FansUnite Reports Second Quarter Fiscal 2022 Financial Results

  • Total revenue of $5.46 million in Q2 Fiscal 2022, an increase of 461% over Q2 Fiscal 2021
  • Total revenue for the six months ended June 30, 2022 was $15.13 million
  • Company signed licensing deal with Welsh bookmaker Dragon Bet to launch new sports betting portal, powered by FansUnite’s Chameleon platform

Vancouver, British Columbia–(Newsfile Corp. – August 29, 2022) – FansUnite Entertainment Inc. (TSX: FANS) (OTCQX: FUNFF) (“FansUnite” or the “Company”) announced that it has filed its consolidated interim financial statements and associated management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2022. All amounts are stated in Canadian dollars unless otherwise indicated.

Second Quarter Fiscal 2022 Financial Highlights:

  • Total revenue for the three months ended June 30, 2022 was $5.46 million, an increase of approximately 461% as compared to $0.97 million over the same period in the last fiscal year
  • Total revenue for the six months ended June 30, 2022 was $15.13 million, an increase of approximately 640% as compared to $2.04 million over the same period in the last fiscal year
  • Gross margin of $2.25 million (41%) in Q2 Fiscal 2022, as compared to $0.41 million (42%) over the same period in the last fiscal year
  • Net loss of $15.91 million in Q2 Fiscal 2022, which includes non-cash expenses of $9.50 million, as compared to $2.93 million over the same period in the last fiscal year, which includes non-cash expenses of $0.68 million
  • As of June 30, 2022, the Company had net working capital of $8.8 million compared to $14.9 million at December 31, 2021

Second Quarter Fiscal 2022 Operational Highlights:

  • On April 19, 2022, the Company signed a Memorandum of Understanding to enter into a long-term licensing agreement with prominent Welsh bookmaking services provider Lovell Brothers Limited, owners of the Dragon Bet brand, to launch a new online sports wagering portal,, which will be powered by FansUnite’s Chameleon iGaming platform
  • On June 9, 2022, the Company announced its intention to initiate a normal course issuer bid (“NCIB”) with respect to its common shares through the facilities of the Canadian Securities Exchange. Pursuant to the NCIB, FansUnite may purchase up to 16,115,728 Shares, representing 5% of the issued and outstanding shares of that class as of June 9, 2022
  • On June 30, 2022, FansUnite announced that its common shares have been approved for listing on Toronto Stock Exchange (“TSX”), which will begin trading on the TSX under its existing symbol “FANS”, effective at the market opening on July 5, 2022

Subsequent Events to Second Quarter Fiscal 2022:

  • On July 5, 2022, the Company’s common shares began trading on the TSX under the symbol “FANS”
  • On July 13, 2022, the Company announced that it entered into a definitive three-year licensing agreement dated July 11, 2022 with Lovell Brothers Limited, owners of Dragon Bet, to launch a new online sports betting platform,, powered by FansUnite’s Chameleon iGaming solution
  • On August 3, 2022, the Company’s U.S.-based live activation brand Betting Hero entered into an agreement with Bankroll, a new luxury sports bar experience coming this fall to Philadelphia, Pennsylvania, to help build out Bankroll’s sports betting-focused concierge team
  • On August 24, 2022 the Company entered into an agreement to license its proprietary Player Account Management software to Betr Holdings Inc. to run its new sports betting brand, betr.

“During the second quarter, we captured significant growth with revenue of $5.46 million, an increase of 461% compared to the same period last year,” said Scott Burton, CEO of FansUnite. “Our B2B and B2C segments continued to deliver strong operational results, which were primarily driven by American Affiliate and McBookie. Additionally, this quarter saw us strengthening our operations to lay the groundwork for continued growth as we have entered a licensing agreement with Welsh bookmaker Dragon Bet and expanded American Affiliate’s presence in the United States through its live activation arm Betting Hero.”

Burton added, “Throughout the third quarter, we intend to reach new milestones in our B2B segment by signing more partnerships with global brands within the sports betting and iGaming industry and further expand all business verticals.”

Certain information provided in this news release is extracted from the unaudited condensed consolidated interim financial statements (the “Financial Statements”) and Management’s Discussion & Analysis (“MD&A”) of the Company for the three and six months ended June 30, 2022 and should be read in conjunction with them. It is only in the context of the information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company’s profile on SEDAR.

About FansUnite Entertainment Inc.

