Inspired Entertainment Inc.
Consumer Discretionary · Casinos & Gaming
Microcap (~$220M) B2B gaming tech with structural exposure to two distinct curves: (1) US Virtual Sports rollout as state lotteries add iLottery and sportsbooks seek always-on content between live events, and (2) UK SBG refresh cycle on Licensed Betting Office terminals.
- Virtual Sports is the differentiated asset - high-margin, recurring-revenue content licensed to $DKNG, $FLTR (FanDuel), $CZR-class operators with minimal capex per incremental customer
- US state expansion (Pennsylvania, Michigan, New Jersey iLottery; sportsbook integrations) opens a TAM step-change vs UK-anchored legacy
- SBG terminal refresh in UK LBOs adds hardware upgrade cycle on top of recurring content rev
- Asset-light B2B model - operators carry player-acquisition cost, INSE earns rev-share / fixed fees
- UK exposure is structurally shrinking - LBO count down ~40% since 2019 FOBT stake cut, Leisure segment soft post-COVID
- Microcap illiquidity + thin sell-side coverage = wide bid/ask, volatile prints
- Customer concentration on a handful of operators ($FLTR, $DKNG, $ENT.L) means one renegotiation hits the model
- Regulatory tail risk on both sides of the Atlantic - UK Gambling Act review, US state-by-state friction
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