Gaming Tech Provider, Newgioco, Reports Revenue Increase As US Sports Betting Market Grows

• Newgioco, headquartered in Toronto, Canada, serves sports betting operators worldwide.
• Newgioco announced multiple partnerships to serve sports gambling operators in Montana.
• Newgioco completed the acquisition of Virtual Generation Limited (VG) in late January of 2019.

New York – Sports betting in the US has started to become quite a profitable activity. As more states continue to legalize the practice, sports fans, sportsbooks, and even software companies are seeing a boost in profits.

Newgioco is one example of this, as they have reported a 7.8% increase in first-quarter revenues this year.

The Canadian based sports betting and gaming technology company was also able to report a 12.6% increase in gross gaming revenue and a 51.3% increase on their total handle.

“This was a strong start to 2019 for Newgioco. We quickly established a presence in the rapidly expanding, greenfield U.S. market with two agreements in Montana for our ELYS sports betting platform which is due to commence a free-play pilot location in the very near future,” said Michele (Mike) Ciavarella, CEO of Newgioco.

Montana, which was the first state to legalize sports betting this year, is set to host sports betting kiosks in various retail locations across the state.

Iowa and Indiana have also passed legislation to legalize sports wagering this year. Both of those states will allow for retail sportsbooks as well as statewide mobile sports betting apps.

“State legislatures in several states – including Montana – are moving rapidly to codify regulations for sports betting, and we are in position to crystalize opportunities as these legislative efforts come to fruition,” said Ciavarella.

There are still more states with a chance to pass a sports betting bill this year. Those states include Illinois, Louisiana, North Carolina, and New Hampshire. New York is also set to open sportsbooks inside of its upstate casinos in the near future.

But, the U.S. sports betting market isn’t the only target for Newgioco.

In an effort to further diversify the company’s portfolio, Newgioco also acquired Virtual Generation Limited (VG), a top developer of virtual gaming software.

The acquisition became effective on January 30, 2019, and was made through a combination of about $4.5 million in cash and stock.

“We are also expanding our presence in Europe, especially in Italy where we are making progress in our stated goal to diversify revenues with our first revenues from global operations through the Virtual Generation acquisition earned in the first quarter,” said Ciavarella.

News tags: Montana | Newgioco | Revenue | sports betting