Enlabs operates in the online gaming sector through two business areas: Online Gaming and Media. The gaming segment includes product verticals such as casino, betting, poker and bingo, and the media segment operates affiliated business. Enlabs holds gaming licenses in jurisdictions such as Estonia, Latvia, Lithuania, Belarus and Malta. Its main focus is Eastern Europe. The company has a retail chain of land-based betting shops, but the predominant part (+95%) of revenues are from online operations. The company's portfolio includes brands such as Optibet, NinjaCasino, Laimz and BestPoker. Enlabs aims to grow organically and through acquisitions.
In addition to the growth of the underlying online gaming market, a shift from markets with illegal unregulated sales now becoming legal and regulated should benefit Enlabs. This change is due to regulatory measures combined with consumer awareness. Furthermore, Enlabs is financially positioned for more M&A in regulated emerging markets. We would expect higher operating margins if the new media vertical expands further.
Enlabs is facing regulatory risk when operating in the iGaming-industry both by owning and managing operators as well as within affiliation. The competiveness of the industry means that the company needs to keep improving its product offering to maintain active customers and to keep increasing the total amount of deposits. Additionally, sportsbook margins may decline depending on sports results as well as if customers find the odds favorable.