Golden Matrix Group Subsidiary Meridianbet Shortlisted for Exclusive Sports Betting and iGaming License in Brazil

Rhea-AI Summary

Golden Matrix Group's subsidiary, Meridianbet, has been shortlisted for an exclusive sports betting and iGaming license in Brazil. This positions Meridianbet among a select group of global operators for one of the most anticipated market launches in the industry. The application, filed under request number 56.195.600/0001-07, ensures Meridianbet's license will be processed by January 1, 2025, the forecasted launch date for Brazil's legal sports betting and iGaming market.

Brazil is expected to become the third-largest gaming market globally, with forecasts suggesting $34 billion in sports betting turnover by 2028 and an onshore gross win of $2.8 billion. Meridianbet's application includes both sports betting and iGaming, positioning it to offer a full suite of gaming experiences to Brazilian players. This federal-level licensing process will grant Meridianbet nationwide access to Brazil's rapidly expanding market.

Positive

• Meridianbet shortlisted for exclusive sports betting and iGaming license in Brazil
• License to be processed by January 1, 2025, aligning with Brazil's market launch
• Brazil expected to become third-largest gaming market globally
• Forecasted $34 billion in sports betting turnover by 2028 in Brazil
• Application includes both sports betting and iGaming, allowing for a full suite of offerings
• Federal-level licensing grants nationwide access to Brazilian market

Negative

• None.

Insights

Financial Analyst

Meridianbet's shortlisting for a sports betting and iGaming license in Brazil represents a significant growth opportunity for Golden Matrix Group (GMGI). Brazil's projected $34 billion sports betting turnover by 2028 highlights the immense potential of this market. However, investors should note that being shortlisted doesn't guarantee license approval and the company will face stiff competition from 112 other applicants. The nationwide access offered by Brazil's federal licensing approach could provide GMGI with a substantial revenue stream if secured. This news is likely to positively impact GMGI's stock in the short term, but long-term benefits depend on successful license acquisition and market penetration.

Market Research Analyst

Brazil's emerging gaming market presents a lucrative opportunity for Golden Matrix Group. With Brazil projected to become the world's third-largest gaming market, securing a license could be transformative for GMGI. The company's inclusion in the priority group of 113 operators is promising, but investors should be aware of the intense competition. The forecasted $2.8 billion onshore gross win by 2028 suggests substantial revenue potential. However, success will depend on Meridianbet's ability to capture market share in a potentially crowded field. The comprehensive licensing regime, covering both sports betting and iGaming, positions GMGI to offer a diverse product range, potentially enhancing its competitive edge in this emerging market.

Legal Expert

The Brazilian government's approach to licensing sports betting and iGaming operators demonstrates a structured and transparent process. The prioritized application system, with a clear deadline and processing timeline, provides regulatory clarity for operators and investors alike. However, it's important to note that being shortlisted doesn't guarantee license approval. The comprehensive nature of the license, covering both sports betting and iGaming, aligns with global best practices but may also entail stringent compliance requirements. Investors should be aware that regulatory challenges could arise as Brazil navigates the implementation of its new gaming laws. The nationwide access granted by federal-level licensing is a significant advantage, but it may also attract increased regulatory scrutiny.

LAS VEGAS, NV, Aug. 26, 2024 (GLOBE NEWSWIRE) -- Golden Matrix Group Inc. (NASDAQ: GMGI), a leading developer and licensor of online gaming platforms, systems and gaming content, is proud to announce that its subsidiary, Meridianbet, has been shortlisted for an exclusive sports betting and iGaming license in Brazil.

The application, filed under request number 56.195.600/0001-07, positions Meridianbet among a select group of global operators who will be part of one of the most anticipated market launches in the global sports betting and iGaming industry.

The window for prioritized license applications in Brazil closed on August 20, 2024, with a total of 113 operators submitting their applications ahead of the deadline. By securing its place in this priority group, Meridianbet has ensured that its license will be processed by January 1, 2025, which is the forecasted launch date for Brazil’s legal sports betting and iGaming market.

Meridianbet’s inclusion on this exclusive list underscores its status as one of the key players in the global gaming industry. With Brazil poised to become one of the world’s largest gaming markets, this license represents a significant opportunity for Meridianbet and Golden Matrix Group.

“The Brazilian market is set to be a game-changer for all of Golden Matrix Group, but also for the global gaming industry as a whole,” said Brian Goodman, CEO of Golden Matrix Group. “Brazil is expected to become the third-largest gaming market in the world, and this opportunity marks another key milestone for our company. Brazil’s multifaceted approval process reflects the complexity and scale of this market, and we are excited about the tremendous potential that lies ahead. This is one of the defining moments for our company as we continue to expand our global footprint, and being part of this exclusive group of operators reflects our commitment to excellence and our strategic vision for the future of gaming.”

Meridianbet’s application includes both sports betting and iGaming (online casino) under Brazil’s comprehensive licensing regime, making it one of the few operators positioned to offer a full suite of gaming experiences to Brazilian players. The Brazilian gambling industry is forecasted to generate $34 billion in sports betting turnover by 2028, with an onshore gross win of $2.8 billion, according to a report by the International Betting Integrity Association (IBIA).

