Q3 2024 Bragg Gaming Group Inc Earnings Call
Good morning, everyone. My name is Sarah and thank you for joining the third quarter of 'twenty 'twenty four earnings conference call for brake gaming group.
Shortly hand, the call over to break gaming group's CEO, Mattel's Mozzie, who will comment on brakes third quarter performance and brakes interim CFO, Robbie Bressler, who will review and discuss the company's third quarter financial results.
I would like to remind you. If you are not already doing so that you can follow this earnings call presentation live from brakes investor website at investors <unk>.
<unk> Dot group, that's investors plural with an S. Then go to the events and presentations section.
On this call there will be a review of brakes financial and operating results for the third quarter of 'twenty 'twenty four.
Following these prepared remarks, the conference call will be open to a question and answer period.
I would like to remind you that certain statements made on this conference call and the responses to various questions may constitute forward looking information or future oriented financial information within the meaning of applicable securities laws.
If you have not already done so please familiarize yourself with brakes full explanation of these risks factors.
Available on the second slide of the brake gaming group third quarter 2024 earnings presentation.
Titled Forward looking statements, which is published on the website at investors stop breakdown group. This information is also available in brakes recently filed third quarter earnings press release and other publicly.
Available disclosures.
Speaker Change: I'd like to turn the call now to Mattel's Massey Chief Executive officer of break.
Speaker Change: Good morning, everyone. My name is what those lousy I'm, the chairman and CEO Rod.
Speaker Change: On this call today I'll start with an update on the strategic review process that has been running.
Dan: Dan will go through the third quarter operational highlights, including all key launches and latest news.
Dan: Then I will pass the line to Robbie who will present, our latest financial results.
Speaker Change: When Robin has taken you through the numbers I'll give you an update on the positive change I have been implementing since returning as both the chair of the board.
Speaker Change: T O a little over a year ago.
Speaker Change: And after that Robbie and I would be happy to answer any questions you may have.
Speaker Change: I'll start with today's announcement that the board has concluded the strategic review process that we announced earlier this year.
Speaker Change: In March 2024, the company announced the formation of a special committee comprised solely of independent members of the board.
Speaker Change: To conduct a review of strategic alternatives for maximizing shareholder value.
Speaker Change: This committee together with its advisors Oakville capital and Blake Cassels on Guizhou <unk>.
Speaker Change: Evaluated a wide range of strategic alternatives for maximizing shareholder value.
Including a potential sale or merger of the company.
Speaker Change: The committee held discussions with over 70 potential counterparties.
Speaker Change: They executed nondisclosure agreements and shared confidential information with over 25 Counterparties.
Speaker Change: And they received multiple non binding proposals.
Speaker Change: After careful consideration the special committee and the board unanimously determined.
Speaker Change: But none of the proposals received reflects the company's intrinsic value or current and projected financial performance.
Speaker Change: As a result, the board has elected to conclude its review and as disbanded the special Committee.
Although the process has now concluded the board will continue to be open to and consider all opportunities for enhancing shareholder value.
Speaker Change: We remain extremely confident about the company's business plan.
Speaker Change: Operating strategy.
Speaker Change: And financial prospects.
Speaker Change: Turning now to slide five.
Speaker Change: In the third quarter I am pleased to announce that we delivered meaningful growth across all of our key performance indicators.
Speaker Change: <unk>, 16% topline growth year over year.
Speaker Change: With gross profits up 18% and adjusted EBITDA up 7%.
Speaker Change: We've continued to grow our position as a supplier of online casino games in the United States.
Speaker Change: Something which has been a key focus for Bragg over 'twenty 'twenty, four and something I'm pleased to report that we're capitalizing on.
Speaker Change: Notably in the U S. We have been growing revenues from gains which come from our proprietary content Studios Wall Street gaming ophthalmic slot lab and integral magic at that.
They can only accelerated rate.
Speaker Change: These are high margin products, which Bragg is the IV owner the developer.
