has announced its decision to divest its B2C Italian brand, Newgioco This strategic move was disclosed in an SEC filing dated 30 April, revealing that the parent company of Newgioco, Multigioco Srl, is set to be acquired by an undisclosed buyer.
The completion of this transaction is contingent upon obtaining regulatory approvals from the Agenzia delle Doganee dei Monopoli (ADM), and clearance from the Italian antitrust competition agency, Autorità Garante della Concorrenzae del Mercato. Once these conditions are met and the sale is approved by an Italian notary, Elys will detail the sale in a future 8-K SEC filing1.
Newgioco, although not a dominant player in the Italian gaming market, has been operating since 2015 when it first received trademark approval from the Italian authorities. The brand is part of Elys BMG Group’s journey, which saw a rebranding from Newgioco Group to Elys Game Technology in 2020 to better penetrate the burgeoning US sports betting market.
In January 2024, the company underwent another rebranding to become Elys BMG Group. However, in October 2023, Elys was de-listed from the Nasdaq stock exchange due to its share price falling below the $1.00 minimum required by listing rules. Despite this setback, Elys announced its entry into the US B2C space through its newly created SportsBet.com brand in the same month.
Elys’ strategic divestment of Newgioco marks a new chapter in its corporate narrative, reflecting its focus on expanding its footprint in the lucrative US market. This move follows Elys’ market access deal with Caesars in November, which paved the way for the brand to launch in Colorado, its first state.
Background of Elys BMG Group
Elys BMG Group, originally incorporated in 1998, has a rich history in the gaming industry. The company was formerly known as Elys Game Technology, Corp. and changed its name to Elys BMG Group, Inc. in January 2024. The company is based in Toronto, Canada, with its headquarters in Las Vegas, NV.
Elys BMG Group offers a full suite of gaming products and services to clients in Italy, where it processes nearly $1-billion in handle, producing annual revenue of roughly $50 million. The company is developing a rapidly-growing footprint in the U.S., with operations in five states already and new jurisdictions expected, as more states authorize wagering.
The company’s stock price history shows a journey of ups and downs. The latest closing stock price for Elys BMG as of October 2023, was $0.41. Despite being de-listed from the Nasdaq stock exchange in October 2023, the company continues to innovate and expand, particularly in the U.S. market.
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