It’s been a tough few months for Elys Game Technology Corp., but things might turn around.
After Nasdaq delisted Elys last month because its shares stayed below $1, Elys announced a multiyear market access partnership with Caesars Entertainment that will allow it to launch a sportsbook in Colorado.
Pending regulatory approval, Elys will launch in Colorado under its SportBet.com brand. It will be the first time the company offers its in-house online sportsbook in a US market.
“We look forward to bringing our unique mobile sports betting experience to US customers through our market access agreement with Caesars Entertainment,” Elys Executive Chairman Mike Ciavarella said in a Globe Newswire news release.
Elys moves quickly after SportsBet.com announcement
In October, Elys announced branding for SportBet.com, which the company planned to use to offer sports betting directly to bettors in multiple US jurisdictions.
Up until the SportBet.com announcement, Elys was known for working with brick-and-mortar sportsbooks. For example, the company provides the sports betting tech for the Top Hat Sports Bar & Grill in Maryland.
The announcement of SportBet.com signaled a shift in the company’s strategy. They no longer wanted to be a behind-the-scenes participant in US sports wagering markets.
Revenue opportunity is sparse in Colorado
Elys’ decision to enter Colorado is aggressive for its SportBet.com brand. As one of the top 10 US sports betting markets, competition in the Centennial State is fierce.
There are 19 online sports betting apps in the state, including heavy hitters such as:
In most states, handle (total amount bet) and revenue tend to fall into three tiers: DraftKings and FanDuel have at least an 80% share, BetMGM and Caesars grab another 10%-15%, and smaller operators fight for whatever is left.
For example, in July, Colorado sportsbooks generated around $25 million in revenue. DraftKings and FanDuel likely grabbed $20 million of that revenue.
BetMGM and Caesars probably accounted for $3.5 million, and the state’s 15 other sportsbooks fought for less than $2 million.
However, those numbers didn’t faze Elys. Ciavarella is confident Colorado sports bettors will sign up for SportBet.
“Our meticulous market analysis, conducted before our entry into the US B2C online segment, has allowed us to create an effective go-to-market strategy along with a cutting-edge product that we believe will be rapidly adopted by North American sports bettors,” he said.
Colorado launch is a bright spot during a tough autumn for Elys
Just a few days after announcing its SportBet.com brand, Elys revealed it had been delisted from Nasdaq because it couldn’t keep its share price above $1.
The company said it was considering a reverse stock split, a move that combines all shares into a smaller number to boost stock price.
In the meantime, the company moved its shares to the over-the-counter market, where sub-$1 stocks tend to land. The move may be a permanent one, as the company said that keeping its shares off Nasdaq could save it around $1.6 million a year.