All he owner and a distributor.
Speaker Change: Outside of the U S as well as our exclusive content business.
Speaker Change: We continue to grow our Pam that's player account management technology and turnkey solution business.
Speaker Change: During the third quarter, we launched our sixth customer in the Netherlands with the iconic hard rock casino brand and a turnkey deal, which includes our product delivery content aggregation and managed services.
Speaker Change: It's been great to support hard rock into Dutch expansion, and we're looking forward to a long and fruitful relationship.
Speaker Change: Also in the Dutch market, we successfully launched Academy Sports book with our valued partners and 711 and L. Adding a new product vertical and further cementing our great relationship with the Dutch licensed operators.
Speaker Change: During the third quarter, we were also busy working on developing and implementing solutions to the new regulatory requirements in the Netherlands, which include the introduction of monthly deposit limits, which came into effect on October 1st.
Speaker Change: To date the impact of the new restrictions has broadly been in line with our expectations.
Speaker Change: The Netherlands continues to be an important market for us and we continue to work with our operator partners in the jurisdiction to further optimize and refine our products in response to this new regulatory environment.
Speaker Change: Throughout the third quarter, we continued to grow our content distribution reach in the U S market building existing relationships with our operator partners and expanding into new states.
Speaker Change: Third quarter. Examples include the expansion of our existing agreement with Caesars Entertainment to include provision of exclusive content into Pennsylvania as.
Speaker Change: As well as into Ontario, and Canada.
Speaker Change: Our new content launch with tangible in Pennsylvania, as well as expanding our relationship with battery six five to include New Jersey.
Speaker Change: Now I'm going to turn the line over to Ravi to discuss our financial results.
Speaker Change: Bobby.
Ravi: Thank you, Matt and good morning to everybody I will now cover our financial results for the third quarter of 2020 for total revenue for the third quarter was $26 2 million Euro another record high up 15, 9% compared to Q3 2023.
Ravi: Additionally, Q3 2024 gross profits grew by 18% to $14 million Euro with gross profit margin rising by 99 basis points to 53, 5%.
Ravi: Adjusted EBITDA for the quarter also grew by 7% to $4 1 million euro or third consecutive sequential quarter of growth. Our adjusted EBITDA margin was 15.6% slightly lower than the 16, 9%. We reported in the same period last year as expected.
Ravi: The strong quarter and record growth for the group was no more exemplified than in our U S numbers, where growth in content distribution helped drive a 40% increase in proprietary content revenue globally compared to the third quarter of last year.
Ravi: We reiterate our full year revenue and adjusted EBITDA guidance at 102 to 109 million Euro and 15.2 to $18 5 million Euro respectively, noting that we are currently tracking to the lower end of our guidance ranges provided.
Ravi: Moving onto our product mix as noted on slide eight in the third quarter of 2020 for revenue from Pam and turnkey operations was five points of 7 million Euro representing 21, 8% of total revenue compared to $4 6 million, representing 26 total revenue in the third quarter of.
Ravi: Last year.
Ravi: Total content revenue was $20 5 million euro in the third quarter of 2024.
Ravi: Representing 78.2% of total revenue in the third quarter of 2023 total content revenue was $17 nine represented 79, 4% of total revenue.
Ravi: Turning to the balance sheet as of September 32024, we held $11 6 million euro in cash and cash equivalents during.
Ravi: During the quarter, we fully settled the remaining balance of the linde convertible debt in cash our only remaining debt facility is a 7 million USD secured promissory note due in April 2025.
Ravi: Net working capital, excluding deferred consideration and promissory note at the end of September 32024 amounted to $11 3 million euro compared to $5 1 million euro at the beginning of the year.
Speaker Change: Before handing the call back to Matt I would like to make a few comments on our 2025 outlook.
