The Canadian based DFS (daily fantasy sports) company Global Daily Fantasy Sports has managed to acquire a business-to-business Maltese license for controlled skill games. The license has been issued by the MGA – the Malta Gaming Authority.
This achievement bodes well for the company, as it means new territory to strategize for and conquer. DFS is extremely popular in North America, but it has untapped potential in Europe as well. Although it is a complicated issue in the U.S.A, it is unlikely it will face similar problems in the European continent.
What does this mean for GDFS?
Global Daily Fantasy Sports (GDFS) has grown significantly in previous years, and projects to continue doing so in 2018. The company anticipates a growth of approximately $54.4 billion this year alone. Half of this, meaning 50%, comes from the sports betting branch of GDFS. As seen in previous Canadian-based reports, sports betting in of itself is a booming business in the North American region.
The $54.4 billion growth is also partially due to the success of being granted the Maltese license, which will allow GDFS to expand into Europe. In fact, it’s estimated that $29 billion of this will be coming from the European market, adding a significant percentage to its 2017 growth.
According to regulations, the license will be valid for a total of five years. After this it will have to be renewed. This gives GDFS a gateway to Europe for five uninterrupted years.
Why did GDFS want the license?
The Vancouver company wanted this Maltese license for one main reason: to be able to reach new markets without requiring approval and regulation by a specific legislative body.
GDFS will be extending its DFS products and platform to licensed operators around Europe that don’t need any specific licenses (where the MGA license is enough). The company already has a UKGC (United Kingdom Gambling Commission) license, which allows it to operate in the United Kingdom.
The CEO of GDFS, Darcy Krogh, commented as follows regarding the acquirement of the license:
The Malta Gaming Authority always showed a belief in the potential expansion of daily fantasy sports in Europe.
The granting of the license confirms that the company made the right choice when choosing Malta as its European base for its client-facing and licensing operations.
This license is pivotal for Global Daily Fantasy Sports Incorporated, enabling us to expand our presence into additional markets and launch our dot-com network. It also allows us to offer our product and platform to a wider group of operators.
As stated above, this expansion will definitely mean great things in 2018 for the Canadian company. Many online casinos are based in Malta, using MGA and UKGC licenses to operate in European and North American markets. Just as these online casinos have proven to be highly profitable, it is likely that GDFS will follow along the same path.
Stay tuned for further updates on this story and GDFS in general.