Newgioco Group, Inc. XBRL

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Aug. 14, 2019
Document And Entity Information
Entity Registrant Name	Newgioco Group, Inc.
Entity Central Index Key	0001080319
Document Type	10-Q/A
Document Period End Date	Jun. 30, 2019
Amendment Flag	true
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Business	false
Entity Interactive Data	Yes
Entity Common Stock, Shares Outstanding		79,949,040
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Amendment	Restatement

Condolidated Balance Sheets - USD ($)	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 5,228,797		$ 6,289,903	$ 6,785,266
Accounts receivable	116,398		10,082
Gaming accounts receivable	654,016		1,021,052
Prepaid expenses	140,107		124,712
Related party receivable	851		49,914
Other current assets	145,348		55,700
Total Current Assets	6,285,517		7,551,363
Non-current Assets
Restricted cash	1,439,782		1,560,539
Property, plant and equipment	519,213		476,047
Right-of-use assets	736,625
Intangible assets	16,197,962		12,527,980
Goodwill	1,663,591		262,552
Investment in non-consolidated entities	250,000		275,000
Total Noncurrent Assets	20,807,173		15,102,118
Total Assets	27,092,690		22,653,481
Current Liabilities
Line of credit - bank	1,000,000		750,000
Accounts payable and accrued liabilities	3,594,997		4,603,608
Gaming accounts balances	2,217,089		1,049,423
Taxes payable	995,004		1,056,430
Advances from stockholders	48,508		39,237
Convertible Debt, net of discount of $2,578,995 and $4,587,228, respectively	6,083,982		3,942,523
Notes payable, net of discount of $132,970	1,421,045
Notes payable- related party, net of discount of $88,647	1,405,804		318,078
Bank loan payable - current portion	122,829		120,920
Operating lease liability	91,449
Financial lease liability	6,194
Total Current Liabilities	16,986,901		11,880,219
Non-current liabilities
Deferred tax liability	1,362,674
Notes payable, net of discount of $54,216	498,874
Notes payable - related party, net of discount of $36,144	332,582
Bank loan payable	161,504		225,131
Operating lease liability	611,718
Financial lease liability	38,396
Other long term liabilities	613,963		608,728
Total Non-current liabilities	3,619,711		833,859
Total Liabilities	20,606,612		12,714,078
Stockholders' Equity
Preferred stock, $0.0001 par value; 5,000,000 shares authorized, none issued
Common Stock, $0.0001 par value, 80,000,000 shares authorized; 9,918,517 and 9,442,537 shares issued and outstanding as of June 30, 2019 and December 31, 2018*	992		944
Additional paid-in capital	25,462,926		23,962,920
Accumulated other comprehensive income	(118,638)		(57,431)
Accumulated deficit	(18,859,202)		(13,967,030)
Total Stockholders' Equity	6,486,078	$ 7,811,828	9,939,403	$ 13,180,375	$ 4,934,352	$ 4,338,217
Total Liabilities and Stockholders Equity	$ 27,092,690		$ 22,653,481

Condolidated Balance Sheets (Parenthetical) - USD ($)	6 Months Ended
Condolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
STOCKHOLDERS' EQUITY
Preferred Stock - par value	$ 0.0001	$ 0.0001
Preferred stock - authorized	20,000,000	5,000,000
Preferred stock - issued
Preferred stock - outstanding
Common Stock - par value	$ 0.0001	$ 0.0001
Common Stock - authorized	80,000,000	80,000,000
Common Stock - issued	9,795,396	9,442,537
Common Stock - outstanding	9,795,396	9,442,537
Reverse stock split	1 to 8
Convertible Debt [Member]
Debt Discount	$ 2,578,995	$ 4,587,228
Notes payable [Member]
Debt Discount	132,970
Notes payable Related Party [Member]
Debt Discount	88,647
Notes payable - Non Current [Member]
Debt Discount	54,216
Notes payable Related Party - Non Current [Member]
Debt Discount	$ 36,144

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenue	$ 9,105,353	$ 8,822,659	$ 18,371,648	$ 17,416,526
Costs and Expenses
Selling expenses	6,268,772	5,826,243	13,676,478	11,903,600
General and administrative expenses	3,360,284	2,201,805	6,557,739	4,407,119
Total Costs and Expenses	9,629,056	8,028,048	20,234,217	16,310,719
(Loss) income from Operations	(523,703)	794,611	(1,862,569)	1,105,807
Other (Expenses) Income
Other income	7,725		7,725
Interest expense, net of interest income	(1,017,243)	(1,050,270)	(2,521,355)	(1,262,509)
Imputed interest on related party advances		753		(761)
Gain on litigation settlement				516,120
Loss on debt modification		(212,270)		(212,270)
Loss on conversion of debt	(35,943)		(35,943)
Loss on marketable securities		(155,000)	(25,000)	(155,000)
Total Other (Expenses) Income	(1,045,461)	(1,416,787)	(2,574,573)	(1,114,420)
Loss Before Income Taxes	(1,569,164)	(622,176)	(4,437,142)	(8,613)
Income tax provision	(209,056)	(512,406)	(455,030)	(757,442)
Net Loss	(1,778,220)	(1,134,582)	(4,892,172)	(766,055)
Other Comprehensive Loss
Foreign currency translation adjustment	69,023	63,305	(61,207)	160,778
Comprehensive Loss	$ (1,709,197)	$ (1,071,277)	$ (4,953,379)	$ (605,277)
Loss per common share - basic and diluted*	$ (0.17)	$ (0.13)	$ (0.50)	$ (0.08)
Weighted average number of common shares outstanding- basic and diluted*	9,870,357	9,344,282	9,870,357	9,308,511

Consolidated Statements of Changes in Stockholders' Equity (Deficiency) - USD ($)	Common Stock	Additional Paid-In Capital	Accumlulated Other Comprehensive Income	Accumulated Deficit	Total
Beginning Balance, Shares at Dec. 31, 2017	9,267,948
Beginning Balance, Amount at Dec. 31, 2017	$ 927	$ 14,548,951	$ 126,612	$ (10,338,273)	$ 4,338,217
Imputed interest on stock advances		1,251			1,251
Common stock issued with debentures, shares	13,875
Common stock issued with debentures	$ 1	55,499			55,500
Beneficial conversion feature debentures		91,017			1,017
ASU 2017-11 adjustment to common stock issued debentures		(10,853)			(10,853)
ASU2017-11 adjustment to beneficial conversion feature of debentures		(6,780)			(6,780)
ASU 2017-11 Elimination of derivative liability movement				(254,289)	(254,289)
Foreign currency translation adjustment			97,473		97,473
Net income (loss)				622,816	622,816
Ending Balance, Shares at Mar. 31, 2018	9,281,823
Ending Balance, Amount at Mar. 31, 2018	$ 928	14,679,085	224,085	(9,969,746)	4,934,352
Common stock issued with debentures, shares	215,028
Common stock issued with debentures	$ 22	1,770,175			1,770,197
Common stock retired on acquisition of Multigioco, shares	(255,000)
Common stock retired on acquisition of Multigioco	$ (26)	(2,260,948)			(2,260,974)
Common stock issued net of stock retired on acquisition of Ulisse, shares	175,550
Common stock issued net of stock retired on acquisition of Ulisse	$ 18	5,587,656			5,587,679
ASU 2017-11 adjustment to common stock issued debentures		(1,232,358)			(1,232,358)
ASU2017-11 adjustment to beneficial conversion feature of debentures		2,501,332			2,501,332
Fair value of warrants issued		2,951,429			2,951,429
Foreign currency translation adjustment			63,305		63,305
Net income (loss)				(1,134,582)	(1,134,582)
Ending Balance, Shares at Jun. 30, 2018	9,417,401
Ending Balance, Amount at Jun. 30, 2018	$ 942	23,996,371	287,390	(11,104,328)	13,180,375
Beginning Balance, Shares at Dec. 31, 2018	9,442,537
Beginning Balance, Amount at Dec. 31, 2018	$ 944	23,962,920	(57,431)	(13,967,030)	9,939,403
Common stock issued with debentures, shares	287,561
Common stock issued with debentures	$ 29	919,795			979,824
Common stock issued for the purchase of subsidiaries,shares	65,298
Common stock issued for the purchase of subsidiaries	$ 7	196,776			196,783
Foreign currency translation adjustment			(130,230)		(130,230)
Net income (loss)				(3,113,952)	(3,113,952)
Ending Balance, Shares at Mar. 31, 2019	9,795,396
Ending Balance, Amount at Mar. 31, 2019	$ 980	25,079,491	(187,661)	(17,080,982)	7,811,828
Beginning Balance, Shares at Dec. 31, 2018	9,442,537
Beginning Balance, Amount at Dec. 31, 2018	$ 944	23,962,920	(57,431)	(13,967,030)	9,939,403
Ending Balance, Shares at Jun. 30, 2019	9,918,517
Ending Balance, Amount at Jun. 30, 2019	$ 992	25,462,926	(118,638)	(18,859,202)	6,486,078
Beginning Balance, Shares at Mar. 31, 2019	9,795,396
Beginning Balance, Amount at Mar. 31, 2019	$ 980	25,079,491	(187,661)	(17,080,982)	7,811,828
Common stock issued with debentures, shares	32,785
Common stock issued with debentures	$ 3	104,908			104,911
Common stock issued for the purchase of subsidiaries,shares	90,336
Common stock issued for the purchase of subsidiaries	$ 9	278,527			278,536
Foreign currency translation adjustment			69,023		69,023
Net income (loss)				(1,778,220)	(1,778,220)
Ending Balance, Shares at Jun. 30, 2019	9,918,517
Ending Balance, Amount at Jun. 30, 2019	$ 992	$ 25,462,926	$ (118,638)	$ (18,859,202)	$ 6,486,078

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities
Net (loss) income	$ (4,892,172)	$ (766,055)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization	445,990	330,832
Amortization of deferred costs	2,096,080	1,012,225
Non-cash interest	409,114	58,188
Loss on debt conversions	35,943	212,270
Unrealized loss on trading securities	25,000	155,000
Imputed interest on advances from stockholders		1,514
Movement in deferred taxation	(38,934)
Recovery of assets		(516,120)
Bad debt expense		6,354
Changes in Operating Assets and Liabilities
Prepaid expenses	(7,732)	5,225
Accounts payable and accrued liabilities	(444,743)	756,987
Accounts receivable	(57,679)	98,833
Gaming accounts receivable	357,886	31,409
Gaming accounts liabilities	1,167,454	(583,899)
Taxes payable	(53,941)	439,731
Other current assets	(57,163)	(270,259)
Long term liability	9,296	78,346
Net Cash (Used in) Provided by Operating Activities	(1,005,601)	1,050,581
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets	(54,283)	(4,577,886)
Acquisition of Virtual Generation, net of cash of $47,268	(216,150)
Net Cash Used in Investing Activities	(270,433)	(4,577,886)
Cash Flows from Financing Activities
Proceeds from bank credit line	250,000
Repayment of bank credit line		(177,060)
Repayment of bank loan	(59,007)	(71,143)
Proceeds from debentures and convertible notes, net of repayment		6,883,905
Repayment of deferred purchase consideration- non related parties	(173,862)
Repayment of deferred purchase consideration-related parties	(107,986)
Repayment of financial leases	(5,449)	(215,745)
Loan to related party	(11,992)
Purchase of treasury stock		(2,261,307)
Loans advanced to stockholders		(485,036)
Repayment of loans advanced to stockholders	6,605
Net Cash Provided by (Used) in Financing Activities	(101,691)	3,673,614
Effect of change in exchange rate	195,864	153,442
Net (decrease) increase in cash	(1,181,861)	299,751
Cash- beginning of the period	7,850,442	7,057,763
Cash- end of the period	6,668,581	7,357,514
Reconciliation of cash, cash equivalents and restricted cash within the Balance Sheets to the Statement of Cash Flows
Cash and cash equivalents	5,228,797	6,785,266
Restricted cash included in non-current assets	1,439,784	572,248
Cash- end of the period	6,668,581	7,357,514
Supplemental disclosure of cash flow information
Cash paid during the period for: Interest	13,955	140,815
Cash paid during the period for: Income tax	473,679	341,830
Supplemental cash flow disclosure for non-cash activities
Common shares issued for the acquisition of subsidiaries	272,307	5,588,088
Common shares issued with conversion of debentures	104,911
Common shares issued to related parties for repayment of debt		54,402
Retirement of treasury stock		2,260,770
Common shares issued for cashless exercise of warrants		$ 201,088

Consolidated Statements of Cash Flows (Parenthetical)	6 Months Ended
Consolidated Statements of Cash Flows (Parenthetical)	Jun. 30, 2019 USD ($)
Statement of Cash Flows [Abstract]
Acquisition of Virtual Generation, cash	$ 47,268

Nature of Business

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business

1. Nature of Business

Established in the state of Delaware in 1998, Newgioco Group, Inc. (“Newgioco Group” or the “Company”) is an international commercial-stage, vertically integrated company engaged in various aspects of the leisure gaming industry. We own and operate an innovative state-of-the-art betting platform (“Platform”) and are a licensed leisure lottery and gaming operator offering online and offline leisure gaming services, including a variety of lottery and casino gaming products, as well as sports betting products through a distribution network of retail betting locations situated throughout Italy and internationally through various agents in eleven other countries located in Africa and South America.

The Company’s subsidiaries include: Multigioco Srl (“Multigioco”), acquired on August 15, 2014, Rifa Srl (“Rifa”), acquired on January 1, 2015, and Ulisse GmbH (“Ulisse”) and Odissea Betriebsinformatik Beratung GmbH (“Odissea”) which were both acquired on July 1, 2016, Virtual Generation Limited (“VG”) and Naos Holding Limited, acquired on January 30, 2019 and a non-operating subsidiary Newgioco Group, Inc. based in Canada.

The Company operates in one line of business that provides certified betting Platform software (“Platform”) services to and the operating of leisure betting establishments situated throughout Italy and in 11 other countries and is comprised of 3 geographically organized groups: an Operational Group; Technology Group; and a Corporate Group, organized as follows:

a.

the Operational Group is based in Europe and maintains administrative and customer service offices headquartered in Rome, Italy with satellite offices for operations administration, and risk management and trading in Naples and Teramo, Italy and Valetta, Malta;

b.

the Technology Group is based in Innsbruck, Austria and manages software development, training and administration; and

c.

the Corporate Group is based in North America which includes a head office situated in Toronto, Canada with a satellite office in Boca Raton, Florida through which our CEO and CFO carry-out our corporate duties, handle day-to-day reporting and other operations such as U.S. development and planning, and through which various independent contractors and vendors are engaged.

Accounting Policies and Estimates

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Accounting Policies and Estimates

2. Accounting Policies and Estimates

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019. The balance sheet at December 31, 2018 has been derived from the Company’s audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as filed with the U.S. Securities and Exchange Commission (“SEC”).

All amounts referred to in the Notes to the unaudited condensed consolidated financial statements are in United States Dollars ($) unless stated otherwise.

Basis of Consolidation

The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has at least a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited condensed consolidated financial statements. The entities included in these unaudited condensed consolidated financial statements are as follows:

Company	Country of Incorporation	Percentage owned %

Newgioco Group, Inc.	United States – Delaware	Parent
Newgioco Group, Inc (Canada)	Canada	100
Ulisse GmbH	Austria	100
Odissea Betriebsinformatik Beratung GMBH	Austria	100
Multigioco Srl.	Italy	100
Rifa Srl.	Italy	100
Virtual Generation Limited	Malta	100
Naos Holding Limited	Malta	100

Currency Translation

The Company's subsidiaries operate in Europe with a functional currency of Euro and in Canada with a functional currency of Canadian dollars. In the consolidated financial statements, revenue and expense accounts are translated at the average rates during the period, assets and liabilities are translated at period-end rates and equity accounts are translated at historical rates. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders' equity. Gains and losses from foreign currency transactions are recognized in current operations.

Use of Estimates

The preparation of the unaudited financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. These estimates and assumptions include valuing equity securities issued in share-based payment arrangements, determining the fair value of assets acquired, allocation of purchase price, impairment of long-lived assets, the collectability of receivables and the value of deferred taxes and related valuation allowances. Certain estimates, including evaluating the collectability of receivables and advances, could be affected by external conditions, including those unique to our industry and general economic conditions. It is possible that these external factors could have an effect on our estimates that could cause actual results to differ from our estimates. We re-evaluate all of our accounting estimates at least quarterly based on these conditions and record adjustments when necessary.

Loss Contingencies

The Company may be subject to claims, suits, government investigations, and other proceedings involving competition and antitrust, intellectual property, privacy, indirect taxes, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our website platforms, and other matters. Certain of these matters include speculative claims for substantial or indeterminate amounts of damages. The Company records a liability when we believe that it is both probable that a loss has been incurred, and the amount can be reasonably estimated. If we determine that a loss is possible, and a range of the loss can be reasonably estimated, we disclose the range of the possible loss in the Notes to the Consolidated Financial Statements.

The Company evaluates, on a monthly basis, developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related ranges of possible losses disclosed and make adjustments and changes to our disclosures as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. Until the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded, and such amounts could be material. Should any of our estimates and assumptions change or prove to have been incorrect, it could have a material impact on our business, consolidated financial position, results of operations, or cash flows.

To date, none of these types of litigation matters, most of which are typically covered by insurance, has had a material impact on our operations or financial condition. The Company has insured and continue to insure against most of these types of claims.

Derivative Financial Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including convertible debentures and stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.

For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

As a result of the adoption of ASU 2017-11 in the third quarter of 2018, the Company has no derivative financials instruments classified as a liability at June 30, 2019 and December 31, 2018.

Business Combinations

The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill.

Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

Fair Value Measurements

ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

The carrying value of the Company's short-term investments, prepaid expenses, accounts receivables, other current assets, accounts payable and accrued liabilities, gaming account balance, and advances from shareholder approximate fair value because of the short-term maturity of these financial instruments.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with maturities of three months or less at the time acquired to be cash equivalents. The Company had no cash equivalents as of June 30, 2019 and December 31, 2018.

The Company primarily places cash with high-credit quality financial institutions located in the United States which are insured by the Federal Deposit Insurance Corporation up to a limit of $250,000 per institution, in Canada which are insured by the Canadian Deposit Insurance Corporation up to a limit of CDN$100,000 per institution, in Italy which is insured by the Italian deposit guarantee fund Fondo Interbancario di Tutela dei Depositi (FITD) up to a limit of €100,000 per institution, and in Germany which is a member of the Deposit Protection Fund of the Association of German Banks (Einlagensicherungsfonds des Bundesverbandes deutscher Banken) up to a limit of €100,000 per institution.

Gaming Accounts Receivable

Gaming accounts receivable represent gaming deposits made by customers to their online gaming accounts either directly by credit card, bank wire, e-wallet or other accepted method through one of our websites or indirectly by cash collected at the cashier of a betting shop but not yet credited to the Company’s bank accounts and subject to normal trade collection terms without discounts. The Company periodically evaluates the collectability of its gaming accounts receivable and considers the need to record or adjust an allowance for doubtful accounts based upon historical collection experience and specific customer information. Actual amounts could vary from the recorded estimates. The Company does not require collateral to support customer receivables. The company recorded bad debt expense $0 and $0 for the three months ended June 30, 2019 and 2018, respectively, and $0 and $6,354 bad debt expense for the six months ended June 30, 2019 and 2018, respectively. All balances previously recorded as allowance for doubtful accounts were written off as uncollectible.

Gaming Accounts Payable

Gaming accounts payable represent customer balances, including winnings and deposits, that are held as credits in online gaming accounts and have not as of yet been used or withdrawn by the customers. Customers can request payment from the Company at any time and the payment to customers can be made through bank wire, credit card, or cash disbursement from one of our locations. Online gaming account credit balances are non-interest bearing.

Long-Lived Assets

The Company evaluates the carrying value of our long-lived assets for impairment by comparing the expected undiscounted future cash flows of the assets to the net book value of the assets when events or circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. If the expected undiscounted future cash flows are less than the net book value of the assets, the excess of the net book value over the estimated fair value will be charged to earnings.

Fair value is based upon discounted cash flows of the assets at a rate deemed reasonable for the type of asset and prevailing market conditions, appraisals, and, if appropriate, current estimated net sales proceeds from pending offers.

Property, Plant and Equipment

Property, plant and equipment are stated at acquisition cost less accumulated depreciation and adjustments for impairment losses. Expenditures are capitalized only when they increase the future economic benefits embodied in an item of property, plant and equipment. All other expenditures are recognized as expenses in the statement of income as incurred.

Depreciation is charged on a straight-line basis over the estimated remaining useful lives of the individual assets. Amortization commences from the time an asset is put into operation. The range of the estimated useful lives is as follows:

Description	Useful Life (in years)

Office equipment	5
Office furniture	8 1/3
Signs and displays	5

Intangible Assets

Intangible assets are stated at acquisition cost less accumulated amortization, if applicable, less any adjustments for impairment losses.

Amortization is charged on a straight-line basis over the estimated remaining useful lives of the individual intangibles. Where intangibles are deemed to be impaired the Company recognizes an impairment loss measured as the difference between the estimated fair value of the intangible and its book value.

The range of the estimated useful lives is as follows:

Description	Useful Life (in years)

Betting Platform Software	15
Ulisse Bookmaker License	—
Multigioco and Rifa ADM Licenses	1.5 - 7
VG Licenses	—
Location contracts	5 - 7
Customer relationships	10 - 15
Trademarks/names	14
Websites	5

The Ulisse Bookmaker License and the VG Licenses have no expiration date and are therefore not amortized.

Goodwill

The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill.

Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

The Company annually assesses whether the carrying value of its intangible assets exceeds their fair value and, if necessary, records an impairment loss equal to any such excess. Each interim reporting period, the Company assesses whether events or circumstances have occurred which indicate that the carrying amount of an intangible asset exceeds its fair value. If the carrying amount of the intangible asset exceeds its fair value, an asset impairment charge will be recognized in an amount equal to that excess. No asset impairment charges were incurred during the three and six months ended June 30, 2019 or June 30, 2018. The Company recorded 1,401,608 of goodwill arising from an acquisition during the six months ended June 30, 2019.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

The Company has elected to include interest and penalties related to uncertain tax positions, if determined, as a component of income tax expense.

In Italy, tax years beginning 2015 forward, are open and subject to examination, while in Austria companies are open and subject to inspection for five years and ten years for inspection of serious infractions. In the United States and Canada, tax years beginning 2015 forward, are subject to examination. The Company is not currently under examination and it has not been notified of a pending examination.

Revenue Recognition

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606),” which requires revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company adopted ASC Topic 606 on January 1, 2018 and has determined that the new standard does not have a material impact on the nature and timing of revenues recognized.

The Company recognizes revenue when control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. Revenues from sports-betting, casino, cash and skill games, slots, bingo and horse race wagers represent the gross pay-ins (also referred to as turnover) from customers less gaming taxes and payouts to customers. Revenues are recorded when the game is closed which is representative of the point in time at which the Company has satisfied its performance obligation. In addition, the Company receives commissions from the sale of scratch tickets and other lottery games. Commissions are recorded when the ticket for scratch off tickets and lottery tickets are sold.

Revenues from the Platform include license fees, training, installation, and product support services. Revenue is recognized when transfer of control to the customer has been made and the Company’s performance obligation has been fulfilled. License fees are calculated as a percentage of each licensee’s level of activity and are contingent upon the licensee’s usage. The license fees are recognized on an accrual basis as earned.

Stock-Based Compensation

The Company records its compensation expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using the Black-Scholes option pricing model. Stock-based compensation includes amortization related to stock option awards based on the estimated grant date fair value. Stock-based compensation expense related to stock options is recognized ratably over the vesting period of the option. In addition, the Company records expense related to Restricted Stock Units (“RSU’s”) granted based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the vesting term of those awards. Forfeitures of stock options and RSUs are recognized as they occur.

Stock-based compensation expense for a stock-based award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed.

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments and unrealized gains and losses on marketable securities.

The Company adopted FASB ASC 220-10-45, “Reporting Comprehensive Income”. ASC 220-10-45 establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income and unrealized gains (losses) on available for sale marketable securities and foreign currency translation adjustments.

Earnings Per Share

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 260, “Earnings Per Share” provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity and include warrants granted and convertible debt.

Related Parties

Parties are considered to be related to the Company if the parties directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions are recorded at fair value of the goods or services exchanged.

