GGR, gross gaming revenue
But indeed, those numbers are not opened very precisely in the financial report, as to what and how they are composed.
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There’s no official word/announcement about this, but it seems they have their own brand in America, Dreamsport, which they’re using to get into brick-and-mortar stores, at least. That was a surprise. I’ll have to dig deeper.
18.5.2021:
“Stephen Crystal of SCCG Management announces the extension of its business development partnership with Scout Gaming Group to bring fantasy sports wagering technology to North America.”
““We are excited to see our clients and partners eager to adopt Scout Gaming Group’s rich technologies to support the growth of their existing sports wagering offerings. Scout Gaming Group is making significant contributions to venue-based customer sports engagement in bars, restaurants, and stadiums with its eFanGage product, as well as its imminent Dreamsport.com fantasy tournament platform launch,” said Crystal.”
Edit: The site has just been launched, it seems, as there are messages from programmers from March in the chat:
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Is it so black and white that by comparing the number of participants and the prize money, one can see that this game, for example, generates tens (even one hundred to two hundred?) thousands in losses for the house, or does the prize pool come from somewhere else?
The number of participants is small, and of those participants, dozens have gotten into the tournament for free by winning qualifying tournaments. Yet, the prize pool is half a million euros. I can’t believe that the qualifying tournaments would have generated much either. The number of participants in those has also seemed small.
I myself have played NHL and Premier League related games on that site. It’s addictive, and with a long fantasy game background, you can play for a long time with a small investment, as prizes come in every now and then.
From what I’ve observed about participant numbers, I’m surprised that the site’s fantasy games still gather so few players, in my opinion.
I can’t say about the betting side, but I believe that is also very minimal through that site, as the offering is very poor compared to so-called “real” betting companies.
Mostly just speculation here…
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Good message, which surely describes the market’s sentiments. I’m not very worried yet, as the CEO explained the weakness in profitability development in Q1, in my opinion, sufficiently well:
"During the quarter, we were more aggressive regarding marketing than
during the corresponding quarter previous year. This should be seen as an
investment in the future to position ourselves for a year along with a
favorable sports calendar. There is a relatively large flexibility in how we
employ our marketing related expenses, which primarily refers to our
guaranteed price pools. We intend to continue to optimize marketing to
generate the highest long-term shareholder value. We currently have a very
strong market position in a market that is only in its infancy, we prioritize
maintaining this rather than strengthening short-term margins. Competition
is so far negligible and consists primarily of DraftKings and Flutter’s
respective British operations."
So, the market situation is currently seen as so favorable that they have decided to push more chips into the middle. But this definitely puts pressure on the numbers for the rest of the year. The increased stakes must result in even stronger revenue growth than before, and profitability must start to improve again towards the end of the year.
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I remember reading that some of Scout’s customers participate in paying for guaranteed prize pools. I don’t know if one can say that someone got into the tournament “for free.” It must be remembered that participants in first-level satellites usually participate purely with money. If one person wins a ticket to the next level from there and others lose, then money is naturally made, depending on the game’s fill rate, of course. From what I have seen of the satellites, some have filled up and some have also been left incomplete. But there has never been any huge deficit, as there was in Fanteam’s games, for example, a year ago. Satellites have been effective ways to get into big tournaments and tables, for example, in poker.
Apparently, there was already an answer to your question on Twitter, although I don’t know if it’s about 40-50 players or 80%?
Edit: I believe that Scout also receives a monthly license fee. It is also strongly highlighted in customer statements that Fantasy games and what Scout offers bring the sorely needed customer retention to their sites. So even if the site incurs a small loss from the games, it can be offset by a person coming many times a week to see how their team is doing in the tournament and at the same time betting or spending money in the casino.
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I also pondered over customer retention. This half-million game might not be the best example. I believe that, for instance, a fantasy game for the summer’s European Championship with a pot of hundreds of thousands, if well-marketed, could attract large masses and turn them into regular customers. The entry fee is only €23, whereas in the current ongoing game, it’s an absurd €1100 for the average player.
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Betting opened in Q4 and by December, it had exceeded 1M EUR in betting volume. And this quarterly report mentioned growth and live betting in late-year/next year. It’s still small, but it’s good to see growth from here and there.
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To get back to the news I linked, this is actually an attempt to conquer America. Such news leaves one a bit speechless, and what’s even more puzzling is that there’s no mention of this from the company’s side, as this is a huge deal.
