Supplier News

Africa – Newgioco’s Virtual Generation signs five new distribution agreements in Africa

Newgioco’s new virtual Color Lotto product recently launched by its wholly-owned subsidiary Virtual Generation Limited has resulted in rapid adoption and expansion with five new distribution agreements in Africa.

The company will provide a variety of virtual sports products including our popular new Color Lotto games through distribution agreements in Kenya and other regulated regions in Africa, with the first location opened on March 4, 2020. In addition to the recently announced operator contracts in Central and South America, VG is rapidly expanding in Africa due to key technological advantages that deliver consistent economic performance for retail operators. VG has built a solid reputation for producing unique, regionally focused virtual sports games, and is currently developing our virtual Keno, American Roulette and indigenous virtual games for tribal markets in the US.

“The recent suspension of live sports events around the world has given rise to greater demand for non-sports online entertainment products. As an alternative to live sports, the superior technology of our Virtual Generation virtual sports and games provide a highly entertaining solution for gaming operators, and further reflects the strength of our diversified product portfolio,” stated Company Chairman and CEO, Michele Ciavarella. “As part of executing our global diversification plans, we are taking both our virtual and real sports solutions to many of the largest betting regions in the world. Africa is one of the fastest growing and most exciting regions in the global online gaming market with gross gambling revenue that reached approximately $500m in 2018 and expected to grow to approximately $820 million by 2025. This growth is driven in large part by a rise in the availability of online sports betting and African’s passion for sports. By establishing a foothold in the region, we are positioning Newgioco to capture a meaningful share of gaming revenue in Africa.”

The company added that approximately 150 betting shop locations throughout Italy were temporarily closed and that the closing of the physical locations does not affect the Company’s continuing online and mobile operations. The Company has been processing approximately 200 to 300 online account applications daily since the government imposed quarantine took effect on March 8, 2020. The Company has also implemented a smart-work initiative to permit safe office staff separation during this period.

“During this global crisis we are taking proactive steps to effectively and efficiently operate our business while supporting our clients and retail partners and accommodating employees with young children and elderly relatives,” said Mr. Ciavarella. “The shutdown measures also led to the inevitable postponement and cancellation of major sports events that we are offsetting with our general off-season business adjustments. However, although we are seeing an uptake in our non-sports online entertainment products such as poker and casino, we do expect that the complete shutdown of global sports will affect our overall results of operations for this period and until the crisis is resolved. This unprecedented situation, that happens to be keeping us separated through lockdowns and quarantine, is in some ways bringing us all together to rediscover family and community and reminding everyone to appreciate certain benefits of freedom we easily lose sight of, not the least of which is the importance of community interactions, functions as well as social gatherings outside of the home that includes sports and the relationships we develop with the athletes that compete.”