Vancouver, British Columbia--(Newsfile Corp. - May 28, 2019) - Today's research report comes from eResearch Corporation. Analyst Chris Thompson gives Newgioco Group (OTCQB: NWGI) a one-year target price of US$1.30, a premium of 182% to the US$0.46 closing price on May 15th, the day the report was issued. The full report is available on www.eResearch.com.
Newgioco is a well-established, licensed, retail gaming operator of land-based and web-based gambling services, primarily in Italy but currently expanding worldwide.
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The growing Italian gambling market and strategic acquisitions allowed Newgioco to register strong growth in its businesses for the past four years, with the company expecting to reach US$500 million of betting turnover in 2019. The Italian total gaming market size is the largest in the EU with Gross Gaming Revenue in 2017 at 20.1 billion Euros. Of significance to Newgioco, the Italian market is very fragmented with many small operators that could be consolidated as part of a roll-up strategy.
The company offers solutions for both the Business-to-Business and Business-to-Consumers markets. In the B2C market, through subsidiaries, the company provides a full suite of gambling products and services, such as sports betting, online casino, poker, bingo and interactive games. In the B2B market, the company is focused on becoming the foremost betting technology platform provider, targeting licensed gaming, lottery and wagering operators, both land-based and web-based, in government-regulated jurisdictions.
The U.S. Supreme Court's repeal of the Professional and Amateur Sports Protection Act in 2018 provides a significant new market opportunity for Newgioco's ELYS™ sports betting platform. Its ELYS™ betting platform is ideally suited for a white-labeled integration into third-party operators, such as casinos and internet-based gambling websites, presenting an opportunity for sales into the USA and other gambling operators world-wide that want to add betting to their current offerings.
The company will focus on U.S. Tribal Casinos across 17 states and signed its first Tribal Casino Operator deal in April with the Chippewa Cree Tribe in Box Elder, Montana and expects other agreements to roll out in 2019-2022. The National Indian Gaming Commission reported that tribal gaming revenues hit a record US$32.4 billion in 2017, not far behind the commercial casino industry, which generated US$40.3 billion in gambling revenue. Revenue recognition of these opportunities will only crystallize once the individual states pass legislation to allow legalized sports betting.