FansUnite Entertainment has made two important announcements this week. The first one is that it has found an agreement with DragonBet to migrate off the Chameleon Gaming platform. This will be done on or around September 3, 2023. The second announcement was that its Chief Technology Officer, Jeremy Hutchings, will step down from the role.
As a global sports entertainment and gaming firm, FansUnite is concentrated on the regulated and legal sports betting affiliate market, by offering customer acquisition, retention, support and reactivation. The company gained massive popularity in North America via its subsidiary American Affiliate, an omni-channel customer acquisition company for sportsbooks, casinos, poker and fantasy sports platforms.
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The migration of DragonBet’s platform paired with the sale of the company’s Chameleon source code to Betr Holdings, will finalize FansUnite’s transition away from B2B platform licensing. As part of this, the company projects annualized cost savings of around CA$7.1 million, which will include reductions in salary and selling, general and administrative expenses.
The cuts in costs will be seen in the company’s financial results once the transition of operations of the Chameleon Gaming platform is finalized. The company also projects to produce positive cash flow in Q4 of 2023, as a result of its strategic initiative to bolster fiscal efficiency. Now, the operator will focus on the affiliate segment, which earned CA$23M of its CA$27.3M revenue in FY 2022.
Additionally, the British Columbia-based firm reported that Mr. Hutchings will depart from his position as Chief Technology on September 30, 2023. He will look for other opportunities in response to the firm’s new strategic focus on a more profitable affiliate vertical. Still, he will be available to provide consulting on the company’s plans to monetize the source code of the Chameleon Gaming Platform.
Scott Burton, CEO of FansUnite, thanked Mr. Hutchings for his involvement as he had a massive role in the company’s early days. The CEO looks forward to seeing him succeed in his new career path. He also noted that the firm is delighted to announce an agreement with DragonBet, allowing it to expand and enable it to reach approximately CA$7.1 million in cost-savings.
The B.C. gambling entertainment corporation recently issued its financial highlights for the three- and six-month periods ending on June 30, 2023. The firm disclosed a total revenue of CA$5.3 million, which was a 14% improvement over the same quarter but in 2022. Gross margin reached CA$3.3 million or 62%. This was an impressive 70% increase in comparison to the CA$2 million or 41% from Q2 of 2022.
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It should be recalled that in March 2022, the company announced its official entry into Ontario’s regulated iGaming market for third-party operators and suppliers. The firm is now a fully registered supplier of sports betting and internet gaming by the Alcohol and Gaming Commission of Ontario, allowing it to team up with other locally-licensed brands.
Source: “FansUnite Announces Migration of DragonBet and Departure of Chief Technology Officer” FansUnite Entertainment, August 24, 2023