Speaker Change: Bragg is actively advancing a robust pipeline of opportunities that is anticipated to drive strong momentum as it enters 2025. The outlook for 2025 remains positive with expectations of sustained double digit topline growth expanding bottom line margins and increased.
Speaker Change: Operational leverage further strengthening <unk> position in the market.
Matt: I will now hand over the call back to Matt is to continue with commentary on strategy and operations.
Matt: Thank you Robby now in the next slides I want to give you a snapshot of our progress since I became CEO of Rog, approximately 14 months ago, and how our products and technology stand out from the competition.
Matt: Throughout my tenure as CEO I've wanted to grow brands existing business in a meaningful way.
Matt: And in practical terms this was about adding to our strong foundations with a number of changes designed to fortify and focus on our operations.
Matt: <unk>, which will unlock the value of our investments in technology people and relationships.
Matt: In order to deliver profitability and solidify our position as a one stop solution.
Matt: Capitalizing on the expansion of the gaming markets and partnering with household names in regulated and regulating jurisdictions.
Matt: In line with this philosophy.
Matt: <unk> taken action in a number of areas.
Firstly, we've strengthened our executive leadership team to include experienced industry experts.
Matt: At all levels.
Matt: And it is the strengthened team that has already begun to deliver the kind of result that will grow brag for the long term.
Matt: And as I mentioned earlier, we're already beginning to see the results of these changes in the United States, a key focus area for <unk> this year and going forward.
Matt: We've built a robust pipeline of opportunities not only for our proprietary and third party equals of online content.
But also for our Pam hub huge technology and turnkey solutions.
Matt: From a commercial perspective, we realigned our commercial strategy to regionally focused approach with dedicated teams for North America, Latam and Europe.
Matt: Keeping with the commercial team, we have positioned ourselves to take advantage of the forthcoming launch of the regulated market in Brazil from January one 2025.
Matt: Pairing our whole technology suite, including our Pam hub and fuse.
Matt: For the requirements of that jurisdiction developing localized content as well as opening our first office in Sao Paolo.
Matt: We're making it easier for customers to work with us in the jurisdiction by becoming a local supplier and our preparation for this market underscores the significance that we see in the Brazilian opportunity going forward.
Matt: Lastly, we've continued to deploy new product features over the last 14 months features such as jackpots and recommendation engine, which set us apart from the competition in a meaningful way by delivering a competitive advantage, which allows us to drive profitability for those customers.
Matt: And I will talk more about it on the next slide.
Matt: To sum up we offer unmatched value through our commitment to market specific localized content.
Matt: On boarding exclusive studios for a market like the U S, Canada, Brazil, and the Netherlands.
Matt: Our comprehensive product suite and enhance player journey management tools, including Brian fuse.
Matt: Empower these clients to elevate operations with diversified content aggregation and tailored players' experience.
Matt: Our realigned commercial strategy positions us as a global leader I gaming solutions dedicated to supporting operators expansion in regulated and pre regulated markets through tailored regional approaches.
Matt: With a regional focus on key markets across the U S and Canada.
Matt: Latin America, Europe, and pre regulated regions, where Seth to onboard new turnkey by them and help clients in emerging in regulated markets, such as Brazil, Peru, Canada, Finland, France and Germany.
Matt: By focusing on European Latam and Canadian clients seeking seamless migration as well as lottery operators expanding into a gaming and sports betting.
Matt: We help drive cross channel engagement.
Matt: And maximized cross selling opportunity.
Matt: With strategic partnerships, we provide best in class solution to support a seamless and engaging player journey in today's competitive gaming landscape.
Matt: Now I want to talk more about how our I gaming content and technology solutions are differentiated making us a tier one regulated market supply.
Matt: We are operational in over 30 regulated I gaming jurisdictions globally.
Matt: Support our customers in all of the markets they operate in with localized content portfolios and locally compliant technology solutions.
Matt: As you can see from the diagram on this slide our solutions are modular.
Matt: Pam data layer fuse player engagement hub product delivery platform content and managed services can be taken together.
