VGW released its not-so-small revenue of $4.84 billion for the last financial year.
👉 Background: Virtual Gaming Worlds is an online gaming platform. It rus virtual casinos where users can bet on poker tables, blackjack tables and even slot machines.
👉 What happened: Last week, VGW released its not-so-small revenue of $4.84 billion for the last financial year. That's more revenue than Realestate.com.au, Seek, Domain, and Carsales.com all combined. It also announced a net profit of more than $377 million.
👉 What else: Most interestingly, VGW's customers are in the US, where gambling on the internet is banned. So, they use a 'sweepstake model' to 'loophole' the US laws.
💡Where there is commercial will, there is a generally a way to overcome legislation. Commercial casinos are still illegal in 27 states in the US. And, online casinos are still illegal in 39 states in the US.
💡But sweepstakes models are considered random chance draws. For VGW, customers buy virtual gold coins that allow the customer to play online games. While these gold coins have no value outside of VGW games, they are redeemable for cash when you want to withdraw within VGW.
💡This model has become a creative way for online gambling companies to engage US customers. We've also seen companies like DraftKings and FanDuel do something similar, and grow into businesses worth tens of billions of dollars.
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