Investors are looking for the next post-coronavirus trend…
And it’s already here.
While the world is in varying degrees of lockdown…
Investors are home looking to profit from one stealth industry that’s getting big money from investors.
Two years before the lockdown this industry hit $67 billion in revenues globally. But growth was steady rather than spectacular.
Forecasts are that its industry revenues will top $286 billion in 5 years at this frantic pace.
Right now, entire generations — young and old — are now turning their attention to the computer screen.
And they are interacting globally in a way they never have before. They’re gaming online in a worldwide frenzy to replace entertainment as we know it.
This Investing Phenomenon Has Happened Twice Before
A stealth bull run has happened twice before in the online entertainment industry:
Some players in the video game industry during the last supercycle in 2015 made a killing …
Electronic Arts (NYSE:EA), of FIFA and Madden NFL video game fame, soared and netted some investors an astounding 1,261% just between 2012 and 2018.
Take-Two Interactive (NYSE:TTWO) increased 1,665% on the wild ride with ‘Red Dead Redemption’ and ‘Grand Theft Auto’.
And they made the massive 690% gain for Activision Blizzard (NYSE:ATVI)—think, ‘Call of Duty’, look like a letdown.
Video game developers barely missed a beat as the video game supercycle spawned an online gaming supercycle.
Activision Blizzard’s ‘Overwatch’ game attracted 20 million online players in only one month when it launched in 2015.
GlobalData projects the video game industry to go from $131 billion in 2019 to $300 billion in just three years. Those are numbers even bigger than the 8-18X increases in the first, 6-year supercycle.
A fast-growing segment of the video gaming industry is the online gaming segment, which is more than ready for its next supercycle—and this time a pandemic has already supercharged it.
Even more explosive, mobile gaming, which sees more spend from consumers than all other forms of gaming combined.
Now, in 2020, online streaming and cloud gaming are stepping up to the plate, with Netflix-style advancements.
Even Alphabet’s Google is jumping into this gaming space with its Stadia streaming platform. But the rivalry is heated with competition for the same from Chinese giant Tencent, Sony and Microsoft.
OVER 7.4 MILLION PLAYERS NOW are streaming on Twitch alone…
With hundreds of millions of viewers possible.
This Stealth Industry Will Have 645 Million Viewers (Maybe More) by 2022
Online gaming isn’t just for the younger generations anymore.
Business shutdowns, travel restrictions and social distancing mean that masses of people around the world are spending significant time gaming online.
Verizon found that gaming traffic increased by 75% during the lockdown enforced due to the COVID pandemic.
In a three-day period in March alone, Activision Blizzard saw a single game downloaded 15 million times.
There are already 2.5 billion gamers worldwide.
That’s a billion more than just five years ago. Fortnite, one of the most popular games ever, had over 250 million registered users as of March 2019.
The pandemic is pushing those numbers even higher.
The U.S. gaming industry witnessed record sales across hardware, software, accessories and game cards, totaling $1.5 billion (up 73% year over year) in April alone.
And American consumers spent a record $10.86 billion on computer games, hardware and accessories.
During the pandemic, sports are on pause, and the world is looking for something to replace it with.
Global esports revenues will surpass $1 billion in 2020 for the first time. And that doesn’t even account for revenues from broadcasting platforms.
The esports audience will soar to nearly 500 million people already this year. Half of those are ‘esports enthusiasts’ who watch regularly. The rest are newbies—a shocking increase pushed by pandemic.
That’s 6X greater than Television… which is dying… much like the radio it displaced in the 1950s.
Esports is now even getting to be bigger than sports itself. Even major broadcasters are jumping on board.
Comcast (NYSE:CCZ) knows exactly how big the esports industry will be. That’s why it’s recently announced it will build a $50-million arena specifically for esports.
The ‘Fusion Arena’ will be housed in downtown Philadelphia and it will be able to comfortably seat over 3,500 people. It will also have more than 2,000 square feet of LED screens, training facilities and private rooms for players to stream video to their fans.
