A Closer Look Into Golden Matrix Group's (GMGI) Sweepstakes Business Segments: Adding to Meridianbet's Success

Rhea-AI Summary

Golden Matrix Group (NASDAQ: GMGI) has reported significant success from its sweepstakes business segments, RKings Competitions and Classics for a Cause. These divisions collectively contributed 27% of Q3 2024 revenue. RKings specializes in luxury prize draws in the UK and Ireland, while Classics for a Cause operates in Australia, focusing on classic car raffles for charitable fundraising. The company's sweepstakes operations demonstrate impressive efficiency with an average customer acquisition cost of approximately $2.

Positive

• Sweepstakes segments contribute 27% to Q3 2024 revenue
• Low customer acquisition cost of $2 indicates efficient marketing
• Diversified revenue streams across multiple geographical markets (UK, Ireland, Australia)

Negative

• None.

Insights

Financial Analyst

The Q3 2024 revenue contribution of 27% from RKings and Classics for a Cause demonstrates significant diversification in GMGI's revenue streams beyond its core gaming operations. The remarkably low customer acquisition cost of $2 per customer indicates highly efficient marketing operations and strong potential for scalable growth. This efficiency is particularly noteworthy in an industry where customer acquisition costs typically range from $50 to $200.

The strategic positioning in distinct geographical markets - UK/Ireland for RKings and Australia for Classics for a Cause - suggests well-planned market segmentation and risk diversification. The charitable component through Classics for a Cause adds a unique ESG element that could enhance brand value and customer loyalty while potentially providing tax benefits.

Market Research Analyst

The sweepstakes segment represents a clever market entry strategy, offering lower regulatory barriers compared to traditional gambling operations while maintaining strong engagement metrics. The business model's success in multiple jurisdictions across Europe, Africa and South America showcases its adaptability and scalability. The omni-channel approach, combining retail, desktop and mobile platforms, positions GMGI to capture market share across different consumer preferences and demographics.

The combination of luxury prizes (RKings) and classic car raffles (Classics for a Cause) targets distinct consumer segments with high engagement potential. This diversification helps insulate the company from market-specific downturns while creating multiple growth vectors.

Sliema, Malta--(Newsfile Corp. - December 13, 2024) - Golden Matrix Group, Inc. (NASDAQ: GMGI), the parent company of renowned brands such as Meridianbet, has seen significant contributions from its sweepstakes business segments as well - RKings Competitions and Classics for a Cause. These two brands have emerged as strong performers within the company's portfolio, blending entertainment with broader impact and adding notable value to its overall operations.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• GMGI's sweepstakes business segments, RKings Competitions and Classics for a Cause, have emerged as strong contributors, accounting for 27% of Q3 2024 revenue combined.
• RKings leads in the UK and Ireland with luxury prize draws, while Classics for a Cause in Australia supports charitable fundraising through classic car raffles, amplifying awareness for vital causes.
• With an average customer acquisition cost of cca. $2, GMGI's sweepstakes businesses showcase a highly cost-effective approach to audience engagement.

Click image above to view full announcement.

Founded in 2001 and part of the Golden Matrix (NASDAQ: GMGI), Meridianbet Group is a well-established online sports betting and gaming group, licensed and/or currently operating in 17 jurisdictions across Europe, Africa, and South America. Meridianbet's successful business model utilizes proprietary technology and scalable systems, thus allowing it to operate in multiple countries and currencies and with an omni-channel approach to markets, including retail, desktop online, and mobile.

Contact information:
Milan Koricanac, Head of Global PR
milan.koricanac@meridianbet.com

Source: Meridianbet Group

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233670

FAQ

What percentage of GMGI's Q3 2024 revenue came from sweepstakes operations?

GMGI's sweepstakes business segments (RKings Competitions and Classics for a Cause) accounted for 27% of Q3 2024 revenue.

What is the customer acquisition cost for GMGI's sweepstakes business?

GMGI's sweepstakes businesses have an average customer acquisition cost of approximately $2.

Which markets does GMGI's RKings Competitions operate in?

RKings Competitions operates in the UK and Ireland markets, specializing in luxury prize draws.

What is the focus of GMGI's Classics for a Cause division in Australia?

Classics for a Cause in Australia focuses on classic car raffles for charitable fundraising purposes.