Pioneering technology company IXUP Limited (ASX: IXU) and its North American RegTech joint venture partner, IC360, has started generating revenue generating relating to the recently awarded iGaming Ontario (iGO) centralised self-exclusion (CSE) contract.
This milestone is material for IXUP, as it represents the first revenues and near-term cashflow that IXUP will receive from the North American RegTech market, which is seen as a major source of potential revenue growth in the near term related to other CSE contract opportunities.
IXUP announced on 2nd August that it had been awarded, in conjunction with its North American joint venture partner IC360, an initial five-year contract to provide a CSE register for the Province of Ontario, Canada’s largest gambling market. The contract has a total estimated value of >A$10 million over an initial five-year contract term with a further three, one year contract extensions.
Initial project kick-off meetings have now been conducted, attended by all relevant parties including iGO, IXUP and IC360. These meetings have confirmed the commencement of build activities for the Ontario CSE, which are almost exclusively the requirement of IXUP, which have triggered the first revenue generating activities under the contract award. These meetings have also reiterated the target timeline, which will see the Ontario CSE targeting a “go-live” date in Q4, 2026.
“After the recent success in being awarded this marquee contract in North America, we are pleased to have moved quickly to commence operations which are initially focused on the up-front build component of the Ontario CSE, a key component of IXUP’s deliverable under the contract which represent circa 25% of the overall contract value,” CEO, Al Watson, said.
“These efforts are being led by IXUP, in conjunction with IC360, and importantly, commence a revenue and cashflow stream for IXUP which further grows the cash generative position of our RegTech division and which assists in a further material reduction of IXUP’s monthly group cash burn rate.
“We have also commenced a dialogue with IC360 with the aim of progressing discussions with additional North American gambling jurisdictions who we are aware are considering the launch of CSE platforms, for which IXUP and IC360 will be pursuing.”