Matt: Or can operate independently in order to create custom content and technology solutions, which upgraded the product offering for online casino sports book and lottery operators and optimize the player journey.
Matt: Unlike other solutions on the market our data warehouses also built as an independent element, making it a uniquely flexible and powerful tool, which can be leveraged across any product or channel.
Matt: Weather for our proprietary products or third party.
Matt: This flexible solution unlocks a 360 degree player overview.
Consolidates player and game data across different product verticals.
Matt: Our data warehouse also comes with advanced Bilton reporting dashboards as well as custom regulatory airports solving multiple common reporting challenges, which operators typically face.
Matt: Enabling them to focus on optimizing the player journey and maximizing profitability.
Our proprietary remote gaming server technology and our in house game development expertise drives the success of our.
In House studios as well as the success of our partner studios, allowing operators to introduce attractive global localized and custom content portfolio.
Matt: Our multi award winning twos player engagement platform works across all content delivered by broad whether that's in house partner for aggregated casino content and it works across sports book and lottery products too.
Matt: Lowering for cross sell between verticals, reducing acquisition costs and significantly increasing conversion and retention rates and end user lifetime value.
Matt: Our multiple third party product integrations include leading sports books, and other I gaming product partners, giving our operators customers a wide choice of products and verticals.
Matt: With which they create compelling highly localized offering.
Matt: Lastly, our vertically integrated product suite means we control the full spectrum of the supplier ecosystem.
Matt: From IP ownership of content and technology.
Matt: The development deployment and promotion of the product.
Matt: Not only does this give us unique data and insights, but it gives us direct control and allows us to move fast whether that is to optimize the product develop a new feature or to implement a new regulatory requirement to ensure our operator partners are always one step ahead.
Matt: Looking in detail at the U S. We employ an operator centric approach.
Matt: Continually connecting and reconnecting with our customers to understand how we can deliver content for their respective strategies.
Matt: As I've already mentioned, we have seen continued growth in distribution over online casino content in North America since the beginning of the third quarter.
Matt: Expanding our relationships with partners in six jurisdictions with new content launches.
Matt: We launched with Caesars in Pennsylvania in Ontario in the third quarter as well as launching with fondue in New Jersey during the same period.
Matt: I am pleased to announce that post quarter end, we launched in Delaware, Our fifth U S state.
Matt: With our partner Rush Street interactive.
Matt: This gives us 100% of the Delaware market as they are the only casino operator.
In the state.
Matt: We are on track to launch our sixth U S online Casino state West Virginia in.
Matt: In the second quarter of next year, our expanding distribution network in North America is helping to drive strong growth in exclusive and proprietary content revenue and we note that global revenues from proprietary content were up 40% year over year.
Matt: In the third quarter of 2024 compared to the same period last year.
Matt: And so to conclude.
Matt: <unk> third quarter revenue rose by 16% compared to the same period of last year to <unk>.
Matt: $6 2 billion Euro.
Representing a record quarter for the company.
Matt: Our gross profits grew by 18% year over year to 14 million Euro.
Matt: Corresponding to a margin of 53, 5%.
Matt: While our adjusted EBITDA also increased 7% to $4 1 million Euro with a margin of 16% with our third quarter results published and halfway through the fourth quarter trading.
Matt: We are reiterating that we are tracking towards the lower end of our full year 2024 guidance of between.
Matt: 102, and 109 million euro in revenue.
Matt: And 15.2, and $18 5 million euros in adjusted EBITDA.
In addition, we shared that the special Committee has concluded the strategic review process and has determined that the ongoing execution of the company's strategic plan is the best way to maximize value for shareholders at this time.
Lastly, the structural changes we have made to the business are beginning to deliver meaningful measurable results, giving us a robust sales pipeline to look forward to in 2025.
Matt: Thank you for listening I'd like to take this opportunity to pay tribute to the entire <unk> team for their continued unwavering hard work and commitment during this quarter.