This will be the home of Comcast’s own esports team, the Overwatch League, but it will also be the East Coast esports hub. And it’s a first: The first-ever arena built from the ground up, solely for esports.
Again, it’s a powerful force …
Technology changes. Viewing patterns change. And when people play traditional sports or online games, the betting isn’t far behind.
Gaming Stocks Are Starting To Rocket
Investors at home are flooding in to capitalize on this new trend. A few well-placed investments could have brought an early retirement for thousands of investors.
That’s because gaming stocks are soaring since the COVID crisis.
DraftKings (NASDAQ:DKNG) shares went from $9.80 to a high of $43.80 … and some project it to go even higher. That’s already a 346% gain for investors in just a few months.
Investors who jumped on this when it went public in April were handsomely rewarded. It’s now valued at around $11.5 billion—bigger than the casino giants.
Penn National Gaming has gone from $18 this time last year to $33–and at least one analyst has got a $39 price target on it now.
Compared to cannabis companies, these are huge gains that are already happening, not waiting on a “magic number” for legalization.
Small cap gaming stocks could also benefit.
No one can predict the future… so one interesting play is this little-known company revealed below that has multiple revenue streams.
This company should benefit whether the coronavirus rages on or not…
It’s covering every aspect of the gaming industry, from betting on real games or high adrenaline esports, to casino games to the proprietary tech that makes it all happen.
This company should benefit no matter which games are popular…
You DON’T have to catch the latest hot sport.
That’s because sports betting powerhouses don’t even need the NFL, NBA, NHL, and MLB.
They offer bets on anything you can think of–from online gaming and virtual sports to award shows and reality TV shows. You can even bet on table tennis, snooker and horse racing.
It’s incredibly flexible. That’s why sportsbooks are still pulling in tens of millions of dollars every month–even more so under COVID.
Investors can now profit even more on people betting on the gaming market…rather than on the gaming market itself.
With this stock below, investors can participate in a company which targets a global video gaming market that is expected to go from $67 billion to $286 billion …
Much like cannabis… sports betting legalization is rolling out, but faster. And there could be a much bigger difference.
U.S. States Need Tax Revenue: Taxes From The Betting Industry Is Entering A Massive Growth Phase
The U.S. is the largest sports betting venue in the world, estimated at more than $150 billion.
That’s why states are rushing to stake their claims on the US portion of the $2-trillion global betting industry by legalizing it—and taxing it.
Right now, any of the 50 U.S. states are at liberty to legalize sports betting in its own jurisdiction.
Nearly two years after the shackles were removed, ~75% of US states have introduced legislation to legalize sports wagering, with sports betting legal in one form or another in 24 states.
Source: Legal Sports Report
It’s a huge revenue boost for states—especially coming out of a pandemic when they are even more desperate to fill the coffers.
California is eyeing up to $700 million in revenue alone from online sports betting. And they need it to take a chunk out of a $54-billion COVID-19 deficit.
Colorado, a pioneer in legalizing cannabis, is now eyeing $40 million in revenue for the state from sports betting.
Every little bit helps on the path out of the pandemic depression.
And all those states in need of this revenue could fuel the growth of little-known stocks like FansUnite.
Our Top Small Cap Pick: FansUnite
And there are five key reasons that the timing might be perfect:
#1 This industry is all about consolidation right now …
and FansUnite is on a major acquisition binge.
In March, it acquired UK-based McBookie, with its $100M in betting volume in the last three years, and now it’s acquiring Canadian esports giant Askott Entertainment–a key player with Tier 1 partners.
That acquisition should make FansUnite one of Canada’s leading online gaming companies, focused on sports betting, esports wagering and casino games. Now it’s planning its U.S. entry.
#2 Proprietary tech wins this game
This industry is all about the tech, which is where “bookies” become digital gods.
And FANS is all about harnessing its own tech as a solution to other players in the industry.
It’s built out infrastructure to connect the world’s gaming platforms through new technology.
