Analysis

Gaming Realms eyes U.S. expansion

The company behind the social casino games hit Slingo said it will be expanding footprint of its the real-money version in the U.S. in the first half of next year.

Gaming Realms, which runs the popular game Slingo, said on Tuesday it would be launching real-money games in the two more states next year.

The company is already licensed and offering its game in New Jersey.

Licenses are being applied for in Pennsylvania and Michigan with a view to launching in the first six months of 2021.

Gaming Realms produces mobile-focused gaming content and works with some of the biggest names in global gaming including DraftKings and Flutter Entertainment.

In current trading revenues for the year are likely to be 55% ahead of last year at around $14m.

A growing roster

Analysts at Peel Hunt said Slingo games were likely to be launched with DraftKings, GVC/BetMGM and Rush Street.

“Slingo is a powerful brand in the US,” the team led by Ivor Jones said.

“Gaming Realm’s US-focused social gaming business contributes to growing awareness of the brand (as well as to the bottom line).”

Gaming Realms will also benefit from the expansion of the Slingo game format. The company said four new variants have been launched recently including a game called Slingo Fluffy Favorites. 

That game is advertised as the ‘fluff that dreams are made of.’

A recent report from Align Research noted that 56% of Gaming Realms first-half revenues already comes from the U.S.

“In New Jersey, where the company already has an operating license, revenues grew by 94.7% year-on-year,” the Align team said.

Align noted that the expanded arrangement with Rush Street was indicative of how much growth the company will likely see in the U.S.

“The new deal sees the Slingo Originals portfolio extended from its current distribution in New Jersey to add the Pennsylvania market, which is RSI’s largest territory. 

“Also, the Slingo Originals content will now be directly integrated into RSI’s platform, thus eliminating the need for a distribution partner and enhancing margins.”

Target practice

Such is the enthusiasm for gaming currently in the U.S. that the Align team speculated that Gaming Realms could be “on the radar” as a potential acquisition form a larger player.

Alternatively, there might be a thought to mirror the move by former fellow UK-listed GAN, which switched to the U.S. market to gain greater investor interest.

“(That) could see a higher valuation being awarded,” they added.

Tags

Scott Longley

Scott Longley has been a journalist since the early noughties covering personal finance, sport and the gambling industry. He has worked for a number of publications including Investor's Week, Bloomberg Money, Football First, EGR and GamblingCompliance.com. He now writes for online and print titles across a wide range of sectors.

Subscribe to our mailing list

Get the latest updates on the US online betting industry and changes to the Wedge Index.

Related Articles

Back to top button
Close