Recent Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The purpose of this updated guidance is to improve the effectiveness and disclosures in the Notes to the financial statements. The ASU removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; removes the policy for timing of transfers between levels; and removes the disclosure related to the valuation process for Level 3 fair value measurements. The ASU also modifies existing disclosure requirements which relate to the disclosure for investments in certain entities which calculate net asset value and clarifies the disclosure about uncertainty in the measurements as of the reporting date. For all entities, the effective date for this guidance is fiscal years beginning after December 15, 2019, including interim periods within the reporting period, with early adoption permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The main objective of this guidance is to simplify the accounting for goodwill impairment by requiring that impairment charges be based upon the first step in the current two-step impairment test under ASC 350. Currently, if the fair value of a reporting unit is lower than its carrying amount (Step 1), an entity calculates any impairment charge by comparing the implied fair value of goodwill with its carrying amount (Step 2). The implied fair value of goodwill is calculated by deducting the fair value of all assets and liabilities of the reporting unit from the reporting unit’s fair value as determined in Step 1. To determine the implied fair value of goodwill, entities estimate the fair value of any unrecognized intangible assets and any corporate-level assets or liabilities that were included in the determination of the carrying amount and fair value of the reporting unit in Step 1. Under this guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. This guidance eliminates the requirement to calculate a goodwill impairment charge using Step 2. This guidance does not change the guidance on completing Step 1 of the goodwill impairment test. Under this guidance, an entity will still be able to perform the current optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. The guidance in the ASU will be applied prospectively and is effective for the Company for annual and interim impairment tests performed in periods beginning after December 15, 2019. The Company does not expect the adoption of this ASU to have a significant impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right of use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. The Company is currently not in compliance with ASU 2016-02 as it is continuing its evaluation of the impact of its pending adoption of ASU 2016-02 on our consolidated financial statements. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements and related disclosures.

The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on current or future earnings or operations.

Comparatives

Certain items in prior periods were reclassified to conform to the current period presentation. These reclassifications had no impact on net loss or comprehensive loss.

Restatement of prior period results

6 Months Ended

Jun. 30, 2019

Accounting Changes and Error Corrections [Abstract]

Restatement of prior period results

3. Restatement of prior period results

The company identified the following errors in the financial results for the periods ended June 30, 2019 and 2018.

Three and six months ended June 30, 2019

The company restated its financial statements for the year ended December 31, 2018, to correct the recording of non-cash amortization of intangible assets and the depreciation of revalued plant and equipment which was incorrectly classified as other comprehensive income, the unrealized foreign currency loss on convertible debentures denominated in Canadian Dollars and other immaterial adjustments, resulting in a restatement of opening balances of plant and equipment of $121,243, intangible assets of $(55,475), other comprehensive income of $(1,023,907) and opening retained earnings of $(958,138).

The Company had not accounted for ASC 842 – leases, which was effective for periods beginning January 1, 2019, in its interim financial statements for the periods ended June 30, 2019, June 30, 2019 and September 30, 2019.

The Company recorded a right-of-use asset of $646,138 and an operating lease liability of $617,352 and an accrued liability of $28,786 as of January 1, 2019. An additional $217,352 of operating leases were entered into and a further $27,517 of operating leases were terminated before maturity during the six months ended June 30, 2019. The amortization of the right-of-use asset during the six months ended June 30, 2019 amounted to $95,622, the amortization of the operating lease liability of $90,086 and the increase in the accrued liability of $4,834.

The Company adjusted its accounting for financial leases by recording an office equipment asset of $34,638 and a finance lease liability of $34,524 as of January 1, 2019. During the six months ended June 30, 2019, an additional $15,118 of additional office equipment under financial leases was recorded. The Company recorded a depreciation charge of $5,623 related to these assets, an interest charge of $699 and amortization of financial leases of $5,336.

The Company modified its accounting for the acquisition of Virtual Generation by accounting for the imputed deferred tax liability on the value of the Platform acquired, resulting in an adjustment of $1,401,608 to deferred tax liability and recording of a goodwill asset on acquisition of $1,401,608. The Virtual Generation platform valued at $4,004,954 was amortized for the six months ended June 30, 2019, resulting in an amortization expense of $111,239 and a reduction in the deferred tax liability of $38,934.

Other immaterial adjustments relating to the recording of intercompany movements and certain expenses were incorrectly reflected in other comprehensive income, the net adjustment amounted to $16,233 and an adjustment of comprehensive loss of $28,223. Included in other adjustments is a reclassification of selling expenses of $770,025 to general and administrative expenses to conform to current disclosure.

Due to a 1 for 8 reverse stock split which took place on December 12, 2019, the outstanding shares and additional paid in capital was adjusted to take into account the effects of the reverse stock split.

Three and six months ended June 30, 2018

The error corrected in the financial statements for the year ended December 31, 2018, resulted in an adjustment to depreciation and amortization expense of $235,296, an adjustment to foreign exchange movements of $55,764 and an immaterial $331 adjustment to general and administrative expenses.

The restatement recorded by the Company for the six months ended June 30, 2019 was as follows:

	Prior year adjustment			Lease adjustments			Acquisition of Virtual Generation adjustments			Other adjustments			Total Restated

Opening retained earnings	$	958,136		$	—		$	—		$	—		$	958,136
Selling Expenses		—			—			—			(770,025	)		(770,025	)
General and administrative expenses		—			(6,148	)		—			798,248			792,100
Depreciation and amortization		—			5,623			111,239			(11,990	)		104,872
Interest expense		—			699			—			—			699
Deferred taxation		—			—			(38,934	)		—			(38,934	)
Net increase in accumulated deficit		958,136			174			72,305			16,233			1,046,848

Net decrease in other Comprehensive loss		(1,023,907	)		617			—			(28,223	)		(1,051,513	)

Net increase in plant and equipment and intangibles		65,771			780,586			1,290,369			11,990			2,148,716

Total increase in current liabilities		—			(131,263	)		—			—			(131,263	)

Net increase in non-current liabilities	$	—		$	(650,114	)	$	(1,362,674	)	$	—		$	(2,012,788	)

The restatement recorded by the Company for the six months ended June 30, 2018 was as follows:

	Plant and equipment and intangibles adjustments		Foreign currency adjustments		Other adjustments		Total Restated

General and administrative expenses	$	—	$	55,764	$	331	$	56,095
Depreciation and amortization		235,296		—		—		235,296
Net increase in accumulated deficit	$	235,296	$	55,764	$	331	$	291,391

The reconciliation of the consolidated balance sheet as of June 30, 2019 is as follows:

	As Previously Reported			Prior year adjustment			Lease adjustments			Acquisition of Virtual Generation			Other Adjustments			As Restated
Current Assets
Cash and cash equivalents	$	5,228,797		$	—		$	—		$	—		$	—		$	5,228,797
Accounts receivable		116,398			—			—			—			—			116,398
Gaming accounts receivable		654,016			—			—			—			—			654,016
Prepaid expenses		140,107			—			—			—			—			140,107
Related party receivable		851			—			—			—			—			851
Other current assets		145,348			—			—			—			—			145,348
Total Current Assets		6,285,517			—			—			—			—			6,285,517

Non-Current Assets
Restricted cash		1,439,782			—			—			—			—			1,439,782
Property, plant and equipment		347,824			121,248			43,961			—			6,180			519,213
Right-of-use assets		—			—			736,625			—			—			736,625
Intangible assets		16,353,775			(55,477	)		—			(111,239	)		10,903			16,197,962
Goodwill		267,076			—			—			1,401,608			(5,093	)		1,663,591
Investment in non-consolidated entities		250,000			—			—			—			—			250,000
Total Non-Current Assets		10,658,457			65,771			780,586			1,290,369			11,990			20,807,173
Total Assets	$	24,943,974		$	65,771		$	780,586		$	1,290,369		$	11,990		$	27,092,690

Current Liabilities
Line of credit - bank	$	1,000,000		$	—		$	—		$	—		$	—		$	1,000,000
Accounts payable and accrued liabilities		3,982,319			—			33,620			—			(420,942	)		3,594,997
Gaming accounts balances		2,217,089			—			—			—			—			2,217,089
Taxes payable		995,004			—			—			—			—			995,004
Advances from stockholders		48,508			—			—			—			—			48,508
Convertible Debt, net of discount of $2,578,995 and $4,587,228, respectively		6,083,982			—			—			—			—			6,083,982
Notes payable, net of discount of $132,970		1,421,045			—			—			—			—			1,421,045
Notes payable – related party, net of discount of $88,647		1,405,804			—			—			—			—			1,405,804
Bank loan payable – current portion		122,829			—			—			—			—			122,829
Operating lease liability		—			—			91,449			—						91,449
Financial lease liability		—			—			6,194			—						6,194
Total Current Liabilities		17,276,580			—			131,263			—			—			16,986,901

Non-current liabilities
Deferred tax liability					—			—			1,362,674			—			1,362,674
Notes payable, net of discount of $54,216		498,874															498,874
Notes payable – related party, net of discount of $36,144		332,582															332,582
Bank loan payable		161,504			—			—			—			—			161,504
Operating lease liability					—			611,718			—			—			611,718
Financial lease liability					—			38,396			—			—			38,396
Other long-term liabilities		193,021			—			—			—			420,942			613,963
Total Non-Current Liabilities		1,185,981			—			650,114			1,362,674			—			3,619,711
Total Liabilities		18,462,561			—			781,377			1,362,674			—			20,606,612

Stockholders' Equity
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, none issued		—			—			—			—			—			—
Common Stock, $0.0001 par value, 80,000,000 shares authorized; 9,795,396 shares issued and outstanding as of June 30, 2019*		7,935			—			—			—			(6,943	)		992
Additional paid-in capital*		25,455,983			—			—			—			6,943			25,462,926
Accumulated other comprehensive income		(1,170,151	)		1,023,907			(617	)		—			28,223			(118,638	)
Accumulated deficit		(17,812,354	)		(958,136	)		(174	)		(72,305	)		(16,233	)		(18,859,202	)
Total Stockholders' Equity		6,481,413			65,771			(791	)		(72,305	)		11,990			6,486,078
Total Liabilities and Stockholders’ Equity	$	24,943,974		$	65,771		$	780,586		$	1,290,369		$	11,990		$	27,092,690

* Adjusted for a 1 for 8 reverse stock split effective December 12, 2019.

The reconciliation of the consolidated statement of operations and comprehensive loss for the three months ended June 30, 2019 is as follows:

	As Previously Reported			Lease adjustments			Acquisition of Virtual Generation			Other Adjustments			As Restated

Revenue	$	9,105,353		$	—		$	—		$	—		$	9,105,353

Costs and Expenses
Selling expenses		7,038,797			—			—			(770,025	)		6,268,772
General and administrative expenses		2,487,299			(214	)		66,744			806,553			3,360,284
Total Costs and Expenses		9,526,096			(214	)		66,744			36,430			9,629,056

Loss from Operations		(420,743	)		214			(66,744	)		(36,430	)		(523,703	)

Other (Expenses) Income
Other income		7,725			—			—			—			7,725
Interest expense, net of interest income		(1,016,866	)		(377	)		—			—			(1,017,243	)
Loss on conversion of debt		(35,943	)		—			—			—			(35,943	)
Total Other (Expenses) Income		(1,045,084	)		(377	)		—			—			(1,045,461	)

Loss Before Income Taxes		(1,465,827	)		(163	)		(66,744	)		(36,430	)		(1,569,164	)

Income tax provision		(232,417	)		—			23,361			—			(209,056	)

Net Loss	$	(1,698,244	)	$	(163	)	$	(43,383	)	$	(36,430	)	$	(1,778,220	)

Other Comprehensive Loss
Foreign currency translation adjustment		(32,633	)		(55	)		—			101,711			69,023

Comprehensive Loss	$	(1,730,877	)	$	(218	)	$	(43,383	)	$	65,281		$	(1,709,197	)

Loss per common share – basic and diluted*	$	(0.18	)										$	(0.17	)
Weighted average number of common shares outstanding – basic and diluted*		9,870,357												9,870,357

The reconciliation of the consolidated statement of operations and comprehensive loss for the six months ended June 30, 2019 is as follows:

	As Previously Reported			Lease adjustments			Acquisition of Virtual Generation			Other Adjustments			As Restated

Revenue	$	18,371,648		$	—		$	—		$	—		$	18,371,648

Costs and Expenses
Selling expenses		14,446,503			—			—			(770,025	)		13,676,478
General and administrative expenses		5,660,767			(525	)		111,239			786,258			6,557,739
Total Costs and Expenses		20,107,270			(525	)		111,239			16,233			20,234,217

Loss from Operations		(1,735,622	)		525			(111,239	)		(16,233	)		(1,862,569	)

Other (Expenses) Income
Other income		7,725			—									7,725
Interest expense, net of interest income		(2,520,656	)		(699	)		—			—			(2,521,355	)
Loss on conversion of debt		(35,943	)		—			—			—			(35,943	)
		(25,000	)		—			—			—			(25,000	)
Total Other (Expenses) Income		(2,573,874	)		(699	)		—			—			(2,574,573	)

Loss Before Income Taxes		(4,309,496	)		(174	)		(111,239	)		(16,233	)		(4,437,142	)

Income tax provision		(493,964	)		—			38,934			—			(455,030	)

Net Loss	$	(4,803,460	)	$	(174	)	$	(72,305	)	$	(16,233	)	$	(4,892,172	)

Other Comprehensive Loss
Foreign currency translation adjustment		(88,813	)		(617	)		—			28,223			(61,207	)

Comprehensive Loss	$	(4,892,273	)	$	(791	)	$	(72,305	)	$	11,990		$	(4,953,379	)

Loss per common share – basic and diluted*	$	(0.50	)										$	(0.50	)
Weighted average number of common shares outstanding – basic and diluted*		9,764,450												9,870,357

* Adjusted for a 1 for 8 reverse stock split effective December 12, 2019.

The reconciliation of the consolidated statement of operations and comprehensive loss for the three months ended June 30, 2018 is as follows:

	As Previously Reported			Depreciation and amortization adjustments			Foreign Exchange adjustments			Other Adjustments		As Restated

Revenue	$	8,822,659		$	—		$	—		$	—	$	8,822,659

Costs and Expenses
Selling expenses		5,826,243			—			—			—		5,826,243
General and administrative expenses		2,056,275			117,648			27,882			—		2,201,805
Total Costs and Expenses		7,882,518			117,648			27,882			—		8,028,048

Income from Operations		940,141			(117,648			(27,882	)		—		794,611

Other (Expenses) Income
Interest expense, net of interest income		(1,050,270	)		—			—			—		(1,050,270	)
Imputed interest on related party advances		753			—			—			—		753
Loss on debt modification		(212,270	)		—			—			—		(212,270	)
Loss on marketable securities		(155,000	)		—			—			—		(155,000	)
Total Other (Expenses) Income		(1,416,787	)		—			—			—		(1,416,787	)

Loss Before Income Taxes		(476,646	)		(117,648	)		(27,882	)		—		(622,176	)

Income tax provision		(512,406	)		—			—			—		(512,406	)

Net Loss	$	(989,052	)	$	(117,648	)	$	(27,882	)	$	—	$	(1,134,582	)

Other Comprehensive Loss
Foreign currency translation adjustment		(98,355	)		—			—			—		(98,355	)

Comprehensive Loss	$	(1,087,407	)	$	(117,648	)	$	(27,882	)	$	—	$	(1,232,937	)

Loss per common share – basic and diluted*	$	(0.12	)									$	(0.13	)
Weighted average number of common shares outstanding – basic and diluted*		9,344,282											9,344,282

The reconciliation of the consolidated statement of operations and comprehensive loss for the six months ended June 30, 2018 is as follows:

	As Previously Reported			Depreciation and amortization adjustments			Foreign Exchange adjustments			Other Adjustments			As Restated

Revenue	$	17,416,526		$	—		$	—		$	—		$	17,416,526

Costs and Expenses
Selling expenses		11,903,600			—			—			—			11,903,600
General and administrative expenses		4,115,728			235,296			55,764			331			4,407,119
Total Costs and Expenses		16,019,328			235,296			55,764			331			16,310,719

Income from Operations		1,397,198			(235,296	)		(55,764	)		(331	)		1,105,807

Interest expense, net of interest income		(1,262,509	)		—			—			—			(1,262,509	)
Imputed interest on related party advances		(761	)		—			—			—			(761	)
Gain on litigation settlement		516,120			—			—			—			516,120
Loss on debt modification		(212,270	)											(212,270	)
Loss on marketable securities		(155,000	)											(155,000	)
Total Other Expenses (Income)		(1,114,420	)		—			—			—			(1,114,420	)

Income (Loss) Before Income Taxes		282,778			(235,296	)		(55,764	)		(331	)		(8,613	)

Income tax provision		(757,442	)		—			—			—			(757,442	)

Net Loss	$	(474,664	)	$	(235,296	)	$	(55,764	)	$	(331	)	$	(766,055	)

Other Comprehensive Income (Loss)
Foreign currency translation adjustment		(162,873	)		267,556			55,764			331			160,778

Comprehensive Loss	$	(637,537	)	$	32,260		$	—		$	—		$	(605,277	)

Loss per common share – basic and diluted*	$	(0.05	)										$	(0.08	)
Weighted average number of common shares outstanding – basic and diluted*		9,308,511												9,308,511

* Adjusted for a 1 for 8 reverse stock split effective December 12, 2019.

The reconciliation of the consolidated statement of cash flows for the ix months ended June 30, 2019 is as follows:

	As Previously Reported			Lease adjustments			Acquisition of Virtual Generation			Other Adjustments and reclassifications			As Restated

Cash Flows from Operating Activities
Net loss	$	(4,803,460	)	$	(174	)	$	(72,305	)	$	(16,233	)	$	(4,892,172	)

Adjustments to reconcile net loss to net cash generated by operating activities
Depreciation and amortization		291,332			5,623			111,239			37,796			445,990
Amortization of deferred costs		2,096,080			—			—			—			2,096,080
Non-cash interest		409,114			—			—			—			409,114
Loss on debt conversions		35,943									—			35,943
Unrealized loss on trading securities		25,000			—			—			—			25,000
Deferred taxation movements		—			—			(38,934	)		—			(38,934	)
Foreign translation loss		173,400			—						(173,400	)		—
Changes in Operating Assets and Liabilities
Prepaid expenses		(7,732	)		—			—			—			(7,732	)
Accounts payable and accrued liabilities		(26,789	)		—			—			(417,954	)		(444,743	)
Accounts receivable		(57,679	)		—			—			—			(57,679	)
Gaming accounts receivable		357,886			—			—			—			357,886
Gaming accounts liabilities		727,433			—			—			440,021			1,167,454
Taxes payable		(53,941	)		—			—			—			(53,941	)
Other current assets		(57,163	)		—			—			—			(57,163	)
Long term liability		30,995			—			—			(21,699	)		9,296
Net Cash used in operating Activities		(859,581	)		5,449			—			(151,469	)		(1,005,601	)

Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets		(59,253	)		—			4,954			16			(54,283	)
Decrease in restricted cash		100,140			—			—			(100,140	)		—
Acquisition of Virtual Generation, net of cash of $47,268		46,668			—			(262,818	)		—			(216,150	)
Net Cash Used in Investing Activities		87,555			—			(257,864	)		(100,124	)		(270,433	)

Cash Flows from Financing Activities
Proceeds from bank credit line, net		250,000			—			—			—			250,000
Repayment of bank loan		(59,007	)		—			—			—			(59,007	)
Repayment of deferred purchase consideration – non-related parties		(331,913	)		—			158,051			—			(173,862	)
Repayment of deferred purchase consideration – related parties		(213,353	)					105,367						(107,986	)
Movement in financial leases		—			(5,449	)		—			—			(5,449	)
Advance to related party		(11,992	)		—			—			—			(11,992	)
Repayment of loans advanced to stockholders		6,605			—			—			—			6,605
Net Cash Used in Financing Activities		(359,660	)		(5,449	)		263,418			—			(101,691	)

Effect of change in exchange rate		70,580			—			(5,554	)		130,838			195,864

Net decrease in cash		(1,061,106	)		—			—			(120,755	)		(1,181,861	)
Cash, cash equivalents and restricted cash – beginning of the period		6,289,903			—			—			1,560,539			7,850,442
Cash, cash equivalents and restricted cash – end of the period	$	5,228,797		$	—		$	—		$	1,439,784		$	6,668,581

Reconciliation of cash, cash equivalents and restricted cash within the balance sheet to the statement of cash flows

Cash and cash equivalents	$	5,228,797		$	—		$	—		$	—		$	5,228,797
Restricted cash		—									1,439,784			1,439,784
	$	5,228,797								$	1,439,784		$	6,668,581

The reconciliation of the consolidated statement of cash flows for the six months ended June 30, 2018 is as follows:

	As Previously Reported			Depreciation and amortization adjustments			Foreign Exchange adjustments			Other Adjustments and reclassifications			As Restated

Cash Flows from Operating Activities
Net Loss	$	(474,664	)	$	(235,296	)	$	(55,764	)	$	(331	)	$	(766,055	)

Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization		226,436			104,396			—			—			330,832
Amortization of deferred costs		1,012,225			—			—			—			1,012,225
Non-cash interest		58,188			—			—			—			58,188
Loss on debt modification		212,270												212,270
Imputed interest on advances from stockholders		1,514			—			—			—			1,514
Unrealized loss on trading securities		155,000			—			—			—			155,000
Recovery of assets		(516,120	)		—			—			—			(516,120	)
Bad debt expense		6,354			—			—			—			6,354
Changes in Operating Assets and Liabilities
Prepaid expenses		5,225			—			—			—			5,225
Accounts payable and accrued liabilities		756,656			—			—			331			756,987
Accounts receivable		98,833			—			—			—			98,833
Gaming accounts receivable		31,409			—			—			—			31,409
Gaming accounts liabilities		(583,899	)		—			—			—			(583,899	)
Taxes payable		439,731			—			—			—			439,731
Other current assets		(270,259	)		—			—			—			(270,259	)
Long term liability		78,346			—			—			—			78,346
Net Cash Provided by operating Activities		1,237,245			(130,900	)		(55,764	)		—			1,050,581

Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets		(4,442,508	)		(135,378	)		—			—			(4,577,886	)
Decrease in restricted cash		15,657			—			—			(15,657	)		—
Net Cash Used in Investing Activities		(4,426,851	)		(135,378	)		—			(15,657	)		(4,577,886	)

Cash Flows from Financing Activities
Repayment of bank credit line, net		(177,060	)		—			—			—			(177,060	)
Repayment of bank loan		(71,143	)		—			—			—			(71,143	)
Proceeds from debentures and convertible notes, net of repayment		6,883,905			—			—			—			6,883,905
Loan to related party		(215,745	)											(215,745	)
Purchase of treasury stock		(2,261,307	)											(2,261,307	)
Repayment to stockholders, net of advances		(485,036	)		—			—			—			(485,036	)
Net Cash Provided by Financing Activities		3,673,614			—			—			—			3,673,614

Effect of change in exchange rate		(168,600	)		266,278			55,764			—			153,442

Net increase in cash		315,408			—			—			(15,657	)		299,751
Cash, cash equivalents and restricted cash – beginning of the period		6,469,858			—			—			587,905			7,057,763
Cash, cash equivalents and restricted cash – end of the period	$	6,785,266		$	—		$	—		$	572,248		$	7,357,514

Reconciliation of cash, cash equivalents and restricted cash within the balance sheet to the statement of cash flows

Cash and cash equivalents	$	6,785,266		$	—		$	—		$	—		$	6,785,266
Restricted cash		—			—			—			572,248			572,248
	$	6,785,266		$	—		$	—		$	572,248		$	7,357,514

Reclassification of prior period results

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Reclassification of prior period results

4. Reclassification of prior period results

The company adopted ASU 2017-11(“ASU 2017-11”) – Accounting for certain convertible debentures and warrants with down round features, in the prior year.

When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock.

The Company determined that ASU 2017-11 is applicable to the Company and the down round feature of the convertible debentures and warrants issued during the period February 2018 to June 2018, no longer qualified as derivative liabilities.

The amendments in this update were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, however early adoption was permitted for all entities, including adoption in an interim period. The company early adopted ASU 2017-11 in its September 30, 2018 quarterly report.

The adjustments were reflected as of January 1, 2018, the beginning of the fiscal year.

The adjustments made by the Company to its opening balance sheet as of January 1, 2018 were as follows:

	Convertible Debentures		Derivative Liability			Additional Paid-in Capital		Accumulated Deficit
Balance as of January 1, 2018	$	1,148,107	$	222,915		$	14,254,582	$	(9,897,620	)
Reclassified derivative liabilities and cumulative effect of adoption		—		(222,915	)		287,881		(64,966	)
Balance as of January 1, 2018, restated	$	1,148,107	$	—		$	14,542,463	$	(9,962,586	)

During the three and six months ended June 30, 2018, the Company issued Convertible debenture units to investors amounting to $3,268,000 and CDN$7,162,000 (approximately $6,502,000). Each unit consisting of a convertible debenture, common shares of stock and a warrant, refer to Note 13 below.

Due to the modified retrospective adoption allowed under ASU 2017-11, the Company eliminated the derivative liability at the date of the issuance of the convertible debentures and warrants and credited additional paid in capital and debited convertible debentures discount with $5,536,301 on the grant date of the convertible debentures and warrants. The $5,536,301 was calculated using a Black-Scholes valuation model to measure and allocate the following components of the convertible debenture units; (a) the beneficial conversion feature of the convertible debentures; (b) the value of the warrants issued with the units; and the brokers warrants related to the issuance of the convertible debenture units, after applying the relative fair value method to the derived Black-Scholes valuations. The common shares of stock issued as part of the convertible debenture units were valued at the grant date at closing market prices at $582,486.

