ELYS: DC Launch – Expect Proof-of-Concept of Platform Capability & Flexibility

By M. Marin

NASDAQ:ELYS

READ THE FULL ELYS RESEARCH REPORT

Platform deployed at the Grand Central Restaurant and Bar

Elys Game Technology (NASDAQ:ELYS) deployed the platform at the Grand Central Restaurant and Bar earlier this month. The launch enables Grand Central customers to place sports bets within the restaurant / bar, which is located in the Adams Morgan neighborhood of Washington, D.C. Importantly, ELYS’s recently acquired US Bookmaking (USB) subsidiary provided critical assistance with the deployment.

The Grand Central is the company’s first U.S. rollout. The Washington, D.C. metropolitan area authorized retail and online sports betting in 2020 and retail players appear to be enthusiastic, according to trade publications. Management believes gross revenue per capita is already among the highest in the U.S.

The company expects the Grand Central launch likely will form the basis for the template for deployment in other North American small businesses. ELYS expects the platform to operate efficiently in small venues such as Grand Central and also scale in larger operations such as tribal and other casinos. The NFL football season is underway, which might also stimulate interest in the ELYS platform.

Showcasing platform capability & flexibility

Importantly, the Grand Central installation will enable the company to showcase its technology platform to potential new customers. The company is engaged in discussions with other restaurant owners and restaurant chains (see below), casino operators, and other small business owners. With the D.C. launch providing proof of concept, the Grand Central deployment could facilitate moving many of those forward, management believes.

Moreover, Elys recently entered into a memorandum of understanding with the New York State Restaurant Association (NYSRA) to potentially add the company’s platform to NYSRA member restaurants to provide entertainment and additional revenue sources.

The company is optimistic that ELYS can service large and small venues economically and efficiently. The company believes that the ability to operate in smaller venues such as a sports bar underscore the advantages of its platform to both scale up and operate economically in smaller locations, as well. Moreover, despite the size, the company believes these venues offer significant opportunities and can often operate along the lines of micro casinos.

USB acquisition expected to facilitate expansion efforts

As noted, Bookmakers Company US LLC (USB), which ELYS acquired in 3Q21, provided critical assistance with the Grand Central deployment. Management believes the USB acquisition will enhance its global growth strategy. The USB team has extensive sportsbook experience. ELYS expects USB will expand its customer base and U.S. footprint. Moreover, the feedback that ELYS can get through the USB unit will enable it to better adapt and innovate in order to introduce products and services to meet player needs.

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