Horse racing platform 123gaming out of the stalls with £1m funding campaign for online expansion

London, 20 March 2017

123gaming Limited (the ‘Company’), an innovative, multi-award-winning, UK-based gaming technology company, is seeking to raise up to £1 million on the equity crowdfunding platform Seedrs.com (www.seedrs.com/123bet) to upgrade its betting platform in the US and launch an online site in the UK.

The UK-registered and EIS-qualifying Company has provided proprietary skill-based gaming platforms to major US horse tracks for more than a decade and operates a US-based horse racing online wagering site www.123bet.com.

Sportech PLC, the UK-Listed sports gaming and entertainment company, has kick-started the campaign with a £100,000 investment in 123gaming. Sportech provides the back-end wagering services and technology to 123gaming in the US, where 123gaming is licensed to accept online horse racing wagers from residents in 24 states.

123gaming generates revenue through the operation of its online wagering site www.123bet.com and its 123racing Pick6 wager via Sportech’s tote platform. The wager, which is similar to a handicapping contest, pits players against the market, with national leaderboards displayed on-screen at racetracks, at off-track betting shops, betting terminals, online and on mobile devices across America. The Company generates further revenues by licensing its free-to-play contests to several US racetracks for their use as a marketing tool. All the contests are easily understood and simple to play, appealing to many including those who might otherwise be deterred by racing jargon.

Money raised will be go towards a planned technology upgrade in the US and marketing to support the launch of a UK online horse racing contest and wagering site in mid-2017.

Founded by the New Zealand-born horse breeder and IT expert Rob Earle, 123gaming raised US$1.5 million through private investors in May 2015 to obtain licences in the US and soft-launch an online wagering site. Investors to date include friends and family who have also introduced entrepreneurs and racing enthusiasts as investors. The Company has achieved turnover of more than US$10 million since launch including US$4.5 million last year. A successful £1 million fundraising for 23% of the company would value 123gaming at £4.3 million. Potential exits include an IPO or continued expansion as part of a larger group.

Analysts forecast the online gambling market in the US to grow at 51.71% compound annual rate during 2016-2020 (Online Gambling Market in the US 2016-2020).

Rob Earle, CEO of 123gaming, said: “We are very pleased that Sportech has helped us get this funding underway. We have successfully undertaken smaller funding rounds through the Enterprise Investment Scheme. There has been a significant response to our games in the US, with very little marketing spend, and we are now 100% focused on expanding our offering in both the US and UK with Sportech as our partner.”

Andrew Gaughan, ?President of Sportech Racing // Digital, ?a division of Sportech PLC, said: “Based on our experience distributing the 123racing wager in the USA, Sportech continues to be bullish on the appeal of the 123gaming platform in the US gaming marketplace and the opportunity for expansion in the UK.”

123gaming has won several awards including the eGaming Review Start-up Operator of the Year and the magazine’s Skill Gaming Operator of the Year for its unique horse racing skill game – 123racing.

Further information:

123gaming www.123bet.com
Rob Earle, CEO
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+1 404 426 8477

Media enquiries
Allerton Communications
Peter Curtain
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0044 20 3137 2500 / 0044 7733 301 707

About 123gaming Limited

123gaming is an innovative, multi-award-winning gaming technology company that has established a foothold in the lucrative US horse racing industry. The company has developed a trademarked and approved pari-mutuel bet type, '123racing', which takes traditional horse racing wagers and adds elements of fantasy sports, with players competing against each other for points and real cash prizes. The company operates 123bet.com, a US-based legal and licensed online wagering business, and provides managed social and fantasy gaming websites to major US horse race tracks using the award winning 123racing horse racing contest platform.


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