By M. Marin
NASDAQ:GMGI
READ THE FULL GMGI RESEARCH REPORT
Executing growth strategy to expand geographically, B2C and B2B segments
Golden Matrix Group (NASDAQ:GMGI) provides a broad and growing array of software solutions, products and services to the gaming industry, offering casino, sportsbook and other competition products. The company historically has operated primarily in the B2B (business-to-business) segment but through recent initiatives, has entered the B2C (business-to-consumer) niche, including the pay to play space, as well.
The company’s technology platform provides enterprise SaaS solutions for online casino operators and online sports betting operators. GMGI’s systems have more than 8.3 million registered players and more than 800 unique casino and live game operations on its platforms. Separately, R Kings Competitions and GMG Assets Limited operate in the pay to enter prize competitions niche in the U.K. and Australia.
GMGI sees system’s ability to leverage AI as a significant competitive advantage
Many of the company’s operations have been added through strategic M&A. Most recently, GMGI acquired Meridianbet in April of 2024. GMGI expects Meridianbet’s AI-enabled technology to help lower its CAC (customer acquisition cost) and raise player LTV (lifetime value), as well as boost customer retention, as AI enhances the ability of the platform to ‘learn’ and ‘know’ players and their preferences.
Meridianbet has more than 20 years of industry experience and GMGI views it as a leading sports betting and iGaming brand, operating across 18 jurisdictions worldwide. It offers its proprietary technology through both B2B and B2C channels and delivers its solutions online and through a retail network of more than 800 outlets with a broad international footprint, which GMGI believes positions Meridianbet as a key player in the global gaming market.
GMGI’s goal is to expand its B2B and B2C customer base globally and launch additional complementary products. As an example, GMGI entered the U.S. sweepstakes market last month through a partnership between its Expanse Studios subsidiary and numerous sweepstake casino operators in the U.S. The U.S. sweepstakes market was estimated at $5.6 billion in 2023. Projections from various market research firms or industry consultancies estimate that it will reach $7 billion to $11 billion by 2025.
GMGI is diverse in terms of both its international footprint – operating in numerous regulated markets globally, as well as the product offerings and revenues streams generated from its product portfolio. A core company objective is to continue to diversify its revenue base. Based on initial preliminary estimates of 2024 revenue, some 60% of total consolidated revenue came from aggregate European markets, excluding the U.K., which represented about 14% of total revenue. With the company’s 2025 entrance into the sizable Brazilian online gambling market and growth in its U.S. footprint via potential partnerships, we anticipate further diversification going forward.
This month GMGI’s subsidiary Meridianbet officially secured an online betting license in Brazil, providing the company’s entry into one of the world’s largest and most profitable regulated gaming markets. Brazil’s sports betting and iGaming industry are estimated to generate $5.6 billion in gross gaming revenue (GGR) by 2025, according to H2 Gambling Capital. Meridianbet will be able to operate through both online and physical channels in Brazil. GMGI sees this acquisition as potentially transformative in enhancing its growth prospects.
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