Matt: And now I will turn the line back to the operator, and Robbie and I will be happy to take any questions.
Thank you if you would like to ask a question. Please press star one on your telephone keypad. If you would like to withdraw your question simply press Star. One again, please ensure that your phone is not on mute when called upon thank you.
Speaker Change: Your first question comes from the line of Jordan Bender with citizens JMP. Your line is open.
Jordan Bender: Good morning, everyone. Thanks for taking my question I wanted to start on the guidance implied <unk> revenue somewhere high double digits.
Jordan Bender: First should we expect that kind of exit rate as we head into 2025.
Jordan Bender: Second what markets do you foresee driving some of that elevated growth.
Jordan Bender: Yes.
Speaker Change: Yes, I can take that.
Speaker Change: Jordan Thanks for the question.
Speaker Change: In terms of.
Speaker Change: Q4 outlook and then into 2025.
Speaker Change: I think what you said is correct I think.
Speaker Change: Double digit growth is definitely.
Speaker Change: Possibility and what we think is.
Speaker Change: It's achievable.
Speaker Change: Sorry can you repeat your second part of your question.
Jason: Yes, Jason.
Jason: For Q high double digit growth.
Jason: Exit rate looking at that but.
Jason: As we think about some of the higher growth markets, where should we be thinking for.
Jason: For next year sure so definitely the U S. We see opportunity to continue our meaningful growth and as that compounds on what would relatively small base.
Jason: I would say it started this year is starting really to compounding some meaningful numbers and growth.
Jason: We also have a fairly aggressive plan to be ready on January one for the launch of regulated Brazil, we do have legacy business, there, but we see significant opportunities.
Jason: To really increase the amount the revenue we're generating in that jurisdiction.
Great and then maybe bigger picture unpacking, the enhance each shareholder value comments I think it's fair to assume that investing in your business would be on the top of that list can you just maybe help us understand what that.
Speaker Change: That comment might mean or are we thinking share repurchases M&A et cetera. Thank you.
Speaker Change: Good question I don't think share purchases will be at this time, the best use of our.
Excess capital, but something we would always consider.
Speaker Change: There really isn't a need to make significant investments in our products. So we've done a very good job to get our products to where we believe.
Speaker Change: Commercially there could be very.
Speaker Change: Appealing to operators now, it's really investing in the commercialization. So we really we've done a lot of that in the sense of bringing on the right talent in region to be able to.
Speaker Change: That sell our products and we.
Speaker Change: We also think that.
Speaker Change: There's good opportunities in our pipeline.
Speaker Change: Quite impressed with the pipeline that has developed over the last I'd say six to 12 months and feel that there is going to be some good opportunities that we're well placed to win.
Speaker Change: Being soon.
Speaker Change: Great. Thank you very much.
Your next question from Gian Luca Tucci with Haywood Securities. Your line is open.
Hi, good morning, Madison Robby.
Speaker Change: It does look like you had your best quarter ever in the U S on a quarterly perspective.
Speaker Change: Is that just the passive having better market coverage or have you changed your go to market approach there and then as a follow up how big do you think the U S can be for Bragg next year.
Speaker Change: Thanks for the question. So I think it's a combination of it.
Speaker Change: Factors.
Speaker Change: Our coverage continues to increase.
Speaker Change: We're going to hit 90 plus percent coverage of the <unk>.
Speaker Change: Market by the end of this year.
Speaker Change: Also think that the efforts as Matt mentioned when he came back into this business.
Speaker Change: Two really.
On the CEO role.
Speaker Change: Looked at the bench that Greg has the talent and what's needed to penetrate the markets that we want to be in and he's brought the right people to do that and we're seeing the fruits of those.
Speaker Change: That.
Speaker Change: Those moves play out so I think we're being.
Speaker Change: We have the most talent, we probably ever have in terms of being able to push our our product in the U S and I'd say other jurisdictions.
