Golden Matrix Group (GMGI) CEO Brian Goodman this week caught up with DirectorsTalk to discuss the strength of high insider ownership.
Q: Why does GMGI have such high insider ownership?
A: GMGI insiders hold 85% of the company’s shares, reflecting a deep commitment to its long-term success. This level of ownership demonstrates not only alignment with shareholder interests but also the leadership’s personal investment in the company’s future. For comparison, Oracle founder Lawrence Ellison holds 40% of Oracle’s shares, which is widely viewed as a positive indicator. GMGI surpasses this benchmark, showcasing its leadership’s dedication and long-term vision.
Q: Does high insider ownership create a conflict of interest with retail investors?
A: Not at all. High insider ownership ensures that decisions made by leadership are closely tied to the company’s performance. With their personal wealth and reputations on the line, insiders have every incentive to prioritise the company’s success, which benefits all shareholders.
Q: What about liquidity concerns related to such high insider ownership?
A: While liquidity can be a concern, GMGI has seen growing institutional interest, which is steadily addressing this issue. Leading institutions like Vanguard, BlackRock, and Geode have increased their positions by an average of 4.5% in FY2024. Additionally, 16.62% of the company’s float is institutionally held, further enhancing liquidity without undermining the stability provided by insider ownership.
Q: Is investing in GMGI risky due to its focus on the gaming industry?
A: The gaming industry is often perceived as risky, but GMGI stands out as a well-regulated and diversified leader. The company owns proprietary technology, a distinction shared by only 5% of gaming companies globally. This positions GMGI as a technology innovator and a gaming powerhouse, offering a level of stability and growth potential uncommon in the sector.
Q: How does GMGI mitigate risks in the gaming industry?
A: GMGI employs a unique diversification strategy. Vertically, it spans B2B, B2C, retail, online gaming, lottery, and sweepstakes, supported by entities like Meridianbet and Expanse Studios. Horizontally, GMGI operates in 25+ countries across multiple regulatory environments, ensuring resilience against market-specific shocks and regulatory changes.
Q: Why is now a good time to invest in GMGI?
A: With its strong regulatory compliance, diversified portfolio, and expanding market presence (including new sports betting licences in Peru, South Africa, and soon Brazil), GMGI is well-positioned for long-term growth. The current stock price offers an early-mover advantage, providing an opportunity to invest before the broader market recognises its potential.
Q: What makes GMGI a sustainable long-term investment?
A: GMGI’s commitment to compliance, governance, and diversification underpins its stability. With operations in 25+ countries and a focus on risk aversion, the company has engineered its model for resilience. Its leadership’s significant insider ownership ensures alignment with shareholder interests, making GMGI a reliable choice for long-term investors.
Golden Matrix Group (GMGI) is a NASDAQ-listed company operating in the gaming and technology sector. It specialises in creating and managing online gaming platforms, including proprietary technology solutions, making it part of a global elite—only 5% of gaming companies own their tech. The company has a diversified portfolio spanning B2B, B2C, retail, online gaming, lottery, and sweepstakes, supported by brands like Meridianbet, RKings, and Expanse Studios.
