Ringing the opening bell of the Nasdaq Exchange in New York on January 14, Newgioco Group Chairman and CEO Michele Ciavarella said the sports betting group had begun its new life as a fully established Italian-American company.
New York’s listing sees Ciavarella complete a two-year project transforming the business lines of the Italian company and restructuring its executive team, targeting rapid growth as a’ full suite’ system supplier to the new sports betting incumbents in the US A heritage brand in Italian gambling, Newgioco operates more than 2,000 betting points in its home market, where incumbents were forced to participate.
The Italian disruption of the business coincided with the federal annulment of PASPA in 2018, an opportunity which Ciavarella would not miss.
As part of the Nasdaq IPO announcement made by the company, Ciavarella said: “The listing of our common stock on the Nasdaq is a major milestone for the company and the result of approximately 20 years of dedicated business development in the regulated leisure betting industry.”
Repositioning the business as a US sportsbook supplier, a new Newgioco executive team will launch the company’s’ ELYS platform’ in 2019, securing its first US contracts with the Montana-based Chippewa Cree Tribe ‘Winz Casino’ and the Grand Central casino in Washington DC.
Newgioco had registered its U.S. operations as an over-the-counter limited securities enterprise prior to its Nasdaq listing, a necessary solution for the company to find its U.S. footing, but one that limited its overall capacity for growth.
Speaking to US Media, Ciavarella admitted that it was very difficult for Newgioco brokers to persuade investors to back the registered company OTC: “The Nasdaq has changed that whole element,” it added. “To be on such a global exchange puts the company in a different classification of reporting. Basically, that changes the dynamic of how investors look at Newgioco as a potential investment opportunity.”
Ciavarella believes the improved transparency will be advantageous in more ways than one, adding: “Being a fully transparent company is important when we are meeting with some of the larger institutional commercial casino operators and also the regulators, particularly in regards to the US market which is opening up for us.”