Streaks Gaming to float on London Stock Exchange in £10mln valuation
Streaks Gaming Plc, a UK-based provider of conversational gaming products, announced its intention to join the main market of the London Stock Exchange this autumn.
The flotation is expected to value Streaks Gaming at approximately £10.2m (pre-money) and will make it the first LSE-listed “pure-play” conversational gaming company.
Net proceeds from the IPO will be deployed to develop and market conversational games with an initial focus on the US market. In particular, the Company aims to become the “conversational gaming” partner of licensed sportsbook operators in the United States, leveraging their licenses to drive additional engagement and monetisation for their existing user bases and acquiring new users.
The global sports betting market is poised to grow by $143.73 billion between 2022 and 2026. The driving force behind this growth is expected to be the continuation of the sports betting legalisation wave across the globe and, in particular, in the US.
The projected growth can mainly be attributed to the growing wave of state-level sports betting legalisation sweeping across the US. This has created competition between established land-based casinos, digital-first daily fantasy sports (DFS) platforms and international sports betting operators, fought via regulatory battles, significant advertising budgets and partnership deals, where competitors are scrambling to reach and convert the new audience of prospective bettors unleashed through legalisation.
The Directors believe that a significant portion of this audience will not be converted via legacy technology. Instead, this younger sports fan audience will be introduced to sports betting by a new wave of casual conversational betting games that leverage cutting-edge natural language processing models like the GPT series released by OpenAI.
Mark Rutledge CEO of Streaks said: “We are delighted to be the very first pure-play conversational gaming company to list on the LSE. The last few years have seen massive growth in the US sports betting market. A London stock market listing will provide us with the profile, credibility and access to global capital to drive our growth.”