Fresh from listing last month, RAS Technology (ASX:RTH) is setting itself up a big year in 2022.
The company provides data, enhanced content and SaaS technology solutions to the global racing and wagering industries.
Its clients include Entain Group (including Ladbrokes and Neds), Flutter Group (including Sportsbet, Paddy Power and Betfair), Tabcorp, BlueBet (ASX:BBT) and Bet365.
RTH has major growth plans in the USA which, while not its only market, is a significant opportunity.
That's primarily because the US has a less mature sports betting market in light of the industry only being legalised in recent years and only in certain states – although the states legalising sports betting has grown progressively longer in 2021.
Companies including PointsBet (ASX:PBH) and Betmakers (ASX:BET) have excited investors by capitalising on the nascent industry's growth, and RAS Technology is well positioned to benefit because it powers the enhanced data and pricing technology behind the service providers.
This week the company took a major step to set itself up for 2021.
Firstly, it renewed and expanded its strategic relationship with XB Net – a provider of premium content for North American racing including wagering pathways, live video and data.
XB Net will utilise RAS' wagering technology and race-day data for export distribution to wagering operators worldwide.
Across the initial two-year term of the contract, XB Net will pay a monthly fee calculated by reference to the number of fixtures covered and services provided.
CEO Stephen Crispe said he was delighted with the new contract and excited for 2022.
He noted wagering industry participants wanted sources of competitive differentiation, such as through the provision of enhanced content and through the deployment of advanced wagering technology solutions and this is just what his firm could offer.
"The deal strengthens the existing commercial relationship between Racing and Sports and the major rights holder in the North American racing market," Crispe said.
"In business it is always gratifying when an existing customer wants to expand its relationship with a commercial partner, and this contract is a significant endorsement of the sophistication of our wagering technology stack that has been developed and commercialised by the Racing and Sports team."
"Continuing to grow the Racing and Sports business internationally into key racing industries, such as North America, is integral to our growth and we are pleased to have concluded this agreement so soon after the Company's IPO."
Racing and Sports has also appointed former NRL Digital Lead Chris Rann to head up its global digital strategy as the company looks to accelerate its growth.
Rann said he would initially focus on building a bigger and more accessable offshore audience for the company as well as creating commercial partnerships.
" I'm excited to be joining the Racing & Sports team in 2022 to grow their global audience and deliver new and innovative digital product offerings that appeal to the company's commercial partners.
RAS Technology joined the ASX last month with a $29m IPO. In the first quarter of FY22, it secured additional recurring revenue contracts totalling $1.4 million.
Online article taken from Stockhead, published on Thursday, 23rd December 2021.
