Remember the good old days, when you could walk into any video arcade and put two quarters into a machine – and the next thing you knew, you were racing through a maze, avoiding ghosts and eating dots?
The game was Pac-Man. Originally launched in 1980, it became a cult classic that attracted a huge global audience and was later named the highest-grossing video game of all time, bringing in more than US$2.5 billion by the end of the 1990s.
If you think that’s impressive, today’s gaming audience dwarfs Pac-Man by a longshot.
With the introduction of mobile phones, high-speed WiFi, and new game streaming platforms, more people are online and playing games than ever before.
And with gaming, comes betting. That’s why we’re so excited about this up-and-coming betting platform, Real Luck Group Ltd., “Luckbox” (TSXV:LUCK) (OTC:LUKEF).
While the gaming industry has a very firmly established fan base, and has been raking in even more revenue as lockdowns have forced people to stay indoors, one segment of gaming still has the potential for significant upside.
Esports – what was first thought to be a bit of an outlier industry has rapidly become a bonafide booming market segment. The sports betting market was valued at US$85 billion in 2019.1 Overall, global esports betting revenue is expected to double this year,2 to about US$14 billion.3 This number is expected to grow rapidly over the coming years, as governments in the US and around the world move toward legalizing sports betting.
And make no mistake, governments around the world are moving quickly to legalize and regulate sports betting (which would include esports). Recently, Canada entered the second phase in the process of legalizing single game sports events with the bill’s passing in the House of Commons.
This huge potential upside is part of the reason DraftKings, the online sports contest and sports betting operator that went public this year, has seen gains of 232% since its IPO in April 2020, growing from $19.35 on April 24, 2020, to its high of $64.19 on October 2, 2020.4 The company, which allows users to bet on individual player performances in five major sports – Premier League/UEFA Champions League soccer, NASCAR, the Canadian Football League, the XFL, Mixed Martial Arts, and Tennis – now boasts a US$20.8 billion market cap as of January 20, 2021.
What makes DraftKings particularly interesting is that it is taking advantage of both the traditional sportsbook market as well as the esportsbook market, with League of Legends, Call of Duty, CS:GO, and Rocket League part of its fantasy roster.
But DraftKings isn’t the only company capable of straddling these two explosive markets…
Enter Real Luck Group Ltd., “Luckbox” (TSXV:LUCK) (OTC:LUKEF).
Register, Deposit, Bet and Play – Real Luck Group Ltd. (TSXV:LUCK) (OTC:LUKEF) – A New Global Esports Betting Brand
In the wake of the lockdowns, which have seen major sports events all over the world canceled, there’s been a big shift towards all things virtual – and esports was literally the only show in town. With no live sports to bet on, bettors shifted their attention to esports.
And now, stepping in to capitalize on the trend is Real Luck Group Ltd., “Luckbox” (TSXV:LUCK), a fully licensed global esports betting brand, which is finally accessible to investors after recently going public on December 16, 2020.
Raising CA$17.8 million so far, Luckbox (TSXV:LUCK) (OTC:LUKEF) has a war-chest of cash to be the market leader in a rapidly shifting betting landscape. Luckbox offers legal, real-money betting, live streams, and stats on 13 esports on both desktop and mobile.
Luckbox (TSXV:LUCK) (OTC:LUKEF) is backed by a team that has vast experience in the igaming industry, having previously led teams at PokerStars, 888, GosuGamers, and GVC. Now, they have combined their skills and passion for esports to offer players a unique, secure, and legal betting experience for games such as League of Legends, CS:GO, FIFA, Overwatch, and DOTA 2.
The Luckbox (TSXV:LUCK) (OTC:LUKEF) platform has been designed with the esports audience in mind. Given that this audience is predominantly made up of esports fans, the platform has been built from the ground up and designed to look and feel intuitive for gamers and esports fans.
