Luckbox scores $7M in Q1 betting handle
Luckbox scores $7M in Q1 betting handle
Sharpr is a weekly newsletter covering the intersection of esports and betting
Hi everyone, Cody here.
Just a note that I’ll be taking a two week hiatus from writing while I carry out some work-related travel, which includes a trip to Mexico where hopefully I don’t get food poisoning again.
With that being said, I’ll be at Canadian Gaming Summit the week of June 12 if any of my readers would like to meet up and shake hands, don’t hesitate to drop me a line.
Let’s get into this week’s action. Enjoy the warm weather and see you all in a couple of weeks!
In this week’s edition of Sharpr…
Luckbox scores $7M in Q1 betting handle.
Rivalry launches Gen Z-focused mobile app in Ontario.
North Carolina on the cusp of approving esports betting.
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Luckbox scores $7M in Q1 betting handle
Real Luck Group, the operators of esports betting platform Luckbox, released its Q1 2023 results on Monday.
Betting handle reached approximately $7M in the first quarter, up from 2.36M in FY22.
Revenue was $460K, a steep year-over-year increase from $13.7K in Q1 2022.
Registered accounts reached 420K at the end of April.
April betting handle was said to be “consistent” with the $3.76M generated in March, despite a 40% reduction in marketing spend. This is said to be owing to Luckbox’s emphasis on enhanced player retention and reactivation.
The company recorded a net loss of $3.07M in Q1, up from 2.29M in Q4 2022, and 1.45M in Q3 2022. Luckbox noted additional costs incurred as a result of consulting fees, platform and product development, business intelligence, and acquiring players. Advertising and marketing specifically amounted to $1.91M in the first quarter.
Revenue jumped $446K year-over-year, which Luckbox attributed mostly to casino betting on its platform. The operator says it now offers 800 casino games from providers Microgaming and Pragmatic Play. These casino royalty costs, payment processing fees, and player onboarding measures also contributed to an uptick in cost of revenue, amounting to $365K.
In 2021, Luckbox raised $11.87M in a private placement. Of those proceeds, $3.24M was spent on player acquisition and $7.26M on G&A. As of March 31, the company has approximately $2.09M in cash.
Real Luck Group CEO Thomas Rosander pointed to the Luckbox’s consistent growth in his press statement and gave a nod to the company’s unannounced B2B product.
“For the past six months, we have generated record breaking monthly operating metrics after re-launching our business from a standing start in 2022,” he said. “We also continue to make headway with our proprietary B2B product, which is being received well by large potential B2C customers."
🦈 Sharpr Take: Luckbox has recorded some serious growth in the last year.
As Rosander noted, the company has worked to relaunch the brand and undertake significant efforts to increase player acquisition and redevelop the platform.
This has clearly come at a cost, though, with net loss increasing sequentially over the past four quarters. That being said, betting handle, revenue, and player registrations are all way up. It will be interesting to see how things shape up in the next few quarters – Rosander predicted the company would reach profitability later this year.
Real Luck Group Ltd (TSXV: LUCK) is trading at $0.07.
Rivalry launches Gen Z-focused mobile app in Ontario
Toronto-based Rivalry has launched its Millennial, Gen Z-focused sports betting app in Ontario.*
The iOS mobile app is available today to Ontario residents 19-and-up.
Rivalry’s app will feature the region’s most extensive catalog of top esports, such as Counter-Strike and League of Legends, as well as mobile games such as Call of Duty: Mobile and Mobile Legends: Bang Bang.
Users can also bet on a range of traditional sports leagues including the NFL, MLB, MLS, and more.
Since acquiring its Ontario license in April 2022, Rivalry states it has seen a 15% average month-over-month growth rate in esports betting in the region.
Rivalry CEO Steven Salz says the company’s mobile app will bring Rivalry’s Millennial and Gen Z-focused betting experience to more users in Ontario and ultimately grow the esports betting category.
“We are engaging a demographic with unique consumption habits and betting preferences. This is a generation that expects more from the products, entertainment, and brands they consume, and we’ve customized our online betting experience to match that.
“Our differentiated user experience continues to act as a catalyst for our company, and we’re excited to bring this offering to the palm of our customers’ hands.”
*Disclosure: I am a full-time employee of Rivalry.
North Carolina on the cusp of approving esports betting
North Carolina is on the cusp of approving an online sports betting bill that would permit esports wagering.
The bill HB347 is heading to the House where lawmakers must agree on Senate changes before turning it over to Gov. Roy Cooper to be signed into law.
The bill would authorize esports wagering across both in-person and online events, lending itself to a potentially broader catalog of competitive gaming matches.
North Carolina’s proposed regulation offers a decent runway for esports betting to grow as classified as a “sporting event,” though it will be a matter of how available the category is in the market which determines the impact it could have.
Over in the Garden State, New Jersey Division of Gaming Enforcement Dep. Attorney General Anthony Strangia said that half of the state’s licensed sportsbooks accept esports wagers.
🗞 In the news
Twitch CEO speaks to streaming and gambling in an interview.
Esports Entertainment Group appoints Damian Mathews as Chief Operating Officer.
McDonald’s has released a game console.
📈 By the numbers
A pair of CS:GO weapon skins have just sold for over $500K.
Wisdom Gaming reportedly slashes 40% of staff in new round of layoffs.
Crown Resorts has agreed to pay a $294M fine for breaking anti-money laundering laws.
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Mate, if you got food poisoning in Mexico it is likely you are going to shitty places, just like you would anywhere else in the World. So take advantage of your dollar-peso exchange, go to a nice restaurant and stop disseminating crappy stereotypes.