Speaker Change: Also the pipeline internally about being able to develop content keeps getting better and keeps increasing in terms of cadence and we actually see.
Speaker Change: Next year, we believe our cadence of getting new titled out is going to increase fairly dramatically from from the prior year, which is just going to further enhance our ability to become.
Speaker Change: We'll establish partners with our operators and push our proprietary content.
Speaker Change: Okay. That's that's good color. Thanks, Robbie so so as a follow up to that like is it team.
Speaker Change: Getting more efficient in.
Speaker Change: The speed or the cadence of game development content.
Speaker Change: Development or are you, adding more bodies on the content side of things.
Speaker Change: Or a combination of both yes. It is a bit of a combination of both but by no means do we for us to let's say double our content output by no means do we need to double the internal infrastructure to do that so we definitely can scale.
Speaker Change: Being more efficient getting better getting more experience and leveraging.
Speaker Change: Titles that we've used in other jurisdictions that could be potentially repurpose.
And things like that so we're quite happy where we've gotten our internal proprietary content.
Speaker Change: Going in the infrastructure, we've built to do that and again, our cadence I believe will increase in the coming year and with the right team in place to push that.
Speaker Change: Content onto the operators.
Speaker Change: I really think the U S could be will be.
Speaker Change: Nipple part of our revenue concentration going forward and I think that was part of your question is well what can we expect.
I think the U S could become.
Speaker Change: Eric and double digit percentage of our total.
Speaker Change: Total revenue in the coming year for sure.
That's great Robby.
Speaker Change: Thanks for that and then just secondly here on gross margins and EBITDA margins. It does sound like the.
Speaker Change: The company is expecting a lift next year.
Is that going to be smooth or is it going to be like second half weighted that margin growth.
Speaker Change: I'm just wondering if.
Speaker Change: The company could provide some some context.
Speaker Change: As to the cadence of margin growth.
Speaker Change: Sure.
Speaker Change: Just a little early to make specific comments on that I do think we will have margin growth over time, and it's really related to a product mix.
Speaker Change: As I mentioned earlier, the emphasis on our proprietary content and actually the opportunities for <unk>.
Speaker Change: Pam business that are in our pipeline really be factors that drive that.
Speaker Change: An increase in terms of timing.
Speaker Change: Really want to get into that.
Speaker Change: The January when we have.
Speaker Change: Clear sense of our 2025 guidance, but.
Speaker Change: Im quite.
Speaker Change: Happy to see the opportunities for growth that are coming in 2025.
Speaker Change: Okay. Thanks, guys.
Speaker Change: If I may just add.
Speaker Change: Two question.
Speaker Change: So in 2025, we will obviously, we expect to see significant growth in content output.
Speaker Change: One factor that is going to occur.
The growth of revenue.
Speaker Change: We have diversified our development Hudson.
Speaker Change: Some development ops will be more regionally focused.
Speaker Change: The other factor is that our portfolio has grown to accommodate a range of product styles and game mechanics, we're still going to be primarily a slot focused but in addition to the.
Speaker Change: 2024, we will add support for other stars of games.
Speaker Change: We have now reached a point in gains portfolio to go live with new operators in a variety of markets with a richer portfolio based on games that can start to add the incremental revenue with new operators and new game.
Speaker Change: We will add revenue to the existing operators so.
Speaker Change: That's also expect it to be a factor that is going to affect the revenue and then we have obviously more requests and demand for bespoke and customized gains from existing operators and properties that are coming into the market. So we will see the optimization of older games.
Speaker Change: With with new features specifically with a bolt on jackpot features.
Speaker Change: And we have managed to grow operational efficiencies in a number of different processes in design and development. So we have a richard baseline for clothes derivatives.
Speaker Change: And complementing a growth in deal size for larger output of total game. So.
Speaker Change: Lots of room for growth as we look at.
Speaker Change: Some regional markets in the U S and Canada as well.
