- Commercial gaming revenues in the United States reached a record $14.81bn in 2Q22
- Online gaming operations grew at an even faster pace, rising by 34.3% YoY to all-time high of $1.21 billion
- Recent studies have found that the online gaming market space within the United States could triple in size over the next five years, growing to $24.3 billion by 2026
- Golden Matrix Group, which recently won its Mexican gaming permit, looks well positioned to capitalize on the growth of the US online gaming sector through its B2B white-labelling operations
Commercial gaming revenue in the United States reached a record $14.81 billion in the second quarter of 2022, rising by 8.8 percent relative to the same period last year, whilst simultaneously surpassing the previous record reported in the fourth quarter of 2021 by 3.3 percent. Remarkably, online gaming operations rose at an even faster pace, seeing gross gaming revenue rise by 34.3 percent year-over-year to an all-time high of $1.21 billion, supported by the opening of six new legal jurisdictions for online gaming operations dating back to the second quarter of last year (https://ibn.fm/Varav). The robust growth trends for the sector bode particularly favourably for the likes of Golden Matrix Group (NASDAQ: GMGI), a developer and licensor of online gaming platforms, systems, and gaming content, whose technology and turnkey solutions are increasingly being adopted by hundreds of gaming platforms around the world.
The advent of online gaming as witnessed by the recent industry trends have attracted a host of gaming platforms to the sector. Dating its origins back to the founding of the first online casino in 1994 – when the internet and computers were still relatively unusual concepts, there are now several thousand platforms vying for market share within an increasingly crowded marketplace. A number of those companies have sought to devote their efforts towards marketing and customer activation activities, opting to outsource their operational systems and gaming portfolios from third-party providers such as Golden Matrix Group.
Whilst already impressive in nature, US sports betting and online gaming markets are set to continue their recent growth trajectory going forward. A recent study by VIXIO Gambling Compliance estimated that the combined online gaming sectors within the US could triple in size over the next five years, reaching an annual value of $24.3 billion as of 2026. Online gaming growth within the US has experienced a boom since the overturning in 2018 of a federal bans on regulated sports wagering outside of the state of Nevada. Since then, 35 states and the District of Columbia have legalized their markets in some form – permitting sports betting, online gaming, or both – with an additional 10 jurisdictions potentially following suit (https://ibn.fm/Gqvzg).
Meanwhile, a separate study has shown that if online gaming were to be legalized in all 42 states currently permitting land-based casinos or mobile sports betting, the potential size of the U.S. online gaming market could total over $30 billion. The rapid growth in jurisdictions legalizing online gaming has gained further impetus due to the potential tax revenues involved – as per the American Gaming Association, a study of six states permitting online gaming within the United States (i.e. Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia), found that these states had generated $970 million in gaming tax revenue in 2021, compared with $560 million generated from 30 states which only allowed sports betting (https://ibn.fm/juDgD).
The online gaming boom within the United States also opens a new potential revenue stream for Golden Matrix Group. Prior to fiscal 2022, Golden Matrix Group’s revenues were largely derived from licensing fees received from gaming operators located within the Asia Pacific region, who partook of the company’s GM-X turnkey solution, a complete software package designed to support online gaming businesses. The white-labelled service provided third party gaming platforms with access to GMGI’s expansive portfolio of over 10,000 games, ranging from online slots, casino table games, live operator games, and more drawn from Golden Matrix Group’s partnership with upwards of 25 providers.
More recently, the company has sought to broaden its global footprint, recently revealing that the company’s gaming permit in Mexico has been approved – a key milestone set to permit GMGI to both, diversify its geographic revenue base and establish a firm foothold within the burgeoning North American gaming marketplace.
For more information, visit the company’s website at www.GoldenMatrix.com.
NOTE TO INVESTORS: The latest news and updates relating to GMGI are available in the company’s newsroom at https://ibn.fm/GMGI
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