The global economy is not in good shape. With unrelenting inflationary pressures and interest rate hikes, it is contracting and is on the brink of recession.
According to a report by S&P Global, global economic output contracted for a second straight month in September. Businesses worldwide are reporting some of the most challenging conditions outside the devastating impact of the COVID-19 pandemic.
An economic contraction happens when domestic output decreases, such as gross domestic product (GDP). It leads to a decrease in other areas, such as individual income, production, and sales. Unemployment rates may increase.
Like most industries, the global gaming sector – which includes companies like Gambling.com Group Ltd. GAMB, PENN Entertainment Inc. PENN, and DraftKings Inc. DKNG – is also bearing the brunt of the economic downturn.
However, if recent reports by Golden Matrix Group Inc. GMGI are anything to go by, it looks like the company may be insulated from the global economic challenges being faced by others.
Based in Las Vegas, Golden Matrix is an established gaming technology company that develops and owns online gaming intellectual property (IP). It builds configurable and scalable white-label business-to-business (B2B) gaming platforms for its international customers, primarily in Asia.
The gaming IP includes tools for marketing, acquisition, retention, and monetization of users. The company’s platform can be accessed through both desktop and mobile applications.
As a result of its U.K.-based R. Kings Competitions Ltd., Golden Matrix also generates revenue from R. Kings’ scalable business-to-consumer (B2C) tournament platform.
Golden Matrix is expected to report a 200% increase in revenue in the fiscal year just ended (Oct. 31) over the previous year.
Expansion Into Latin America
From all indications, the company continues its expansion into new markets despite a contracting worldwide economy. Golden Matrix plans to launch a licensed proprietary B2C online casino in Mexico on Nov. 1.
The company said the online casino MEXPLAY will feature an extensive number of table games and slots as well as a sportsbook. It will offer tournament competition prizes similar to those provided by the company’s R. Kings subsidiary in the U.K. MEXPLAY’s content will be available in Spanish and English.
“This represents the next major step by our company to expand its B2C footprint. The recently acquired B2C operations of R. Kings now account for over 50% of our revenues and over 50% of our profits; similarly, we now expect important contributions to revenue and profit growth from our operations in Mexico,” Golden Matrix CEO Brian Goodman said.
According to Goodman, while MEXPLAY offers many traditional and popular online casino games and a sportsbook, it also incorporates the added excitement of the tournament business, which is unique to Mexican gaming and should attract considerable player interest and participation.
The launching of MEXPLAY fulfills the first objective of Golden Matrix’s strategy to expand its B2C business in Latin America (LATAM), which, according to iGamingBusiness, “slots into first place for the most enticing market for the gambling industry.”
Goodman revealed that following the successful launch of the Mexican casino, the company will focus on entering additional growing Latin American markets where gaming is regulated.
Statista recently reported that the Latin American betting market’s gross gaming revenue (GGR) is estimated to grow from roughly $1.3 billion in 2020 to $3.4 billion by 2025. The online GGR in Latin America was approximately $400 million in 2020 and is forecast to peak at around $2.6 billion by 2025.
Making Profit Even In An Economic Downturn
“We are unusual as a gambling company in that we are highly profitable and generating positive cash,” he said. “I mean, a lot of these online gambling companies lose hundreds of millions, billions of dollars and continue to burn money.”
Mr. Goodman noted that the company maintains a very strong balance sheet with a healthy amount of cash, and added, “We are optimistic we can continue to deliver an expansion of growth with even greater profitability.”
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.