FANS has its own proprietary sportsbook as well as a full-service white label solution aimed at taking in other sports books through the integration of cutting-edge technologies and business growth opportunities, both launching later this year.
It’s not tying itself to just one market.
It’s a business model that thrives with or without COVID-19.
#3 FANSUNITE is government compliant—a huge deal in the online betting world
The company’s tech, and its team, are all about bringing transparency to the online sports betting world.
The founders have over a decade of experience in the sports betting and data analytics industries.
CEO Darius Eghdami’s successful pioneering of transparent, fool-proof tech for the sports betting industry has earning him a place on Canada’s Next 150 Top Entrepreneurs list.
#4 Globally, EVERYONE’s got their game on
The pandemic’s got everyone—young and old—glued to their screen. And they aren’t likely to give it up.
FansUnite, by buying Askott, will be covering every angle of this gaming environment—from propriety tech for a B2B revenue stream, to online gaming, esports and sports betting. That positions it to succeed regardless of which sports are hot, which games are not. They don’t need the NFL.
And they’re benefiting from two massive, interconnected industries at once: Online gaming and online sports betting. One which can reach $286 billion in a few years, and one that could get a portion of $2 trillion with legalization.
#5 The next supercycle is now …
And FansUnite (CSE:FANS; OTCMKTS:FUNFF) has a major new acquisition, Askott, which on closing will position it among the top spots in Canada and knocking at the door of the United States, where an economically crippling pandemic is about to push legalization of online sports betting.
The last supercycle saw some investors who jumped into gaming on time leave with big profits. This pandemic-boosted supercycle will net the ones who pick the right “horses” with big profits too.
By. Chris Rogers
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
FORWARD-LOOKING STATEMENTS: Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Forward-looking statements may include, without limitation, statements relating to future outlook and anticipated events, such as the satisfaction of the conditions precedent and subsequent consummation of the Askott transaction; realizing FansUnite’s plans regarding expanded consumer base, business base, offerings and gaming licenses; that Saxon Shadforth’s contacts and experience will be a major asset; the growth of the online gambling market; its plan to grow by acquisition; the combined companies’ ability to scale their platforms, to enter into new and emerging international gaming markets, to capture the growing demand of gamblers and to become a global gaming leader; the strengths, characteristics and potential of the combined company; the company’s ability to become one of Canada’s leading gaming companies; the ability to launch a proprietary sportsbook as well as selling software to other sports books; and discussion of future plans, projections, objectives, estimates and forecasts and the timing related thereto. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of FansUnite to be materially different from those expressed or implied by such forward-looking statements. Matters that may affect the outcome of these forward looking statements include that online gaming may not turn out to have as large a market, grow as quickly or be as lucrative as currently predicted; FANS may not be able to offer a competitive product or scale up as thought because of consumer tastes for its online product, lack of capital, lack of facilities, regulatory compliance requirements or lack of suitable employees or contacts; Mr. Shadforth’s experience and contacts may not result in material benefits; FANS’s intellectual property rights applications may not be granted and even if granted, may not adequately protect FANS’ intellectual property rights; risk factors for the online sports gaming industry in general also affect FANS including without limitation the following: competitors may offer better terms to potential M&A acquisition targets, or no such target may actually be acquired even if agreements are signed; competitors may offer better online gaming products luring away FANS’s customers; technology changes rapidly in the gaming and esports business and if FANS fails to anticipate or successfully implement new technologies or adopt new business strategies, technologies or methods, the quality, timeliness and competitiveness of its products and services may suffer; FANS may experience security breaches and cyber threats; regulators may impose significant hurdles to online gaming companies; FANS may not receive applied for gaming licenses; FANS’s business could be adversely affected if consumer protection, data privacy and security practices are not adequate, or perceived as being inadequate, to prevent data breaches, or by the application of consumer protection and data privacy laws generally; the products or services FANS distributes through its platform may contain defects, which could adversely affect FANS’ reputation. Additional information regarding the risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s Non-Offering Prospectus dated March 27, 2020 filed on its issuer profile on SEDAR at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking statements.
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