Elys Game Technology (Nasdaq:ELYS), an interactive gaming and sports betting technology company, has established a joint venture with Cloakbook LLC. The joint venture is between Elys Game Technology and Cloakroom Gentleman’s Club DC (Cloakroom), an independently owned business in Washington DC. The big announcement today is that this joint venture has been granted a Standard Class B Joint Venture Sports Wagering Operator License to commence sportsbook operations by the District of Columbia’s Office of Lottery and Gaming.
A soft launch is expected ahead of the New Year’s Eve weekend with first wagers planned at 4:oo PM EST on Thursday, December 29th 2022.
“We are delighted to have been granted the first joint venture license with our partners at Cloakbook to commence sports wagering services within the Cloakroom Gentlemen’s Club and the Over Under rooftop lounge, our second small business sportsbook installation in Washington, D.C.,” stated Michele Ciavarella, Executive Chairman of Elys Game Technology. “Elys firmly believes that this segment of retail sports betting within neighborhood establishments could become a key driver for local employment and economic recovery at the community level throughout the United States and Canada. This retail distribution model offers an alternative to mobile betting that has not commonly existed in the United States other than very limited access in a few grandfathered states prior to the repeal of PASPA in 2018. We are very grateful for the patience and determination of our partners at Cloakbook and the detailed oversight of the Department of Small and Local Business Development (“DSLDB”) and DCOLG, and along with our experiences at Grand Central Restaurant and Sportsbook (“Grand Central”) that helped us identify areas of improvement needed to maintain compliance, public safety and provide an effective end-to-end sportsbook solution for our small business partners. We look forward to scaling our U.S. expansion through ongoing collaborations with these partnerships to foster the viable and long-lasting economic advancement of the small and local business community.”
This joint venture establishes a new licensing framework developed through cooperation and collaboration between Elys, Cloakroom, and the DSLDB and DCOLG. This licensing framework, pioneered in the District of Columbia, could set a precedent model for other states and jurisdictions to replicate economic opportunities of neighborhood sportsbooks in the community.
Elys expects to play a key role in the community business ecosystem by hosting bi-annual seminars on the process of being licensed for sports wagering, dedicating a section of the Company’s website at www.elysgame.com to list subcontracting opportunities for D.C. Certified Business Entities directly related to management of the sportsbook, communication through e-mail alerts from Elys directly to the CBE community for relevant contract opportunities related to sports wagering, participating in events that the DSLBD may host throughout the year as it relates to sports wagering, and among other ancillary services – aid local businesses by serving a mentorship role for the duration of the partnerships to provide support and training to each establishment in D.C.
Elys is a B2B global gaming technology company operating in multiple countries. Elys offers its clients a full suite of leisure gaming products and services, such as sports betting, e-sports, virtual sports, online casino, poker, bingo, interactive games and slots in Italy and has operations in five states as well as the District of Columbia in the U.S. market.
The stock is on a tear today with over 74,000,000 shares traded and the stock currently up over 131%.
When it comes to the technicals, we may have just triggered a new uptrend. The stock has been in a very long downtrend, recently forming new lows. We seem to have bottomed with a breakout above the downtrend line not to mention HEAVY buying and a major catalyst.
I would watch the $0.50 major psychological resistance zone for some profit taking, but chart wise, resistance comes in at around $0.60.
There is a possibility the stock could pullback first on profit taking and potentially tag the now broken downtrend line for a retest before continuing higher. However, with such a large volume, one would understand why momentum would continue higher.