Kings Entertainment Group Launches on the Canadian Securities Exchange and Provides Corporate Update
Kings Entertainment Group Inc., parent company of global online gaming innovators LottoKings and WinTrillions, will debut on the Canadian Securities Exchange (the “CSE”) today at the start of trading under the ticker “JKPT”. Kings Entertainment is also pleased to share an update on the Company’s operations and a view into its current and upcoming priorities for growth.
LottoKings and WinTrillions are the flagship brands of Kings Entertainment. As international online service providers for lottery, casino, and sportsbook gambling, the brands leverage their ability to acquire high potential players through renowned lottery offerings, then convert players into casino and sportsbook players. LottoKings and WinTrillions have attracted and retained millions of player sign-ups to date.
“As we look back at 2021, we were successful in building a solid foundation that will support significant expansion and position the Company to realize robust future growth,” said Steve Budin, CEO of Kings Entertainment. “We performed well on our KPIs, successfully diversified into casino and enhanced our operations and product offerings. We’ll leverage this success to accelerate our evolution through 2022.”
Strategic Diversification
Kings Entertainment has evolved its focus from lottery only and is now focusing on revenue growth in the profitable online casino vertical, while continuing to grow its core online lottery operations. The Company has assembled a world-class casino offering utilizing a combination of Red Tiger and Oryx Gaming for its virtual games and Evolution Gaming for its live casino content. The combination of a world-class casino content platform and CRM-based offer programs cross-promoting casino content to targeted lottery users has produced extraordinary results.
Key Performance Indicators
The Kings Entertainment brands surpassed a number of Key Performance Indicators in 2021:
- Overall revenue increased by 10 per cent from the previous year1, despite a hold on all marketing activity
- Total casino revenue in 2021 was $1,110,000, a 43 per cent increase from $773,578 in 2020, and the cost of casino revenue in 2021 was $158,000, as compared to $69,309 in 20202
- Total Unique Active Casino Players increased by 48 per cent to 2,849, from 1,921
- Active lottery customers remained stable, with new customers balancing natural attrition
- New unique depositing customers increased by 9 per cent, from 13,225 to 14,424
Operational Enhancements
- New Chief Marketing Officer – the Company has appointed gaming industry expert James Dominique, previously of Lottoland, to the Chief Marketing Officer role. Mr. Dominique has been instrumental in developing and implementing the Company’s new strategic direction
- CRM Platform – the Company has upgraded its CRM platform to Emarsys, enabling enhancing capabilities and increasing customer retention, while decreasing platform costs by 50 per cent
- Increased Lottery Ticket Prices – the Company was able to increase profitability across sales opportunities by increasing lottery ticket prices up to 20 per cent. This strategy allowed Kings Entertainment to offer significantly better discounts while maintaining margins
- Boosted Jackpots – Lottery players can now play their favourite lottery games, with a minimum jackpot of US$100 million at no additional cost, including boosted PowerBall and Megamillions jackpots. This newly created feature validates the Company’s role as an innovator within the industry and adds excitement for players.
Outlook for 2022
Kings Entertainment is poised for significant growth in 2022, as the Company continues to execute on its core lottery strategy and accelerates the expansion of its global casino business. With a solid capital structure now in place and the resources to invest in market awareness and customer acquisition, Kings Entertainment is leveraging its robust lottery presence and strong international network to create innovative, appealing new products and enter new jurisdictions as a global leader.
The Company also announces that it has granted 924,000 incentive stock options to consultants. The incentive stock options have an exercise price of $0.50 per share, are valid for a 5-year period from the date of grant and are subject to regulatory approval.