The Company eliminated the derivative liability of $12,494,727 reflected on the consolidated balance sheet as of June 30, 2018 and the net derivative liability movements through the consolidated statements of comprehensive loss of $5,498,876 and $5,244,587 for the three and six months ended June 30, 2018 and the net derivative liability movement of $5,244,587 from the statement of cash flows for the six months ended June 30, 2018.

The Company had originally calculated the mark-to-market derivative liability on the grant date of the warrants and brokers warrants and the convertible debentures as an additional charge of $23,513,240 and reflected this loss together with the loss realized on the modification of certain convertible debentures and warrants of $212,270 as a loss on debt issuance. The $23,513,240 related to the mark-to-market derivative liability movement at the grant date was reclassified as a mark-to-market movement in derivative liabilities for the three months and six months ended June 30, 2018, with a net loss on debt modification of $212,270.

The reconciliation of the unaudited consolidated statement of comprehensive loss for the three months ended June 30, 2018 is as follows:

	As Previously reported			Reclass of disclosure			As Reclassed			Effect of adoption of ASU 2017-11			As Reclassified

Revenue	$	8,822,659		$	—		$	8,822,659		$	—		$	8,822,659

Costs and Expenses
Selling expenses		5,826,243			—			5,826,243			—			5,826,243
General and administrative expenses		2,056,275			—			2,056,275			—			2,056,275
Total Costs and Expenses		7,882,518			—			7,882,518			—			7,882,518

Income from Operations		940,141			—			940,141			—			940,141

Other (Expenses) Income
Interest expense, net of interest income		(1,050,270	)		—			(1,050,270	)		—			(1,050,270	)
Changes in fair value of derivative liabilities		18,014,364			(23,513,240	)		(5,498,876	)		(5,498,876	)		—
Imputed interest on related party advances		753			—			753			—			753
Gain on litigation settlement		—			—			—			—			—
Loss on issuance of debt		(23,725,510	)		23,725,510			—			—			—
Loss on debt modification		—			(212,270	)		(212,270	)		—			(212,270	)
Loss on Marketable Securities		(155,000	)		—			(155,000	)		—			(155,000	)
Total Other (Expenses) Income		(6,915,663	)		—			(6,915,663	)		5,498,876			(1,416,787	)

Income (Loss) Before Income Taxes		(5,975,522	)		—			(5,975,522	)		5,498,876			(476,646	)
Income tax provision		(512,406	)		—			(512,406	)		—			(512,406	)
Net Loss		(6,487,928	)		—			(6,487,928	)		5,498,876			(989,052	)

Other Comprehensive Loss
Foreign currency translation adjustment		(98,355	)		—			(98,355	)		—			(98,355	)

Comprehensive Loss	$	(6,586,283	)	$	—		$	(6,586,283	)	$	5,498,876		$	(1,087,407	)

Loss per common share – basic and diluted	$	(0.71	)	$	—		$	(0.71	)	$	0.59		$	(0.12	)
Weighted average number of common shares outstanding – basic and diluted		9,344,282			9,344,282			9,344,282			9,344,282			9,344,282

The reconciliation of the unaudited consolidated statement of comprehensive loss for the six months ended June 30, 2018 is as follows:

	As Previously reported			Reclass of disclosure			As Reclassed			Effect of adoption of ASU 2017-11		As Reclassified

Revenue	$	17,416,526		$	—		$	17,416,526		$	—	$	17,416,526

Costs and Expenses
Selling expenses		11,903,600			—			11,903,600			—		11,903,600
General and administrative expenses		4,115,728			—			4,115,728			—		4,115,728
Total Costs and Expenses		16,019,328			—			16,019,328			—		16,019,328

Income from Operations		1,397,198			—			1,397,198			—		1,397,198

Other (Expenses) Income
Interest expense, net of interest income		(1,262,509	)		—			(1262,509	)		—		(1,262,509	)
Changes in fair value of derivative liabilities		18,268,653			(23,513,240	)		(5,244,587	)		5,244,587		—
Imputed interest on related party advances		(761	)		—			(761	)		—		(761	)
Gain on litigation settlement		516,120			—			516,120			—		516,120
Loss on issuance of debt		(23,725,510	)		23,725,510			—			—		—
Loss on debt modification		—			(212,270	)		(212,270	)		—		(212,270	)
Loss on Marketable Securities		(155,000	)		—			(155,000	)		—		(155,000	)
Total Other (Expenses) Income		(6,359,007	)		—			(6,359,007	)		5,244,587		(1,114,420	)

Income (Loss) Before Income Taxes		(4,961,809	)		—			(4,961,809	)		5,244,587		282,778
Income tax provision		(757,442	)		—			(757,442	)		—		(757,442	)
Net Loss		(5,719,251	)		—			(5,719,251	)		5,244,587		(474,664	)

Other Comprehensive Loss
Foreign currency translation adjustment		(162,873	)		—			(162,873	)		—		(162,873	)

Comprehensive Loss	$	(5,882,124	)	$	—		$	(5,882,124	)	$	5,244,587	$	(637,537	)

Loss per common share – basic and diluted	$	(0.63	)	$	—		$	(0.63	)	$	0.56	$	(0.07	)
Weighted average number of common shares outstanding – basic and diluted		9,308,511			9,308,511			9,308,511			9,308,511		9,308,511

The reconciliation of the unaudited consolidated statement of cash flows for the six months ended June 30, 2018 is as follows:

	As Previously reported			Reclass of disclosure			As Reclassed			Effect of adoption of ASU 2017-11			As Reclassified
Cash Flows from Operating Activities
Net loss	$	(5,719,251	)	$	—		$	(5,719,251	)	$	5,244,587		$	(474,664	)

Adjustments to reconcile net loss to net cash Provided by operating activities					—						—
Depreciation and amortization		226,436			—			226,436			—			226,436
Amortization of deferred costs		58,188			—			58,188			—			58,188
Non-cash interest		1,012,225			—			1,012,225			—			1,012,225
Loss on issuance of debt		23,725,510			(23,725,510	)		—			—			—
Loss on debt modification		—			212,270			212,270			—			212,270
Imputed interest on advances from stockholders		1,514			—			1,514			—			1,514
Changes in fair value of derivative liabilities		(18,268,653	)		23,513,240			5,244,587			(5,244,587	)		—
Unrealized loss on trading securities		155,000			—			155,000			—			155,000
Recovery of assets		(516,120	)		—			(516,120	)		—			(516,120	)
Bad debt expense		6,354			—			6,354			—			6,354

Changes in Operating Assets and Liabilities
Prepaid expenses		5,225			—			5,225			—			5,225
Accounts payable and accrued liabilities		756,656			—			756,656			—			756,656
Accounts receivable		98,833			—			98,833			—			98,833
Gaming accounts receivable		31,409			—			31,409			—			31,409
Gaming accounts liabilities		(583,899	)		—			(583,899	)		—			(583,899	)
Taxes payable		439,731			—			439,731			—			439,731
Other current assets		(270,259	)		—			(270,259	)		—			(270,259	)
Long term liability		78,346			—			78,346			—			78,346
Net Cash Provided by Operating Activities		1,237,245			—			1,237,245			—			1,237,245

Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets		(4,442,508	)		—			(4,442,508	)		—			(4,442,508	)
Decrease in restricted cash		15,657			—			15,657			—			15,657
Net Cash Used in Investing Activities		(4,426,851	)		—			(4,426,851	)		—			(4,426,851	)

Cash Flows from Financing Activities
Proceeds from bank credit line		(177,060	)		—			(177,060	)		—			(177,060	)
Repayment of bank loan		(71,143	)		—			(71,143	)		—			(71,143	)
Proceeds from convertible debentures and promissory notes, net of repayment		6,883,905			—			6,883,905			—			6,883,905
Loan to related party		(215,745	)		—			(215,745	)		—			(215,745	)
Purchase of treasury stock		(2,261,307	)		—			(2,261,307	)		—			(2,261,307	)
Advances from stockholders, net of repayment		(485,036	)		—			(485,036	)		—			(485,036	)
Net Cash Provided by Financing Activities		3,673,614			—			3,673,614			—			3,673,614

Effect of change in exchange rate		(168,600	)		—			(168,600	)		—			(168,600	)

Net increase in cash		315,408			—			315,408			—			315,408
Cash – beginning of the period		6,469,858			—			6,469,858			—			6,469,858
Cash – end of the period	$	6,785,266		$	—		$	6,785,266		$	—		$	6,785,266

Acquisition betting software technology; offline and land-based gaming assets

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Acquisition of betting software technology; offline and land-based gaming assets

5. Acquisition of betting software technology; offline and land-based gaming assets

Ulisse GmbH (“Ulisse”) Acquisition

On June 30, 2016, the Company entered into a Share Exchange Agreement (“Ulisse SPA”), which closed on July 1, 2016, with the shareholders of Ulisse organized under the laws of Austria. Ulisse operates a network of approximately 170 land-based agency locations. Pursuant to the agreement, the Company issued 416,400 shares of common stock in consideration for 100% of the issued and outstanding shares of Ulisse.

Pursuant to the Ulisse SPA, the purchase price was subject to an adjustment equal to two times earnings before income taxes calculated on a pro rata basis from the closing date upon completion of the ADM license tender auction. The sellers were also permitted to exercise the option to resell to the Company 50% of the shares of common stock (or 208,200 shares) issued in consideration for the purchase price at a fixed price of USD $4.00 per share (the “Ulisse Put Option”).

On May 31, 2018, the Company and Ulisse mutually agreed to exercise the Ulisse Put Option in lieu of completion of the ADM license tender auction. The Company repurchased and retired the shares issued in June 2016 with a purchase price adjustment to 10 million Euros (approximately USD $11.7 million). The purchase price adjustment was paid half in cash of 5 million Euros (approximately USD $5.85 million) and the Company issued 591,950 shares to the sellers on May 31, 2018 to settle the balance of the purchase price adjustment in shares of common stock at the closing price of $9.44 per share on May 31, 2018.

Multigioco Acquisition

On May 31, 2018, the Company and Multigioco mutually agreed to exercise the option to repurchase the shares issued to the shareholders of Multigioco at the closing of the acquisition of Multigioco on August 15, 2014 (“Multigioco Put Option”). The Company repurchased and retired the balance of 255,000 shares issued to the Multigioco sellers in exchange for EUR 510,000 (approximately USD $595,000).

Virtual Generation Limited (“VG”) Acquisition

On January 30, 2019, the Company entered into a Share Exchange Agreement (“VG SPA”), with the shareholders of Virtual Generation (“VG”) organized under the laws of Republic of Malta. VG owns and has developed a virtual gaming software platform, together with all the ordinary shares of Naos Holding Limited, a company organized under the laws of Republic of Malta (“Naos”) that owns 3,999 of the 4,000 issued and outstanding ordinary shares of VG. Pursuant to the agreement, the Company issued 65,298 shares of common stock in consideration for 100% of the issued and outstanding shares of VG.

Pursuant to the Purchase Agreement, on the Closing Date, the Company agreed to pay the Sellers the previously agreed to Four Million Euro (€4,000,000) in consideration for all the ordinary shares of VG and Naos, on the Closing Date as follows:

i.

a cash payment of One Hundred and Eight Thousand Euro (€108,000);

ii.

the issuance of shares of the Company’s common stock valued at Eighty-Nine Thousand Euro (€89,000); and

iii.

the delivery of a non-interest bearing promissory note (the “Promissory Note”) providing for the payment of (a) an aggregate of €2,392,000 in cash in 23 equal and consecutive monthly instalments of €104,000 with the first such payment due and payable on the date that is one (1) month after the Closing Date; and (b) an aggregate of €1,411,000 in shares of the Company’s common stock in seventeen (17) equal and consecutive monthly instalments of €83,000 as determined by the average of the closing prices of such shares on the last ten (10) trading days immediately preceding the determination date of each monthly issuance, commencing on March 1, 2019.

The value of the EUR 4,000,000 promissory note net of discount was EUR 3,665,255 ($4,193,374 U.S.). The note was allocated as 40% as related party and 60% non-related party. In the six months ending June 30, 2019, cash payments were $240,015 net of interest of $2,354. Shares were issued at an equivalent of $195,220 net of interest of $1,563. Transaction gain during the quarter was $150. As of June 30, 2019, the promissory note net of discount related to the purchase of VG had a balance of $3,758,289 ($1,502,832 related party; $2,255,457 non-related party).

The purchase price was allocated to the fair market value of tangible and intangible assets acquired and liabilities assumed. Intangible assets will be amortized over their remaining useful life as follows:

Cash	$	47,268
Current assets		178.181
Property, Plant and Equipment		41,473
Betting Platform		4,004,594
		4,271,516
Less: liabilities assumed		(78,141	)
Less: Imputed Deferred taxation on identifiable intangible assets acquired		(1,401,608	)
Total identifiable assets less liabilities assumed		2,791,767
Goodwill arising on acquisition		1,401,608
Total purchase price	$	4,193,375

Intangible assets will be amortized over their remaining useful life over a period of 15 years.

The €3,803,000 promissory note was recorded as a liability owing to related parties of €1,521,000 (Note 11) and to third parties of €2,281,800 (Note 14).

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

6. Leases

Adoption of ASC Topic 842, “Leases”

On January 1, 2019, the Company adopted Topic 842 using the modified retrospective method applied to leases that were in place as of January 1, 2019. Results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 840. The Company’s portfolio of leases contains both finance and operating leases that relate to real estate agreements, vehicles and office equipment agreements.

Practical Expedients and Elections

The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical lease classification, the Company’s assessment on whether a contract is or contains a lease, and its initial direct costs for any leases that exist prior to adoption of the new standard. The Company also elected to combine lease and non-lease components on the office equipment leases and elected the short-term lease recognition exemption for all leases that qualify.

Discount Rate

To determine the present value of minimum future lease payments for leases at January 1, 2019, the Company was required to use the rate implicit in the lease unless the rate is not determinable then a rate of interest that it would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment (the “incremental borrowing rate” or “IBR”).

Operating leases

Property and vehicle leases

The Company determined the rate implicit in the lease or an IBR where that rate was not determinable. The Company used country specific rates based on the country the assets are located in.

Property leases

The Company determined that rates ranging from 2.12% to 4.5% were appropriate discount rates to apply to its real-estate operating leases.

The Company entered into new real estate operating leases during the current period and determined an appropriate discount rate to apply to its operating leases was 2.12%.

Vehicle leases

The Company determined that appropriate discount rates to apply to its vehicle operating leases ranged from 5.1% to 6.7%.

Finance leases

Computer and office equipment leases

The Company has financed several items of computer and office equipment through vendor financing. The discount rates for finance leases ranged from 2.5% to 4.2%.

Right of use assets

Upon adoption of ASC 842, effective January 1, 2019, the Company recorded a right of use asset for operating leases of $646,138.

Right of use assets are included in the consolidated balance sheet are as follows:

	June 30, 2019

Non-Current assets
Right-of-use assets - operating leases, net of amortization	$	736,625
Right-of-use assets – finance leases, net of amortization (included in plant and equipment)	$	43,961

Lease costs consists of the following:

	Six months ended June 30, 2019

Finance lease cost:	$	15,817
Amortization of right-of-use assets		15,118
Interest expense on lease liabilities		699

Operating lease cost		95,371

Total lease cost	$	111,191

Other lease information:

	Six months ended June 30, 2019

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	(699	)
Operating cash flows from operating leases		(95,371	)
Financing cash flows from finance leases		(5,449	)

Right-of-use assets obtained in exchange for new finance leases		15,118
Right-of-use assets disposed of under operating leases prior to lease maturity		(27,517	)
Right-of -use assets obtained in exchange for new operating leases	$	95,622

Weighted average remaining lease term – finance leases		3.88 years
Weighted average remaining lease term – operating leases		3.83 years

Weighted average discount rate – finance leases		3.48	%
Weighted average discount rate – operating leases		3.66	%

Maturity of Leases

Finance lease liability

The amount of future minimum lease payments under finance leases are as follows:

	Amount

2019	$	6,890
2020		13,780
2021		10,543
2022		8,536
2023		6,788
2024		817
Total undiscounted minimum future lease payments		47,354
Imputed interest		(2,764	)
Total finance lease liability	$	44,590

Disclosed as:
Current portion	$	6,194
Non-Current portion		38,396
	$	44,590

Operating lease liability

The amount of future minimum lease payments under operating leases are as follows:

	Amount

2019	$	114,297
2020		186,474
2021		179,902
2022		153,301
2023		104,850
2024 and beyond		29,098
Total undiscounted minimum future lease payments		767,922
Imputed interest		(64,755	)

Total operating lease liability	$	703,167

Disclosed as:
Current portion	$	91,449
Non-Current portion		611,718
	$	703,167

Intangible Assets

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

8. Intangible Assets

Intangible assets consist of the following:

	June 30, 2019					December 31, 2018
Betting Platform Software	$	1,685,371		$	1,685,371
Ulisse Bookmaker License		9,727,914			9,727,914
Multigioco and Rifa ADM Licenses		960,977			961,756
VG Licenses		4,004,594			—
Location contracts		1,000,000			1,000,000
Customer relationships		870,927			870,927
Trademarks/names		110,000			110,000
Websites		40,000			40,000
		18,399,783			14,395,968
Accumulated amortization		(2,201,821	)		(1,867,986		)
Balance	$	16,197,962		$	12,527,982

The Company evaluates intangible assets for impairment on an quarterly basis during the last month of each year and at an interim date if indications of impairment exist. Intangible asset impairment is determined by comparing the fair value of the asset to its carrying amount with an impairment being recognized only when the fair value is less than carrying value. The Company recorded approximately $376,457 and $206,568 in amortization expense for the finite-lived assets for the six months ended June 30, 2019 and June 30, 2018 respectively.

Licenses obtained by the Company in the acquisitions of Multigioco and Rifa include a Gioco a Distanza (“GAD”) online license as well as a Bersani and Monti land-based licenses issued by the Italian gaming regulator (ADM) to Multigioco and Rifa, respectively, as well as an Austrian Bookmaker License through the acquisition of Ulisse.

The Company believes that the carrying amounts of its intangible assets are recoverable. However, if adverse events were to occur or circumstances were to change indicating that the carrying amount of such assets may not be fully recoverable, the assets would be reviewed for impairment and the assets could be impaired.

Restricted Cash

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Restricted Cash

9. Restricted cash

Restricted cash is cash held in a segregated bank account at Intesa Sanpaolo Bank S.p.A. (“Intesa Sanpaolo Bank”) as collateral against a bank loan with Intesa Sanpaolo Bank as well as Wirecard Bank as a security deposit for Ulisse betting operations. In addition, the Company maintains a $1,000,000 deposit at Metropolitan Commercial bank held as security against a $1,000,000 line of credit. See Note 10.

Line of Credit-Bank

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Line of Credit-Bank

10. Line of Credit – Bank

The Company currently maintains an operating line of credit for a maximum amount of €300,000 (approximately $340,000) for Multigioco and €50,000 (approximately $57,000) for Rifa from Intesa Sanpaolo Bank in Italy. The line of credit is secured by restricted cash on deposit at Intesa Sanpaolo Bank and guaranteed by certain shareholders of the Company and bears a fixed rate of interest at 5% per annum on the outstanding balance with no minimum payment, maturity or due date.

In addition, the Company maintains a $1,000,000 secured revolving line of credit from Metropolitan Commercial Bank in New York, which bears a fixed rate of interest of 3.00% on the outstanding balance with an interest only monthly minimum payment, no maturity or due date and is secured by a $1,000,000 security deposit, see Note 9.

Related party transactions and balances

6 Months Ended

Jun. 30, 2019

Related party transactions and balances

11. Related Parties

Notes Payable – Related Party

The Company has three promissory notes entered into in 2015 and 2016 with a related party with an aggregate principal amount outstanding of $318,078. The promissory notes bear interest at 12% per annum and are due on demand.

In terms of the acquisition of Virtual Generation Limited on January 31, 2019, disclosed in Note 5 above, the Company issued a non-interest bearing promissory note in the principal amount of €3,803,000 owing to both related parties and non-related parties. The value of the promissory note payable to non-related parties was €2,281,800 and to related parties was €1,521,200.

The promissory note is to be settled as follows:

(a)

an aggregate of €956,800 in cash in 23 equal and consecutive monthly instalments of €41,600 with the first such payment due and payable on the date that is one month after the Closing Date; and

(b)

an aggregate of €564,400 in shares of the Company’s common stock in 17 equal and consecutive monthly instalments of €33,200 as determined by the average of the closing prices of such shares on the last 10 trading days immediately preceding the determination date of each monthly issuance, commencing on March 1, 2019.

The future payments on the promissory note was discounted to present value using the Company’s average cost of funding of 10%. The discount is being amortized over the repayment period of the promissory note using the effective interest rate method.

The movement on notes payable consists of the following:

Description	June 30, 2019

Principal Outstanding
Opening balance	$	318,078
Promissory note due to non-related parties		1,830,541
Settled by the issuance of common shares		(190,128	)
Repayment in cash		(213,353	)
Foreign exchange movements		(14,442	)
		1,730,696
Accrued Interest
Opening balance		113,553
Interest expense		18,928
		132,481
Present value discount on future payments
Present value discount		(161,393	)
Amortization		35,347
Foreign exchange movements		1,255
		(124,791	)
Notes payable – Related Party, net	$	1,738,386

Disclosed as follows:
Current liability	$	1,405,804
Long term liability		332,582
Notes payable – Related Party, net	$	1,738,386

Advances from Stockholders

Advances from stockholders represent non-interest-bearing loans that are due on demand.

Advances from stockholders are as follows:

	June 30, 2019		December 31, 2018

Gold Street Capital Corp.	$	48,508	$	39,237

Amounts due to Gold Street Capital Corp., the major stockholder of Newgioco Group, are for reimbursement of expenses. During the three and six months ended June 30, 2018, the Company paid management fees of $36,000 and $72,000 to Gold Street Capital Corp and no management fees during the three and six months ended June 30, 2019, respectively.

During the six months ended June 30, 2018, the Company paid management fees of approximately $6,000 to Luca Pasquini.

Investment in Non-consolidated Entities

6 Months Ended

Jun. 30, 2019

Investments, All Other Investments [Abstract]

Investment in Non-consolidated Entities

7. Investment in non-consolidated entities

Investments in non-consolidated entities consists of 2,500,000 shares of Zoompass Holdings (“Zoompass”) and is accounted for at fair value, with changes recognized into earnings in accordance with ASU 2016-1, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.”

On June 30, 2019, the shares of Zoompass were last quoted at $0.10 per share on the OTC market, resulting in an unrealized loss recorded to earnings related to these securities of $25,000 for the three and six months ended June 30, 2019.

Stockholders Equity

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Stockholders Equity

12. Stockholders’ Equity

Effective December 12, 2019 December 12, 2019, the Company performed a 1 for 8 reverse stock split. All equity issuances and references to equity have been adjusted to take into account the reverse stock split.

On January 30, 2019, the Company issued 32,450 shares of common stock valued at $101,763 and issued the following shares of common stock to promissory note holders in terms of the agreement entered into for the acquisition of Virtual Generation Limited, as disclosed in Note 5 above.

· On March 1, 2019, 32,845 shares of common stock valued at $101,249;

· On April 1, 2019, 29,975 shares of common stock valued at $86,328;

· On May 1, 2019, 33,105 shares of common stock valued at $93,018;

· On June 1, 2019, 27,256 shares of common stock valued at $92,961.

For the six months ended June 30, 2019, the Company issued a total of 86,850 shares of common stock, valued at $989,169, upon the conversion of convertible debentures into equity (Note 13).

On April 22, 2019, the Company issued 11,232 shares of common stock, valued at $35,943, to certain convertible debenture holders as an incentive for them to transfer their convertible debentures to another investor.

Convertible Debt

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Convertible Debt

13. Convertible Debt

Convertible debt consists of Notes in USD and CAD issued in the first and second quarter of 2018. For the three and six months ended June 30, 2019, $919,824 ($864,623 principal plus $55,200 accrued interest) of convertible notes were redeemed for 287,561 of the Company’s common stock. At June 30, 2019, the Company has $7,774,208 principal debt plus accrued interest of $668,492 net of a discount of $3,300,942 and recorded a loss of $109,810 to account for the foreign currency translation of the debt issued in CAD.

The Aggregate convertible debentures outstanding consists of the following:

Description	June 30, 2019

Principal Outstanding
Opening balance	$	8,529,021
Conversion to equity		(925,963	)
Foreign exchange movements		195,999
		7,799,057
Accrued Interest
Opening balance		528,141
Interest expense		390,186
Conversion to equity		(63,206	)
Foreign exchange movements		10,307
		865,428
Debenture Discount
Opening balance		(4,588,215	)
Amortization		2,007,712
		(2,580,503	)
Convertible Debentures, net	$	6,083,982

Notes Payable

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Notes Payable

14. Notes Payable

In Terms of the acquisition of Virtual Generation Limited on January 31, 2019, disclosed in Note 5 above, the Company issued a non-interest bearing promissory note of €3,803,000 owing to both related parties and non-related parties. The value of the promissory note payable related parties was €1,521,200 and to non-related parties was €2,281,800.

