Golden Matrix Group Is Looking to Raise Up to $10m in Nasdaq IPO

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Gaming has become big business over the past decade. In fact, according to some calculations, the global industry is now worth more than the music and movie sectors put together. That is a trend that has only accelerated over the past 12 months when gaming has won millions of new participants due to a shortage of more traditional entertainment options.

Social gaming, esports casino gaming are three sub-genres that have seen exceptional growth in recent months, and these are all areas in which Golden Matrix Group (GMG), the Las Vegas-based online gaming provider is active. Against that backdrop, its decision to file with the SEC to raise up to $10 million in an IPO on Nasdaq makes perfect sense.

 

About GMG

GMG has had a record-breaking year. It topped off 2020 with $1.9 million in revenue generation for the fourth quarter – well in excess of even the most optimistic projections – and has continued the upward trajectory into 2021. January’s $740,000 revenue exceeded the record $700,000 set in the previous month, and the business is expected to report well over $2 million for the first quarter of 2021 when the numbers are available.

The provider has a robust network that encompasses more than 3.5 million registered players and partnerships with some of the most respected companies in the iGaming, eSports and social gaming sectors. For example, only last year, it penned a deal last year with Playtech, which has a stellar reputation in the online casino community, under which the slots gaming giant will distribute peer-to-peer eSports betting games from the GMG stable. This is just the latest in around 40 such partnerships and joint ventures.

Yet this in itself does not fully explain GMG’s meteoric growth in what is, after all, a hugely competitive industry that is going through the same turbulent times as everyone else. To better understand that, we need to look more closely at the specific areas in which it operates.

Social gaming

If there’s one area that has boomed even more than gaming over the past year, it is the virtual meetings and video conferencing sector. Indeed, Zooming has become an international pastime and extends way beyond the business world. Therein lies a clue to the success of social gaming, especially since March 2020.

It’s one thing to chat with loved ones online in the absence of being able to meet up with them in person, but when they spend their days surrounded by four walls, topics of conversation can rapidly dry up. Social gaming has provided a way that people can genuinely spend quality time together in cyberspace, and it is an opportunity that people of all ages have grabbed with both hands.

 

eSport

When the major sports leagues and tournaments ground to a halt last year, it left an immense hole in everyone’s lives. eSport was one of the very few sports that were able to continue in cyberspace. eSport has been around for years and was steadily growing its fanbase and moving into the mainstream, but the events of 2020 accelerated that process as it suddenly became almost the only show in town from a sporting perspective.

The beauty of it was that once viewers had experiences eSport once, the majority were eager to come back for more, and have become dedicated fans, even after the NFL, NBA and all the rest returned to their TV screens.

iGaming

Online casino gaming had been following a similar trajectory to eSport, but it received even more of a boost in the summer of 2020. The closure of land-based casinos, the lack of other things to bet on due to cancellations in sport and the simple fact that thousands were sitting around at home with nothing to do but fiddle with their phones means that new punters flooded in through the virtual doors of online casinos like never before.

Here, GMG’s shrewd business partnerships served to maximize the opportunity placed before it. Gamers were looking for an immersive, engaging experience, so the ability to play live casino games and interact with real human dealers at the card table or the roulette wheel had obvious appeal.

How will it spend the money?

So it is that GMG is perfectly positioned to take further growth steps, and the IPO will allow it to do so. In addition to the standard “general corporate purposes” provision, the business company stated in its prospectus that proceeds generated from the offering will be spent on developing new products and funding future investments. It has also hinted at the possibility of boosting growth by making strategic acquisitions, although it stopped short of naming any specific targets that might be in its corporate crosshairs.

GMO plans to list under the ticker symbol GMGI. Pricing information has yet to be disclosed.