● Total revenue of $9.67 million in Q1 Fiscal 2022, an increase of 804% over Q1 Fiscal 2021
● Gross margin of $5.90 million (61%) in Q1 Fiscal 2022, as compared to $0.54 million (51%) in Q1 Fiscal 2021
● Positive cash flow from operations of $0.5 million in Q1 Fiscal 2022, as compared to negative cash flow of $2.2 million in Q1 Fiscal 2021
● Company to host investor webinar on Wednesday, June 1, 2022 at 1 PM EST

Vancouver, British Columbia–(May 27, 2022) – FansUnite Entertainment Inc. (CSE: FANS) (OTCQX: FUNFF) (“FansUnite” or the “Company”) announced that it has filed its consolidated interim financial statements and associated management’s discussion and analysis (“MD&A”) for the three months ended March 31, 2022. All amounts are stated in Canadian dollars unless otherwise indicated.

Investor Webinar
FansUnite will be hosting an investor webinar on Wednesday, June 1, 2022 at 1 PM EST to discuss the Company’s Q1 Fiscal 2022 financial results and growth outlook for the remainder of 2022.

Click the link below to register.
https://us02web.zoom.us/webinar/register/WN_g9kswoVFQYi6GVJD71qQ0A

First Quarter Fiscal 2022 Financial Highlights:
● Total revenue of $9.67 million in Q1 Fiscal 2022, an increase of approximately 804% as compared to $1.07 million over the same period in the last fiscal year
● Gross margin of $5.90 million (61%) in Q1 Fiscal 2022, as compared to $0.54 million (51%) over the same period in the last fiscal year
● Positive cash flow from operations of $0.5 million in Q1 Fiscal 2022, as compared to negative cash flow of $2.2 million in Q1 Fiscal 2021
● Net loss of $9.17 million in Q1 Fiscal 2022 which includes non-cash expenses of $10.31 million, as compared to $2.49 million over the same period in the last fiscal year, which includes non-cash expenses of $0.72 million
● As of March 31, 2022, the Company had net working capital of $13.6 million compared to $14.9 million as of December 31, 2021.

First Quarter Fiscal 2022 Operational Highlights:
● On January 4, 2022, the Company appointed Dennis Williams, who previously served as a Payments Senior Specialist at the British Columbia Lottery Corporation, the only licensed provider of casinos, lottery products, and online gambling in British Columbia, as FansUnite’s Payments Director

On January 10, 2022, the Company’s American Affiliate (“AmAff”) division received approval to provide customer acquisition services in New York, the largest online sports betting market in the U.S.
● On January 31, 2022, Money Line Sports launched a new online sportsbook, moneylinesportsbook.com in European and overseas markets on the Company’s Chameleon iGaming Platform
● On February 2, 2022, the Company’s AmAff division entered Louisiana’s online sports betting market
● On February 7, 2022, the Company reported that its subsidiary McBookie Ltd has demonstrated significant year-over-year growth by increasing its gross win by 54% in 2021, as well as producing outstanding results in January 2022 – a combined gross win of $465,000 across its sportsbook and casino channels
● On February 17, 2022, the Company reported that its AmAff division set new company records during the Super Bowl LVI weekend by averaging more than one new depositing customer per minute. AmAff registered over 6500 new depositing customers for its sportsbook partners, resulting in US$1.75 million in first-time deposits
● On March 7, 2022, the Company announced that it received a Gaming Related Supplier – Manufacturer license from the Alcohol and Gaming Commission of Ontario, allowing ,FansUnite to become a fully registered supplier of sports betting and internet gaming in Ontario, effective April 4, 2022
● On March 12, 2022, the Company launched the VamosGG Cup, a CS:GO esports tournament
● On March 17, 2022, the Company’s AmAff division received approval to provide customer acquisition services in Maryland’s sports betting market
● On March 22, 2022, the Company announced that it has been shortlisted as a finalist for the following five award categories in the 2022 EGR North America Awards:
○ FansUnite: Full-service platform provider
○ American Affiliate: Affiliate of the year
○ Betting Hero: Acquisition and retention partner, Customer onboarding partner, and Diversity & inclusion model
● On March 31, 2022, the Company reported during the first two weekends of the 2022 NCAA ‘March Madness’ Men’s Basketball Tournament, its AmAff division generated $1.88 million in revenue from its betting affiliate network, operating at over 30% gross margins

