Microcap stock FansUnite Entertainment (FansUnite Entertainment Stock Quote, Chart, News CSE:FANS) should be one to keep an eye on, according to Mackie Research analyst Bill Newman, who issued an update to clients on the company on Tuesday, saying FansUnite’s new revenue numbers were a clear sign of a company experiencing accelerated growth. It’s been a busy 2020 for Vancouver, BC-based FansUnite Entertainment, which runs its iGaming platform for sports and esports, with business-to-customer and business-to-business software and featuring pre-match betting, in-play betting, daily fantasy, content and a certified random number generating (RNG) program for casino-style chance games. FANS debuted on the Canadian Securities Exchange on May 5, issuing 8.9 million shares at $0.35 per for proceeds of $3.1 million, a little more than a month after acquiring McBookie, a UK-based white-label sportsbook and casino focused on the Scottish market. McBookie, operating since 2009, reportedly generated over $135 million in betting volume over the previous three years and a total of $340 million in betting since it first went live. Then in June, FansUnite announced the acquisition of Askott Entertainment, a Vancouver-based software developer for online gambling with an iGaming platform called Chameleon, a deal completed in August. FansUnite also completed in July an oversubscribed private placement for gross proceeds of $5.0 million. In early September, FANS announced a partnership with Las Vegas-based GameCo to introduce Chameleon to the US market, including in New Jersey and Nevada. The latest news from FANS came this Thursday when the company announced another record month of betting on its McBookie platform. The company said McBookie finished October with the highest monthly revenue increase in its ten-year history, a 433-per-cent year-over-year spike, with $7.3 million in total betting volume for the month. FANS said the return of English and Scottish football along with the Scottish National team’s presence in the UEFA European Championship qualifiers helped boost the numbers in its sports betting segment, while the casino products saw betting volume jump 460 per cent compared to a year ago. McBookie generated total revenue for the month of October of $602,000. “Despite the global pandemic, McBookie had a record-breaking month of growth in October and demonstrated how seasoned operators can not only pivot their business during challenging times but still produce results that propel their business to new heights,” said Scott Burton, CEO of FansUnite, in a press release. “With sports now starting to come back and new products in their casino offering, we have full faith that McBookie will establish themselves as the preeminent online betting platform in Scotland and expand their footprint throughout the highly sought after UK gambling industry,” Burton said. In his report, Newman, who initiated coverage of FANS in October, said the results were beyond expectations. “Revenue from McBookie has far exceeded our expectations and growth could continue with the return of European sports leagues and new live casino offerings, and our forecasts could prove conservative,” Newman said. “FansUnite is a growth story within a rapidly expanding iGaming industry and has the platforms, infrastructure, management team and board to allow for rapid organic growth of its B2B and B2C revenue streams. In parallel, FansUnite is committed to completing strategic acquisitions which could results in rapid growth for the company and move it towards its goal of becoming a global online gaming leader,” Newman wrote. So far in its tenure on the CSE, FANS, which currently has a market capitalization of about $15 million, has traded lower and is currently down 42 per cent for the year at $0.22 per share. But Newman sees upside to the stock and he has reaffirmed his “Speculative Buy” rating and $0.55 per share target, which at press time represented a projected one-year return of 175 per cent. Looking ahead, Newman said notable events for the company and stock include its third quarter financial results due this month, acquiring licenses in Malta for its B2C and B2B business (expected during the fourth quarter 2020) and acquiring a UK Gambling Commission license (expected during the first quarter 2021). In his October 20 coverage initiation, Newman pointed to the rapid and continuing growth in the online gaming market as being driven by both technology advancements for the smartphone, a growing customer trust in online platforms and a growth in the number of legalized gambling jurisdictions as governments look to gaming as a revenue source. Newman said the iGaming market is expected to increase by over 65 per cent to US$76.4 billion in five years time. “Over a ten-year period, iGaming as a percentage of the total global gambling gross win, doubled from just 6 per cent in 2008 to 12 per cent in 2018, with a spiked to ~18 per cent in 2020 due to the COVID-19 pandemic. Based on our analysis, the iGaming market share is expected to continue to increase for at least the next five years,” Newman wrote. The analyst said FANS is trading at a marked discount to its peer group, trading at 2.0x 2022 EV/Revenue versus its peers at 7.0x. For 2021, Newman is calling for revenue and EBITDA of $5.9 million and negative $1.6 million, respectively, and for 2022 revenue and EBITDA of $13.2 million and $4.3 million, respectively.