Online gaming business Real Luck Group Ltd. -the parent company of esports, sports and casino gaming provider Luckbox- has shared financial results for the full year 2021. The business reported a net loss of $8.6 million ($6.7 million) for the year, while revenue remained minimal, at CAD $25,174, down 66.6% from 2020.
"During fiscal 2021, our team worked to enhance and extend both our proprietary platform and infrastructure, positioning us to launch our player acquisition efforts in 2022,” said Real Luck Group CEO Thomas Rosander.
The business focused on building its platform during the past year, which according to Rosander has enabled the Luckbox operator to develop and launch “a next-generation wagering platform,” powered by state-of-art business intelligence infrastructure. This will support the group’s player acquisition efforts, with the aim of optimizing marketing spending and player value.
As part of its plan to build an improved betting platform, the company made during 2021 a series of improvements to the product, announced eight new partnerships, and strengthened its team. It also complemented its core esports offering by adding sports wagering, thus enabling betting on a large number of daily markets including football, basketball and soccer.
"We concluded the year with the online casino launch, bringing an expected near-term revenue stream in a vertical where I have had prior successes throughout my career, including my tenure as CEO of Dunder,” noted Rosander.
Meanwhile, the completion of Private Placement of Special Warrants, with gross proceeds of $17.8 million, in March 2021, provided the company with a strong balance sheet, which it “prudently manages.” As of December 31, cash balance was $14.4 million with no debt, leaving Real Lucky Group “in a strong position” to deliver its growth goals in 2022.
In regards to future endeavors, the company’s CEO said the group looks forward to launching its offerings in the newly regulated market of Ontario, Canada, which launched on April 4. The business also expects to enter additional regulated markets this year.
"We remain focused on esports and casino wagering as well as growing our user base and are constantly evaluating opportunities to scale the business,” concluded Rosander. “Recent market developments and our robust balance sheet put us in a position of relative strength in order to do so and we will update investors on these initiatives as progress is made."
TSXV and OTC-listed Real Luck Group’s Luckbox offers real-money betting, live streams and statistics on major esports, as well as sports betting and casino games, on both desktop and mobile devices. It is live in more than 80 territories worldwide and holds a B2C and B2B gambling license issued by the Isle of Man Gaming Supervision Commission.
Subsequent to fiscal year 2021, the company signed agreements with a number of affiliate marketing networks to increase player traffic, made a series of appointments -including Benn Timbury as COO and Bo Wänghammar to its board of directors- and announced a partnership with affiliate and performance marketing company Raketech Group Holding.
Most recently, the business announced a new partnership with online casino supplier Microgaming to add more than 100 games to Luckbox’s casino, including branded titles such as Jurassic World, Game of Thrones and Lara Croft. With the Microgaming content, Luckbox's casino now offers over 450 games for users to wager upon, the company says.