InFocus Group up +75% on completion of sweepstakes casino platform

InFocus Group (ASX:IFG) has been up by +75% late on Friday afternoon on news it’s on target to enter a market with gross revenues estimated above US$14.3 billion with its next-generation sweepstakes casino platform.

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The company’s CEO and executive director, Ken Tovich, said the completion of Codexa represents the culmination of InFocus Group’s growing capabilities in iGaming software and platform development.

He said it positions InFocus as a provider of proprietary, market-ready tech to operators in one of the world’s fastest-growing online entertainment markets.

“We have built a technically capable, scalable platform from the ground up, drawing on the company’s established expertise across software development, data analytics, and fintech,” Mr Tovich told shareholders this morning.

“The sweepstakes casino market is one of the fastest-growing segments in online gaming, particularly in the United States, and we believe Codexa is well-positioned to meet the needs of operators in that market.”

He added: “We are now focused on executing our dual-track commercialisation strategy – through licensing and managed services agreements, and by pursuing divestment opportunities for the platform or the business unit.”

The now-complete Codexa was developed entirely in-house by the company’s dedicated gaming technology business unit, InFocus Gaming Technologies.

Mr Tovich said the U.S. sweepstakes casino market is one of the most compelling growth stories in online entertainment, and by the numbers, he seems to be largely on the money. From CY20 to CY24, the segment grew at an estimated compound annual growth rate of 60% to 70%, with momentum accelerating sharply during CY23–24, driven by a wave of new investment and market entrants.

By CY24, industry gross revenues exceeded US$10.6 billion, with net revenues of approximately US$3.4 billion after prize redemptions. Projections for CY25 already point to further expansion, with gross revenues estimated above ~US$14.3 billion and net revenues above ~US$4.6 billion.

“The sweepstakes model’s growth has been fuelled by a structural advantage: because platforms operate under sweepstakes laws rather than gambling regulations, they are currently accessible in 35 or more U.S. states, compared to just seven states where licensed online gambling is presently available,” Mr Tovich said.

Codexa is now in its final testing phase, with a global technical preview launch expected within weeks. Key developments include a proprietary random number generation engine, advanced player engagement systems, and a cloud-native architecture designed to support large concurrent user bases.

IFG is up +75% to 1.4¢. Mkt cap $3.908M.

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