19iGaming - The New Technological Hot Button
WHITEFISH, MT / ACCESSWIRE / July 6, 2015 / It's no secret that online gaming, and specifically online gambling (typically referred to as iGaming), is one of the fastest rising global industries, with billions of untapped dollars on the line. As its popularity continues to surge, the iGaming target market has widened, bringing in more women and older age groups.
Although digital technology has become an established and still growing part of the huge worldwide gambling and casino business, the smaller iGaming portion of the gambling market is viewed as a relatively new industry, with the greatest part of its potential still untouched. While much of the iGaming market has been focused on Europe, legislation in individual states has greatly expanded U.S. possibilities.
SECFilings.com Executive Interview | Jake Kalpakian / CEO of Jackpot Digital from TDM Financial on Vimeo.
The fast-growing iGaming market is now seen as representing a multi-billion dollar opportunity for U.S. business. Given the enormous size of the general online gaming sector, of which iGaming is a rapidly developing part, the financial potential is seen as almost unlimited, a hot ticket for the right companies.
A Fast Train to Jump On
As high-profile as iGaming has become in recent years, entry into the coveted club comes with a price. Digital technology for casino gambling has grown in sophistication over the years, and the more recent transition to online gambling requires a major shift in technological orientation. Such a conceptual re-tooling can take millions of dollars and years of effort that not every company can afford or is willing to invest.
Jackpot Digital (TSX.V: JP) (OTC: JPOTF) has, according to CEO Jacob (Jake) Kalpakian, put in around $25 million to create a robust iGaming platform, which includes a suite of online games based upon their own advanced HTML5-based software. HTML5 software, among other things, offers an extremely mobile-friendly product, and is viewed by Jackpot Digital as the future of the iGaming industry.
But all this represents an accomplishment that calls for more than just a lot of cash. The company has been operating since 1999, and its technical team as well as management team has worked together for many years, providing a unique polish and integrity to their in-house development and operational processes that many companies simply don't have. The result has been a mature, well-conceived, and flexible technological foundation that has allowed Jackpot Digital to successfully go after a variety of verticals and innovative products, producing unique marketplace offerings.
Jackpot Digital has focused on building niche products that have proved to be successful in land gaming casinos which have not yet been broadly introduced in the online universe. Starting with online poker, a surprisingly challenging undertaking in itself, Jackpot Digital has expanded into casino, online bingo, and other areas. The years of work and capital investment are now manifesting in new contracts.
Going Online with Carnival Cruise Lines
With an unmatched technological foundation and high-functionality products in hand, Jackpot Digital has already been tapped for a partnership to supply Carnival Cruise Lines with content on its cruise ships. Carnival is the largest cruise operator, with over $15 billion in annual revenues, serving 270,000 passengers at any given time.
Through an arrangement with Global Cash Access Holdings, Inc. (NYSE: GCA), Jackpot Digital is providing its proprietary mobile gaming platform for on-ship gambling. The system is now set up on several vessels, with many more anticipated in the near future, and a program roll-out is planned for vessels under the Carnival, Holland America, Princess, Aida and other brands owned by Carnival Corp.
Initial results have proven to be promising for Jackpot Digital as among the 30 casino games that are available from 3 different vendors, Jackpot Digital games ranked upon the most popular.
In addition, the Carnival deal has spurred interest from a number of other companies, and Jackpot Digital is now in confidential talks that are expected to lead very shortly to the announcement of several new strategic and profitable arrangements. Discussions include numerous hotel and casino resorts, ready to implement the Carnival model to resort guests, including Mexico where there are numerous locations currently under review.
Leveraging the Massive U.S. Fantasy Sports Market
The U.S. fantasy sports market is now in the $11 billion range, touching over 40 million season-long fantasy sports enthusiasts. Much of the movement to fantasy sports can be attributed to U.S. restrictions on sports betting. Taking creative advantage of this already established market, Jackpot Digital has recently launched a new horse racing product called DerbyTournaments. The horse racing portion of the online gaming world has not kept up with other segments, and Jackpot Digital has been able to seize on that opportunity, especially timely given the recent interest in the winning of the Triple Crown.
Based on their strong HTML5 core software platform, DerbyTournaments can be downloaded on any mobile device, a key advantage of the company's technology. It allows players to enter a horse racing contest by picking the horses they think will "win" or "place" from real-life professional racetracks, much like a daily fantasy sports website. Winners get paid instantly when their selections score higher than other players in the contest. Players can compete for real money against a few people or hundreds, and the design appeals to both hardcore enthusiasts and casual participants.
Jackpot Digital intends to expand DerbyTournaments globally, by offering players the ability to choose and play from different racetracks throughout Europe, South America, Australia, and Asia. In addition, players will soon be able to see a live video feed of each race while they chat with other players.
Competition in a Hot Industry
Jackpot Digital is a rare find for a number of reasons. For investors looking to invest in both the casino-based and online gambling industry, there are very few meaningful choices. Most companies are locked into the traditional casino support side of the business, without the technology to enter the online world. Many companies trying to dive into the online sector are either not publicly traded or are simply no longer viable, or in some cases they are large multi-billion dollar companies for which online gambling is only a small part. Many hopefuls have come and gone. Most recently Bingo.com Ltd. (OTC: BNGOF) sold its URL and online gambling community to a European company not traded on U.S. markets. In fact, companies with a significant online gambling arm are not traditionally based in North America. MGT Capital Investments (NYSE: MGT) does have an online focus, though it primarily acquires existing companies.
Not only is Jackpot Digital one of the few North American based publicly traded companies with a strong focus on both casino and online gambling technologies, it has what is now an undeniable upward trajectory with an inflow of major contracts that there is every reason to believe will only increase. Their hard-won technological edge is now quickly spawning real deals and real money. The company has clearly walked-the-walk, investing serious years and dollars into building a sound technological structure that puts it in a league of its own. It has a large, proven, and growing set of offerings to both the land-based and online gambling markets.
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SOURCE: Emerging Growth LLC