Speaker Change: We're just starting in Delaware, West, Virginia, and we have more coming online with Pennsylvania in Ontario and opportunities.
<unk>.
Speaker Change: In British Columbia.
Speaker Change: That's a few more things to two adds to what we said about the opportunities in 2025.
Speaker Change: Sounds like a busy pipeline.
Speaker Change: Thanks for the color macro you can talk to you guys. Soon thank you.
Speaker Change: Once again, ladies and gentlemen, if you have a question it is star one.
Speaker Change: Next question comes from Jack Cordero with Maxim Group. Your line is open.
Speaker Change: Hi, This is Jack good Erik calling in for Jack Vander Ark. Thanks for taking my question.
Speaker Change: Given that you are kind of ready for this day, one regulated Brazil do you have any view on what portion of that market, you will be able to capture and any view on.
Speaker Change: An estimate of how meaningful that market will be relative to your existing markets. Thank you.
Speaker Change: It's probably difficult or too early to say what the.
Speaker Change: What are the numbers going to be post regulation, we obviously have existing relationships with leading operators in that market.
Speaker Change: And we expect the significance.
Speaker Change: Significantly increase our revenue in the market post regulation.
Speaker Change: We believe that the market is going to be extremely important.
Speaker Change: Fort Bragg in the future.
Speaker Change: We feel that we are.
Speaker Change: Very well positioned to be.
Speaker Change: One of the leading another leading.
Product delivery platform in the markets and we're building a portfolio of content that is going to allow us to deliver.
Speaker Change: Local unique cost.
Speaker Change: Custom content to these operators and we expect to take.
Speaker Change: Meaningful market share in that respect as well we also have plans to.
Speaker Change:
Speaker Change: Launch our Pam in the market.
Speaker Change: Ah.
Next 12 to 24 months so.
Speaker Change: We expect to be active in content and technology and services in that market and we feel it's going to be a very important.
Important market for us.
Speaker Change: Okay. That's helpful. And then just one more general question.
Just kind of a perspective on.
Speaker Change: Whether it be <unk> your BDC on how crypto is affecting the market do you see any strategic moves that the markets adopting that might have a sort of headwind or tailwind effect to your business any comments there would be thankful.
Speaker Change: Okay, I can take that Matt.
Speaker Change: Sure.
Speaker Change: Guess what.
Speaker Change: What we haven't seen too.
Speaker Change: Right deal in the crypto market in a regulated world of gaming is the <unk>.
Speaker Change: Our regulators being.
Speaker Change: Accepting of crypto as a means of depositing so and withdrawing.
Essentially claims so I think it's going to be time.
Speaker Change: I think that'll happen over time, and there probably will be a catalyst to do that.
Speaker Change: As the Dot com crypto casino in the world seem to be taking sizable market share in regulated jurisdiction and I think a way to attract players.
Speaker Change: Away from those offering is to be able to utilize crypto as a means of withdrawing and depositing in the regulated jurisdictions. So.
Speaker Change: I think that would be a net positive for <unk>.
Speaker Change: For us for that to occur as it will just increase the amount of <unk>.
Speaker Change: And the amount of GTR that's.
Speaker Change: That's occurring in regulated jurisdiction.
So I see it all.
Speaker Change: Net positive.
Speaker Change: Feel like the direction I mean, it's hard to really predict what's going to happen in significant jurisdictions like the United States, especially being so states lagged in terms of how regulations rollout.
Speaker Change: But just the momentum crypto will hopefully.
Speaker Change: The something that states regulators consider and again that just increases the the.
Speaker Change: The amount of time in each jurisdiction.
Speaker Change: The net positive for us.
Speaker Change: Okay. That's helpful. Thanks, again for taking my questions Congrats on a strong quarter.
Speaker Change: Thank you guys.
Speaker Change: This concludes the question and answer session and we will conclude today's conference call. We thank you for joining you may now disconnect your lines.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].