As COVID-19 forces casinos to be shuttered and people to hole-up at home for the foreseeable future, the steadily growing online gambling industry could see some additional tailwinds. Golden Matrix (OTCPK:GMGI), a pioneer in configurable social gaming technology, has two years of strong growth under its belt and is seeing demand increasing for its white label GM-X platform, particularly in the Asia Pacific region.
According to Industry Research’s “Online Gambling Market Status and Trend Report 2019-2024,” the online gambling market is predicted to reach $87.75 billion by 2024, registering a CAGR of 8.77%, during the forecast period. Of course, the report was published in November 2019, months before the novel coronavirus pandemic slammed doors on business and households worldwide.
Asia Pacific is the fastest growing online gambling market in the world.
Las Vegas-based Golden Matrix has handily topped the broad industry growth, posting revenue of $2.9 million during the last fiscal year, ended July 31, 2019. That was up 165% from $915,804 in 2018, the first year the upstart came under the leadership of CEO Brian Goodman.
Impressively, the company – which has a market capitalization of just $12.8 million – posted a net profit of $1.8 million for fiscal 2019.
The trend is continuing in fiscal 2020, with Golden Matrix reporting $1.8 million in revenue during the first six months of the year and net profit of $985,000. Lending to the momentum is a new agreement inked in September to provide its GM-X System to one of Asia’s largest B2B gaming distributors.
Furthermore, Golden Matrix in March licensed its GM-X gaming platform to 24 new gaming operator clients, with over 40 additional such operators expected to license GM-X by the end of April.
Golden Matrix currently has over 310 gaming operator clients and more than two million registered end-users globally.
Goodman has led the company through seven consecutive quarters of revenue growth before a flat quarter in Q2, which he calls an anomaly even though it was in line with record revenue in Q1. To that point, he expects continued growth, both organically and potentially through acquisitions, going forward. He thinks the COVID-19 crisis could even result in “a significant escalation of online gaming” owing to the closure of land-based gaming facilities around the world.
Golden Matrix ended the latest quarter with $1.9 million in cash, for which it is performing due diligence on potential acquisitions to broaden its portfolio.
“It’s a matter of keeping pace with an ever-digitized world and remaining competitive,” Goodman told AllPennyStocks.com in a phone interview. “The unfortunate consequences of the coronavirus pandemic have opened many operators’ eyes to the fact that they weren’t aligned properly to cater to a massive online consumer market.”
“Modern technologies are spearheading the ongoing evolution of the gambling industry and, even as a young company, we are well positioned in one of the world’s most robust markets with no intentions of slowing our growth trajectory,” he concluded.