It’s already starting to pay off too: Luckbox (TSXV:LUCK) (OTC:LUKEF) was named the Rising Star at the EGR Operator Awards.5 But here’s where things get even more interesting. Not only is the platform designed for esports, it’s fully capable of being able to integrate traditional sports betting as well, which is another huge market that presents a massive growth opportunity.
Not only is Luckbox (TSXV:LUCK) (OTC:LUKEF) setting itself apart from the competition with its award-winning platform, but it also holds a full licence under the Isle of Man Online Gambling Regulation Act (OGRA) for B2C and B2B esports, sports betting, and casino games. This license allows Luckbox (TSXV:LUCK) (OTC:LUKEF) to accept players from countries all over the world and provides good access to payment processors – which can be a huge barrier to entry for other operators.
8 Reasons Why Luckbox (TSXV:LUCK) (OTC:LUKEF) Could Be the Top Esports and (Soon-to-Be) Sportsbook Betting Brand
- Fully customizable esports betting platform designed by modern esports bettors; this platform can easily accommodate online traditional sports betting too
- Isle of Man license: One of the top global licenses focused on enforcing customer verification, anti-money laundering, combating financing terrorism, cybersecurity, player protections, and responsible gaming
- Live in 80+ countries accessible on mobile and desktop, $2,500,000+ wagered at 5%+ margin
- More esports matches than any other esportsbook: Close to 100% match coverage
- Safe and Secure: All player funds are kept in trust so that they are never jeopardized
- 20+ Payment Options including Visa, Mastercard, Bitcoin, and Ethereum
- 90% Live Streaming: Allows users to watch and bet while a match is live
- Will be launching online betting for 100+ traditional sports, to take advantage of the huge traditional sportsbook market
- Real Luck Group Ltd. Announces OTCQB Certification Application
- Real Luck Group Ltd. Announces Luckbox’s Launch Of Affiliate Programme With Paysafe’s Income Access
- Real Luck Group Announces Closing of Upsized [and Oversubscribed] $17.8 Million Private Placement of Special Warrants Led by Gravitas Securities
- Real Luck Group Welcomes Step Towards Single Event Betting in Canada After Bill C-218 is Passed
- Real Luck Group Announces Canadian Gaming Association Membership
- Real Luck Group Ltd. Announces Mike Bazzi as Luckbox Affiliates Manager
The Future Looks Even Brighter – All Bets are on Esports
It is now estimated that roughly 3.1 billion people worldwide play video games, which is about 40% of the world’s population.6 By the end of 2020, the global gaming market was estimated to generate $159.3 billion in revenue, and is expected to surpass $200 billion in revenue by 2023.2
Esports betting grew from $315 million in 2015 to $23.5 billion in 2020.7 The esports market is experiencing rapid growth right now, thanks in part to the lockdowns but mostly due to increased interest among players, bettors, and companies alike.
North America’s largest gaming platform Enthusiast Gaming isn’t new to the space, but it is clearly reaping the benefits of the esports boom. After uplisting to the TSX, Enthusiast’s stock (EGLX) hovered around the $2 mark for most of 2020. That is, until the stock flew like a bat out of hell in November.
As you can see, Enthusiast has experienced some significant gains and as of January 21, 2021, is up over 330% in the last two months. If you look at where EGLX was two years ago when it hit the public markets, it looks as though Luckbox (TSXV:LUCK) (OTC:LUKEF) could be destined for a similar trajectory – but in a much shorter time.
Why? Because LUCK began trading at the absolute perfect time. And once investors find out about this sleeping giant esports stock, it could head for the sky.
If you want an idea of just how perfect the timing is, take a look at mobile gaming and esports platform Skillz. This stock just went public in December via a SPAC reverse merger that valued the company at an impressive $3.5 billion.8
On January 20, Skillz reached $29.94 per share with a market cap of $11.06 billion, meaning the stock went up 67% in just over a month!
