results on its European operations. Organic growth in its operations in Europe processed a record $626.9 million and $163.7 million in year-to-date and third quarter betting handle, respectively.
Executive Chairman Ciavarella also remarked on the efforts carried out by the company to develop state-of-the-art technology. “It’s one of the newest betting technologies built on a microservices architecture,” he explained to investors. “And that differs from the monolithic or the older type of platforms, giving us an opportunity to have a highly-scalable architecture.”