Business
ZK International Forms xSigma Entertainment with the Intention of Acquiring Online Gaming Assets
WENZHOU, China, March 24, 2021 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZKIN", "ZK International" or the "Company"), is pleased to
About this update from Zk International Group Co., Ltd
[{"type":"text","content":"WENZHOU, China, March 24, 2021 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) (\"ZKIN\", \"ZK International\" or the \"Company\"), is pleased to announce that the Company has formed a new wholly-owned subsidiary, xSigma Entertainment Limited, with the intent of acquiring online gaming assets. \nThe formation of, xSigma Entertainment was created to acquire assets that will increase shareholder value by targeting businesses that are in growth industries, that have the ability to grow in scale, and that will allow the Company and its shareholders to realize additional growth alongside its existing core business. \nCurrently, the Company has engaged in several discussions and negotiations regarding an investment in an online gaming company. The Company is evaluating several assets with the focus on Management, Approved Licenses, IP, and Branding. In addition, the Company is keen to enter the online gaming industry in the US and thus its focus on an investment will be weighted to companies that have access to the US gaming market, which is poised to grow as legalization occurs state by state. \nThe current legislation framework for online betting in the United States allows only bookmakers licensed in Nevada, Pennsylvania, Delaware, and New Jersey to operate legally, as these are the four states where online betting is regulated. However, six states had online gaming legislation on the 2020 election ballot in November, and all six voted in favor. To top it off, President Joe Biden has gone on record indicating that his administration \"doesn't support adding unnecessary restrictions to the gaming industry\", which is a positive sign for gaming companies. \nAccording to Gambling Compliance, an independent research firm, \"the U.S. betting market will range between $5.9 billion and $8.2 billion by 2024. Morgan Stanley believes the U.S. sports betting market could hit $10 billion annually by 2025; globally, it sees sports betting topping $100 billion. BofA Securities sees the U.S. market hitting $24 billion by 2030.\" 1\nJiancong Huang, Chairman of the Company, stated, \"as we evaluate exciting opportunities being presented to the Company, one cannot hold back the excitement that the Company is about to enter one of the fastest growing sectors in the market, which is motivating us to add value to our core business and o...