We’ve also seen massive attention and validation from some of the most recognizable brands on the planet. Companies such as Coca-Cola, DHL, and Mercedes-Benz are sponsoring esports events. Sponsorship and advertising for esports brought in $615 million in 2020.9 This is an industry that means big money, and it’s companies like Luckbox (TSXV:LUCK) (OTC:LUKEF) that are in a prime position to take advantage of the growing stakes.
Today’s Esports Viewers Are Tomorrow’s Bettors
It’s all about eyeballs and new customers. This is why the Luckbox (TSXV:LUCK) platform is uniquely compelling. Currently, Luckbox (TSXV:LUCK) (OTC:LUKEF) is live in 80+ territories on both desktop and mobile, with $2.5 million in total wagered. These are two key performance indicators (KPIs) that are both important to the investor but also the industry. Two critical metrics are deposits and turnover (bets wagered). Both these metrics are skyrocketing!
Deposits, or the total amount Luckbox (TSXV:LUCK) (OTC:LUKEF) customers are placing into their platform, have increased ten-fold over the previous year. Not only are customers depositing more money, but they are interacting with the platform more, as turnover rates have increased 13 times over the prior year. This means customers are depositing money and betting inside the intuitive platform.
These trends all point towards Luckbox’s (TSXV:LUCK) (OTC:LUKEF) revenues exponentially increasing. With both new deposits increasing, and the number of bets increasing, Luckbox (TSXV:LUCK) (OTC:LUKEF) is capturing a piece of the action. The business model is focused on getting a cut for matchmaking customers with the bets and taking a piece of the cut. Vigorish, also known as the cut, the take, the margin, or the vig, is the fee charged by a bookmaker accepting a gambler’s wager. Industry standard ranges between 3%-4% but can sometimes reach up to 10% for each bet.
Putting it all together, it’s easy to see where this is heading… If Luckbox (TSXV:LUCK) (OTC:LUKEF) is adding new customers, and these customers are both depositing more money and making more active bets, Luckbox (TSXV:LUCK) (OTC:LUKEF) could potentially be raking in big numbers in 2021. Growth is just around the corner, with the company now laser-focused on marketing efforts to grow that customer base.
The Rise of the Online Esportsbook Gambling Industry
With the biggest online sportsbook and gambling operators sitting on the sidelines, they are hungry to take a bite out of this lucrative market – and it’s all about customer acquisition.
Like a software-as-a-service (SAAS) business, the focus for these large enterprises is in the metrics: customer acquisition costs, lifetime value, and total addressable market. It’s all about getting customers in the virtual door, and incentivizing them to spend. While most of the big companies are focused on this, they have yet to create their own esports platform, and have missed out on this quickly emerging market.
“I think what it shows you is there’s a lot of pent-up demand for sports.” – DraftKings CEO Jason Robins
With these massive companies falling behind, it has paved the way for smaller competitors, like Luckbox (TSXV:LUCK) (OTC:LUKEF), to create their own platforms tailored to esports betting, and it’s likely we will see a barrage of mergers and acquisitions in the future, as these larger gambling companies recognize the potential revenue they could be bringing in through esports. By acquiring an existing esports platform, they are killing two birds with one stone; they acquire new customers and also penetrate a new market.
How Does the Competition Measure Up to Luckbox (TSXV:LUCK) (OTC:LUKEF)?
The gaming industry has come a long way in the last year and a handful of companies have skyrocketed in value due to the rise in esports betting. DraftKings, which went from $19.35 per share on April 24, 2020, to its high of $64.19 on October 2, 2020,10 is just one of the stocks that has been on fire throughout 2020, in large part thanks to its esports betting offering.
Then, there is FansUnite Entertainment, which has gone up over 240% since its IPO in May, climbing from its opening share price of CA$0.35 on May 5, 2020, to its current price of CA$1.20 as of January 20, 2020.11 The company announced a $5 million private placement on December 15, then came back one day later and upsized the offer to $11 million due to overwhelming investor demand.12
Engine Media is another stock that joined the esports space in 2020 and hit the ground running. The company, which was formed through the combination of Torque Esports, Frankly Inc., and WinView, announced a $23 million private placement just before Christmas.
