The subsidiary company of EML PAYMENTS LIMITED (ASX: EML), EML Payments USA LLC is happy to announce that it has entered into a multi-year agreement with PointsBet USA Inc. for the establishment of Reloadable card program of PointsBet in the state of New Jersey in the USA.
As per the agreement, EML is supposed to provide the players of PointsBet a user-friendly Reloadable card so that the players can send funds into their gaming account as well as the innovative product that supports instant access to winnings. Based on the regulatory approvals, it is expected that in the second half of FY2019, the initial program will be launched in New Jersey. In May 2018, the Supreme Court has passed its decision to allow the states to legalize sports betting. There are 6 states who have already passed the legislation. Still, there are 22 states who are moving ahead towards legalization. Both the companies will be working together as a partner. EML and PointsBet will work together as a partner throughout the USA since PointsBet has obtained licenses for regular sports betting in the states of USA.
Brandon Thompson who is the Chief Commercial Officer, EML Payments said that working as a partner with PointsBet will enable EML to drive customer engagement in the USA. The company has many long-term opportunities in the upcoming years as well. He also states that the company has a successful past of delivering innovative payment solutions to the sports betting providers in the regions of Australia and Europe. The company has provided a constant experience that is already proven in other countries as well.
The Managing Director and Group CEO of EML Payments, Mr. Tom Cregan expresses his excitement for being elected to lead the USA market by providing payment cards that are expected to launch in FY2019. He is also hopeful that it will have a unique customer experience and will be proof of constant innovation which is taking place in the industry.
The CEO of PointsBet, Mr. Sam Swanell is very excited about the integration of the EML into the PointsBet platform. Through the payments card, the partnership will enable EML to deliver concrete benefits to the PointsBet clients of PointsBet. It will not only deliver reliable deposit method in the challenging gambling market but will also enable its customers the reuse their winning amount immediately.
As EML is entering into this betting program for the first time, it is not able to estimate the future Gross Debit Volume (‘GDV’). Also, they are not sure about the pace at which the market will develop since sports betting has only recently been legalized. However, as the expectations of EML, GDV to revenue conversion rate will be significantly in line with the average for the General-Purpose Reloadable segment.
Since inception, the company has given a positive performance of 3926.34%. The 5 years and 10 years performance of the company is 200% and 5651.91% respectively. However, since the past 1 year, the performance of the company is -25%.
By the end of the day, the share price of the company has gone down by 1.543%. The last traded price of the share was A$1.595 with the market capitalization of A$405.02 million and PE ratio 180x.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.