Betting on a Winner

Esports, competitive video gaming at a professional level, has been around for decades.

In recent years the market has exploded, leading to large increases in viewership and prize money.

To put the surging popularity in perspective for those new to this market, this year’s League of Legends world championship, where players competed for millions of dollars in prize money, was held at the famous Birds Nest in Beijing, the national stadium originally built for the 2008 Olympic games.

Overall, an estimated 385 million people from around the world tune in to watch teams of video game players compete with each other.

Adidas, Under Armour, Nike and other major brands sponsor players, teams, and events.

Media rights for events, which hit $50 million in 2016, are expected to surge seven-fold by 2020, reaching nearly $340 million.

ESPN struck a deal with EA earlier this year to broadcast FIFA tournaments on ESPN, ESPN2, ESPN Deportes, and ESPN3.

Europe’s elite soccer clubs have been signing esports players at an increasing pace in recent years, even signing players outside of soccer, as they vie for a share of the multi-billion dollar market.

In September, the Philadelphia 76ers became the first US sports team to acquire a competitive gaming team, purchasing team dignitas in a deal sources place at as much as $15 million.

While the trend is clear, the average investor has lacked a way to profit from this growth, until now.

We’ve found a pure-play opportunity in the esports market with a business model that can scale while generating big profits.

And it’s still trading under the radar of bigger Wall Street investors. At least for now.

As the popularity of esports has soared, so has interest in wagering on the competition.

This company has developed a next generation online platform to facilitate as much of this wagering as possible.

It’s estimated that esports wagering will top $12 billion by 2020.

Unlike a traditional sports book, where players bet against the house, this company has developed a technology platform that connects gamblers directly.

It doesn’t matter who wins or loses, this company generates fees from simply matching the bettors.

At gamescom 2017, the company signed more than 60 affiliate marketing agreements. Combined with a robust marketing strategy, they’re set to hit the ground running after completing the recently launched beta test of their platform.

Aptly named Esports Entertainment Group, investors can scoop up shares at under $1 right now. It trades under the ticker GMBL on the OTCQB.

The stock was as high as $3 earlier this year. If it only recovers to that price, you could more than triple your money. With so much in store for 2018, in a red-hot sector, with top notch management, we think it could ultimately trade much higher.

"I work with many of the companies that would be RedChip companies. And we certainly ascribe to the same view that the RedChip Companies do, which is Discovering Tomorrow's Blue Chips Today."

  • Bob McCooey, Senior Vice President, NASDAQ Stock Market