Penned by Elys Executive Chairman Michele Ciavarella, the letter also further discusses the sustainability of the group and the dedication of its founders and senior management with the upcoming annual meeting of shareholders.
The interactive gaming and sports betting technology company discussed its transition from expansion to profits, noting that there is a reshaping of the competitive landscape in the regulated US sports betting market with a greater appreciation for licensing neighbourhood businesses to offer retail sports betting as an ancillary product alongside lottery ticket sales.
The group believes it is well-positioned to take advantage of this next phase of regulation in the US.
Elys noted the scaling up of its US retail operations, explaining that it currently has seven signed locations in Washington D.C., two in Maryland, one in New Jersey and six tribal casino clients in four other states.
The group also touched on its mobile segment strategy, noting that it reached an agreement to provide its sportsbook platform for Lottomatica’s global initiatives in January 2022.
“This year marks the 8th year in our initial long-term strategy and development road map whereby we set out to strengthen and grow our presence in the Italian market and to take advantage of opening opportunities in the US and global markets,” wrote Ciavarella.
“During this period we managed to adapt to changes in market conditions that included an unprecedented global pandemic, which we sensibly navigated by growing our online presence to offset the closure of almost all of our retail locations in the Italian market, growing our overall revenue and market share, and expanding from a small private six-person business in one market, into a multinational group with approximately 127 employees and contractors in approximately 12 countries around the world.”
Ciavarella also noted Elys’ strong disagreement with the current market capitalisation, which ‘remains significantly underpriced due to circumstances beyond our control, and which is adversely affecting our stock price and shareholder value.
“Consequently, the current value of our capital stock lacks credit for the value of our cutting-edge betting technology and engineering talent, our growing and profitable Italian operations, or our future growth potential, particularly in the US market, and in other global markets.”