Subsequent Events to First Quarter Fiscal 2022:
● On April 19, 2022, the Company announced that it has signed a Memorandum of Understanding (“MOU”) to enter into a long-term licensing agreement with Lovell Brothers Limited, owners of Dragon Bet, to launch a new online sports betting portal, www.dragonbet.co.uk, on the Chameleon iGaming platform

“We began this year with solid growth to our top line despite the headwinds faced in the global economy,” said Scott Burton, CEO of FansUnite. “Our operations have scaled significantly over the last six months. During Q1 2022, we saw revenue reach $9.67 million, an increase of over 800% compared to the same period last fiscal year, while achieving a cash flow positive quarter for the first time in the company’s history, a significant milestone in the current market. Having substantial working capital will allow us to continue growing without needing to access additional capital.”

Scott added, “Our revenue growth was supported by positive progress across all of our business units. Newly acquired American Affiliate continued to enter new U.S. betting markets and delivered outstanding results during one of the busiest quarters for North American sports while our B2B segment continues to gain traction with the launch of MoneyLine Sports. We carried this success into Q2 of Fiscal 2022, where we recently signed an MOU with a leading Welsh bookmaker and have several ongoing discussions to support additional brands globally.” 

Certain information provided in this news release is extracted from the unaudited condensed consolidated interim financial statements (the “Financial Statements”) and Management’s Discussion & Analysis (“MD&A”) of the Company for the three months ended March 31, 2022 and should be read in conjunction with them. It is only in the context of the information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company’s profile on SEDAR.

About FansUnite Entertainment Inc.
FansUnite is a global sports and entertainment company, focusing on technology related to regulated and lawful online gaming. FansUnite’s one-of-a-kind iGaming platform Chameleon offers operators a full suite of gaming solutions with a sports and esports focus geared for the next generation of online bettors and casino players. Along with providing B2B technology solutions, FansUnite operates multiple B2C brands, such as Scottish sportsbook McBookie and Brazilian esportsbook VamosGG, and produces casino style slot games under its Askott Games subsidiary. FansUnite is the parent company of North American-focused American Affiliate, which operates leading affiliate brands such as Betting Hero, Props.com, Wagers.com and BetPrep.

For further information, please contact:
Prit Singh, Investor Relations at FansUnite
[email protected]
(905) 510-7636

Scott Burton, Chief Executive Officer of FansUnite
[email protected]

Darius Eghdami, President of FansUnite
[email protected]

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

DISCLAIMER REGARDING FINANCIAL INFORMATION:
The Company has also provided unaudited financial information for first quarter of 2022, which has been prepared by management based on information currently available to the Company. Accordingly, such financial information may be subject to change based on the results of the Company’s year-end audit. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws.

FORWARD-LOOKING INFORMATION:
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that FansUnite anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking statements in this news release include, but are not limited to, the Company’s strategic objectives, goals, growth strategy and focus including growing revenue and free cash flow through improved operations, accretive acquisitions, internal expansion, integrating and innovating operations and revenue management; the Company continuing to target more B2B deals, both for its Chameleon iGaming platform and RNG casino games; the Company expanding its footprint in the domestic, international and US affiliate market; and the completion of the long-term licensing agreement with Lovell Brothers Limited, owners of Dragon Bet, to launch a new online sports betting portal, www.dragonbet.co.uk, on the Chameleon iGaming platform.

Forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, expectations and assumptions concerning: interest and foreign exchange rates; capital efficiencies, cost saving and synergies; growth and growth rates; the success in the online gambling and sports betting industry; the regulatory environment applicable to online gambling and sports betting; the technological infrastructure and support needed to host the Company’s online gambling and sports betting platforms and applications; any cryptocurrency applications to the Company’s business; and the Company’s growth plan. While FansUnite considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; audit-risks; risks associated with the regulatory environments in the jurisdictions the Company operates in; technology-related risks that could adversely affect the Company’s ability to operate its online gambling and sports betting platforms and applications, risks related to the novel coronavirus (COVID-19) global pandemic and any effects it might have on the Company’s business thereto. Readers are cautioned that the foregoing list is not exhaustive. For more information on the risk, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the public filings of FansUnite which are available on SEDAR at www.sedar.com. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. FansUnite disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Financial Position