On December 10th of 2021 I blogged about a neat little company attempting to restructure and relaunch an online e-sports gaming business, Real Luck Group (LUCK – TSXV). Entitled ‘Getting Lucky With Luck‘, I was comparing investing in LUCK to the game of Baccarat. Baccarat has the best odds of all casino games – Slightly negative, but a lot of fun to play.

So here we are a year later. I’ve commented on LUCK several times since on my blog, noting their steady progress towards restructuring their operations to include a more traditional online casino, strategic hires and board appointments, and the commencement of their marketing and customer acquisition strategy.

They’ve made some solid progress since they turned on the marketing tap. Their most recent news release outlines exponential month over month growth in Betting Handle, First Time Depositors and Real Money Players. Further, Thomas Rosander, the CEO, has gone on record stating there won’t be a need for further financing and LUCK should be earnings and cash flow positive in the second half of 2023.

This is what I like to see and hear. A plan. Execution. Stability. Commitment to goals. Fiscal responsibility. This is music to my venture investor’s ears. It is actually rare in a small company CEO so kudos to Mr. Rosander.

The SP has been challenged on the back half of the year and is currently in the 11 cent range with a 7.5 million Market Cap. Technically, it looks like the bottom is in (Note – I said this 10 cents ago and was wrong). I’ve continued to pick away at it and have a meaningful but small % position relative to my other holdings.

The best part of being an investor (In my opinion) is the learning. I think the emergence of e-sports is really interesting. Of course there is the usual assortment of charlatans, bad business plans, and market nonsense that come along with any emerging sector (Cannabis anyone?) .

I think I recognize a pattern here – A few years back I had a front row seat as an advisory board member to company that grew their sales from 20 to 80 million, in a hyper competitive ecommerce sector with large competition. They did this by being smaller, more nimble and more creative at driving revenue through exceptional marketing that was focused on the right metrics to drive traffic to their site. Real Luck Group Reminds me of that.

Luck isn’t a slam dunk or done deal. They’ve got a long way to go. I’m still sitting at the Baccarat table, I like the odds for a payoff, my bet is placed, and I’m waiting to see how the game plays out.

GLTA!