Cut out all the media.
I’ve worked in the sector for 10 years. Banning gambling ads in US is normal course of a maturing region and by no means suggests affiliates are impacted. This is such an over reaction by Piis.
Taking a step back, it’s really important that there is some regulation around what words gambling operators use to incentivise play. The word “risk free”, “free” etc have always been banned quite early on in growing regions as nothing is truly risk free and we want to do anything possible to protect people and players. Normal course of business. Furthermore, US has a significant pathway ahead of it to grow and XLM should scale with it, entering more states and leveraging its core assets to reach new and existing players. What we have to remind ourselves that the spotlight channels where regulators target is TV, radio, out-of-home. These channels are near to impossible to limit exposure to younger people as they’re everywhere. Yes you can limit tv spots to late night times or put restrictions on what you can or can not promote. All to be expected over next few years. Anything like this just further increases the value of other channels like affiliates which is where Xlm play. More to that, affiliates do not just promote a brand, they provide ongoing content to our most engaged players so are a critical foundation to the fast and growing industry. What we need to worry about as investors is are Xlm growing their affiliate footprint, are those affiliates good content creators and do they efficiently reach prospects and engaged players. Forget everything else, as if they do those three things, operators will come and pay decent revenue share for multiple years to Xlm.
At a prospective PE of 3 with cost savings to be baked in due to restructuring this year, XLM are clearly demonstrating ability to generate high growth in the US and with more sites added to capture revenue in this growing sector this is a very interesting share right now imo.
