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Gaming Realms PLC

Gaming Realms targets international distribution and US expansion

Snapshot

Following its success in New Jersey, the company said it now intends to enter any US states that regulated online gaming

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Quick facts: Gaming Realms PLC

Price: £0.07

Market: AIM
Market Cap: £19.55 m
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  • Gaming Realms sold its consumer facing business to Oslo-listed River iGaming for £11.5ml•

  • Retains the Slingo brand and slingo.com intellectual property (IP)

  • Business now focused on development of games and worldwide licensing

 

How is it doing

Gaming Realms’ focus is building and licensing new games, B2B partnerships and broadening the reach of its very successful Slingo format.

Patrick Southon, CEO, reckons it will take 18 months for the River iGaming deal to wash through fully, but by then the potential of its licensing side should be clear.

For example, Southon expects the Slingo name to become generic for all bingo-style mobile games.

“We are a start-up now in some ways, but we have a great opportunity and the cash now to do it.”

Looking ahead, the company is seeking to develop and licence its mobile-focused games under the Slingo brand while international distribution would increase income from its game portfolio.

GMR added that following its success in New Jersey it intended to enter any US states that regulated online gambling.

 

What the boss says: Patrick Southon

Southon said in June that since launching its licensing business in 2017 the firm had captured over 3.5% of the market share in New Jersey and was looking forward to “focusing solely on increasing the cadence of game development and licensing delivery as more B2B partners come online”.

"The success to date in licensing our Slingo content illustrates a clear market opportunity to grow our revenue and profitability on an international level”, Southon said, adding that the firm’s recent deal with Scientific Games to distribute Slingo games via its global platform was expected to start contributing revenue in the latter part of 2019.

 

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Inflexion points

  • Slingo straightforward to sell, just a question of integration onto other platforms
  • International revenues to grow and reduce UK risks where regulation is tightening
  • New partners in US and Asia, in particular
  • Licensing is lower revenue but much higher profits
  • Monopoly to launch – a variation of Slingo and highlights that just adding a new format creates a whole new game

 

What the broker says: Peel Hunt 

Following the slae of B2C, Gaming Realms is a developer and B2B supplier of games based on the popular Slingo brand and game mechanic.

It has built, and continues to build, a library of games, which make it of increasing relevance to operators.

It can distribute its games directly to operators or integrate via third-party "aggregators", which charge fees but which provide access to multiple operators in one integration.

Recent deals with Scientific Games and Relax Gaming should give over 150 operators access to Slingo games by the end of next year, up from c30 today.

Buy recommendation with a 16p target price says teh broker.

At 5.9p, GMR is valued at £15.5mln.

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