This federal-level licensing process, which differs from the state-by-state approach in the United States, will grant Meridianbet nationwide access, allowing the company to tap into Brazil’s rapidly expanding market to reach a diverse and eager audience.

For more information on the Brazilian license applications and Meridianbet’s position within this elite group, visit the official Brazilian Ministry of Finance website at https://sigap.fazenda.gov.br/consulta-publica/lista-solicitacoes.

About Golden Matrix Group

Golden Matrix Group, based in Las Vegas, NV, is an established B2B and B2C gaming technology company operating across multiple international markets. The B2B division of Golden Matrix develops and licenses proprietary gaming platforms for its extensive list of clients, while its B2C division, including Meridianbet, operates regulated online sports betting and gaming sites.

Connect with us:
X - https://twitter.com/gmgi_official
Instagram - https://www.instagram.com/goldenmatrixgroup/

About Meridianbet

Founded in 2001, Meridianbet Group is a well-established online sports betting and gaming group, licensed and 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.

Connect with us:
X: https://x.com/meridianbet_ofc
Email: ir@meridianbet.com

Forward-Looking Statements

Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws, including within the meaning of the Private Securities Litigation Reform Act of 1995 (“forward-looking statements”). Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements.

Important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation, the ability of the Company to obtain the funding required to pay certain Meridianbet Group acquisition post-closing obligations, the terms of such funding, potential dilution caused thereby and/or covenants agreed to in connection therewith; potential lawsuits regarding the acquisition; dilution caused by the terms of the Note and Warrant, the Company’s ability to pay amounts due under the Note and covenants associated therewith and penalties which could be due under the Note and securities purchase agreement for failure to comply with the terms thereof; the business, economic and political conditions in the markets in which the Company operates; the effect on the Company and its operations of the ongoing Ukraine/Russia conflict and the conflict in Israel, changing interest rates and inflation, and risks of recessions; the need for additional financing, the terms of such financing and the availability of such financing; the ability of the Company and/or its subsidiaries to obtain additional gaming licenses; the ability of the Company to manage growth; the Company’s ability to complete acquisitions and the availability of funding for such acquisitions; disruptions caused by acquisitions; dilution caused by fund raising, the conversion of outstanding preferred stock, convertible securities and/or acquisitions; the Company’s ability to maintain the listing of its common stock on the Nasdaq Capital Market; the Company’s expectations for future growth, revenues, and profitability; the Company’s expectations regarding future plans and timing thereof; the Company’s reliance on its management; the fact that the sellers of the Meridianbet Group hold voting control over the Company; related party relationships; the potential effect of economic downturns, recessions, increases in interest rates and inflation, and market conditions, decreases in discretionary spending and therefore demand for our products and services, and increases in the cost of capital, related thereto, among other affects thereof, on the Company’s operations and prospects; the Company’s ability to protect proprietary information; the ability of the Company to compete in its market; the effect of current and future regulation, the Company’s ability to comply with regulations and potential penalties in the event it fails to comply with such regulations and changes in the enforcement and interpretation of existing laws and regulations and the adoption of new laws and regulations that may unfavorably impact our business; the risks associated with gaming fraud, user cheating and cyber-attacks; risks associated with systems failures and failures of technology and infrastructure on which the Company’s programs rely; foreign exchange and currency risks; the outcome of contingencies, including legal proceedings in the normal course of business; the ability to compete against existing and new competitors; the ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company’s products, including potential recessions and global economic slowdowns. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this press release are reasonable, we provide no assurance that these plans, intentions or expectations will be achieved.

Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in the Company’s publicly-filed reports, including, but not limited to, under the “Special Note Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s periodic and current filings with the SEC, including the Form 10-Qs and Form 10-Ks, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended October 31, 2023 and its Quarterly Report on Form 10-Q for the quarter ended January 31, 2024, and future periodic reports on Form 10-K and Form 10‑Q. These reports are available at www.sec.gov.

Investor & Media Contacts

Brett Milotte, ICR (U.S.)Brett.Milotte@icrinc.com

Greg Michaels, ICR (U.S.)
Gregory.Michaels@icrinc.com

Ana Ribeiro / Charlotte Page, St Brides Partners (U.K.)
Ana@stbridespartners.co.uk / charlotte@stbridespartners.co.uk

Attachment

• Golden Matrix Group Inc.

FAQ

What is the significance of Meridianbet being shortlisted for a license in Brazil for GMGI stock?

Being shortlisted for an exclusive sports betting and iGaming license in Brazil is significant for GMGI stock as it positions the company to enter one of the world's largest gaming markets, potentially driving substantial revenue growth and market expansion.

When is the expected launch date for Brazil's legal sports betting and iGaming market?

The forecasted launch date for Brazil's legal sports betting and iGaming market is January 1, 2025.

What is the projected size of the Brazilian gambling industry by 2028?

According to the International Betting Integrity Association, the Brazilian gambling industry is forecasted to generate $34 billion in sports betting turnover by 2028, with an onshore gross win of $2.8 billion.

How does the Brazilian licensing process differ from the United States for GMGI?

The Brazilian licensing process is a federal-level approach granting nationwide access, unlike the state-by-state approach in the United States. This allows GMGI's subsidiary Meridianbet to potentially reach a broader audience across Brazil.