The promissory note payable to non-related parties is to be settled as follows:

(a)

an aggregate of €1,435,200 in cash in 23 equal and consecutive monthly instalments of €62,400 with the first such payment due and payable on the date that is one month after the Closing Date; and

(b)

an aggregate of €846,600 in shares of the Company’s common stock in 17 equal and consecutive monthly instalments of €49,800 as determined by the average of the closing prices of such shares on the last 10 trading days immediately preceding the determination date of each monthly issuance, commencing on March 1, 2019.

The future payments on the promissory note was discounted to present value using the Company’s average cost of funding of 10%. The discount is being amortized over the repayment period of the promissory note using the effective interest rate method.

The movement on notes payable consists of the following:

Description	June 30, 2019

Principal Outstanding
Promissory note due to non-related parties	$	2,745,811
Settled by the issuance of common shares		(285,192	)
Repayment in cash		(331,913	)
Foreign exchange movements		(21,601	)
		2,107,105
Present value discount on future payments
Present value discount		(242,089	)
Amortization		53,020
Foreign exchange movements		1,883
		(187,186	)
Notes payable, net	$	1,919,919

Disclosed as follows:
Current liability	$	1,421,045
Long term liability		498,874
Notes payable, net	$	1,919,919

Bank Loan Payable

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Bank Loan Payable

15. Bank Loan Payable

In September 2016, the Company obtained a loan of €500,000 (approximately $580,000) from Intesa Sanpaolo Bank in Italy, which loan is secured by the Company's assets. The loan has an underlying interest rate of 4.5 points above the Euro Inter Bank Offered Rate, subject to quarterly review and is amortized over 57 months ending March 31, 2021. Monthly repayments of €9,760 began in January 2017.

The Company made payments of €58,560 (approximately $66,146) for the six months ended June 30, 2019 which included principal of approximately $52,239 (approximately $59,007) and interest of €6,321 (approximately $7,140) for the six months ended June 30, 2019.

Other Long Term Liabilities

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Other Long Term Liabilities

16. Other long term liabilities

Other long term liabilities represents the Italian “Trattamento di Fine Rapporto” which is a severance amount set up by Italian companies to be paid to employees on termination or retirement as well as shop deposits that are held by Ulisse.

Balances of other long term liabilities were as follows:

	June 30, 2019		December 31, 2018
Severance liability	$	193,021	$	168,706
Customer deposit balance		420,942		440,021
Total other long term liabilities	$	613,963	$	608,727

Warrants

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Warrants

17. Warrants

In connection with the private placement agreements entered into with accredited investors in the first and second quarter of 2018, for each $1,000 debenture unit the Company issued two-year warrants to purchase up to 135,28 shares of the Company’s common stock and for each CDN $1,000 debenture unit the Company issued two-year warrants to purchase up to 104.06 shares of the Company’s common stock at an exercise price of $4.00 per share.

A summary of all of the Company’s warrant activity during the period January 1, 2018 to June 30, 2019 is as follows:

	Number of shares			Exercise price per share		Weighted average exercise price

Outstanding January 1, 2018		76,566		$	4.32	$	4.32
Granted		1,095,883			4.00		4.00
Forfeited/cancelled		(27,000	)		5.04		(5.04	)
Exercised		(40,761	)		4.64		4.64
Expired		(15,555	)		4.64		4.64
Outstanding December 31, 2018		1,089,133		$	4.00		4.00
Granted		—			—		—
Forfeited/cancelled		—			—		—
Exercised		—			—		—
Outstanding June 30, 2019		1,089,133		$	4.00	$	4.00

The following tables summarize information about warrants outstanding as of June 30, 2019:

		Warrants outstanding					Warrants exercisable
	Exercise price		Number of shares	Weighted average remaining years		Weighted average exercise price		Number of shares		Weighted average exercise price

$	4.00		1,089,133	0.90	$	4.00		1,089,133	$	4.00

Revenues

6 Months Ended

Jun. 30, 2019

Revenues [Abstract]

Revenues

18. Revenues

The following table represents disaggregated revenues from our gaming operations for the three and six months ended June 30, 2019 and 2018. Net Gaming Revenues represents Turnover (also referred to as “Handle”), the total bets processed for the period, less customer winnings paid out, commissions paid to agents, and taxes due to government authorities, while Commission Revenues represents commissions on lotto ticket sales and Service Revenues is revenue invoiced for our ELYS software service and royalties invoiced for the sale of virtual products.

	Three Months Ended				Six Months Ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Turnover
Turnover web-based	$	88,647,748	$	55,025,859	$	175,223,649	$	101,091,758
Turnover land-based		10,617,656		45,013,592		61,017,220		89,507,552
Total Turnover		99,265,404		100,039,451		236,240,869		190,599,310

Winnings/Payouts
Winnings web-based		81,857,558		54,687,682		164,120,495		97,305,678
Winnings land-based		7,199,276		35,765,405		51,555,578		74,511,647
Total Winnings/payouts		89,056,834		90,453,087		215,676,073		171,817,325

Gross Gaming Revenues		10,208,570		9,586,364		20,564,796		18,781,985

Less: ADM Gaming Taxes		1,172,993		799,016		2,366,739		1,565,849
Net Gaming Revenues		9,035,577		8,787,348		18,198,057		17,216,136
Add: Commission Revenues		33,360		18,152		62,433		117,152
Add: Service Revenues		36,416		17,159		111,158		83,238
Total Revenues	$	9,105,353	$	8,822,659	$	18,371,648	$	17,416,526

Net Loss per Common Share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Net Loss per Common Share

19. Net Loss per Common Share

Basic loss per share is based on the weighted-average number of common shares outstanding during each period. Diluted loss per share is based on basic shares as determined above, plus the incremental shares that would be issued upon the assumed exercise of “in-the-money” warrants using the treasury stock method and the inclusion of all convertible securities, including convertible debentures, assuming these securities were converted at the beginning of the period or at the time of issuance, if later. The computation of diluted net loss per share does not assume the issuance of common shares that have an anti-dilutive effect on net loss per share.

For the three months and six months ended June 30, 2019 and 2018, the following warrants and convertible debentures were excluded from the computation of diluted loss per share as the result of the computation was anti-dilutive:

Description	Three and Six Months ended June 30, 2019		Three and Six Months ended June 30, 2018

Warrants		1,089,133		1,089,133
Convertible debentures		2,707,652		2,707,652
		3,796,785		3,796,785

Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

19. Income Taxes

The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company had no U.S. taxable income for the six months ended June 30, 2019 and June 30, 2018.

The Company's Italian subsidiaries are governed by the income tax laws of Italy. The corporate tax rate in Italy is 28.82% (IRES at 24% plus IRAP ordinary at 4.82%) on income reported in the statutory financial statements after appropriate tax adjustments.

The Company's Austrian subsidiaries are governed by the income tax laws of Austria. The corporate tax rate in Austria is 25% on income reported in the statutory financial statements after appropriate tax adjustments.

The Company's Canadian subsidiary is governed by the income tax laws of Canada and the Province of Ontario. The combined Federal and Provincial corporate tax rate in Canada is 26.5% on income reported in the statutory financial statements after appropriate tax adjustments.

On December 22, 2017, the President of the United States signed into law Public Law No. 115-97, commonly referred to as the Tax Reform Act, following its passage by the United States Congress. The Tax Act made significant changes to U.S. federal income tax laws, including reduction of the corporate tax rate from 35.0% to 21.0%, limitation of the deduction for net operating losses to 80.0% of current year taxable income and elimination of net operating loss carrybacks, one-time taxation of offshore earning at reduced rates regardless of whether they are repatriated, elimination of U.S. tax on foreign earnings (subject to certain important exceptions), immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing many business deductions.

The Company continues to evaluate the accounting for uncertainty in tax positions at the end of each reporting period. The guidance requires companies to recognize in their financial statements the impact of a tax position if the position is more likely than not of being sustained if the position were to be challenged by a taxing authority. The position ascertained inherently requires judgment and estimates by management.

The Company has accumulated a net operating loss carry forwards (“NOL”) of approximately $4.0 million as of December 31, 2018 and continues to have losses from operations. As part of the Tax Act, NOL’s generated in 2018 and later are not subject to an expiration period and are available to offset 80% of taxable income in the year in which they are utilized. The federal and state NOL carryforwards generated prior to 2018 will begin to expire in 2026. For the six months ended June 30, 2019 the Company recorded additional losses and the possibility of future cumulative losses still exists. Accordingly, the Company has continued to maintain a valuation allowance against its net deferred tax assets.

Under Italian tax law, the operating loss carryforwards available for offset against future profits can be used indefinitely. Operating loss carryforwards are only available for offset against national income tax, up to the limit of 80% of taxable annual income. This restriction does not apply to the operating loss incurred in the first three years of the Company's activity, which are therefore available for 100% offsetting.

Under Austrian tax law, the operating loss carryforwards available for offset against future profits can be used indefinitely. Operating loss carryforwards are only available for offset against national income tax, up to the limit of 75% of taxable annual income.

Under Canadian tax law, the operating loss carryforwards available for offset against future profits can be used indefinitely.

Subsequent events

6 Months Ended

Jun. 30, 2019

Subsequent Events [Abstract]

Subsequent events

20. Subsequent Events

Subsequent to the period covered by this report, the principal amount of $550,000 and CDN$20,000 (approximately $16,400) of outstanding convertible debentures plus accrued interest was presented to the Company for conversion into 195,297 shares of common stock.

Other than disclosed above, the Company has evaluated subsequent events through the date the financial statements were issued and did not identify any other subsequent events that would have required adjustment or disclosure in the financial statements.

Nature of Business (Policies)

6 Months Ended

Jun. 30, 2019

Nature Of Business

Nature of Business

Nature of Business

Established in the state of Delaware in 1998, Newgioco Group, Inc. (“Newgioco Group” or the “Company”) is an international commercial-stage, vertically integrated company engaged in various aspects of the leisure gaming industry. We own and operate an innovative state-of-the-art betting platform (“Platform”) and are a licensed leisure lottery and gaming operator offering online and offline leisure gaming services, including a variety of lottery and casino gaming products, as well as sports betting products through a distribution network of retail betting locations situated throughout Italy and internationally through various agents in eleven other countries located in Africa and South America.

The Company’s subsidiaries include: Multigioco Srl (“Multigioco”), acquired on August 15, 2014, Rifa Srl (“Rifa”), acquired on January 1, 2015, and Ulisse GmbH (“Ulisse”) and Odissea Betriebsinformatik Beratung GmbH (“Odissea”) which were both acquired on July 1, 2016, Virtual Generation Limited (“VG”) and Naos Holding Limited, acquired on January 30, 2019 and a non-operating subsidiary Newgioco Group, Inc. based in Canada.

The Company operates in one line of business that provides certified betting Platform software (“Platform”) services to and the operating of leisure betting establishments situated throughout Italy and in 11 other countries and is comprised of 3 geographically organized groups: an Operational Group; Technology Group; and a Corporate Group, organized as follows:

a.

the Operational Group is based in Europe and maintains administrative and customer service offices headquartered in Rome, Italy with satellite offices for operations administration, and risk management and trading in Naples and Teramo, Italy and Valetta, Malta;

b.

the Technology Group is based in Innsbruck, Austria and manages software development, training and administration; and

c.

the Corporate Group is based in North America which includes a head office situated in Toronto, Canada with a satellite office in Boca Raton, Florida through which our CEO and CFO carry-out our corporate duties, handle day-to-day reporting and other operations such as U.S. development and planning, and through which various independent contractors and vendors are engaged.

Accounting Policies and Estimates (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019. The balance sheet at December 31, 2018 has been derived from the Company’s audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as filed with the U.S. Securities and Exchange Commission (“SEC”).

All amounts referred to in the Notes to the unaudited condensed consolidated financial statements are in United States Dollars ($) unless stated otherwise.

Basis of consolidation

Basis of Consolidation

The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has at least a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited condensed consolidated financial statements. The entities included in these unaudited condensed consolidated financial statements are as follows:

Company	Country of Incorporation	Percentage owned %

Newgioco Group, Inc.	United States – Delaware	Parent
Newgioco Group, Inc (Canada)	Canada	100
Ulisse GmbH	Austria	100
Odissea Betriebsinformatik Beratung GMBH	Austria	100
Multigioco Srl.	Italy	100
Rifa Srl.	Italy	100
Virtual Generation Limited	Malta	100
Naos Holding Limited	Malta	100

Currency translation

Currency Translation

The Company's subsidiaries operate in Europe with a functional currency of Euro and in Canada with a functional currency of Canadian dollars. In the consolidated financial statements, revenue and expense accounts are translated at the average rates during the period, assets and liabilities are translated at period-end rates and equity accounts are translated at historical rates. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders' equity. Gains and losses from foreign currency transactions are recognized in current operations.

Use of estimates

Use of Estimates

The preparation of the unaudited financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. These estimates and assumptions include valuing equity securities issued in share-based payment arrangements, determining the fair value of assets acquired, allocation of purchase price, impairment of long-lived assets, the collectability of receivables and the value of deferred taxes and related valuation allowances. Certain estimates, including evaluating the collectability of receivables and advances, could be affected by external conditions, including those unique to our industry and general economic conditions. It is possible that these external factors could have an effect on our estimates that could cause actual results to differ from our estimates. We re-evaluate all of our accounting estimates at least quarterly based on these conditions and record adjustments when necessary.

Loss Contingencies

Loss Contingencies

The Company may be subject to claims, suits, government investigations, and other proceedings involving competition and antitrust, intellectual property, privacy, indirect taxes, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our website platforms, and other matters. Certain of these matters include speculative claims for substantial or indeterminate amounts of damages. The Company records a liability when we believe that it is both probable that a loss has been incurred, and the amount can be reasonably estimated. If we determine that a loss is possible, and a range of the loss can be reasonably estimated, we disclose the range of the possible loss in the Notes to the Consolidated Financial Statements.

The Company evaluates, on a monthly basis, developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related ranges of possible losses disclosed and make adjustments and changes to our disclosures as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. Until the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded, and such amounts could be material. Should any of our estimates and assumptions change or prove to have been incorrect, it could have a material impact on our business, consolidated financial position, results of operations, or cash flows.

To date, none of these types of litigation matters, most of which are typically covered by insurance, has had a material impact on our operations or financial condition. The Company has insured and continue to insure against most of these types of claims.

Derivative Financial Instruments

Derivative Financial Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including convertible debentures and stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.

For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

As a result of the adoption of ASU 2017-11 in the third quarter of 2018, the Company has no derivative financials instruments classified as a liability at June 30, 2019 and December 31, 2018.

Business Combinations

Business Combinations

The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill.

Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

Fair Value Measurements

Fair Value Measurements

ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

The carrying value of the Company's short-term investments, prepaid expenses, accounts receivables, other current assets, accounts payable and accrued liabilities, gaming account balance, and advances from shareholder approximate fair value because of the short-term maturity of these financial instruments.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with maturities of three months or less at the time acquired to be cash equivalents. The Company had no cash equivalents as of June 30, 2019 and December 31, 2018.

The Company primarily places cash with high-credit quality financial institutions located in the United States which are insured by the Federal Deposit Insurance Corporation up to a limit of $250,000 per institution, in Canada which are insured by the Canadian Deposit Insurance Corporation up to a limit of CDN$100,000 per institution, in Italy which is insured by the Italian deposit guarantee fund Fondo Interbancario di Tutela dei Depositi (FITD) up to a limit of €100,000 per institution, and in Germany which is a member of the Deposit Protection Fund of the Association of German Banks (Einlagensicherungsfonds des Bundesverbandes deutscher Banken) up to a limit of €100,000 per institution.

Gaming accounts receivable

Gaming Accounts Receivable

Gaming accounts receivable represent gaming deposits made by customers to their online gaming accounts either directly by credit card, bank wire, e-wallet or other accepted method through one of our websites or indirectly by cash collected at the cashier of a betting shop but not yet credited to the Company’s bank accounts and subject to normal trade collection terms without discounts. The Company periodically evaluates the collectability of its gaming accounts receivable and considers the need to record or adjust an allowance for doubtful accounts based upon historical collection experience and specific customer information. Actual amounts could vary from the recorded estimates. The Company does not require collateral to support customer receivables. The company recorded bad debt expense $0 and $0 for the three months ended June 30, 2019 and 2018, respectively, and $0 and $6,354 bad debt expense for the six months ended June 30, 2019 and 2018, respectively. All balances previously recorded as allowance for doubtful accounts were written off as uncollectible.

Gaming Accounts Payable

Gaming Accounts Payable

Gaming accounts payable represent customer balances, including winnings and deposits, that are held as credits in online gaming accounts and have not as of yet been used or withdrawn by the customers. Customers can request payment from the Company at any time and the payment to customers can be made through bank wire, credit card, or cash disbursement from one of our locations. Online gaming account credit balances are non-interest bearing.

Long-Lived Assets

Long-Lived Assets

The Company evaluates the carrying value of our long-lived assets for impairment by comparing the expected undiscounted future cash flows of the assets to the net book value of the assets when events or circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. If the expected undiscounted future cash flows are less than the net book value of the assets, the excess of the net book value over the estimated fair value will be charged to earnings.

Fair value is based upon discounted cash flows of the assets at a rate deemed reasonable for the type of asset and prevailing market conditions, appraisals, and, if appropriate, current estimated net sales proceeds from pending offers.

Property, plant and equipment

Property, Plant and Equipment

Property, plant and equipment are stated at acquisition cost less accumulated depreciation and adjustments for impairment losses. Expenditures are capitalized only when they increase the future economic benefits embodied in an item of property, plant and equipment. All other expenditures are recognized as expenses in the statement of income as incurred.

Depreciation is charged on a straight-line basis over the estimated remaining useful lives of the individual assets. Amortization commences from the time an asset is put into operation. The range of the estimated useful lives is as follows:

Description	Useful Life (in years)

Office equipment	5
Office furniture	8 1/3
Signs and displays	5

Intangible Assets

Intangible Assets

Intangible assets are stated at acquisition cost less accumulated amortization, if applicable, less any adjustments for impairment losses.

Amortization is charged on a straight-line basis over the estimated remaining useful lives of the individual intangibles. Where intangibles are deemed to be impaired the Company recognizes an impairment loss measured as the difference between the estimated fair value of the intangible and its book value.

The range of the estimated useful lives is as follows:

Description	Useful Life (in years)

Betting Platform Software	15
Ulisse Bookmaker License	—
Multigioco and Rifa ADM Licenses	1.5 - 7
VG Licenses	—
Location contracts	5 - 7
Customer relationships	10 - 15
Trademarks/names	14
Websites	5

The Ulisse Bookmaker License and the VG Licenses have no expiration date and are therefore not amortized.

Goodwill

Goodwill

The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill.

Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

The Company annually assesses whether the carrying value of its intangible assets exceeds their fair value and, if necessary, records an impairment loss equal to any such excess. Each interim reporting period, the Company assesses whether events or circumstances have occurred which indicate that the carrying amount of an intangible asset exceeds its fair value. If the carrying amount of the intangible asset exceeds its fair value, an asset impairment charge will be recognized in an amount equal to that excess. No asset impairment charges were incurred during the three and six months ended June 30, 2019 or June 30, 2018. The Company recorded 1,401,608 of goodwill arising from an acquisition during the six months ended June 30, 2019.

Income Taxes

Income Taxes

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

The Company has elected to include interest and penalties related to uncertain tax positions, if determined, as a component of income tax expense.

In Italy, tax years beginning 2015 forward, are open and subject to examination, while in Austria companies are open and subject to inspection for five years and ten years for inspection of serious infractions. In the United States and Canada, tax years beginning 2015 forward, are subject to examination. The Company is not currently under examination and it has not been notified of a pending examination.

Revenue Recognition

Revenue Recognition

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606),” which requires revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Company adopted ASC Topic 606 on January 1, 2018 and has determined that the new standard does not have a material impact on the nature and timing of revenues recognized.

The Company recognizes revenue when control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. Revenues from sports-betting, casino, cash and skill games, slots, bingo and horse race wagers represent the gross pay-ins (also referred to as turnover) from customers less gaming taxes and payouts to customers. Revenues are recorded when the game is closed which is representative of the point in time at which the Company has satisfied its performance obligation. In addition, the Company receives commissions from the sale of scratch tickets and other lottery games. Commissions are recorded when the ticket for scratch off tickets and lottery tickets are sold.

Revenues from the Platform include license fees, training, installation, and product support services. Revenue is recognized when transfer of control to the customer has been made and the Company’s performance obligation has been fulfilled. License fees are calculated as a percentage of each licensee’s level of activity and are contingent upon the licensee’s usage. The license fees are recognized on an accrual basis as earned.

Stock based compensation

Stock-Based Compensation

The Company records its compensation expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using the Black-Scholes option pricing model. Stock-based compensation includes amortization related to stock option awards based on the estimated grant date fair value. Stock-based compensation expense related to stock options is recognized ratably over the vesting period of the option. In addition, the Company records expense related to Restricted Stock Units (“RSU’s”) granted based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the vesting term of those awards. Forfeitures of stock options and RSUs are recognized as they occur.

Stock-based compensation expense for a stock-based award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed.

Comprehensive Income (Loss)

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including foreign currency translation adjustments and unrealized gains and losses on marketable securities.

The Company adopted FASB ASC 220-10-45, “Reporting Comprehensive Income”. ASC 220-10-45 establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income and unrealized gains (losses) on available for sale marketable securities and foreign currency translation adjustments.

Earnings Per Share

Earnings Per Share

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 260, “Earnings Per Share” provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity and include warrants granted and convertible debt.

Related Parties

Related Parties

Parties are considered to be related to the Company if the parties directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions are recorded at fair value of the goods or services exchanged.

Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The purpose of this updated guidance is to improve the effectiveness and disclosures in the Notes to the financial statements. The ASU removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; removes the policy for timing of transfers between levels; and removes the disclosure related to the valuation process for Level 3 fair value measurements. The ASU also modifies existing disclosure requirements which relate to the disclosure for investments in certain entities which calculate net asset value and clarifies the disclosure about uncertainty in the measurements as of the reporting date. For all entities, the effective date for this guidance is fiscal years beginning after December 15, 2019, including interim periods within the reporting period, with early adoption permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The main objective of this guidance is to simplify the accounting for goodwill impairment by requiring that impairment charges be based upon the first step in the current two-step impairment test under ASC 350. Currently, if the fair value of a reporting unit is lower than its carrying amount (Step 1), an entity calculates any impairment charge by comparing the implied fair value of goodwill with its carrying amount (Step 2). The implied fair value of goodwill is calculated by deducting the fair value of all assets and liabilities of the reporting unit from the reporting unit’s fair value as determined in Step 1. To determine the implied fair value of goodwill, entities estimate the fair value of any unrecognized intangible assets and any corporate-level assets or liabilities that were included in the determination of the carrying amount and fair value of the reporting unit in Step 1. Under this guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. This guidance eliminates the requirement to calculate a goodwill impairment charge using Step 2. This guidance does not change the guidance on completing Step 1 of the goodwill impairment test. Under this guidance, an entity will still be able to perform the current optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. The guidance in the ASU will be applied prospectively and is effective for the Company for annual and interim impairment tests performed in periods beginning after December 15, 2019. The Company does not expect the adoption of this ASU to have a significant impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right of use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. The Company is currently not in compliance with ASU 2016-02 as it is continuing its evaluation of the impact of its pending adoption of ASU 2016-02 on our consolidated financial statements. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements and related disclosures.

The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on current or future earnings or operations.

Comparatives

Comparatives

Certain items in prior periods were reclassified to conform to the current period presentation. These reclassifications had no impact on net loss or comprehensive loss.

