Disrupting the $1bn Esports Betting Market – Luckbox

Luckbox provides fully licensed, real-money wagering on all major esports to users in more than 100 territories and the bespoke nature of their platform means they can offer a B2B solution to industry heavyweights aiming to enter the esports betting space.

Built by a team of gambling industry veterans and esports enthusiasts, Luckbox is perfectly positioned to disrupt the esports betting market, which in 2019 saw revenues exceed $1bn.

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Problem

There is a stark lack of opportunity for established gambling companies to enter the increasingly lucrative esports betting market. Available white labels have out-of-date front ends; no source has all odds and most platforms do not support multiple integrations and esports betting sites with good global licensing jurisdictions are rare.

Market Size and Market Opportunity

Esports is mainstream globally: 18-25 year olds (Gen Z) watch more computer games than traditional sports. Esports is expected to reach nearly 276m viewers globally by 2022, more than the NFL today. The global esports betting market is forecast to grow at 44% four-year CAGR, to reach 17.2bn by the end of 2020.

Distribution / Sales Model

Luckbox offers a perfect B2C and B2B solution for gambling industry heavyweights looking to capitalise on the esports betting boom with:

• In-house customized user interface and user experience
• Control of data and ability to parse/prioritize from multiple sources
• Technology stack that supports multiple odds sources
• Isle of Man License which allows fantastic player protection and access to preferable payment processors

Team

Management comes with exceptional pedigree in both esports and betting, holding previous leadership positions at Pokerstars (TSX: TSGI), Sony (NYSE: SNE), GosuGamers, SBTech, Playtech, UltraPlay, Bwin.Party and the British Broadcasting Corporation (BBC); this brings expertise and high levels of regulatory compliance that the esports space has been badly lacking.

Competitive Advantage

Luckbox is fully licensed in the Isle of Man under the Online Gambling Regulation Act (OGRA), which allows it to operate in multiple jurisdictions globally and gives Luckbox access to favourable payment processors. Its proprietary platform leverages shared technology, data, and resources, meaning Luckbox is able to offer a comprehensive range of betting on esports tournaments and games and betting options to players.

Milestones

• Acquired top-tier gambling licence
• Launched bespoke esports betting website
• Opened to accept real-money bets globally
• Added 8 esports to take total number of games to 11
• Added payment providers, including MasterCard, Skrill and Bitcoin
• Added affiliate and influencer marketing solutions
• Added improved bonusing solutions for players

Performance

Luckbox is already serving customers in more than 100 countries, having taken more than $320,000 in bets with a 7% margin. In 2019, Luckbox was nominated for Esports Operator of the Year and the prestigious SBC Awards and is proud to have recorded 88.9% customer satisfaction.

Exit Strategy

With over a dozen billion dollar plus gambling firms all looking to make acquisitions to get into the esports betting space and only four to six legitimately licenced acquisition targets, of which Luckbox is a perfect candidate, a trade-sale exit is expected within the next three years.

Investment Offering

Luckbox is seeking to raise $5m to continue product development and invest in significant marketing spend en route to a pro-forma Year 4 EBITDA of $11,027, 279.

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