FansUnite is a global sports and entertainment company, focusing on technology related to regulated and lawful online gaming. FansUnite’s one-of-a-kind iGaming platform Chameleon offers operators a full suite of gaming solutions with a sports and esports focus geared for the next generation of online bettors and casino players. Along with providing B2B technology solutions, FansUnite operates multiple B2C brands, such as Scottish sportsbook McBookie and Brazilian esportsbook VamosGG, and produces casino style slot games under its Askott Games subsidiary. FansUnite is the parent company of North American-focused American Affiliate, which operates leading affiliate brands such as Betting Hero,, and BetPrep.

For further information, please contact:

Prit Singh, Investor Relations at FansUnite

(905) 510-7636

Scott Burton, Chief Executive Officer of FansUnite

Darius Eghdami, President of FansUnite



The Company has also provided unaudited financial information for the second quarter of 2022, which has been prepared by ‎management based on information currently available to the Company. ‎Accordingly, such financial information may be subject to change based on the results of the Company’s year-end audit. The making of a modifying or superseding statement shall not be deemed an ‎admission for any purposes that the modified or superseded statement, when made, constituted ‎a misrepresentation for purposes of applicable securities laws.‎


This news release contains certain statements that may constitute forward-looking information ‎under applicable securities laws. All statements, other than those of historical fact, which address ‎activities, events, outcomes, results, developments, performance or achievements that FansUnite anticipates or expects may or will occur in the future (in whole or in part) should be ‎considered forward-looking information. Often, but not always, forward-looking information can ‎be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, ‎‎”scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations ‎‎(including negative variations) of such words and phrases, or statements formed in the future ‎tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or ‎‎”will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. ‎Forward-looking statements in this news release include, but are not limited to, the Company’s strategic objectives, goals, growth strategy and focus including growing revenue and free cash flow through improved operations, accretive acquisitions, internal expansion, integrating and innovating operations and revenue management; the Company continuing to target more B2B deals, both for its Chameleon iGaming platform and RNG casino games; the Company expanding its footprint in the domestic, international and US affiliate market; and the completion of the long-term licensing agreement with Lovell Brothers Limited, owners of Dragon Bet, to launch a new online sports betting portal,, on the Chameleon iGaming platform.

Forward-looking statements are based on assumptions and analyses made by the Company in ‎light of its experience and its perception of historical trends, current conditions and expected ‎future developments, including, but not limited to, expectations and assumptions concerning: interest and foreign exchange rates; capital efficiencies, cost saving and synergies; growth and ‎growth rates; the success in the online gambling and sports betting industry; the regulatory environment applicable to online gambling and sports betting; the technological infrastructure and support needed to host the Company’s online gambling and sports betting platforms and applications; any cryptocurrency applications to the Company’s business; and the Company’s growth plan. ‎While FansUnite considers these assumptions to be reasonable, based on information ‎currently available, they may prove to be incorrect. Readers are cautioned not to place undue ‎reliance on forward-looking statements. In addition, forward-looking statements necessarily ‎involve known and unknown risks, including, without limitation, risks associated with general ‎economic conditions; audit-risks; risks associated with the regulatory environments in the jurisdictions the Company operates in; technology-related risks that could adversely affect the Company’s ability to operate its online gambling and sports betting platforms and applications, risks related to the novel coronavirus (COVID-19) global pandemic and any effects it might have on the Company’s business thereto. Readers are cautioned that the foregoing list is not exhaustive. For more ‎information on the risk, uncertainties and assumptions that could cause anticipated opportunities ‎and actual results to differ materially, please refer to the public filings of FansUnite ‎which are available on SEDAR at Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and ‎actual results may differ materially from those anticipated. Forward-looking statements ‎contained in this news release are expressly qualified by this cautionary statement and reflect our ‎expectations as of the date hereof, and thus are subject to change thereafter. FansUnite ‎disclaims any intention or obligation to update or revise any forward-looking statements, whether ‎as a result of new information, future events or otherwise, except as required by applicable law.‎

FansUnite Entertainment Inc.                  
Condensed Consolidated Interim Statements of Financial Position    
(Unaudited – Amounts Expressed in Canadian dollars)

