Perspectives

Stock Market Shows Confidence in Canada’s Esports Betting Scene

Esports betting is on the rise across the world and Canada, which is perfectly illustrated by the success of Real Luck Group Ltd. (TSXV: LUCK) on the stock market.

The Stock Market, Simplified

Investing can be confusing, to say the least, but if you are completely unfamiliar, this is a general idea of how it works:

  • Purchasing stock means that you own a small piece of a company. Owners are called Shareholders.
  • Shareholders receive payouts based on the company’s free cash flow, i.e., money left over after all business expenses have been covered. Stock market investors base their buying/selling decisions on how much free cash flow they believe the company will generate over its lifetime. The objective is to make more money from the company over time than you initially paid into the stock.
  • Prices are driven by supply and demand and emotional factors such as new leadership, trends, and world events (tariffs, terrorist attacks, etc.).

Luckbox Leads the Way

Esports betting company Real Luck Group Ltd. (TSXV: LUCK), dba Luckbox, debuted on the Canadian stock market on December 16, 2020, just 20 months after accepting its first bet. Thanks to a strong investor network in the country and the potential for continued growth, Luckbox generated excitement and profit for shareholders. One shareholder, New Wave, announced that its investment grew 249% within its two weeks.

COVID-19 lockdowns played a role in how many new gamblers turned to esports in 2020, but Luckbox made its own luck, as well. The bookmaker launched FIFA and NBA 2K betting before the pandemic, a decision that helped propel 500% growth in betting volume throughout the year.

Prior to its debut on the Canadian stock exchange, Luckbox was already drawing attention from investors worldwide, including American football player Luis Robles. It also secured over $3.8 million CAD in a June 2020 funding round.

Luckbox quickly cemented strong investment ties to Canada, so listing on the TSXV felt like “the reasonable thing to do,” Luckbox CEO Quentin Martin told Esports Insider, noting that going public was the hardest thing he had ever done, especially with a newborn baby.

Esports Bets on the Stock Market

Esports gambling is big business. Global revenue is set to double to $14 billion in 2020, according to global consumer surveyors 2CV and market analysts ProdegeMR. 

Like Entertainment Esports Group, Luckbox and its shareholders stand to gain significantly from the proposed Bill C-13 — legalizing single-event sports wagering in Canada. Should the bill pass, Canadians would gain access to esports wagers in a regulated environment, either online or in-person.

Luckbox already operates in 100 countries worldwide, but Canada’s new market only stands to improve its stock valuation.

Positive exposure, such as investments from celebrities and athletes, fuels excitement, and attracts new shareholders to the stock market. The more bets placed on a tournament, the more viewers there will be to see the outcome. This symbiotic relationship between esports and betting drives viewership, sponsorship, and investment opportunities, making esports betting a potential driver of higher team valuations.

Esports betting is making waves on the stock market and beyond. Investors look for trends, and if Luckbox is any indication, we can expect more bookmakers to go public in the coming years.

The Future of Luckbox

Stock prices rise and fall, but Luckbox has laid the foundation for a lifetime of continuous growth and value. Luckbox consistently hits a five percent overround margin, which means that it earns five percent revenue on every bet placed on its platform. 

Rather than sit on its laurels, the company has prioritized expansion, partnerships, and new technology such as AI and creating odds in-house.

“All of these developments nudge our business towards B2B,” Martin said. “We want to provide the gaming industry with valuable data. We think we acquire and monetize better than our competition.” 

Data analysis would be another valuable revenue stream for Luckbox, providing insights to everyone from investors to teams.


Written by HB Duran

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