Accounting Policies and Estimates (Tables)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Property, plant and equipment useful life

Description	Useful Life (in years)

Office equipment	5
Office furniture	8 1/3
Signs and displays	5

Intangible assets useful life

Description	Useful Life (in years)

Betting Platform Software	15
Ulisse Bookmaker License	—
Multigioco and Rifa ADM Licenses	1.5 - 7
VG Licenses	—
Location contracts	5 - 7
Customer relationships	10 - 15
Trademarks/names	14
Websites	5

Restatement of prior period results (Tables)

6 Months Ended

Jun. 30, 2019

Accounting Changes and Error Corrections [Abstract]

Restatement of prior period results

The restatement recorded by the Company for the six months ended June 30, 2019 was as follows:

	Prior year adjustment			Lease adjustments			Acquisition of Virtual Generation adjustments			Other adjustments			Total Restated

Opening retained earnings	$	958,136		$	—		$	—		$	—		$	958,136
Selling Expenses		—			—			—			(770,025	)		(770,025	)
General and administrative expenses		—			(6,148	)		—			798,248			792,100
Depreciation and amortization		—			5,623			111,239			(11,990	)		104,872
Interest expense		—			699			—			—			699
Deferred taxation		—			—			(38,934	)		—			(38,934	)
Net increase in accumulated deficit		958,136			174			72,305			16,233			1,046,848

Net decrease in other Comprehensive loss		(1,023,907	)		617			—			(28,223	)		(1,051,513	)

Net increase in plant and equipment and intangibles		65,771			780,586			1,290,369			11,990			2,148,716

Total increase in current liabilities		—			(131,263	)		—			—			(131,263	)

Net increase in non-current liabilities	$	—		$	(650,114	)	$	(1,362,674	)	$	—		$	(2,012,788	)

The restatement recorded by the Company for the six months ended June 30, 2018 was as follows:

	Plant and equipment and intangibles adjustments		Foreign currency adjustments		Other adjustments		Total Restated

General and administrative expenses	$	—	$	55,764	$	331	$	56,095
Depreciation and amortization		235,296		—		—		235,296
Net increase in accumulated deficit	$	235,296	$	55,764	$	331	$	291,391

The reconciliation of the consolidated balance sheet as of June 30, 2019 is as follows:

	As Previously Reported			Prior year adjustment			Lease adjustments			Acquisition of Virtual Generation			Other Adjustments			As Restated
Current Assets
Cash and cash equivalents	$	5,228,797		$	—		$	—		$	—		$	—		$	5,228,797
Accounts receivable		116,398			—			—			—			—			116,398
Gaming accounts receivable		654,016			—			—			—			—			654,016
Prepaid expenses		140,107			—			—			—			—			140,107
Related party receivable		851			—			—			—			—			851
Other current assets		145,348			—			—			—			—			145,348
Total Current Assets		6,285,517			—			—			—			—			6,285,517

Non-Current Assets
Restricted cash		1,439,782			—			—			—			—			1,439,782
Property, plant and equipment		347,824			121,248			43,961			—			6,180			519,213
Right-of-use assets		—			—			736,625			—			—			736,625
Intangible assets		16,353,775			(55,477	)		—			(111,239	)		10,903			16,197,962
Goodwill		267,076			—			—			1,401,608			(5,093	)		1,663,591
Investment in non-consolidated entities		250,000			—			—			—			—			250,000
Total Non-Current Assets		10,658,457			65,771			780,586			1,290,369			11,990			20,807,173
Total Assets	$	24,943,974		$	65,771		$	780,586		$	1,290,369		$	11,990		$	27,092,690

Current Liabilities
Line of credit - bank	$	1,000,000		$	—		$	—		$	—		$	—		$	1,000,000
Accounts payable and accrued liabilities		3,982,319			—			33,620			—			(420,942	)		3,594,997
Gaming accounts balances		2,217,089			—			—			—			—			2,217,089
Taxes payable		995,004			—			—			—			—			995,004
Advances from stockholders		48,508			—			—			—			—			48,508
Convertible Debt, net of discount of $2,578,995 and $4,587,228, respectively		6,083,982			—			—			—			—			6,083,982
Notes payable, net of discount of $132,970		1,421,045			—			—			—			—			1,421,045
Notes payable – related party, net of discount of $88,647		1,405,804			—			—			—			—			1,405,804
Bank loan payable – current portion		122,829			—			—			—			—			122,829
Operating lease liability		—			—			91,449			—						91,449
Financial lease liability		—			—			6,194			—						6,194
Total Current Liabilities		17,276,580			—			131,263			—			—			16,986,901

Non-current liabilities
Deferred tax liability					—			—			1,362,674			—			1,362,674
Notes payable, net of discount of $54,216		498,874															498,874
Notes payable – related party, net of discount of $36,144		332,582															332,582
Bank loan payable		161,504			—			—			—			—			161,504
Operating lease liability					—			611,718			—			—			611,718
Financial lease liability					—			38,396			—			—			38,396
Other long-term liabilities		193,021			—			—			—			420,942			613,963
Total Non-Current Liabilities		1,185,981			—			650,114			1,362,674			—			3,619,711
Total Liabilities		18,462,561			—			781,377			1,362,674			—			20,606,612

Stockholders' Equity
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, none issued		—			—			—			—			—			—
Common Stock, $0.0001 par value, 80,000,000 shares authorized; 9,795,396 shares issued and outstanding as of June 30, 2019*		7,935			—			—			—			(6,943	)		992
Additional paid-in capital*		25,455,983			—			—			—			6,943			25,462,926
Accumulated other comprehensive income		(1,170,151	)		1,023,907			(617	)		—			28,223			(118,638	)
Accumulated deficit		(17,812,354	)		(958,136	)		(174	)		(72,305	)		(16,233	)		(18,859,202	)
Total Stockholders' Equity		6,481,413			65,771			(791	)		(72,305	)		11,990			6,486,078
Total Liabilities and Stockholders’ Equity	$	24,943,974		$	65,771		$	780,586		$	1,290,369		$	11,990		$	27,092,690

* Adjusted for a 1 for 8 reverse stock split effective December 12, 2019.

The reconciliation of the consolidated statement of operations and comprehensive loss for the three months ended June 30, 2019 is as follows:

	As Previously Reported			Lease adjustments			Acquisition of Virtual Generation			Other Adjustments			As Restated

Revenue	$	9,105,353		$	—		$	—		$	—		$	9,105,353

Costs and Expenses
Selling expenses		7,038,797			—			—			(770,025	)		6,268,772
General and administrative expenses		2,487,299			(214	)		66,744			806,553			3,360,284
Total Costs and Expenses		9,526,096			(214	)		66,744			36,430			9,629,056

Loss from Operations		(420,743	)		214			(66,744	)		(36,430	)		(523,703	)

Other (Expenses) Income
Other income		7,725			—			—			—			7,725
Interest expense, net of interest income		(1,016,866	)		(377	)		—			—			(1,017,243	)
Loss on conversion of debt		(35,943	)		—			—			—			(35,943	)
Total Other (Expenses) Income		(1,045,084	)		(377	)		—			—			(1,045,461	)

Loss Before Income Taxes		(1,465,827	)		(163	)		(66,744	)		(36,430	)		(1,569,164	)

Income tax provision		(232,417	)		—			23,361			—			(209,056	)

Net Loss	$	(1,698,244	)	$	(163	)	$	(43,383	)	$	(36,430	)	$	(1,778,220	)

Other Comprehensive Loss
Foreign currency translation adjustment		(32,633	)		(55	)		—			101,711			69,023

Comprehensive Loss	$	(1,730,877	)	$	(218	)	$	(43,383	)	$	65,281		$	(1,709,197	)

Loss per common share – basic and diluted*	$	(0.18	)										$	(0.17	)
Weighted average number of common shares outstanding – basic and diluted*		9,870,357												9,870,357

The reconciliation of the consolidated statement of operations and comprehensive loss for the six months ended June 30, 2019 is as follows:

	As Previously Reported			Lease adjustments			Acquisition of Virtual Generation			Other Adjustments			As Restated

Revenue	$	18,371,648		$	—		$	—		$	—		$	18,371,648

Costs and Expenses
Selling expenses		14,446,503			—			—			(770,025	)		13,676,478
General and administrative expenses		5,660,767			(525	)		111,239			786,258			6,557,739
Total Costs and Expenses		20,107,270			(525	)		111,239			16,233			20,234,217

Loss from Operations		(1,735,622	)		525			(111,239	)		(16,233	)		(1,862,569	)

Other (Expenses) Income
Other income		7,725			—									7,725
Interest expense, net of interest income		(2,520,656	)		(699	)		—			—			(2,521,355	)
Loss on conversion of debt		(35,943	)		—			—			—			(35,943	)
		(25,000	)		—			—			—			(25,000	)
Total Other (Expenses) Income		(2,573,874	)		(699	)		—			—			(2,574,573	)

Loss Before Income Taxes		(4,309,496	)		(174	)		(111,239	)		(16,233	)		(4,437,142	)

Income tax provision		(493,964	)		—			38,934			—			(455,030	)

Net Loss	$	(4,803,460	)	$	(174	)	$	(72,305	)	$	(16,233	)	$	(4,892,172	)

Other Comprehensive Loss
Foreign currency translation adjustment		(88,813	)		(617	)		—			28,223			(61,207	)

Comprehensive Loss	$	(4,892,273	)	$	(791	)	$	(72,305	)	$	11,990		$	(4,953,379	)

Loss per common share – basic and diluted*	$	(0.50	)										$	(0.50	)
Weighted average number of common shares outstanding – basic and diluted*		9,764,450												9,870,357

* Adjusted for a 1 for 8 reverse stock split effective December 12, 2019.

The reconciliation of the consolidated statement of operations and comprehensive loss for the three months ended June 30, 2018 is as follows:

	As Previously Reported			Depreciation and amortization adjustments			Foreign Exchange adjustments			Other Adjustments		As Restated

Revenue	$	8,822,659		$	—		$	—		$	—	$	8,822,659

Costs and Expenses
Selling expenses		5,826,243			—			—			—		5,826,243
General and administrative expenses		2,056,275			117,648			27,882			—		2,201,805
Total Costs and Expenses		7,882,518			117,648			27,882			—		8,028,048

Income from Operations		940,141			(117,648			(27,882	)		—		794,611

Other (Expenses) Income
Interest expense, net of interest income		(1,050,270	)		—			—			—		(1,050,270	)
Imputed interest on related party advances		753			—			—			—		753
Loss on debt modification		(212,270	)		—			—			—		(212,270	)
Loss on marketable securities		(155,000	)		—			—			—		(155,000	)
Total Other (Expenses) Income		(1,416,787	)		—			—			—		(1,416,787	)

Loss Before Income Taxes		(476,646	)		(117,648	)		(27,882	)		—		(622,176	)

Income tax provision		(512,406	)		—			—			—		(512,406	)

Net Loss	$	(989,052	)	$	(117,648	)	$	(27,882	)	$	—	$	(1,134,582	)

Other Comprehensive Loss
Foreign currency translation adjustment		(98,355	)		—			—			—		(98,355	)

Comprehensive Loss	$	(1,087,407	)	$	(117,648	)	$	(27,882	)	$	—	$	(1,232,937	)

Loss per common share – basic and diluted*	$	(0.12	)									$	(0.13	)
Weighted average number of common shares outstanding – basic and diluted*		9,344,282											9,344,282

The reconciliation of the consolidated statement of operations and comprehensive loss for the six months ended June 30, 2018 is as follows:

	As Previously Reported			Depreciation and amortization adjustments			Foreign Exchange adjustments			Other Adjustments			As Restated

Revenue	$	17,416,526		$	—		$	—		$	—		$	17,416,526

Costs and Expenses
Selling expenses		11,903,600			—			—			—			11,903,600
General and administrative expenses		4,115,728			235,296			55,764			331			4,407,119
Total Costs and Expenses		16,019,328			235,296			55,764			331			16,310,719

Income from Operations		1,397,198			(235,296	)		(55,764	)		(331	)		1,105,807

Interest expense, net of interest income		(1,262,509	)		—			—			—			(1,262,509	)
Imputed interest on related party advances		(761	)		—			—			—			(761	)
Gain on litigation settlement		516,120			—			—			—			516,120
Loss on debt modification		(212,270	)											(212,270	)
Loss on marketable securities		(155,000	)											(155,000	)
Total Other Expenses (Income)		(1,114,420	)		—			—			—			(1,114,420	)

Income (Loss) Before Income Taxes		282,778			(235,296	)		(55,764	)		(331	)		(8,613	)

Income tax provision		(757,442	)		—			—			—			(757,442	)

Net Loss	$	(474,664	)	$	(235,296	)	$	(55,764	)	$	(331	)	$	(766,055	)

Other Comprehensive Income (Loss)
Foreign currency translation adjustment		(162,873	)		267,556			55,764			331			160,778

Comprehensive Loss	$	(637,537	)	$	32,260		$	—		$	—		$	(605,277	)

Loss per common share – basic and diluted*	$	(0.05	)										$	(0.08	)
Weighted average number of common shares outstanding – basic and diluted*		9,308,511												9,308,511

* Adjusted for a 1 for 8 reverse stock split effective December 12, 2019.

The reconciliation of the consolidated statement of cash flows for the ix months ended June 30, 2019 is as follows:

	As Previously Reported			Lease adjustments			Acquisition of Virtual Generation			Other Adjustments and reclassifications			As Restated

Cash Flows from Operating Activities
Net loss	$	(4,803,460	)	$	(174	)	$	(72,305	)	$	(16,233	)	$	(4,892,172	)

Adjustments to reconcile net loss to net cash generated by operating activities
Depreciation and amortization		291,332			5,623			111,239			37,796			445,990
Amortization of deferred costs		2,096,080			—			—			—			2,096,080
Non-cash interest		409,114			—			—			—			409,114
Loss on debt conversions		35,943									—			35,943
Unrealized loss on trading securities		25,000			—			—			—			25,000
Deferred taxation movements		—			—			(38,934	)		—			(38,934	)
Foreign translation loss		173,400			—						(173,400	)		—
Changes in Operating Assets and Liabilities
Prepaid expenses		(7,732	)		—			—			—			(7,732	)
Accounts payable and accrued liabilities		(26,789	)		—			—			(417,954	)		(444,743	)
Accounts receivable		(57,679	)		—			—			—			(57,679	)
Gaming accounts receivable		357,886			—			—			—			357,886
Gaming accounts liabilities		727,433			—			—			440,021			1,167,454
Taxes payable		(53,941	)		—			—			—			(53,941	)
Other current assets		(57,163	)		—			—			—			(57,163	)
Long term liability		30,995			—			—			(21,699	)		9,296
Net Cash used in operating Activities		(859,581	)		5,449			—			(151,469	)		(1,005,601	)

Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets		(59,253	)		—			4,954			16			(54,283	)
Decrease in restricted cash		100,140			—			—			(100,140	)		—
Acquisition of Virtual Generation, net of cash of $47,268		46,668			—			(262,818	)		—			(216,150	)
Net Cash Used in Investing Activities		87,555			—			(257,864	)		(100,124	)		(270,433	)

Cash Flows from Financing Activities
Proceeds from bank credit line, net		250,000			—			—			—			250,000
Repayment of bank loan		(59,007	)		—			—			—			(59,007	)
Repayment of deferred purchase consideration – non-related parties		(331,913	)		—			158,051			—			(173,862	)
Repayment of deferred purchase consideration – related parties		(213,353	)					105,367						(107,986	)
Movement in financial leases		—			(5,449	)		—			—			(5,449	)
Advance to related party		(11,992	)		—			—			—			(11,992	)
Repayment of loans advanced to stockholders		6,605			—			—			—			6,605
Net Cash Used in Financing Activities		(359,660	)		(5,449	)		263,418			—			(101,691	)

Effect of change in exchange rate		70,580			—			(5,554	)		130,838			195,864

Net decrease in cash		(1,061,106	)		—			—			(120,755	)		(1,181,861	)
Cash, cash equivalents and restricted cash – beginning of the period		6,289,903			—			—			1,560,539			7,850,442
Cash, cash equivalents and restricted cash – end of the period	$	5,228,797		$	—		$	—		$	1,439,784		$	6,668,581

Reconciliation of cash, cash equivalents and restricted cash within the balance sheet to the statement of cash flows

Cash and cash equivalents	$	5,228,797		$	—		$	—		$	—		$	5,228,797
Restricted cash		—									1,439,784			1,439,784
	$	5,228,797								$	1,439,784		$	6,668,581

The reconciliation of the consolidated statement of cash flows for the six months ended June 30, 2018 is as follows:

	As Previously Reported			Depreciation and amortization adjustments			Foreign Exchange adjustments			Other Adjustments and reclassifications			As Restated

Cash Flows from Operating Activities
Net Loss	$	(474,664	)	$	(235,296	)	$	(55,764	)	$	(331	)	$	(766,055	)

Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization		226,436			104,396			—			—			330,832
Amortization of deferred costs		1,012,225			—			—			—			1,012,225
Non-cash interest		58,188			—			—			—			58,188
Loss on debt modification		212,270												212,270
Imputed interest on advances from stockholders		1,514			—			—			—			1,514
Unrealized loss on trading securities		155,000			—			—			—			155,000
Recovery of assets		(516,120	)		—			—			—			(516,120	)
Bad debt expense		6,354			—			—			—			6,354
Changes in Operating Assets and Liabilities
Prepaid expenses		5,225			—			—			—			5,225
Accounts payable and accrued liabilities		756,656			—			—			331			756,987
Accounts receivable		98,833			—			—			—			98,833
Gaming accounts receivable		31,409			—			—			—			31,409
Gaming accounts liabilities		(583,899	)		—			—			—			(583,899	)
Taxes payable		439,731			—			—			—			439,731
Other current assets		(270,259	)		—			—			—			(270,259	)
Long term liability		78,346			—			—			—			78,346
Net Cash Provided by operating Activities		1,237,245			(130,900	)		(55,764	)		—			1,050,581

Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets		(4,442,508	)		(135,378	)		—			—			(4,577,886	)
Decrease in restricted cash		15,657			—			—			(15,657	)		—
Net Cash Used in Investing Activities		(4,426,851	)		(135,378	)		—			(15,657	)		(4,577,886	)

Cash Flows from Financing Activities
Repayment of bank credit line, net		(177,060	)		—			—			—			(177,060	)
Repayment of bank loan		(71,143	)		—			—			—			(71,143	)
Proceeds from debentures and convertible notes, net of repayment		6,883,905			—			—			—			6,883,905
Loan to related party		(215,745	)											(215,745	)
Purchase of treasury stock		(2,261,307	)											(2,261,307	)
Repayment to stockholders, net of advances		(485,036	)		—			—			—			(485,036	)
Net Cash Provided by Financing Activities		3,673,614			—			—			—			3,673,614

Effect of change in exchange rate		(168,600	)		266,278			55,764			—			153,442

Net increase in cash		315,408			—			—			(15,657	)		299,751
Cash, cash equivalents and restricted cash – beginning of the period		6,469,858			—			—			587,905			7,057,763
Cash, cash equivalents and restricted cash – end of the period	$	6,785,266		$	—		$	—		$	572,248		$	7,357,514

Reconciliation of cash, cash equivalents and restricted cash within the balance sheet to the statement of cash flows

Cash and cash equivalents	$	6,785,266		$	—		$	—		$	—		$	6,785,266
Restricted cash		—			—			—			572,248			572,248
	$	6,785,266		$	—		$	—		$	572,248		$	7,357,514

Reclassification of prior period results (Tables)

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Reclassification

	Convertible Debentures		Derivative Liability			Additional Paid-in Capital		Accumulated Deficit
Balance as of January 1, 2018	$	1,148,107	$	222,915		$	14,254,582	$	(9,897,620	)
Reclassified derivative liabilities and cumulative effect of adoption		—		(222,915	)		287,881		(64,966	)
Balance as of January 1, 2018, restated	$	1,148,107	$	—		$	14,542,463	$	(9,962,586	)

The reconciliation of the unaudited consolidated statement of comprehensive loss for the three months ended June 30, 2018 is as follows:

	As Previously reported			Reclass of disclosure			As Reclassed			Effect of adoption of ASU 2017-11			As Reclassified

Revenue	$	8,822,659		$	—		$	8,822,659		$	—		$	8,822,659

Costs and Expenses
Selling expenses		5,826,243			—			5,826,243			—			5,826,243
General and administrative expenses		2,056,275			—			2,056,275			—			2,056,275
Total Costs and Expenses		7,882,518			—			7,882,518			—			7,882,518

Income from Operations		940,141			—			940,141			—			940,141

Other (Expenses) Income
Interest expense, net of interest income		(1,050,270	)		—			(1,050,270	)		—			(1,050,270	)
Changes in fair value of derivative liabilities		18,014,364			(23,513,240	)		(5,498,876	)		(5,498,876	)		—
Imputed interest on related party advances		753			—			753			—			753
Gain on litigation settlement		—			—			—			—			—
Loss on issuance of debt		(23,725,510	)		23,725,510			—			—			—
Loss on debt modification		—			(212,270	)		(212,270	)		—			(212,270	)
Loss on Marketable Securities		(155,000	)		—			(155,000	)		—			(155,000	)
Total Other (Expenses) Income		(6,915,663	)		—			(6,915,663	)		5,498,876			(1,416,787	)

Income (Loss) Before Income Taxes		(5,975,522	)		—			(5,975,522	)		5,498,876			(476,646	)
Income tax provision		(512,406	)		—			(512,406	)		—			(512,406	)
Net Loss		(6,487,928	)		—			(6,487,928	)		5,498,876			(989,052	)

Other Comprehensive Loss
Foreign currency translation adjustment		(98,355	)		—			(98,355	)		—			(98,355	)

Comprehensive Loss	$	(6,586,283	)	$	—		$	(6,586,283	)	$	5,498,876		$	(1,087,407	)

Loss per common share – basic and diluted	$	(0.71	)	$	—		$	(0.71	)	$	0.59		$	(0.12	)
Weighted average number of common shares outstanding – basic and diluted		9,344,282			9,344,282			9,344,282			9,344,282			9,344,282

The reconciliation of the unaudited consolidated statement of comprehensive loss for the six months ended June 30, 2018 is as follows:

	As Previously reported			Reclass of disclosure			As Reclassed			Effect of adoption of ASU 2017-11		As Reclassified

Revenue	$	17,416,526		$	—		$	17,416,526		$	—	$	17,416,526

Costs and Expenses
Selling expenses		11,903,600			—			11,903,600			—		11,903,600
General and administrative expenses		4,115,728			—			4,115,728			—		4,115,728
Total Costs and Expenses		16,019,328			—			16,019,328			—		16,019,328

Income from Operations		1,397,198			—			1,397,198			—		1,397,198

Other (Expenses) Income
Interest expense, net of interest income		(1,262,509	)		—			(1262,509	)		—		(1,262,509	)
Changes in fair value of derivative liabilities		18,268,653			(23,513,240	)		(5,244,587	)		5,244,587		—
Imputed interest on related party advances		(761	)		—			(761	)		—		(761	)
Gain on litigation settlement		516,120			—			516,120			—		516,120
Loss on issuance of debt		(23,725,510	)		23,725,510			—			—		—
Loss on debt modification		—			(212,270	)		(212,270	)		—		(212,270	)
Loss on Marketable Securities		(155,000	)		—			(155,000	)		—		(155,000	)
Total Other (Expenses) Income		(6,359,007	)		—			(6,359,007	)		5,244,587		(1,114,420	)

Income (Loss) Before Income Taxes		(4,961,809	)		—			(4,961,809	)		5,244,587		282,778
Income tax provision		(757,442	)		—			(757,442	)		—		(757,442	)
Net Loss		(5,719,251	)		—			(5,719,251	)		5,244,587		(474,664	)

Other Comprehensive Loss
Foreign currency translation adjustment		(162,873	)		—			(162,873	)		—		(162,873	)

Comprehensive Loss	$	(5,882,124	)	$	—		$	(5,882,124	)	$	5,244,587	$	(637,537	)

Loss per common share – basic and diluted	$	(0.63	)	$	—		$	(0.63	)	$	0.56	$	(0.07	)
Weighted average number of common shares outstanding – basic and diluted		9,308,511			9,308,511			9,308,511			9,308,511		9,308,511

The reconciliation of the unaudited consolidated statement of cash flows for the six months ended June 30, 2018 is as follows:

	As Previously reported			Reclass of disclosure			As Reclassed			Effect of adoption of ASU 2017-11			As Reclassified
Cash Flows from Operating Activities
Net loss	$	(5,719,251	)	$	—		$	(5,719,251	)	$	5,244,587		$	(474,664	)

Adjustments to reconcile net loss to net cash Provided by operating activities					—						—
Depreciation and amortization		226,436			—			226,436			—			226,436
Amortization of deferred costs		58,188			—			58,188			—			58,188
Non-cash interest		1,012,225			—			1,012,225			—			1,012,225
Loss on issuance of debt		23,725,510			(23,725,510	)		—			—			—
Loss on debt modification		—			212,270			212,270			—			212,270
Imputed interest on advances from stockholders		1,514			—			1,514			—			1,514
Changes in fair value of derivative liabilities		(18,268,653	)		23,513,240			5,244,587			(5,244,587	)		—
Unrealized loss on trading securities		155,000			—			155,000			—			155,000
Recovery of assets		(516,120	)		—			(516,120	)		—			(516,120	)
Bad debt expense		6,354			—			6,354			—			6,354

Changes in Operating Assets and Liabilities
Prepaid expenses		5,225			—			5,225			—			5,225
Accounts payable and accrued liabilities		756,656			—			756,656			—			756,656
Accounts receivable		98,833			—			98,833			—			98,833
Gaming accounts receivable		31,409			—			31,409			—			31,409
Gaming accounts liabilities		(583,899	)		—			(583,899	)		—			(583,899	)
Taxes payable		439,731			—			439,731			—			439,731
Other current assets		(270,259	)		—			(270,259	)		—			(270,259	)
Long term liability		78,346			—			78,346			—			78,346
Net Cash Provided by Operating Activities		1,237,245			—			1,237,245			—			1,237,245

Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets		(4,442,508	)		—			(4,442,508	)		—			(4,442,508	)
Decrease in restricted cash		15,657			—			15,657			—			15,657
Net Cash Used in Investing Activities		(4,426,851	)		—			(4,426,851	)		—			(4,426,851	)