June 30, 2022 December 31, 2021
  Cash and cash equivalents $ 4,787,913 $ 13,973,867
  Restricted cash 215,353 204,731
  Short-term investments 815,560 918,847
  Receivables 3 5,843,196 6,802,815
  Due from related parties 10 236,031 77,671
  Prepaid expenses and deposits 336,582 335,809
 Total current assets 12,234,635 22,313,740
 Equipment 5 76,867 59,693
 Goodwill 6 87,001,801 85,795,601
 Intangible assets 6 59,892,534 69,360,587
 Digital currencies 6 26,979 107,446
 Right of use assets 5 432,784 108,719
 Deferred tax asset 864,370 122,042
 Long-term investments 74,163 77,162
 Total Assets $ 160,604,133 $ 177,944,990
 Accounts payable and accrued liabilities 4 $ 3,131,107 $ 7,108,134
 Due to related parties 10 47,504 164,981
 Income taxes payable 116,610 49,258
 Deferred and contingent consideration 9 19,136,465 22,157,999
 Lease liability 5 164,799 71,043
 Total current liabilities 22,596,485 29,551,415
 Deferred and contingent consideration 9 63,034,269 65,068,849
 Lease liability 5 216,694 39,411
 Total liabilities 85,847,448 94,659,675
Shareholders’ Equity    
Share capital 7 121,583,155 110,370,147
Share-based payment reserve 8 7,484,659 4,486,909
Warrant reserve 5,491,367 5,491,367
Accumulated other comprehensive (loss) income 2,544,125 209,448
Deficit (62,346,621) (37,272,556)
Total Shareholders’ Equity 74,756,685 83,285,315
Total Liabilities and Shareholders’ Equity $ 160,604,133 $ 177,944,990


FansUnite Entertainment Inc.                 
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
(Unaudited – Amounts Expressed in Canadian dollars)

For the three months ended
June 30
For the six months ended
June 30
2022 2021 2022 2021
Revenue 15 $ 5,463,924 $ 973,723 $ 15,129,646 $ 2,043,291
Cost of revenue (3,211,729) (567,136) (6,980,919) (1,092,691)
Gross Margin 2,252,195 406,587 8,148,727 950,600
Selling, general and administrative 14 15,395,181 3,347,797 27,186,643 6,403,401
Loss before other items (13,142,986) (2,941,210) (19,037,916) (5,452,801)
Other items        
Interest and other expenses (income), net 14 3,139,792 (11,087) 6,431,181 (34,477)
Income tax expense (recovery):        
  Current (300,489) 257,638
  Deferred, net (72,731) (652,671)
Net loss for the year (15,909,558) (2,930,123) (25,074,064) (5,418,324)
Other comprehensive income        
Revaluation loss on digital currencies 6 (56,033) (70,756)
Currency translation adjustment 4,394,413 (13,633) 2,405,433 (54,708)
Total comprehensive loss $ (11,571,178) $ (2,916,490) $ (22,739,387) $ (5,363,616)
Loss per share – basic and diluted $ (0.04) $ (0.02) $ (0.08) $ (0.03)
Weighted average number of common shares outstanding – basic and diluted 303,031,291 183,279,790 294,780,124 167,964,245


FansUnite Entertainment Inc.                           
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited – Amounts Expressed in Canadian dollars)

For the six months ended June 30, 2022 2021
Operating activities:
  Net loss $ (25,074,065) $ (5,418,324)
  Restricted cash (10,622)
Adjustments for non-cash items:    
  Depreciation of equipment 74,602 26,009
  Amortization of intangible assets 10,352,431 883,518
  Accretion on liabilities 6,312,637
  Conversion of subscription receipt liability (776,865)
  General & administrative expenses paid with common shares 524,132
  Marketing expenses paid with digital currencies 9,711 4,239
  Fair value gain on digital currencies (44,315)
  Unrealized fair value loss on investments 119,252 11,250
  Share-based payments 8 3,064,209 492,025
  Non-cash interest and other income 7,713
  Deferred tax recovery (652,671)
Changes in non-cash working capital items:    
  Receivables 3 960,840 215,042
  Prepaid expenses and deposits (773) 390,801
  Income taxes payable 67,352
  Accounts payable 4 (333,034) 128,244
Net cash flows used in operating activities (4,578,286) (4,088,376)
Investing activities    
  Payment of contingent consideration 9 (2,093,600)
  Foreign exchange on contingent consideration 1,363,694
  Payment of net working capital adjustment 4 (3,801,993)
  Disposal (purchase) of intangibles (13,351) 70,597
  Proceeds (sale) of investments (12,965) 5,896
  Purchase of equipment (42,081) (3,925)
Net cash flows (used in) provided by investing activities (4,600,296) 72,568
Financing activities    
  Repayment of lease liability 5 (98,450) (40,289)
  Proceeds from brokered financing 12,144,896
  Proceeds from warrant/option exercise 72,736 2,474,992
  Repurchase of shares (26,937)
  Repayment of notes and loans payable (544,236)
  Payments (to) from related parties 10 (287,790) 8,793
Net cash flows (used in) provided by financing activities (340,441) 14,044,156
Effect of foreign exchange 333,069 22,493
Change in cash (9,185,954) 10,050,841
Cash, beginning of the period 13,973,867 4,431,139
Cash, end of the period $ 4,787,913 $ 14,481,980


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