SharpLink Gaming Ltd. (NASDAQ:SBET) Q4 2022 Earnings Call Transcript

Dodi Handy: Okay. Thanks for that, Rob. So, let’s now talk about Sports Games Client Services Group. So how does this business unit fit into our plans for becoming a dominant force in the U.S. sports betting and iGaming markets in the future?

Rob Phythian: Yeah. So as Bob clarified in his earlier remarks, SharpLink’s client services division designs, develops, tests, hosts, and manages online free-to-play games and mobile apps for marquee list of sports media clients, leagues, teams and sportsbook. In 2022, our client services group supported more than 2 million players and delivered over 40 free-to-play game types to more than a dozen clients. To highlight a few, for the past 13 years we have produced the official NCAA March Madness Live Bracket Challenge in collaboration with Turner Sports, we’ve delivered three free-to-play games for the NBA, including the very popular playoff Bracket Challenge. We’ve built multiple game titles for both NASCAR and the PGA Tour extended our working relationship with these leagues over 10 years each, and created the Stanley Couple game for the NHL.

That’s a game similar to the social word game sensation Wordle. An ideal example of how we are capitalizing on the strengths of our client services group moving forward is illustrated by our expanding relationship with BetMGM, which we announced earlier this year. BetMGM has turned to SharpLink to leverage our client services team game development expertise and the integration of our C4 tech to launch a portfolio of diverse and entertaining free-to-play games designed to reach, engage, and drive engagement of sports fans to sports betters across the jurisdictions where BetMGM is currently licensed to be operative. By replicating our free-to-play anchored model with other leading partners, we believe that SharpLink will continue to demonstrate the power of using free-to-play games of contests, coupled with the power of C4 to convert casual sports fans into active sports betting depositors for our partners and generating a very robust, consistently reliable base of revenues that can only increase from here.

Q – Dodi Handy: Thanks Rob. I hope that helps our listeners to better understand and appreciate SharpLink acquisition and prevailing execution strategies much better. So, now let’s address some other relevant questions that our shareholders were kind enough to provide in advance of this call. First one, can you please provide everyone with an update on SharpLink plans to read domesticate, shifting from being a company incorporated in Israel to one now being incorporated as a Delaware corporate in the U.S.?

Rob Phythian: Sure. Dodi, that’s a good question and an area of concentration for our executive team’s time and energy. Now that we filed a 2022 year-end result, we are now free to proceed with the preparing and filing of an S4 with the SEC to formally redomesticate our company to the U.S. While we no longer report as a foreign private issuer as of January 1st, 2023, we’re still subject to operating our business under the confines Israeli company law. With the sale of MTS on December 31st, 2022, we no longer have any business interests in or related to Israel. So, redomesticating to the U.S. will have long-term impact on our ability to provide optimal transparency into our business operations moving forward among other benefits.

We do expect to file our S4 in the next 30 to 45 days, and then we’ll proceed with gaining shareholder approval through a proxy process. From beginning to end, we expect this process to be completed by the end of the second quarter, notwithstanding any unforeseen delays.

Dodi Handy: Great. Thanks for that update. Okay. So moving on, our next question relates to the development of our proprietary C4 tech solutions. Where does this stand and how do you see C4 helping SharpLink and its bed to become the biggest and best sports fan activation and conversion company in the industry?