Cash Flows from Financing Activities
Proceeds from bank credit line		(177,060	)		—			(177,060	)		—			(177,060	)
Repayment of bank loan		(71,143	)		—			(71,143	)		—			(71,143	)
Proceeds from convertible debentures and promissory notes, net of repayment		6,883,905			—			6,883,905			—			6,883,905
Loan to related party		(215,745	)		—			(215,745	)		—			(215,745	)
Purchase of treasury stock		(2,261,307	)		—			(2,261,307	)		—			(2,261,307	)
Advances from stockholders, net of repayment		(485,036	)		—			(485,036	)		—			(485,036	)
Net Cash Provided by Financing Activities		3,673,614			—			3,673,614			—			3,673,614

Effect of change in exchange rate		(168,600	)		—			(168,600	)		—			(168,600	)

Net increase in cash		315,408			—			315,408			—			315,408
Cash – beginning of the period		6,469,858			—			6,469,858			—			6,469,858
Cash – end of the period	$	6,785,266		$	—		$	6,785,266		$	—		$	6,785,266

Acquisitions (Tables)

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Purchase Price - Acquisitions

Cash	$	47,268
Current assets		178.181
Property, Plant and Equipment		41,473
Betting Platform		4,004,594
		4,271,516
Less: liabilities assumed		(78,141	)
Less: Imputed Deferred taxation on identifiable intangible assets acquired		(1,401,608	)
Total identifiable assets less liabilities assumed		2,791,767
Goodwill arising on acquisition		1,401,608
Total purchase price	$	4,193,375

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Right of use assets

Right of use assets are included in the consolidated balance sheet are as follows:

	June 30, 2019

Non-Current assets
Right-of-use assets - operating leases, net of amortization	$	736,625
Right-of-use assets – finance leases, net of amortization (included in plant and equipment)	$	43,961

Lease costs consists of the following:

	Six months ended June 30, 2019

Finance lease cost:	$	15,817
Amortization of right-of-use assets		15,118
Interest expense on lease liabilities		699

Operating lease cost		95,371

Total lease cost	$	111,191

Other lease information:

	Six months ended June 30, 2019

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	(699	)
Operating cash flows from operating leases		(95,371	)
Financing cash flows from finance leases		(5,449	)

Right-of-use assets obtained in exchange for new finance leases		15,118
Right-of-use assets disposed of under operating leases prior to lease maturity		(27,517	)
Right-of -use assets obtained in exchange for new operating leases	$	95,622

Weighted average remaining lease term – finance leases		3.88 years
Weighted average remaining lease term – operating leases		3.83 years

Weighted average discount rate – finance leases		3.48	%
Weighted average discount rate – operating leases		3.66	%

Finance Lease Liability

	Amount

2019	$	6,890
2020		13,780
2021		10,543
2022		8,536
2023		6,788
2024		817
Total undiscounted minimum future lease payments		47,354
Imputed interest		(2,764	)
Total finance lease liability	$	44,590

Disclosed as:
Current portion	$	6,194
Non-Current portion		38,396
	$	44,590

Operating Lease Liability

	Amount

2019	$	114,297
2020		186,474
2021		179,902
2022		153,301
2023		104,850
2024 and beyond		29,098
Total undiscounted minimum future lease payments		767,922
Imputed interest		(64,755	)

Total operating lease liability	$	703,167

Disclosed as:
Current portion	$	91,449
Non-Current portion		611,718
	$	703,167

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles

	June 30, 2019					December 31, 2018
Betting Platform Software	$	1,685,371		$	1,685,371
Ulisse Bookmaker License		9,727,914			9,727,914
Multigioco and Rifa ADM Licenses		960,977			961,756
VG Licenses		4,004,594			—
Location contracts		1,000,000			1,000,000
Customer relationships		870,927			870,927
Trademarks/names		110,000			110,000
Websites		40,000			40,000
		18,399,783			14,395,968
Accumulated amortization		(2,201,821	)		(1,867,986		)
Balance	$	16,197,962		$	12,527,982

Related party transactions and balances (Tables)

6 Months Ended

Jun. 30, 2019

Related party transactions and balances

Description	June 30, 2019

Principal Outstanding
Opening balance	$	318,078
Promissory note due to non-related parties		1,830,541
Settled by the issuance of common shares		(190,128	)
Repayment in cash		(213,353	)
Foreign exchange movements		(14,442	)
		1,730,696
Accrued Interest
Opening balance		113,553
Interest expense		18,928
		132,481
Present value discount on future payments
Present value discount		(161,393	)
Amortization		35,347
Foreign exchange movements		1,255
		(124,791	)
Notes payable – Related Party, net	$	1,738,386

Disclosed as follows:
Current liability	$	1,405,804
Long term liability		332,582
Notes payable – Related Party, net	$	1,738,386

Convertible Debt (Tables)

6 Months Ended

Jun. 30, 2019

Debentures And Debenture Warrants Tables Abstract

Convertible Debt

Description	June 30, 2019

Principal Outstanding
Opening balance	$	8,529,021
Conversion to equity		(925,963	)
Foreign exchange movements		195,999
		7,799,057
Accrued Interest
Opening balance		528,141
Interest expense		390,186
Conversion to equity		(63,206	)
Foreign exchange movements		10,307
		865,428
Debenture Discount
Opening balance		(4,588,215	)
Amortization		2,007,712
		(2,580,503	)
Convertible Debentures, net	$	6,083,982

Notes Payable (Tables)

6 Months Ended

Jun. 30, 2019

Notes Payable [Abstract]

Notes Payable

Description	June 30, 2019

Principal Outstanding
Promissory note due to non-related parties	$	2,745,811
Settled by the issuance of common shares		(285,192	)
Repayment in cash		(331,913	)
Foreign exchange movements		(21,601	)
		2,107,105
Present value discount on future payments
Present value discount		(242,089	)
Amortization		53,020
Foreign exchange movements		1,883
		(187,186	)
Notes payable, net	$	1,919,919

Disclosed as follows:
Current liability	$	1,421,045
Long term liability		498,874
Notes payable, net	$	1,919,919

Other Long Term Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Other Long Term Liabilities Tables Abstract

Other Long Term Liabilities

	June 30, 2019		December 31, 2018
Severance liability	$	193,021	$	168,706
Customer deposit balance		420,942		440,021
Total other long term liabilities	$	613,963	$	608,727

Warrants (Tables)

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Summary of Warrants

	Number of shares			Exercise price per share		Weighted average exercise price

Outstanding January 1, 2018		76,566		$	4.32	$	4.32
Granted		1,095,883			4.00		4.00
Forfeited/cancelled		(27,000	)		5.04		(5.04	)
Exercised		(40,761	)		4.64		4.64
Expired		(15,555	)		4.64		4.64
Outstanding December 31, 2018		1,089,133		$	4.00		4.00
Granted		—			—		—
Forfeited/cancelled		—			—		—
Exercised		—			—		—
Outstanding June 30, 2019		1,089,133		$	4.00	$	4.00

Revenues (Tables)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Revenue

	Three Months Ended				Six Months Ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Turnover
Turnover web-based	$	88,647,748	$	55,025,859	$	175,223,649	$	101,091,758
Turnover land-based		10,617,656		45,013,592		61,017,220		89,507,552
Total Turnover		99,265,404		100,039,451		236,240,869		190,599,310

Winnings/Payouts
Winnings web-based		81,857,558		54,687,682		164,120,495		97,305,678
Winnings land-based		7,199,276		35,765,405		51,555,578		74,511,647
Total Winnings/payouts		89,056,834		90,453,087		215,676,073		171,817,325

Gross Gaming Revenues		10,208,570		9,586,364		20,564,796		18,781,985

Less: ADM Gaming Taxes		1,172,993		799,016		2,366,739		1,565,849
Net Gaming Revenues		9,035,577		8,787,348		18,198,057		17,216,136
Add: Commission Revenues		33,360		18,152		62,433		117,152
Add: Service Revenues		36,416		17,159		111,158		83,238
Total Revenues	$	9,105,353	$	8,822,659	$	18,371,648	$	17,416,526

Net Loss per Common Share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Net Loss per Common Share

Description	Three and Six Months ended June 30, 2019		Three and Six Months ended June 30, 2018

Warrants		1,089,133		1,089,133
Convertible debentures		2,707,652		2,707,652
		3,796,785		3,796,785

Accounting Policies and Estimates (Details 1)	6 Months Ended
Accounting Policies and Estimates (Details 1)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 CAD ($)	Jun. 30, 2019 EUR (€)
Accounting Policies [Abstract]
FDIC Insured Amount	$ 250,000		$ 100,000	€ 100,000
Bad Debt Expense		$ 6,354
Goodwill arising on acquisition	$ 1,401,608

Accounting Policies and Estimates (Details 2)	6 Months Ended
Accounting Policies and Estimates (Details 2)	Jun. 30, 2019
Office equipment [Member]
Useful Life	5 years
Office furniture [Member]
Useful Life	8 years 4 months
Signs and displays [Member]
Useful Life	5 years

Accounting Policies and Estimates (Details 3)	6 Months Ended
Accounting Policies and Estimates (Details 3)	Jun. 30, 2019
Betting platform system [Member]
Useful Life	15 years
Multigioco and Rifa ADM Licenses [Member] \| Minimum [Member]
Useful Life	1 year 5 months
Multigioco and Rifa ADM Licenses [Member] \| Maximum [Member]
Useful Life	7 years
Location contracts [Member] \| Minimum [Member]
Useful Life	5 years
Location contracts [Member] \| Maximum [Member]
Useful Life	7 years
Customer relationships [Member] \| Minimum [Member]
Useful Life	10 years
Customer relationships [Member] \| Maximum [Member]
Useful Life	15 years
Trademarks/names [Member]
Useful Life	14 years
Website [Member]
Useful Life	5 years

Restatement of prior period results - Restatement of prior period results (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Prior year adjustment [Member]
General and administrative expenses
Depreciation and amortization
Interest expense
Deferred taxation
Net increase in accumulated deficit	958,136
Net decrease in other Comprehensive loss	(1,023,907)
Net increase in plant and equipment and intangibles	65,771
Total increase in current liabilities
Net increase in non-current liabilities
Lease adjustments [Member]
General and administrative expenses	(6,148)
Depreciation and amortization	5,623
Interest expense	699
Deferred taxation
Net increase in accumulated deficit	174
Net decrease in other Comprehensive loss	617
Net increase in plant and equipment and intangibles	780,586
Total increase in current liabilities	(131,263)
Net increase in non-current liabilities	(650,114)
Acquisition of Virtual Generation [Member]
General and administrative expenses
Depreciation and amortization	111,239
Interest expense
Deferred taxation	(38,934)
Net increase in accumulated deficit	72,305
Net decrease in other Comprehensive loss
Net increase in plant and equipment and intangibles	1,290,369
Total increase in current liabilities
Net increase in non-current liabilities	(1,362,674)
Other Adjustments [Member]
Selling Expenses	(770,025)
General and administrative expenses	798,248	$ 331
Depreciation and amortization	(11,990)
Interest expense
Deferred taxation
Net increase in accumulated deficit	16,233	331
Net decrease in other Comprehensive loss	(28,223)
Net increase in plant and equipment and intangibles	11,990
Total increase in current liabilities
Net increase in non-current liabilities
Total Restated [Member]
Selling Expenses	(770,025)
General and administrative expenses	792,100	56,095
Depreciation and amortization	104,872	235,296
Interest expense	699
Deferred taxation	(38,934)
Net increase in accumulated deficit	1,046,848	291,391
Net decrease in other Comprehensive loss	(1,051,513)
Net increase in plant and equipment and intangibles	2,148,716
Total increase in current liabilities	(131,263)
Net increase in non-current liabilities	$ (2,012,788)
Plant and equipment and intangibles adjustments[Member]
General and administrative expenses
Depreciation and amortization		235,296
Net increase in accumulated deficit		235,296
Foreign Exchange adjustments [Member]
General and administrative expenses		55,764
Depreciation and amortization
Net increase in accumulated deficit		$ 55,764

Restatement of prior period results - Balance Sheet (Details) - USD ($)	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 5,228,797		$ 6,289,903	$ 6,785,266
Accounts receivable	116,398		10,082
Gaming accounts receivable	654,016		1,021,052
Prepaid expenses	140,107		124,712
Related party receivable	851		49,914
Other current assets	145,348		55,700
Total Current Assets	6,285,517		7,551,363
Non-current Assets
Restricted cash	1,439,782		1,560,539
Property, plant and equipment	519,213		476,047
Right-of-use assets	736,625
Intangible assets	16,197,962		12,527,980
Goodwill	1,663,591		262,552
Investment in non-consolidated entities	250,000		275,000
Total Noncurrent Assets	20,807,173		15,102,118
Total Assets	27,092,690		22,653,481
Current Liabilities
Line of credit - bank	1,000,000		750,000
Accounts payable and accrued liabilities	3,594,997		4,603,608
Gaming accounts balances	2,217,089		1,049,423
Taxes payable	995,004		1,056,430
Advances from stockholders	48,508		39,237
Convertible Debt, net of discount of $2,578,995 and $4,587,228, respectively	6,083,982		3,942,523
Notes payable, net of discount of $132,970	1,421,045
Notes payable - related party, net of discount of $88,647	1,405,804		318,078
Bank loan payable - current portion	122,829		120,920
Operating lease liability	91,449
Financial lease liability	6,194
Total Current Liabilities	16,986,901		11,880,219
Non-current liabilities
Deferred tax liability	1,362,674
Notes payable, net of discount of $54,216	498,874
Notes payable - related party, net of discount of $36,144	332,582
Bank loan payable	161,504		225,131
Operating lease liability	611,718
Financial lease liability	38,396
Other long term liabilities	613,963		608,728
Total Non-current liabilities	3,619,711		833,859
Total Liabilities	20,606,612		12,714,078
Stockholders' Equity
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, none issued
Common Stock, $0.0001 par value, 80,000,000 shares authorized; 9,795,396 and 9,442,537 shares issued and outstanding as of March 31, 2019 and December 31, 2018*	992		944
Additional paid-in capital	25,462,926		23,962,920
Accumulated other comprehensive income	(118,638)		(57,431)
Accumulated deficit	(18,859,202)		(13,967,030)
Total Stockholders' Equity	6,486,078	$ 7,811,828	9,939,403	13,180,375	$ 4,934,352	$ 4,338,217
Total Liabilities and Stockholders Equity	27,092,690		$ 22,653,481
As Previously Reported [Member]
Current Assets
Cash and cash equivalents	5,228,797			6,785,266
Accounts receivable	116,398
Gaming accounts receivable	654,016
Prepaid expenses	140,107
Related party receivable	851
Other current assets	145,348
Total Current Assets	6,285,517
Non-current Assets
Restricted cash	1,439,782
Property, plant and equipment	347,824
Right-of-use assets
Intangible assets	16,353,775
Goodwill	267,076
Investment in non-consolidated entities	250,000
Total Noncurrent Assets	10,658,457
Total Assets	24,943,974
Current Liabilities
Line of credit - bank	1,000,000
Accounts payable and accrued liabilities	3,982,319
Gaming accounts balances	2,217,089
Taxes payable	995,004
Advances from stockholders	48,508
Convertible Debt, net of discount of $2,578,995 and $4,587,228, respectively	6,083,982
Notes payable, net of discount of $132,970	1,421,045
Notes payable - related party, net of discount of $88,647	1,405,804
Bank loan payable - current portion	122,829
Operating lease liability
Financial lease liability
Total Current Liabilities	17,276,580
Non-current liabilities
Notes payable, net of discount of $54,216	498,874
Notes payable - related party, net of discount of $36,144	332,582
Bank loan payable	161,504
Other long term liabilities	193,021
Total Non-current liabilities	1,185,981
Total Liabilities	18,462,561
Stockholders' Equity
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, none issued
Common Stock, $0.0001 par value, 80,000,000 shares authorized; 9,795,396 and 9,442,537 shares issued and outstanding as of March 31, 2019 and December 31, 2018*	7,935
Additional paid-in capital	25,455,983
Accumulated other comprehensive income	(1,170,151)
Accumulated deficit	(17,812,354)
Total Stockholders' Equity	6,481,413
Total Liabilities and Stockholders Equity	24,943,974
Prior year adjustment [Member]
Current Assets
Cash and cash equivalents
Accounts receivable
Gaming accounts receivable
Prepaid expenses
Related party receivable
Other current assets
Total Current Assets
Non-current Assets
Restricted cash
Property, plant and equipment	121,248
Right-of-use assets
Intangible assets	(55,477)
Goodwill
Investment in non-consolidated entities
Total Noncurrent Assets	65,771
Total Assets	65,771
Current Liabilities
Line of credit - bank
Accounts payable and accrued liabilities
Gaming accounts balances
Taxes payable
Advances from stockholders
Convertible Debt, net of discount of $2,578,995 and $4,587,228, respectively
Notes payable, net of discount of $132,970
Notes payable - related party, net of discount of $88,647
Bank loan payable - current portion
Operating lease liability
Financial lease liability
Total Current Liabilities
Non-current liabilities
Deferred tax liability
Bank loan payable
Operating lease liability
Financial lease liability
Other long term liabilities
Total Non-current liabilities
Total Liabilities
Stockholders' Equity
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, none issued
Common Stock, $0.0001 par value, 80,000,000 shares authorized; 9,795,396 and 9,442,537 shares issued and outstanding as of March 31, 2019 and December 31, 2018*
Additional paid-in capital
Accumulated other comprehensive income	1,023,907
Accumulated deficit	(958,136)
Total Stockholders' Equity	65,771
Total Liabilities and Stockholders Equity	65,771
Lease adjustments [Member]
Current Assets
Cash and cash equivalents
Accounts receivable
Gaming accounts receivable
Prepaid expenses
Related party receivable
Other current assets
Total Current Assets
Non-current Assets
Restricted cash
Property, plant and equipment	43,961
Right-of-use assets	736,625
Intangible assets
Goodwill
Investment in non-consolidated entities
Total Noncurrent Assets	780,586
Total Assets	780,586
Current Liabilities
Line of credit - bank
Accounts payable and accrued liabilities	33,620
Gaming accounts balances
Taxes payable
Advances from stockholders
Convertible Debt, net of discount of $2,578,995 and $4,587,228, respectively
Notes payable, net of discount of $132,970
Notes payable - related party, net of discount of $88,647
Bank loan payable - current portion
Operating lease liability	91,449
Financial lease liability	6,194
Total Current Liabilities	131,263
Non-current liabilities
Deferred tax liability
Bank loan payable
Operating lease liability	611,718
Financial lease liability	38,396
Other long term liabilities
Total Non-current liabilities	650,114
Total Liabilities	781,377
Stockholders' Equity
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, none issued
Common Stock, $0.0001 par value, 80,000,000 shares authorized; 9,795,396 and 9,442,537 shares issued and outstanding as of March 31, 2019 and December 31, 2018*
Additional paid-in capital
Accumulated other comprehensive income	(617)
Accumulated deficit	(174)
Total Stockholders' Equity	(791)
Total Liabilities and Stockholders Equity	780,586
Acquisition of Virtual Generation [Member]
Current Assets
Cash and cash equivalents
Accounts receivable
Gaming accounts receivable
Prepaid expenses
Related party receivable
Other current assets
Total Current Assets
Non-current Assets
Restricted cash
Property, plant and equipment
Right-of-use assets
Intangible assets	(111,239)
Goodwill	1,401,608
Investment in non-consolidated entities
Total Noncurrent Assets	1,290,369
Total Assets	1,290,369
Current Liabilities
Line of credit - bank
Accounts payable and accrued liabilities
Gaming accounts balances
Taxes payable
Advances from stockholders
Convertible Debt, net of discount of $2,578,995 and $4,587,228, respectively
Notes payable, net of discount of $132,970
Notes payable - related party, net of discount of $88,647
Bank loan payable - current portion
Operating lease liability
Financial lease liability
Total Current Liabilities
Non-current liabilities
Deferred tax liability	1,362,674
Bank loan payable
Operating lease liability
Financial lease liability
Other long term liabilities
Total Non-current liabilities	1,362,674
Total Liabilities	1,362,674
Stockholders' Equity
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, none issued
Common Stock, $0.0001 par value, 80,000,000 shares authorized; 9,795,396 and 9,442,537 shares issued and outstanding as of March 31, 2019 and December 31, 2018*
Additional paid-in capital
Accumulated other comprehensive income
Accumulated deficit	(72,305)
Total Stockholders' Equity	(72,305)
Total Liabilities and Stockholders Equity	1,290,369
Other Adjustments [Member]
Current Assets
Cash and cash equivalents
Accounts receivable
Gaming accounts receivable
Prepaid expenses
Related party receivable
Other current assets
Total Current Assets
Non-current Assets
Restricted cash
Property, plant and equipment	6,180
Right-of-use assets
Intangible assets	10,903
Goodwill	(5,093)
Investment in non-consolidated entities
Total Noncurrent Assets	11,990
Total Assets	11,990
Current Liabilities
Line of credit - bank
Accounts payable and accrued liabilities	(420,942)
Gaming accounts balances
Taxes payable
Advances from stockholders
Convertible Debt, net of discount of $2,578,995 and $4,587,228, respectively
Notes payable, net of discount of $132,970
Notes payable - related party, net of discount of $88,647
Bank loan payable - current portion
Total Current Liabilities
Non-current liabilities
Deferred tax liability
Bank loan payable
Operating lease liability
Financial lease liability
Other long term liabilities	420,942
Total Non-current liabilities
Stockholders' Equity
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, none issued
Common Stock, $0.0001 par value, 80,000,000 shares authorized; 9,795,396 and 9,442,537 shares issued and outstanding as of March 31, 2019 and December 31, 2018*	(6,943)
Additional paid-in capital	6,943
Accumulated other comprehensive income	28,223
Accumulated deficit	(16,233)
Total Stockholders' Equity	11,990
Total Liabilities and Stockholders Equity	$ 11,990

Restatement of prior period results - Balance Sheet (Details) (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
STOCKHOLDERS' EQUITY
Preferred Stock - par value	$ 0.0001	$ 0.0001
Preferred stock - authorized	20,000,000	5,000,000
Preferred stock - issued
Preferred stock - outstanding
Common Stock - par value	$ 0.0001	$ 0.0001
Common Stock - authorized	80,000,000	80,000,000
Common Stock - issued	9,795,396	9,442,537
Common Stock - outstanding	9,795,396	9,442,537
Convertible Debt [Member]
Debt Discount	$ 2,578,995	$ 4,587,228
Notes payable [Member]
Debt Discount	132,970
Notes payable Related Party [Member]
Debt Discount	88,647
Notes payable - Non Current [Member]
Debt Discount	54,216
Notes payable Related Party - Non Current [Member]
Debt Discount	$ 36,144