A quote from the SCCG guy’s Instagram account: "SCCG Management is pleased to announce the extension of its North America business development and market access partnership with Scout Gaming Group - the world’s leader in B2B fantasy sports and social sportsbook solutions. Together, we are focused on four major initiatives: 1. Social Sportsbook for casinos gearing up to offer real money sportsbetting in the future; 2. B2B white label fantasy sports offerings to integrate into real money Sportsbook offerings and cross sell real money sports bets as well as customer acquisition; 3. Customer and fan engagement in bars, restaurants and sports venues in partnership with the eFanGage platform; NOTE! 4. the imminent launch of the Dreamsport.com B2C brand in the USA focusing initially on soccer and the Euro Cup. More announcements to come as we continue to ramp up our market access activities on behalf of Scout!! (football) (football)
Edit: Based on this information, one could assume that at least some of the higher-than-expected costs in Q1 could be due to this project. The report mentions: “Total costs amounted to SEK -30.6 million (-8.7) and mainly consist of marketing which are flexible. The cost increase is mainly related to guaranteed prize pools which is a marketing cost under other costs.”
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This probably hasn’t been shared yet, even though it’s already been informed, but here’s the official announcement. Only one reason to buy 
https://www.scoutgaminggroup.com/news/ceo-and-cpo-increase-shareholding-in-scout-gaming
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Nowadays, it’s really popular to buy also because the market has previously tended to interpret it as “only one reason to buy.”
This then creates a second reason, namely market stabilization. Especially when purchases occur immediately after a negative reaction and in relatively small total amounts, especially in relation to ownership but possibly by multiple people or over time.
Following Swedish and Norwegian insider trading this spring, all sorts of things are being bought on these grounds, even if earnings performance won’t recover for years or ever. The former CEO of Wirecard (now arrested) bought shares for several million just before the financial crime was exposed but after suspicions had spread.
Often, these flagging announcements do have the desired reaction, and in that sense, the goal can be considered met. One could even argue that such sentiment boosting is a subcategory of “that one reason,” as it protects the value of ownership from erosion.
However, be critical.
I’m in a pretty nasty bear streak right now 
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It’s good that there are also bears in Finnish forests.
In my opinion, purchases should rather be proportioned to a person’s salary or other wealth instead of existing ownership in this company. However, we are talking about purchases of 25,000 euros in March, and now 14,000 and 17,000, which is probably many months’ net salary. These are hardly just thrown into the market for stabilization purposes if there is no faith in the stock.
But these are, of course, always speculation and go a bit off-topic for this thread. They would be more suitable for a thread like “The Significance of Insider Buys and Sells” if such a thread exists.
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Hmm, interesting. I understand not commenting on agreements with suppliers, but why not comment on the establishment of a new B2C website for the US market? It doesn’t matter which company it is, but if and when business is expanded to America, it’s definitely newsworthy enough for a press release.
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In my opinion, Dream Sport is just a test played with play money. I’m sure there will be an announcement if the deal/launch progresses further.
These deals are in a pretty crucial role right now. I’m not worried about current and past profitability figures if the platform can be expanded to different sites. A sure ATG contract is in sight, plus preliminary collaborations with Interwetten, Norsk Tipping, and Betsson.
The progress and realization of the contracts have not been as fast as I would have hoped, but probably the main reason for the stock’s weakness is the growth companies’ bear market.
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Agreed.
Ps. According to Billy, the Norwegians are ready, just waiting for the minister’s signature:
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Scout to perform today at Penser webinar at 11:50 AM
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An interesting takeaway from Penser’s presentation. In the US market, the strategy would be to focus/invest particularly in soccer, which, according to research, is very popular and in demand in the gaming sector, but major players like FanDuel and DraftKings have not invested in it. And the CEO also saw room for other operators there, although the main focus is still in Europe.
Here are a couple of screenshots from the slides:
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So that this comment doesn’t turn into pure speculation, dreamsport.com has clearly gained traction and attention elsewhere. Currently, some Fanteam (fanteam) players have participated in, for example, the tournament where a PS5 is awarded as a prize. Is it the case that some operator has ordered the site from Scout (in which case a press release would not necessarily be issued), or is the site entirely Scout’s own?
Edit: Now we can (can’t we?) rule out that it’s just about supporting the share price, but rather there’s faith in the company’s future. Everyone should draw their own conclusions on the matter.
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Digging paid off, Scout’s promotional material, including information about Dreamsport.
“For Fantasy Sports platforms, We have partnered with Scout Gaming to provide industry leading supplier solution for licensed and regulated B2B Fantasy Sports Wagering.”
Edit: They could even let a friend read the material before printing
Edit2: I did more detective work, but the website in that image is BETMGM, which is the MGM casino/hotel website. Could Scout use an image of their website without future/current cooperation? This could be really big news! Thoughts?!?
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Entain owns just over 4% of Scout through the Enlabs deals. And Entain, in turn, owns half of BetMGM. It could be a complete shot in the dark… but a big US B2B would certainly be a gamechanger.
Edit: You can, of course, post an image with permission, but not otherwise - not even for such “kelmut” (rough translation: scams/tricks). On the other hand, how to get permission if there’s no pattern in the background. Well, it’s just speculation for now 
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