Thursday May 12, 2022
Thursday May 12, 2022
Every gambler is on the lookout for a lock, but as every gambler knows, the only sure way to double your money is to fold it over and tuck it in your pocket. Humanity’s penchant for gambling traces back to state-run lottos in 200 BC China to the first U.S. online lotto in 1994 and now proliferates across the globe on PCs and mobile devices. Transacted through internet platforms, online gaming (or internet gambling) offers inventive games of chance as well as virtual poker and sports betting. The online gaming market is booming, eclipsing $70 billion last year, and all manner of casinos and upstart platforms are scrambling for a piece of the action. As lucrative as this all sounds there’s an Achilles heel for these platforms: customer acquisition cost vs. customer lifetime value. In the United States, the customer acquisition cost for an online casino player is more than $500, and some estimate player value at $300 or less. The math simply doesn’t work, and some online casino operators have come to realize that traditional advertising for sports betting and iGaming products presents an irrational cost of customer acquisition. With the online gaming market expected to explode to more than $130 billion in the next five years, there may be a smarter way to cash in on the action. Much like the merchants that made millions during the gold boom while prospectors panned for dreams, providing B2B services such as online gaming platforms, systems and gaming content has proved to be a winning business model. Coming off its 14th consecutive quarter of profitability, Golden Matrix Group Inc. (NASDAQ: GMGI) (Profile) continues to carve out enviable market share by delivering state-of-the-art configurable and scalable white-label B2B gaming platforms for its customers across the globe. Golden Matrix’s gaming IP includes sophisticated tools for marketing, acquisition, retention and monetization of users — exactly what iGaming operators need. With more than 580 unique casino operations, 30-plus partnerships, 6 million-plus end users and 3,161 original games, Golden Matrix has established itself as one of the world’s leading providers of turnkey and white-label gaming platforms, Esports technology and gaming content, and the company has even bigger plans for market dominion. All the major casino operators, including Caesars Entertainment Inc. (NASDAQ: CZR), Penn National Gaming Inc. (NASDAQ: PENN), MGM Resorts International (NYSE: MGM) and Las Vegas Sands Corp. (NYSE: LVS) are trying to entice users to download their apps as they fight for a piece of the online action and struggle with customer acquisition costs.