Restatement of prior period results - Statement of Operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue	$ 9,105,353	$ 8,822,659	$ 18,371,648	$ 17,416,526
Costs and Expenses
Selling expenses	6,268,772	5,826,243	13,676,478	11,903,600
General and administrative expenses	3,360,284	2,201,805	6,557,739	4,407,119
Total Costs and Expenses	9,629,056	8,028,048	20,234,217	16,310,719
(Loss) income from Operations	(523,703)	794,611	(1,862,569)	1,105,807
Other (Expenses) Income
Other income	7,725		7,725
Interest expense, net of interest income	(1,017,243)	(1,050,270)	(2,521,355)	(1,262,509)
Imputed interest on related party advances		753		(761)
Gain on litigation settlement				516,120
Loss on debt modification		(212,270)		(212,270)
Loss on conversion of debt	(35,943)		(35,943)
Loss on marketable securities		(155,000)	(25,000)	(155,000)
Total Other (Expenses) Income	(1,045,461)	(1,416,787)	(2,574,573)	(1,114,420)
(Loss) Income Before Income Taxes	(1,569,164)	(622,176)	(4,437,142)	(8,613)
Income tax provision	(209,056)	(512,406)	(455,030)	(757,442)
Net (Loss) Income	(1,778,220)	(1,134,582)	(4,892,172)	(766,055)
Other Comprehensive Loss
Foreign currency translation adjustment	69,023	63,305	(61,207)	160,778
Comprehensive (Loss) Income	$ (1,709,197)	$ (1,071,277)	$ (4,953,379)	$ (605,277)
Loss per common share - basic and diluted*	$ (0.17)	$ (0.13)	$ (0.50)	$ (0.08)
Weighted average number of common shares outstanding- basic and diluted*	9,870,357	9,344,282	9,870,357	9,308,511
As Previously Reported [Member]
Revenue	$ 9,105,353	$ 8,822,659	$ 18,371,648	$ 17,416,526
Costs and Expenses
Selling expenses	7,038,797	5,826,243	14,446,503	11,903,600
General and administrative expenses	2,487,299	2,056,275	5,660,767	4,115,728
Total Costs and Expenses	9,526,096	7,882,518	20,107,270	16,019,328
(Loss) income from Operations	(420,743)	940,141	(1,735,622)	1,397,198
Other (Expenses) Income
Other income	7,725		7,725
Interest expense, net of interest income	(1,016,866)	(1,050,270)	(2,520,656)	(1,262,509)
Imputed interest on related party advances		753		(761)
Gain on litigation settlement				516,120
Loss on debt modification		(212,270)
Loss on conversion of debt	(35,943)		(35,943)
Loss on marketable securities		(155,000)	(25,000)	(155,000)
Total Other (Expenses) Income	(1,045,084)	(1,416,787)	(2,573,874)	(1,114,420)
(Loss) Income Before Income Taxes	(1,465,827)	(476,646)	(4,309,496)	282,778
Income tax provision	(232,417)	(512,406)	(493,964)	(757,442)
Net (Loss) Income	(1,698,244)	(989,052)	(4,803,460)	(474,664)
Other Comprehensive Loss
Foreign currency translation adjustment	(32,633)	(98,355)	(88,813)	(162,873)
Comprehensive (Loss) Income	$ (1,730,877)	$ (1,087,407)	$ (4,892,273)	$ (637,537)
Loss per common share - basic and diluted*	$ (0.18)	$ (0.12)	$ (0.50)	$ (0.05)
Weighted average number of common shares outstanding- basic and diluted*	9,870,357	9,344,282	9,764,450	9,308,511
Lease adjustments [Member]
Revenue
Costs and Expenses
Selling expenses
General and administrative expenses	(214)		(525)
Total Costs and Expenses	(214)		(525)
(Loss) income from Operations	214		525
Other (Expenses) Income
Other income
Interest expense, net of interest income	(377)		(699)
Loss on conversion of debt
Loss on marketable securities
Total Other (Expenses) Income	(377)		(699)
(Loss) Income Before Income Taxes	(163)		(174)
Income tax provision
Net (Loss) Income	(163)		(174)
Other Comprehensive Loss
Foreign currency translation adjustment	(55)		(617)
Comprehensive (Loss) Income	(218)		(791)
Acquisition of Virtual Generation [Member]
Revenue
Costs and Expenses
Selling expenses
General and administrative expenses	66,744		111,239
Total Costs and Expenses	66,744		111,239
(Loss) income from Operations	(66,744)		(111,239)
Other (Expenses) Income
Other income
Interest expense, net of interest income
Loss on conversion of debt
Loss on marketable securities
Total Other (Expenses) Income
(Loss) Income Before Income Taxes	(66,744)		(111,239)
Income tax provision	23,361		38,934
Net (Loss) Income	(43,383)		(72,305)
Other Comprehensive Loss
Foreign currency translation adjustment
Comprehensive (Loss) Income	(43,383)		(72,305)
Other Adjustments [Member]
Revenue
Costs and Expenses
Selling expenses	(770,025)		(770,025)
General and administrative expenses	806,455		786,258	331
Total Costs and Expenses	36,430		16,233	331
(Loss) income from Operations	(36,430)		(16,233)	(331)
Other (Expenses) Income
Other income
Interest expense, net of interest income
Imputed interest on related party advances
Gain on litigation settlement
Loss on debt modification
Loss on conversion of debt
Loss on marketable securities
Total Other (Expenses) Income
(Loss) Income Before Income Taxes	(36,430)		(16,233)	(331)
Income tax provision
Net (Loss) Income	(36,430)		(16,233)	(331)
Other Comprehensive Loss
Foreign currency translation adjustment	101,711		28,223	331
Comprehensive (Loss) Income	$ 65,281		$ 11,990
Depreciation and amortization adjustments [Member]
Revenue
Costs and Expenses
Selling expenses
General and administrative expenses		117,648		235,296
Total Costs and Expenses		117,648		235,296
(Loss) income from Operations		(117,648)		(235,296)
Other (Expenses) Income
Interest expense, net of interest income
Imputed interest on related party advances
Gain on litigation settlement
Loss on debt modification
Loss on marketable securities
Total Other (Expenses) Income
(Loss) Income Before Income Taxes		(117,648)		(235,296)
Income tax provision
Net (Loss) Income		(117,648)		(235,296)
Other Comprehensive Loss
Foreign currency translation adjustment				267,556
Comprehensive (Loss) Income		(117,648)		32,260
Foreign Exchange adjustments [Member]
Revenue
Costs and Expenses
Selling expenses
General and administrative expenses		27,882		55,764
Total Costs and Expenses		27,882		55,764
(Loss) income from Operations		(27,882)		(55,764)
Other (Expenses) Income
Interest expense, net of interest income
Imputed interest on related party advances
Gain on litigation settlement
Loss on debt modification
Loss on marketable securities
Total Other (Expenses) Income
(Loss) Income Before Income Taxes		(27,882)		(55,764)
Income tax provision
Net (Loss) Income		(27,882)		(55,764)
Other Comprehensive Loss
Foreign currency translation adjustment				55,764
Comprehensive (Loss) Income		$ (27,882)

Restatement of prior period results - Statement of Cash Flows (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities
Net (loss) income	$ (1,778,220)	$ (1,134,582)	$ (4,892,172)	$ (766,055)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization			445,990	330,832
Amortization of deferred costs			2,096,080	1,012,225
Non-cash interest			409,114	58,188
Loss on debt conversions			35,943	212,270
Imputed interest on advances from stockholders				1,514
Unrealized loss on trading securities		155,000	25,000	155,000
Movement in deferred taxation			(38,934)
Foreign translation loss
Intercompany movements
Recovery of assets				(516,120)
Bad debt expense				6,354
Changes in Operating Assets and Liabilities
Prepaid expenses			(7,732)	5,225
Accounts payable and accrued liabilities			(444,743)	756,987
Accounts receivable			(57,679)	98,833
Gaming accounts receivable			357,886	31,409
Gaming accounts liabilities			1,167,454	(583,899)
Taxes payable			(53,941)	439,731
Other current assets			(57,163)	(270,259)
Long term liability			9,296	78,346
Net Cash (Used in) Provided by Operating Activities			(1,005,601)	1,050,581
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets			(54,283)	(4,577,886)
Movements in restricted cash
Acquisition of Virtual Generation, net of cash of $47,268			(216,150)
Net Cash Used in Investing Activities			(270,433)	(4,577,886)
Cash Flows from Financing Activities
Proceeds from bank credit line			250,000
Repayment of bank credit line				(177,060)
Repayment of bank loan			(59,007)	(71,143)
Proceeds from debentures and convertible notes, net of repayment				6,883,905
Repayment of deferred purchase consideration-non-related parties			(173,862)
Repayment of deferred purchase consideration-related parties			(107,986)
Repayment of financial leases			(5,449)	(215,745)
Common stock issued for purchase of Virtual Generation
Loan to related party			(11,992)
Purchase of treasury stock				2,261,307
Loans advanced to stockholders				(485,036)
Net Cash Provided by (Used) in Financing Activities			(101,691)	3,673,614
Effect of change in exchange rate			195,864	153,442
Net (decrease) increase in cash			(1,181,861)	299,751
Cash- beginning of the period			7,850,442	7,057,763
Cash- end of the period	6,668,581	7,357,514	6,668,581	7,357,514
Reconciliation of cash, cash equivalents and restricted cash within the Balance Sheets to the Statement of Cash Flows
Cash and cash equivalents	5,228,797	6,785,266	5,228,797	6,785,266
Restricted cash included in non-current assets	1,439,784	572,248	1,439,784	572,248
Cash- end of the period	6,668,581	7,357,514	6,668,581	7,357,514
Supplemental disclosure of cash flow information
Cash paid during the period for: Interest			13,955	140,815
Cash paid during the period for: Income tax			473,679	341,830
Supplemental cash flow disclosure for non-cash activities
Common shares issued with conversion of debentures*			104,911
Common shares issued for the acquisition of subsidiaries	272,307	5,588,088	272,307	5,588,088
As Previously Reported [Member]
Cash Flows from Operating Activities
Net (loss) income	(1,698,244)	(989,052)	(4,803,460)	(474,664)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization			291,332	226,436
Amortization of deferred costs			2,096,080	1,012,225
Non-cash interest			409,114	58,188
Loss on debt conversions			35,943	212,270
Imputed interest on advances from stockholders				1,514
Unrealized loss on trading securities		155,000	25,000	155,000
Movement in deferred taxation
Foreign translation loss			173,400
Recovery of assets				(516,120)
Bad debt expense				6,354
Changes in Operating Assets and Liabilities
Prepaid expenses			(7,732)	5,225
Accounts payable and accrued liabilities			(26,789)	756,656
Accounts receivable			(57,679)	98,833
Gaming accounts receivable			357,886	31,409
Gaming accounts liabilities			727,433	(583,899)
Taxes payable			(53,941)	439,731
Other current assets			(57,163)	(270,259)
Long term liability			30,995	78,346
Net Cash (Used in) Provided by Operating Activities			(859,581)	1,237,245
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets			(59,253)	(4,442,508)
Movements in restricted cash			100,140
Acquisition of Virtual Generation, net of cash of $47,268			46,668
Net Cash Used in Investing Activities			87,555	(135,378)
Cash Flows from Financing Activities
Proceeds from bank credit line			250,000
Repayment of bank credit line				(177,060)
Repayment of bank loan			(59,007)	(71,143)
Proceeds from debentures and convertible notes, net of repayment				6,883,905
Repayment of deferred purchase consideration-non-related parties			(331,913)
Repayment of deferred purchase consideration-related parties			(213,353)
Repayment of financial leases				(215,745)
Loan to related party			(11,992)
Purchase of treasury stock				(2,261,307)
Loans advanced to stockholders				(485,036)
Net Cash Provided by (Used) in Financing Activities			(359,660)	3,673,614
Effect of change in exchange rate			70,580	(168,600)
Net (decrease) increase in cash			(1,061,106)	315,408
Cash- beginning of the period			6,289,903	6,469,858
Cash- end of the period	5,228,797	6,785,266	5,228,797	6,785,266
Reconciliation of cash, cash equivalents and restricted cash within the Balance Sheets to the Statement of Cash Flows
Cash and cash equivalents	5,228,797	6,785,266	5,228,797	6,785,266
Restricted cash included in non-current assets
Cash- end of the period	5,228,797	6,785,266	5,228,797	6,785,266
Lease adjustments [Member]
Cash Flows from Operating Activities
Net (loss) income	(163)		(174)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization			5,623
Amortization of deferred costs
Non-cash interest
Unrealized loss on trading securities
Movement in deferred taxation
Foreign translation loss
Changes in Operating Assets and Liabilities
Prepaid expenses
Accounts payable and accrued liabilities
Accounts receivable
Gaming accounts receivable
Gaming accounts liabilities
Taxes payable
Other current assets
Long term liability
Net Cash (Used in) Provided by Operating Activities			5,449
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets
Movements in restricted cash
Acquisition of Virtual Generation, net of cash of $47,268
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
Proceeds from bank credit line
Repayment of bank loan
Repayment of deferred purchase consideration-non-related parties
Repayment of financial leases			(5,449)
Loan to related party
Purchase of treasury stock			(2,261,307)
Loans advanced to stockholders			(485,036)
Net Cash Provided by (Used) in Financing Activities			(5,449)
Effect of change in exchange rate
Net (decrease) increase in cash
Cash- end of the period
Reconciliation of cash, cash equivalents and restricted cash within the Balance Sheets to the Statement of Cash Flows
Cash and cash equivalents
Cash- end of the period
Acquisition of Virtual Generation [Member]
Cash Flows from Operating Activities
Net (loss) income	(43,383)		(72,305)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization			111,239
Amortization of deferred costs
Non-cash interest
Unrealized loss on trading securities
Movement in deferred taxation			(38,934)
Changes in Operating Assets and Liabilities
Prepaid expenses
Accounts payable and accrued liabilities
Accounts receivable
Gaming accounts receivable
Gaming accounts liabilities
Taxes payable
Other current assets
Long term liability
Net Cash (Used in) Provided by Operating Activities
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets			4,954
Movements in restricted cash
Acquisition of Virtual Generation, net of cash of $47,268			(262,818)
Net Cash Used in Investing Activities			(257,864)
Cash Flows from Financing Activities
Proceeds from bank credit line
Repayment of bank loan
Repayment of deferred purchase consideration-non-related parties			158,051
Repayment of deferred purchase consideration-related parties			105,367
Repayment of financial leases
Loan to related party
Net Cash Provided by (Used) in Financing Activities			263,418
Effect of change in exchange rate			(5,554)
Net (decrease) increase in cash
Cash- end of the period
Reconciliation of cash, cash equivalents and restricted cash within the Balance Sheets to the Statement of Cash Flows
Cash and cash equivalents
Cash- end of the period
Other Adjustments [Member]
Cash Flows from Operating Activities
Net (loss) income	(36,430)		(16,233)	(331)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization			37,796
Amortization of deferred costs
Non-cash interest
Loss on debt conversions
Imputed interest on advances from stockholders
Unrealized loss on trading securities
Movement in deferred taxation
Foreign translation loss			(173,400)
Recovery of assets
Bad debt expense
Changes in Operating Assets and Liabilities
Prepaid expenses
Accounts payable and accrued liabilities			(417,954)	331
Accounts receivable
Gaming accounts receivable
Gaming accounts liabilities			440,021
Taxes payable
Other current assets
Long term liability			(21,699)
Net Cash (Used in) Provided by Operating Activities			(151,469)
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets			16
Movements in restricted cash			(100,140)
Acquisition of Virtual Generation, net of cash of $47,268
Net Cash Used in Investing Activities			(100,124)	(4,577,886)
Cash Flows from Financing Activities
Proceeds from bank credit line
Repayment of bank credit line
Repayment of bank loan
Proceeds from debentures and convertible notes, net of repayment
Repayment of deferred purchase consideration-non-related parties
Repayment of financial leases
Loan to related party
Loans advanced to stockholders
Net Cash Provided by (Used) in Financing Activities
Effect of change in exchange rate			130,838
Net (decrease) increase in cash			(120,755)	(15,657)
Cash- beginning of the period			1,560,539	587,905
Cash- end of the period	1,439,784	572,248	1,439,784	572,248
Reconciliation of cash, cash equivalents and restricted cash within the Balance Sheets to the Statement of Cash Flows
Cash and cash equivalents
Restricted cash included in non-current assets	1,439,784	572,248	1,439,784	572,248
Cash- end of the period	$ 1,439,784	572,248	$ 1,439,784	572,248
Depreciation and amortization adjustments [Member]
Cash Flows from Operating Activities
Net (loss) income		(117,648)		(235,296)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization				104,396
Amortization of deferred costs
Non-cash interest
Imputed interest on advances from stockholders
Unrealized loss on trading securities
Recovery of assets
Bad debt expense
Changes in Operating Assets and Liabilities
Prepaid expenses
Accounts payable and accrued liabilities
Accounts receivable
Gaming accounts receivable
Gaming accounts liabilities
Taxes payable
Other current assets
Long term liability
Net Cash (Used in) Provided by Operating Activities				(130,900)
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets				(135,378)
Acquisition of Virtual Generation, net of cash of $47,268
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
Repayment of bank credit line
Repayment of bank loan
Proceeds from debentures and convertible notes, net of repayment
Loans advanced to stockholders
Net Cash Provided by (Used) in Financing Activities
Effect of change in exchange rate				266,278
Net (decrease) increase in cash
Foreign Exchange adjustments [Member]
Cash Flows from Operating Activities
Net (loss) income		(27,882)		(55,764)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization
Amortization of deferred costs
Non-cash interest
Imputed interest on advances from stockholders
Unrealized loss on trading securities
Recovery of assets
Bad debt expense
Changes in Operating Assets and Liabilities
Prepaid expenses
Accounts payable and accrued liabilities
Accounts receivable
Gaming accounts receivable
Gaming accounts liabilities
Taxes payable
Other current assets
Long term liability
Net Cash (Used in) Provided by Operating Activities				(55,764)
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets
Acquisition of Virtual Generation, net of cash of $47,268				(15,657)
Net Cash Used in Investing Activities				(15,657)
Cash Flows from Financing Activities
Repayment of bank credit line
Repayment of bank loan
Proceeds from debentures and convertible notes, net of repayment
Loans advanced to stockholders
Net Cash Provided by (Used) in Financing Activities
Effect of change in exchange rate				55,764
Net (decrease) increase in cash

Restatement of prior period results (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jan. 02, 2019
Right of use asset for operating leases	$ 736,625	$ 646,138
Right of use assets for finance leases	43,961
Amortization of right-of-use assets	15,118
Operating lease liability [Member]
Present value of lease liabilities	703,167
Financial lease liability [Member]
Present value of lease liabilities	44,590
As Previously Reported [Member] \| Operating lease liability [Member]
Right of use asset for operating leases	646,138
Present value of lease liabilities	617,352
Accrued Liability	28,786
Addition to lease	217,352
Amortization of right-of-use assets	95,622
Amortization of operating lease liability	90,086
Change in accrued liability	4,834
As Previously Reported [Member] \| Financial lease liability [Member]
Present value of lease liabilities	34,524
Right of use assets for finance leases	34,638
Addition to lease	15,118
Amortization of right-of-use assets	$ 5,336

Reclassification of prior period results (Details 1)	12 Months Ended
Reclassification of prior period results (Details 1)	Dec. 31, 2018 USD ($)
Convertible Debt [Member]
Balance, January 1, 2018 (Prior to adoption of ASU 2017-11	$ 1,148,107
Reclassified derivative liabilities and cumulative effect of adoption
Balance, January 1, 2018 (After adoption of ASU 2017-11)	1,148,107
Derivative Liability [Member]
Balance, January 1, 2018 (Prior to adoption of ASU 2017-11	222,915
Reclassified derivative liabilities and cumulative effect of adoption	(222,915)
Balance, January 1, 2018 (After adoption of ASU 2017-11)
Additional Paid in Capital [Member]
Balance, January 1, 2018 (Prior to adoption of ASU 2017-11	14,254,582
Reclassified derivative liabilities and cumulative effect of adoption	287,881
Balance, January 1, 2018 (After adoption of ASU 2017-11)	14,542,463
Accumulated Deficit [Member]
Balance, January 1, 2018 (Prior to adoption of ASU 2017-11	(9,897,620)
Reclassified derivative liabilities and cumulative effect of adoption	(64,966)
Balance, January 1, 2018 (After adoption of ASU 2017-11)	$ (9,962,586)

Reclassification of prior period results - Reclassification (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue	$ 9,105,353	$ 8,822,659	$ 18,371,648	$ 17,416,526
Costs and Expenses
Selling expenses	6,268,772	5,826,243	13,676,478	11,903,600
General and administrative expenses	3,360,284	2,201,805	6,557,739	4,407,119
Total Costs and Expenses	9,629,056	8,028,048	20,234,217	16,310,719
(Loss) income from Operations	(523,703)	794,611	(1,862,569)	1,105,807
Other (Expenses) Income
Other income	7,725		7,725
Interest expense, net of interest income	(1,017,243)	(1,050,270)	(2,521,355)	(1,262,509)
Imputed interest on related party advances		753		(761)
Gain on litigation settlement				516,120
Loss on debt modification		(212,270)		(212,270)
Loss on conversion of debt	(35,943)		(35,943)
Loss on marketable securities		(155,000)	(25,000)	(155,000)
Total Other (Expenses) Income	(1,045,461)	(1,416,787)	(2,574,573)	(1,114,420)
Loss Before Income Taxes	(1,569,164)	(622,176)	(4,437,142)	(8,613)
Income tax provision	(209,056)	(512,406)	(455,030)	(757,442)
Net Loss	(1,778,220)	(1,134,582)	(4,892,172)	(766,055)
Other Comprehensive Loss
Foreign currency translation adjustment	69,023	63,305	(61,207)	160,778
Comprehensive Loss	$ (1,709,197)	$ (1,071,277)	$ (4,953,379)	$ (605,277)
Loss per common share - basic and diluted*	$ (0.17)	$ (0.13)	$ (0.50)	$ (0.08)
Weighted average number of common shares outstanding- basic and diluted*	9,870,357	9,344,282	9,870,357	9,308,511
As Previously reported [Member]
Revenue		$ 8,822,659		$ 17,416,526
Costs and Expenses
Selling expenses		5,826,243		11,903,600
General and administrative expenses		2,056,275		4,115,728
Total Costs and Expenses		7,882,518		16,019,328
(Loss) income from Operations		940,141		1,397,198
Other (Expenses) Income
Interest expense, net of interest income		(1,050,270)		(1,262,509)
Changes in fair value of derivative liabilities		18,014,364		18,268,653
Imputed interest on related party advances		753		(761)
Gain on litigation settlement				516,120
Loss on issuance of debt		(23,725,510)		(23,725,510)
Loss on debt modification
Loss on marketable securities		(155,000)		(155,000)
Total Other (Expenses) Income		(6,915,663)		(6,359,007)
Loss Before Income Taxes		(5,975,522)		(4,961,809)
Income tax provision		(512,406)		(757,442)
Net Loss		(6,487,928)		(5,719,251)
Other Comprehensive Loss
Foreign currency translation adjustment		(98,355)		(162,873)
Comprehensive Loss		$ (6,586,283)		$ (5,882,124)
Loss per common share - basic and diluted*		$ (0.71)		$ (0.63)
Weighted average number of common shares outstanding- basic and diluted*		9,344,282		9,308,511
Reclass of Disclosure [Member]
Revenue
Costs and Expenses
Selling expenses
General and administrative expenses
Total Costs and Expenses
(Loss) income from Operations
Other (Expenses) Income
Interest expense, net of interest income
Changes in fair value of derivative liabilities		(23,513,240)		(23,513,240)
Imputed interest on related party advances
Gain on litigation settlement
Loss on issuance of debt		23,725,510		23,725,510
Loss on debt modification		(212,270)		(212,270)
Loss on marketable securities
Total Other (Expenses) Income
Loss Before Income Taxes
Income tax provision
Net Loss
Other Comprehensive Loss
Foreign currency translation adjustment
Comprehensive Loss
Loss per common share - basic and diluted*
Weighted average number of common shares outstanding- basic and diluted*		9,344,282		9,308,511
As Reclassed [Member]
Revenue		$ 8,822,659		$ 17,416,526
Costs and Expenses
Selling expenses		5,826,243		11,903,600
General and administrative expenses		2,056,275		4,115,728
Total Costs and Expenses		7,882,518		16,019,328
(Loss) income from Operations		940,141		1,397,198
Other (Expenses) Income
Interest expense, net of interest income		(1,050,270)		(1,262,509)
Changes in fair value of derivative liabilities		(5,498,876)		(5,244,587)
Imputed interest on related party advances		753		(761)
Gain on litigation settlement				516,120
Loss on issuance of debt
Loss on debt modification		(212,270)		(212,270)
Loss on marketable securities		(155,000)		(155,000)
Total Other (Expenses) Income		(6,915,663)		(6,359,007)
Loss Before Income Taxes		(5,975,522)		(4,961,809)
Income tax provision		(512,406)		(757,442)
Net Loss		(6,487,928)		(5,719,251)
Other Comprehensive Loss
Foreign currency translation adjustment		(98,355)		(162,873)
Comprehensive Loss		$ (6,586,283)		$ (5,882,124)
Loss per common share - basic and diluted*		$ (0.71)		$ (0.63)
Weighted average number of common shares outstanding- basic and diluted*		9,344,282		9,308,511
Effect of adoption of ASU 2017-11 [Member]
Revenue		$ 8,822,659
Costs and Expenses
Selling expenses		5,826,243
General and administrative expenses		2,056,275
Total Costs and Expenses		7,882,518
(Loss) income from Operations		940,141
Other (Expenses) Income
Interest expense, net of interest income		(1,050,270)
Changes in fair value of derivative liabilities				5,244,587
Imputed interest on related party advances		753
Gain on litigation settlement
Loss on issuance of debt
Loss on debt modification		(212,270)
Loss on marketable securities		(155,000)
Total Other (Expenses) Income		(1,416,787)		5,244,587
Loss Before Income Taxes		(476,646)		5,244,587
Income tax provision		(512,406)
Net Loss		(989,052)		5,244,587
Other Comprehensive Loss
Foreign currency translation adjustment		(98,355)
Comprehensive Loss		$ (1,087,407)		$ 5,244,587
Loss per common share - basic and diluted*		$ (0.12)		$ 0.56
Weighted average number of common shares outstanding- basic and diluted*		9,344,282		9,308,511
As Reclassified [Member]
Revenue				$ 17,416,526
Costs and Expenses
Selling expenses				11,903,600
General and administrative expenses				4,115,728
Total Costs and Expenses				16,019,328
(Loss) income from Operations				1,397,198
Other (Expenses) Income
Interest expense, net of interest income				(1,262,509)
Changes in fair value of derivative liabilities		(5,498,876)
Imputed interest on related party advances				(761)
Gain on litigation settlement				516,120
Loss on issuance of debt
Loss on debt modification				(212,270)
Loss on marketable securities				(155,000)
Total Other (Expenses) Income		5,498,876		(1,114,420)
Loss Before Income Taxes		5,498,876		282,778
Income tax provision				(757,442)
Net Loss		5,498,876		(474,664)
Other Comprehensive Loss
Foreign currency translation adjustment				(162,873)
Comprehensive Loss		$ 5,498,876		$ (637,537)
Loss per common share - basic and diluted*		$ 0.59		$ (0.07)
Weighted average number of common shares outstanding- basic and diluted*		9,344,282		9,308,511

