LAS VEGAS - Golden Matrix Group, a developer and licensor of online gaming platforms, systems, and gaming content, announced today that its subsidiary, Meridianbet Group, has secured a sports-betting license to operate in South Africa. The license, issued by the Western Cape Gambling and Racing Board, marks the company's expansion into the South African market.
The granted licenses include a Bookmaker License, a Bookmaker Premises License, and a Manufacturer License, enabling Meridianbet to offer online sports betting nationwide and to license its proprietary sports betting software within the Western Cape region.
Zoran Milosevic, CEO of Meridianbet, expressed enthusiasm about the new opportunity to scale operations and grow the user base in a new jurisdiction. The move is in line with the company's commitment to expanding its global presence.
The South African digital gambling market is on the rise, with projections by Statista indicating that revenue could reach $828.50 million by the end of 2024, with a potential growth to $1.1 billion at a 5.77% CAGR by 2029. This expansion aligns with Meridianbet's consistent growth and innovation in the iGaming sector.
The sports-betting sector is a significant contributor to South Africa's economy, accounting for 50% of the country's gross gambling revenue, which totaled $2.42 billion in the 2023 fiscal year.
Golden Matrix Group, headquartered in Las Vegas, operates globally across multiple international markets. The company's B2B division creates and licenses gaming platforms, while its B2C division runs high-volume eCommerce sites. Golden Matrix's recent acquisition of MeridianBet, a sports betting and gaming platform with operations in Europe, Africa, and South America, has bolstered its international operations.
This announcement is based on a press release statement and does not represent an endorsement of Golden Matrix Group's market position or future prospects. The information provided does not include any speculative or promotional content.
In other recent news, Golden Matrix Group Inc. has received shareholder approval for the acquisition of MeridianBet Group. The decision was made during a special meeting where 73.5% of the voting shares supported the deal.
The terms of the Amended and Restated Sale and Purchase Agreement, dated June 27, 2023, were approved, marking a significant step towards the acquisition, which CEO Brian Goodman believes will expand the company's operations and global presence.
Still, the acquisition is still subject to certain conditions, including Golden Matrix securing sufficient funding. The company is actively working towards meeting these conditions, with a projected closing date in April 2024. Details of the transaction, including final voting results, have been filed with the U.S. Securities and Exchange Commission and are available in a Current Report on Form 8-K.
These are recent developments, and the company's forward-looking statements suggest an anticipation of growth and operational expansion following the acquisition. However, these projections are subject to various risks and conditions, including regulatory approvals and the ability to raise the necessary funding.
InvestingPro Insights
As Golden Matrix Group (GMGI) forges into the South African market with its latest sports-betting license, the company's financial metrics offer a mixed picture. With a market capitalization of $354.27 million, the company's ambitious growth strategy is reflected in its substantial revenue growth over the last twelve months as of Q1 2024, which stands at an impressive 19.26%. This figure is particularly relevant as it underscores the company's capacity to expand and generate increased sales, a key factor considering the burgeoning digital gambling market in South Africa.
Despite encountering volatility, as evidenced by a 33.78% drop in the one-month price total return, the company has experienced a notable six-month price total return of 31.28%, suggesting resilience and potential for recovery. This aligns with the company's strategic acquisitions and expansion efforts, including the recent Meridianbet acquisition which could further drive growth and market penetration.
An InvestingPro Tip that stands out is GMGI's ability to hold more cash than debt on its balance sheet, providing a solid foundation for its expansionary moves. Additionally, analysts anticipate sales growth in the current year, which is crucial for investors eyeing the company's performance in a competitive and rapidly evolving industry.
For readers interested in a deeper dive into Golden Matrix Group's financials and future performance estimations, there are 17 additional InvestingPro Tips available at https://www.investing.com/pro/GMGI. These insights could offer valuable perspectives on the company's market position and potential investment opportunities. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, potentially unlocking further value for savvy investors.
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