Elys Game Technology has announced its confidence in its long-term growth plans in the US following the launch of its solo sports betting venture in the state and the market access agreement with Caesars Entertainment in Colorado. These developments occurred after the end of Q3, but Elys executive chairman Mike Ciavarella emphasized their critical importance for the company’s expansion in the US.
Ciavarella highlighted the company’s focus on replicating its success in the Italian market in the US and Canada. He referenced the investments made in product platform and infrastructure development, which are expected to convert into revenues in 2024. The impending launch in Colorado is seen as an entry point into the online sports betting market, with the partnership with Caesars serving as a gateway to opportunities in other states.
While the company is focused on expansion in the US and Canada, Ciavarella also emphasized their commitment to Italy, where they have introduced a revamped platform and product lineup to enhance the player experience and reduce expenses.
In terms of financial performance, Elys reported a 11.8% decrease in revenue to $8.4 million in Q3, mainly due to higher payouts for sportsbook customers. Total handle also decreased by 2.4% to $162.5 million. However, the company saw a reduction in net loss, with total operating expenses being 7.9% lower at $11.7 million and a pre-tax loss of $3.2 million.
For the year-to-date figures, Elys reported level revenue at $32.2 million, with a reduction in pre-tax loss from $10.0 million to $9.0 million. The company remains optimistic about its strategic rollout in the US and is confident in its ability to replicate the success it has seen in Italy.
Additionally, Elys updated the market on its Nasdaq de-listing, stating that the company’s common shares are now trading on the OTC markets. The management team and board of directors are assessing various major listing venues to determine the most strategic path forward to maximize shareholder value in the long term.