Interestingly, although these stocks have experienced some serious growth this year, many of them, like FansUnite for example, don’t have the revenue to support their inflated valuations. Which brings us back to Luckbox (TSXV:LUCK) (OTC:LUKEF). There is ample room remaining in this industry for companies like Luckbox to swoop in and take a portion of the profits.
And when it comes to the investing side, it’s clear: when comparing Luckbox (TSXV:LUCK) (OTC:LUKEF) to other public companies in the same industry, LUCK is by far the cheapest option. Other comparable companies, with virtually no revenue, have market caps that are 2-3x times greater than Luckbox. This means, if you want exposure to this industry, Luckbox provides the best risk-to-reward scenario.
LUCK’s current stock price could mean that the sellers are clearing out and this stock is looking to break out with the release of the next positive news. Basically, NOW looks like it could be the best time to take a look at this company. As we have previously mentioned, Enthusiast Gaming was in their position only two years ago – and look at where EGLX is at now!
Adding to that, here’s where the opportunity becomes even more compelling. From a platform perspective, Luckbox (TSXV:LUCK) (OTC:LUKEF) has distinguished advantages over competition. By focusing on industry-wide customer problems, Luckbox (TSXV:LUCK) (OTC:LUKEF) has developed a superior solution that provides a modern interface that streams esports, including online rosters and statistics. Not only is it a better technology stack, but customers have close to 100% match coverage for all esports bets.
Luckbox’s (TSXV:LUCK) (OTC:LUKEF) Winning Growth Strategy
Luckbox (TSXV:LUCK) (OTC:LUKEF), now that it’s fully cashed up, is accelerating its business model. The company has three areas it is focused on, including: growing their existing B2C business, mergers and acquisitions, and building out an industry leading esports B2B solution.
Luckbox (TSXV:LUCK) (OTC:LUKEF) has an overarching corporate strategy, and is also committed to enhancing its platform with additional developments. Take a look at the product roadmap below:
Currently, while the Luckbox (TSXV:LUCK) (OTC:LUKEF) platform is growing and dominating the esports marketplace, it’s clear how easily this company can scale and penetrate new market verticals. With a foundational technology stack, it’s easy for Luckbox (TSXV:LUCK) (OTC:LUKEF) to add an online betting platform for traditional sports. Through organic growth, or accelerated mergers and acquisitions, Luckbox (TSXV:LUCK) (OTC:LUKEF) could swiftly add 100+ sports, offering tournaments and event operating for these, which would put a favorable spotlight on the company as they begin encroaching on the multi-billion dollar market of online gambling.
With a strong corporate vision and leadership who has executed profitable businesses in the past, Luckbox (TSXV:LUCK) (OTC:LUKEF) is perfectly positioned. While the company executes on its growth plans, it’s not hard to envision a large multi-billion dollar company acquiring Luckbox (TSXV:LUCK) (OTC:LUKEF) as the perfect opportunity to grow their portfolio into the rapidly growing esports market and adding a new demographic of customers.
Luckbox’s (TSXV:LUCK) (OTC:LUKEF) Skilled Leadership Team
Why Luckbox (TSXV:LUCK) (OTC:LUKEF) Could Be the Esports Betting Stock for 2021
Rapid boom in esports that’s been accelerated even more by the lockdown
Massive revenue potential with KPIs showing solid execution
Defined growth strategy both organic and through M&A
Appeals to a younger crowd, the same investors that are on Robinhood
Recently became public and the market hasn’t heard their story
Cheapest market capitalization among its peers
Proven leadership team that has successfully operated profitable growth companies
Strong technology platform that is intuitive and is hyper-scalable
Capacity to implement further verticals to add proven revenue streams