Newgioco Group, Inc. ("Newgioco" or the "Company") (NWGI), today announced that the Company entered into an agreement with Fleetwood Gaming, Inc. for the exclusive rights to distribute Newgioco's ELYS sports and virtual betting products at select locations in the state of Montana. The commencement of betting transactions is subject to obtaining the required certification and approvals from the Gambling Control Division of the Montana Department of Justice.
The multi-year agreement will see Newgioco partner with Fleetwood to roll-out the ELYS sportsbook and virtual sport platforms throughout Fleetwood's distribution network in Montana. Although Montana was one of four states grandfathered in under the original PASPA law, it's anticipated that Montana will legalize sports betting during the 2019 legislative session (the state legislature meets only in odd-numbered years and only for 90 days) - allowing internet and mobile sports betting as well as kiosks at bars, restaurants and taverns.
"Since launching our U.S. business expansion plan in October 2018 at G2E in Las Vegas we have been working diligently with strategic partners in the U.S. to grow our pipeline of opportunities, and to initiate our geographic diversification," commented Newgioco CEO Michele Ciavarella. "We are delighted to have found a true partner for our initial entry into the rapidly evolving U.S. market. Along with our tribal gaming partners, we look forward to working with Fleetwood and its aligned 'family culture' and business ethics to bring responsible sports and virtual betting to Montanaand its neighboring states."
"The remarkable flexibility and incredible expansion capability demonstrated by ELYS' shop client design fits perfectly within the variety of our Fleetwood product lines and wide distribution range through route operations such as independently owned sports bars, taverns, restaurants and casinos. We are very pleased to be working with the committed Newgioco team, and being the first to roll out the ELYS betting platform throughout our retail network in Montana," added Fleetwood Gaming CEO Jon Dehler. "With the unique features of the ELYS shop client backed by an impressive gaming specific BI and risk management engine, I am quite excited about the opportunity of expanding our partnership with Newgioco in Montana and our neighbouring states as the legalizing of sports betting continues to develop state by state."
Montana's population is just over one million people, but more interestingly, about 12.2 million tourists visited Montanaand spent nearly $3.7 billion in 2018 - visiting Glacier National Park, Yellowstone National Park, the Beartooth Highway, Flathead Lake, Big Sky Resort, and other attractions. Gross Gaming Revenue from video gaming terminals (VGT) in 2017 was approximately $400 million. According to the American Gaming Association, Montana has 13 tribal casinos and approximately 1,440 electronic device locations (in 2017, there were 1,874 VGT's in tribal casinos, and 15,810 in non-casino locations). Newgioco management believes the leisure betting market in Montana presents a great opportunity for its partnership with Fleetwood Gaming.