Luckbox set for player acquisition after minimal revenue in 2021 – Esports

Real Luck Group CEO Thomas Rosander announced that the Luckbox operator is poised to transition into an aggressive player acquisition phase, following the disclosure of an $8.6 million net loss for the fiscal year 2021.

Despite the company’s clear potential, revenue remained modest at $25,174, marking a 66.6% decrease from 2020 figures, with all revenue sources originating from the Isle of Man—a strategic jurisdiction for online gaming.

While revenue dwindled, costs of sales experienced a slight uptick, reaching $290,286. This was primarily driven by a 24.1% increase in fees for platform and service providers, totaling $277,994. Notably, the cost associated with free bets plummeted by 80.8%, down to $12,292, indicating a shift in marketing strategy.

The company reported a gross loss of $265,112, which reflects a 24.8% year-over-year increase, a concerning trend for stakeholders.

Operating expenses surged by 62.1%, escalating to $8.4 million. This increase was fueled by several key expenditures: $1.9 million in share-based compensation—a striking 113% increase—$1.7 million in salaries and director fees (up 12.2%), and consulting costs that ballooned by 111.2% to $1.4 million. Legal, professional, advertising, and marketing expenditures also contributed, with costs reaching $1.3 million and $943,234, respectively.

After factoring in $40,799 in interest income, the pre-tax loss soared to $8.6 million, reflecting a 57% escalation from the previous year. The company incurred a mere $6,061 in taxes, resulting in a final net loss that mirrored the pre-tax figure—a significant concern for stakeholders.

Thomas Rosander elaborated on the operational focus of 2021, noting that while the priority was on enhancing their platform, the groundwork was laid for future customer acquisition endeavors.

“During fiscal 2021, our dedicated team concentrated on refining and expanding our proprietary platform and infrastructure, effectively positioning us for enhanced player acquisition initiatives in 2022,” Rosander stated. “Our development efforts have culminated in a next-generation wagering platform, bolstered by advanced business intelligence to optimize our marketing expenditure and maximize player lifetime value.”

Rosander highlighted recent advancements, including the introduction of new betting verticals such as online casino, which are set to diversify revenue streams.

“Our strategy in 2021 revolved around crafting a cutting-edge betting platform for a new era of gamers. We implemented hundreds of platform enhancements, forged eight new partnerships, and bolstered our talent pool,” he remarked. “Additionally, we expanded our core esports offering to incorporate sports wagering, providing fans with the opportunity to engage with hundreds of daily market options across sports like football, basketball, soccer, and hockey.”

“Culminating our efforts, we successfully launched the online casino, which promises to yield immediate revenue in a segment where I have previously enjoyed considerable success, including during my tenure as CEO of Dunder.”

“Looking ahead, we are excited to unveil our offerings in Ontario and anticipate expanding into further regulated markets throughout 2022, broadening our reach and enhancing our growth potential.”