Singular Research Launches Coverage on Esports Entertainment (GMBL) BLT (Buy Long-Term)
Esports Entertainment (GMBL)
Newly-public Esports Entertainment (GMBL) offers the most versatile and transparent wagering platform in the $3.6 billion esports gambling market.
INVESTMENT THESIS
- The esports fan base is expanding rapidly and expected to reach 590 million by 2022; global gross revenues are estimated at $3.6 billion.
- Esports Entertainment is well-positioned to capture market growth. It has online gambling licenses in nearly 150 jurisdictions, a best-in-class wagering platform, hundreds of marketing affiliate partnerships and a management team with deep industry experience.
- The company added UK and Irish gambling licenses through a July acquisition and acquired its first US license in August through a partnership with a New Jersey casino operator.
- Esports Entertainment has nearly $12 million of cash to fund acquisitions, platform development and tournament hosting. Management is guiding for FY:21 revenues of $13 million.
- We initiate coverage with a Buy Long-term rating and a $X.XX price target, which assigns a XXX-times multiple to FY:21 projected revenues.
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