In the online casino world, evolution gaming is one of the leading providers of live dealer games. It has ten studios around the world and over 200 tables operating at any given time. This is a massive footprint and the company has seen its sales rise by 90% this year. The company also has high margins and generates lots of free cash flow.
The company has been named EGR B2B Live Casino Supplier of the Year every year since the category’s introduction in 2010. This is an incredible feat and it shows that this is a great brand that delivers high quality games to its players.
Regulatory changes in the gaming sector have made it difficult for operators to run their business without a license. This is forcing industry players (game providers and operators) to uphold the highest standards of game integrity, weeding out bad actors and making for a safer environment for players. This has benefited the entire ecosystem, driving player retention and increasing revenues in the long run.
This is why Evolution gaming is focusing on expanding into markets that are regulated. The latest milestone for the company was securing licenses in two US states, New Jersey and Pennsylvania. The company plans to open its first purpose-built studio in the United States, which will initially serve NJ licensed operators. The company will later expand the studio to include access to European licensed casinos, as well.
The new US studios will accelerate the company’s entry into the market and make it possible to offer live dealer table games to more American players. This will help to increase market share and accelerate the growth of a lucrative segment for the company. In addition to live dealer table games, the company offers virtual sports and a variety of other game types.
With a huge portfolio of award-winning products, evolution gaming is well-positioned to continue to dominate the market. Its strong financial position and talented management team suggest the company will be around for a while.
However, the stock is trading at a premium valuation and investors should carefully consider the opportunity before investing. For investors who are prepared to weigh the risks and rewards of investing in this company, there is a clear path for growth over the next five years, especially in the United States. As the company continues to focus on product innovation, operational excellence, and capital efficiency, it has a chance to deliver top-notch growth for years to come. If it can overcome its premium valuation, the company will be one to watch.
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