Reclassification of prior period results - Reclassification (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities
Net (loss) income	$ (1,778,220)	$ (1,134,582)	$ (4,892,172)	$ (766,055)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization			445,990	330,832
Amortization of deferred costs			2,096,080	1,012,225
Non-cash interest			409,114	58,188
Loss on debt conversions			35,943	212,270
Imputed interest on advances from stockholders				1,514
Unrealized loss on trading securities		155,000	25,000	155,000
Recovery of assets				(516,120)
Bad debt expense				6,354
Changes in Operating Assets and Liabilities
Prepaid expenses			(7,732)	5,225
Accounts payable and accrued liabilities			(444,743)	756,987
Accounts receivable			(57,679)	98,833
Gaming accounts receivable			357,886	31,409
Gaming accounts liabilities			1,167,454	(583,899)
Taxes payable			(53,941)	439,731
Other current assets			(57,163)	(270,259)
Long term liability			9,296	78,346
Net Cash (Used in) Provided by Operating Activities			(1,005,601)	1,050,581
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets			(54,283)	(4,577,886)
Net Cash Used in Investing Activities			(270,433)	(4,577,886)
Cash Flows from Financing Activities
Proceeds from bank credit line			250,000
Repayment of bank loan			(59,007)	(71,143)
Proceeds from debentures and convertible notes, net of repayment				6,883,905
Loan to related party			(11,992)
Purchase of treasury stock				(2,261,307)
Loans advanced to stockholders				(485,036)
Net Cash Provided by (Used) in Financing Activities			(101,691)	3,673,614
Effect of change in exchange rate			195,864	153,442
Net (decrease) increase in cash			(1,181,861)	299,751
Cash- beginning of the period			7,850,442	7,057,763
Cash- end of the period	$ 6,668,581	7,357,514	$ 6,668,581	7,357,514
As Previously reported [Member]
Cash Flows from Operating Activities
Net (loss) income		(6,487,928)		(5,719,251)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization				226,436
Amortization of deferred costs				58,188
Non-cash interest				1,012,225
Loss on issuance of debt		23,725,510		23,725,510
Loss on debt conversions
Imputed interest on advances from stockholders				1,514
Changes in fair value of derivative liabilities		(18,014,364)		(18,268,653)
Unrealized loss on trading securities		155,000		155,000
Recovery of assets				(516,120)
Bad debt expense				6,354
Changes in Operating Assets and Liabilities
Prepaid expenses				5,225
Accounts payable and accrued liabilities				756,656
Accounts receivable				98,833
Gaming accounts receivable				31,409
Gaming accounts liabilities				(583,899)
Taxes payable				439,731
Other current assets				(270,259)
Long term liability				78,346
Net Cash (Used in) Provided by Operating Activities				1,237,245
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets				(4,442,508)
Decrease in restricted cash				15,657
Net Cash Used in Investing Activities				(4,426,851)
Cash Flows from Financing Activities
Proceeds from bank credit line				(177,060)
Repayment of bank loan				(71,143)
Proceeds from debentures and convertible notes, net of repayment				6,883,905
Loan to related party				(215,745)
Purchase of treasury stock				(2,261,307)
Loans advanced to stockholders				(485,036)
Net Cash Provided by (Used) in Financing Activities				3,673,614
Effect of change in exchange rate				(168,600)
Net (decrease) increase in cash				315,408
Cash- beginning of the period				6,469,858
Cash- end of the period		6,785,266		6,785,266
Reclass of Disclosure [Member]
Cash Flows from Operating Activities
Net (loss) income
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization
Amortization of deferred costs
Non-cash interest
Loss on issuance of debt		(23,725,510)		(23,725,510)
Loss on debt conversions				212,270
Imputed interest on advances from stockholders
Changes in fair value of derivative liabilities		23,513,240		23,513,240
Unrealized loss on trading securities
Recovery of assets
Bad debt expense
Changes in Operating Assets and Liabilities
Prepaid expenses
Accounts payable and accrued liabilities
Accounts receivable
Gaming accounts receivable
Gaming accounts liabilities
Taxes payable
Other current assets
Long term liability
Net Cash (Used in) Provided by Operating Activities
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets
Decrease in restricted cash
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
Proceeds from bank credit line
Repayment of bank loan
Proceeds from debentures and convertible notes, net of repayment
Loan to related party
Purchase of treasury stock
Loans advanced to stockholders
Net Cash Provided by (Used) in Financing Activities
Effect of change in exchange rate
Net (decrease) increase in cash
As Reclassed [Member]
Cash Flows from Operating Activities
Net (loss) income		(6,487,928)		(5,719,251)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization				226,436
Amortization of deferred costs				58,188
Non-cash interest				1,012,225
Loss on issuance of debt
Loss on debt conversions				212,270
Imputed interest on advances from stockholders				1,514
Changes in fair value of derivative liabilities		5,498,876		5,244,587
Unrealized loss on trading securities		155,000		155,000
Recovery of assets				(516,120)
Bad debt expense				6,354
Changes in Operating Assets and Liabilities
Prepaid expenses				5,225
Accounts payable and accrued liabilities				756,656
Accounts receivable				98,833
Gaming accounts receivable				31,409
Gaming accounts liabilities				(583,899)
Taxes payable				439,731
Other current assets				(270,259)
Long term liability				78,346
Net Cash (Used in) Provided by Operating Activities				1,237,245
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets				(4,442,508)
Decrease in restricted cash				15,657
Net Cash Used in Investing Activities				(4,426,851)
Cash Flows from Financing Activities
Proceeds from bank credit line				(177,060)
Repayment of bank loan				(71,143)
Proceeds from debentures and convertible notes, net of repayment				6,883,905
Loan to related party				(215,745)
Purchase of treasury stock				(2,261,307)
Loans advanced to stockholders				(485,036)
Net Cash Provided by (Used) in Financing Activities				3,673,614
Effect of change in exchange rate				(168,600)
Net (decrease) increase in cash				315,408
Cash- beginning of the period				6,469,858
Cash- end of the period		6,785,266		6,785,266
As Reclassified [Member]
Cash Flows from Operating Activities
Net (loss) income		5,498,876		(474,664)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization				226,436
Amortization of deferred costs				58,188
Non-cash interest				1,012,225
Loss on issuance of debt
Loss on debt conversions				212,270
Imputed interest on advances from stockholders				1,514
Changes in fair value of derivative liabilities		5,498,876
Unrealized loss on trading securities				155,000
Recovery of assets				(516,120)
Bad debt expense				6,354
Changes in Operating Assets and Liabilities
Prepaid expenses				5,225
Accounts payable and accrued liabilities				756,656
Accounts receivable				98,833
Gaming accounts receivable				31,409
Gaming accounts liabilities				(583,899)
Taxes payable				439,731
Other current assets				(270,259)
Long term liability				78,346
Net Cash (Used in) Provided by Operating Activities				1,237,245
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets				(4,442,508)
Decrease in restricted cash				15,657
Net Cash Used in Investing Activities				(4,426,851)
Cash Flows from Financing Activities
Proceeds from bank credit line				(177,060)
Repayment of bank loan				(71,143)
Proceeds from debentures and convertible notes, net of repayment				6,883,905
Loan to related party				(215,745)
Purchase of treasury stock				(2,261,307)
Loans advanced to stockholders				(485,036)
Net Cash Provided by (Used) in Financing Activities				3,673,614
Effect of change in exchange rate				(168,600)
Net (decrease) increase in cash				315,408
Cash- beginning of the period				6,469,858
Cash- end of the period		6,785,266		6,785,266
Effect of adoption of ASU 2017-11 [Member]
Cash Flows from Operating Activities
Net (loss) income		(989,052)		$ 5,244,587
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization
Amortization of deferred costs
Non-cash interest
Loss on issuance of debt
Loss on debt conversions
Imputed interest on advances from stockholders
Changes in fair value of derivative liabilities				(5,244,587)
Unrealized loss on trading securities		$ 155,000
Recovery of assets
Bad debt expense
Changes in Operating Assets and Liabilities
Prepaid expenses
Accounts payable and accrued liabilities
Accounts receivable
Gaming accounts receivable
Gaming accounts liabilities
Taxes payable
Other current assets
Long term liability
Net Cash (Used in) Provided by Operating Activities
Cash Flows from Investing Activities
Acquisition of property, plant, and equipment, and intangible assets
Decrease in restricted cash
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
Proceeds from bank credit line
Repayment of bank loan
Proceeds from debentures and convertible notes, net of repayment
Loan to related party
Purchase of treasury stock
Loans advanced to stockholders
Net Cash Provided by (Used) in Financing Activities
Effect of change in exchange rate
Net (decrease) increase in cash

Reclassification of prior period results (Details Narrative) - Convertible Debt [Member]	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)
Comvertible Debenture, issued	$ 3,268,000	$ 6,502,000
Comvertible Debenture discount	5,536,301	5,536,301
Fair value common stock issued with debenture	582,486	582,486
Changes in fair value of derivative liabilities	$ 12,494,727	$ 12,494,727

Acquisition- Purchase price (Details)	6 Months Ended
Acquisition- Purchase price (Details)	Jun. 30, 2019 USD ($)
Business Combination, Separately Recognized Transactions [Line Items]
Goodwill arising on acquisition	$ 1,401,608
Virtual Generation [Member]
Business Combination, Separately Recognized Transactions [Line Items]
Cash	47,268
Current assets	178,181
Property, Plant and Equipment	41,473
Betting Platform	4,004,594
Total Assets	4,271,516
Less: liabilities assumed	(78,141)
Less: Imputed Deferred taxation on identifiable intangible assets acquired	(1,401,608)
Total identifiable assets less liabilities assumed	2,791,767
Goodwill arising on acquisition	1,401,608
Total purchase price	4,193,374
Excess purchase price	$ 4,594

Acquisitions (Details Narrative)	1 Months Ended		2 Months Ended	3 Months Ended		5 Months Ended		6 Months Ended	12 Months Ended
Acquisitions (Details Narrative)	Jan. 30, 2019 USD ($) shares	Jan. 30, 2019 EUR (€) shares	Feb. 28, 2019 EUR (€)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	May 31, 2018 USD ($) $ / shares shares	May 31, 2018 EUR (€) shares	Jun. 30, 2019 USD ($)	Dec. 31, 2016 shares	Jan. 30, 2019 EUR (€)
Business Acquisition [Line Items]
Issuance of common stock, value \| $				$ 278,536	$ 196,783
Ulisse [Member]
Business Acquisition [Line Items]
Purchase price						$ 11,700,000	€ 10,000,000
Purchase price paid in cash						$ 5,850,000	€ 5,000,000
Share issued for acquisition \| shares						591,950	591,950		416,400
Agreement									option to resell to the Company 50% of the shares of common stock (or 208,200 shares) issued in consideration for the purchase price at a fixed price of USD $4.00 per share (the “Ulisse Put Option”)
Share price \| $ / shares						$ 9.44
Multigioco [Member]
Business Acquisition [Line Items]
Repurchased and retired shares, share \| shares						255,000	255,000
Repurchased and retired shares, value						$ 595,000	€ 510,000
Virtual Generation [Member]
Business Acquisition [Line Items]
Purchase price \| €		€ 4,000,000
Purchase price paid in cash \| €		€ 108,000
Issuance of common stock, shares \| shares	65,298	65,298
Issuance of common stock, value		€ 89,000						$ 195,220
Total payments \| €			€ 1,411,000							€ 2,392,000
Number of payments	23	23	17
Payments on Loan	$ 104,000		€ 83,000
Note issued for acquistion	$ 4,193,374			$ 3,758,289				3,758,289		€ 3,665,255
Principal payments \| $								240,015
Interest payments \| $								$ 2,354

Leases - Right of use assets (Details) - USD ($)	6 Months Ended
Leases - Right of use assets (Details) - USD ($)	Jun. 30, 2019	Jan. 02, 2019
Leases [Abstract]
Right of use asset for operating leases	$ 736,625	$ 646,138
Right of use assets for finance leases	43,961
Amortization of right-of-use assets	15,118
Interest expense on lease liabilities	699
Finance lease cost	15,817
Operating lease cost	95,371
Total lease cost	111,191
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	(699)
Operating cash flows from operating leases	(95,371)
Financing cash flows from finance leases	(5,449)
Right-of-use assets obtained in exchange for new finance leases	15,118
Right-of-use assets disposed of under operating leases prior to lease maturity	(27,517)
Right-of -use assets obtained in exchange for new operating leases	$ 95,622
Weighted average remaining lease term - finance leases	3 years 321 days 4 hours 48 minutes
Weighted average remaining lease term - operating leases	3 years 302 days 22 hours 48 minutes
Weighted average discount rate- finance leases	3.48%
Weighted average discount rate- operating leases	3.47%

Leases Liability (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Maturity date
Financial lease liability, Current	$ 6,194
Operating lease liability, Current	91,449
Operating lease liability,Non-Current	$ 611,718
Weighted average discount rate- finance leases	3.48%
Weighted average discount rate- operating leases	3.47%
Operating lease liability [Member]
Maturity date
2019	$ 114,297
2020	186,474
2021	179,902
2022	153,301
2023	104,850
2024 and beyond	29,098
Total undiscounted minimum future lease payments	767,922
Imputed interest	(64,755)
Present value of lease liabilities	703,167
Operating lease liability, Current	91,449
Operating lease liability,Non-Current	611,718
Financial lease liability [Member]
Maturity date
2019	6,890
2020	13,780
2021	10,543
2022	8,536
2023	6,788
2024 and beyond	817
Total undiscounted minimum future lease payments	47,354
Imputed interest	(2,764)
Present value of lease liabilities	44,590
Financial lease liability, Current	6,194
Financial lease liability, Non-Current	$ 38,396
Financial lease liability [Member] \| Minimum [Member]
Maturity date
Weighted average discount rate- operating leases	2.50%
Financial lease liability [Member] \| Maximum [Member]
Maturity date
Weighted average discount rate- operating leases	4.20%
Property Lease [Member] \| Minimum [Member]
Maturity date
Weighted average discount rate- finance leases	2.12%
Property Lease [Member] \| Maximum [Member]
Maturity date
Weighted average discount rate- finance leases	4.50%
Vehicle Lease [Member] \| Minimum [Member]
Maturity date
Weighted average discount rate- finance leases	5.10%
Vehicle Lease [Member] \| Maximum [Member]
Maturity date
Weighted average discount rate- finance leases	6.70%

Investment in Non-consolidated Entities (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Schedule of Equity Method Investments [Line Items]
Loss on marketable securities		$ (155,000)	$ (25,000)	$ (155,000)
Zoompass Holdings Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Investments in non-consolidated entities	2,500,000		2,500,000
Loss on marketable securities	$ (25,000)		$ (25,000)
Price per share	$ 0.10		$ 0.10

Intangible Assets - Intangibles (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Intangible assets, gross	$ 18,399,783	$ 14,395,968
Accumulated amortization	(2,201,821)	(1,867,986)
Intangible assets	16,197,962	12,527,980
Betting platform system [Member]
Intangible assets, gross	1,685,371	1,685,371
Ulisse Bookmaker License [Member]
Intangible assets, gross	9,727,914	9,727,914
Multigioco and Rifa ADM Licenses [Member]
Intangible assets, gross	960,977	961,756
VG Licenses [Member]
Intangible assets, gross	4,004,594
Location contracts [Member]
Intangible assets, gross	1,000,000	1,000,000
Customer relationships [Member]
Intangible assets, gross	870,927	870,927
Trademarks/names [Member]
Intangible assets, gross	110,000	110,000
Website [Member]
Intangible assets, gross	$ 40,000	$ 40,000

Intangible Assets (Details Narrative) - USD ($)	6 Months Ended
Intangible Assets (Details Narrative) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization Expense	$ 376,457	$ 206,568

Line of Credit-Bank (Details Narrative)	Jun. 30, 2019 USD ($)	Jun. 30, 2019 EUR (€)	Dec. 31, 2018 USD ($)
Line of credit - bank	$ 1,000,000		$ 750,000
Revolving Line of Credit [Member]
Line of credit	1,000,000
Security Deposit	$ 1,000,000
Interest rate	3.00%	3.00%
Multigioco [Member]
Line of credit - bank	$ 340,000	€ 300,000
Interest rate	5.00%	5.00%
Rifa [Member]
Line of credit - bank	$ 57,000	€ 50,000
Interest rate	5.00%	5.00%

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Related party transactions and balances (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Notes payable- related party		$ 1,405,804		$ 318,078
Interest rate		12.00%
Gold Street Capital Corp. [Member]
Related Party Transaction [Line Items]
Management fee paid	$ 36,000		$ 72,000
Luca Pasquini [Member]
Related Party Transaction [Line Items]
Management fee paid			$ 6,000

Related party transactions and balances (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Present value discount on future payments
Notes payable- related party	$ 1,405,804	$ 318,078
Notes payable - related party	332,582
Notes payable - Related Party, net	1,738,386
Related party Notes Payable [Member]
Principal Outstanding
Opening balance	318,078
Promissory note due to non-related parties	1,830,541
Settled by the issuance of common shares	(190,128)
Repayment in cash	(213,353)
Foreign exchange movements	(14,442)
Ending balance	1,730,696
Accrued Interest
Accrued interest, opening balance	113,553
Interest expense	18,928
Accrued interest, ending balance	132,481
Present value discount on future payments
Present value discount, beginning	(161,393)
Amortization	35,347
Foreign exchange movements	1,255
Present value discount, ending	$ (124,791)

Related party transactions and balances - Related party (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Balance of advances from stockholders	$ 48,508	$ 39,237
Gold Street Capital Corp. [Member]
Related Party Transaction [Line Items]
Balance of advances from stockholders	$ 48,508	$ 39,237

Stockholders Equity (Details Narrative) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended		5 Months Ended	6 Months Ended
Stockholders Equity (Details Narrative) - USD ($)	Jan. 31, 2019	Mar. 01, 2019	Apr. 02, 2019	May 01, 2019	Apr. 22, 2019	Jun. 01, 2019	Jun. 30, 2019	Jun. 30, 2018
Reverse stock split							1 to 8
Shares issued for debt, shares								13,875
Shares issued for acquisition							$ 272,307	$ 5,588,088
Virtual Generation [Member]
Share issued for acquisition, shares	32,450	32,845	29,975	33,105		27,256
Shares issued for acquisition	$ 101,763	$ 101,249	$ 86,328	$ 93,018		$ 92,961
Debentures [Member]
Shares issued for debt, amount					$ 11,232		989,169
Shares issued for cash, shares					$ 35,943		$ 86,850

Convertible Debt (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended
Convertible Debt (Details Narrative) - USD ($)	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Common stock issued with debentures, amount	$ 104,911	$ 979,824	$ 1,770,197	$ 55,500
Foreign currency loss					$ 109,810
Debenture Discount
Convertible Debenture						$ 6,083,982	$ 3,942,523
Debentures [Member]
Common stock issued with debentures, amount					919,824
Principal converted					864,623
Accrued interest					$ 390,186
Common stock issued with debentures, shares					287,561
Convertible Debt, gross	7,799,057	8,529,021			$ 8,529,021	7,799,057	8,529,021
Convertible debt, accrued interest	865,428	528,141			528,141	865,428	528,141
Debt Discount	2,580,503	4,588,215			4,588,215	2,580,503	$ 4,588,215
Convertible debentures, gross		8,529,021			8,529,021
Conversion to equity						(925,963)
Foreign exchange movements					195,999
Convetible debentures, ending	7,799,057				7,799,057
Accrued Interest
Accrued interest, opening balance		528,141			528,141
Interest expense					390,186
Conversion to equity					(63,206)
Foreign exchange movements					10,307
Accrued interest, ending balance	865,428				865,428
Debenture Discount
Debenture Discount, opening balance		$ (4,588,215)			(4,588,215)
Amortization					(2,580,503)
Debenture Discount, ending balance	(2,580,503)				(2,580,503)
Convertible Debenture						6,083,982
Debentures USD and CA[Member]
Convertible Debt, gross	7,774,208				7,774,208	7,774,208
Convertible debt, accrued interest	668,492				668,492	$ 668,492
Convertible debentures, gross
Convetible debentures, ending	7,774,208				7,774,208
Accrued Interest
Accrued interest, opening balance
Accrued interest, ending balance	$ 668,492				$ 668,492

Notes Payable (Details Narrative)	1 Months Ended		6 Months Ended
Notes Payable (Details Narrative)	Jan. 31, 2019 USD ($)	Jan. 31, 2019 EUR (€)	Jun. 30, 2019 EUR (€)	Jun. 30, 2019 USD ($)	Jan. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Promissory note payable				$ 1,421,045
Virtual Generation [Member]
Debt Instrument [Line Items]
Promissory note payable				3,803,000	$ 4,193,374
Virtual Generation [Member] \| Related Party [Member]
Debt Instrument [Line Items]
Promissory note payable				1,521,200
Payments on Promissory Note \| €		€ 956,800	€ 564,400
Monthly installments \| €		€ 41,600	€ 33,200
Number of payments	23	23	17
Virtual Generation [Member] \| Non Related Party [Member]
Debt Instrument [Line Items]
Promissory note payable				$ 2,281,800
Payments on Promissory Note	$ 1,435,200		€ 846,600
Monthly installments	$ 62,400		€ 49,800
Number of payments	23	23	17

Notes Payable (Details) - USD ($)	6 Months Ended
Notes Payable (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Present value discount on future payments
Notes payable, current	$ 1,421,045
Notes payable, noncurrent	498,874
Notes payable, net	(1,919,919)
Notes Payable [Member]
Principal Outstanding
Promissory note due to non-related parties, beginning	2,745,811
Settled by the issuance of common shares	(285,192)
Repayment in cash	(331,913)
Foreign exchange movements	(21,601)
Promissory note due to non-related parties, ending	2,107,105
Present value discount on future payments
Present value discount, beginning	(242,089)
Amortization	53,020
Foreign exchange movements	1,883
Present value discount, ending	$ (187,186)

Bank Loan Payable (Details Narrative) - Bank Loan [Member]	6 Months Ended		9 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2019 EUR (€)	Sep. 30, 2016 USD ($)	Sep. 30, 2016 EUR (€)
Proceeds for notes payable			$ 580,000	€ 500,000
Number of payments			57	57
Monthly installments \| €				€ 9,760
Payments on Loan	$ 66,146	€ 58,560
Principal payments \| $	59,007
Interest payments	$ 7,140	€ 6,321

Other Long Term Liabilities (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Other long term liabilities	$ 613,963	$ 608,728
Severance liability [Member]
Other long term liabilities	193,021	168,706
Customer deposit balance [Member]
Other long term liabilities	$ 420,942	$ 440,021

Warrants (Details Narrative) - 12 months ended Dec. 31, 2018 - Investors [Member]	$ / shares shares	CAD ($) shares
Debenture carrying value \| $		$ 1,000
Warrants to purchase shares \| shares		135.28
Warrant price \| $ / shares	$ 4.00
Common stock, shares issued for private placement, shares \| shares	104.06
Price per share \| $ / shares	$ 4.00

Warrants (Details) - Warrant [Member] - $ / shares	6 Months Ended	12 Months Ended
Warrants (Details) - Warrant [Member] - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Warrant Shares [Rollforward]
Outstanding at beginning of period	1,089,133	76,566
Granted during the period		1,095,883
Canceled during the period		(27,000)
Excercised during the period		(40,761)
Expired during the period		(15,555)
Outstanding at end of period	1,089,133	1,089,133
Weighted Average Exercise Price Per Common Share
Outstanding at beginning of period	$ 4.00	$ 4.32
Granted during the period		4.00
Canceled during the period		5.04
Exercised during the period		4.64
Expired during the period		4.64
Outstanding at end of period	$ 4.00	$ 4.00
Weighted Average Life per Warrant
Outstanding at end of period	9 months

Revenues (Details) - USD ($)	3 Months Ended		6 Months Ended
Revenues (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total Turnover	$ 99,265,404	$ 100,039,451	$ 236,240,869	$ 190,599,310
Less: Winnings/payouts	89,056,834	90,453,087	215,676,073	171,817,325
Gross Gaming Revenues	10,208,570	9,586,364	20,564,796	18,781,985
Less: ADM Gaming Taxes	1,172,993	799,016	2,366,739	1,565,849
Net Gaming Revenues	9,035,577	8,787,348	18,198,057	17,216,136
Add: Commission Revenues	33,360	18,152	62,433	117,152
Add: Service Revenues	36,416	17,159	111,158	83,238
Revenue	9,105,353	8,822,659	18,371,648	17,416,526
Handle Web-based [Member]
Total Turnover	88,647,748	175,223,649	55,025,859	101,091,758
Less: Winnings/payouts	81,857,558	164,120,495	54,687,682	97,305,678
Handle Land-based [Member]
Total Turnover	10,617,656	61,017,220	45,013,592	89,507,552
Less: Winnings/payouts	$ 7,199,276	$ 51,555,578	$ 35,765,405	$ 74,511,647

Net Loss per Common Share - Net Loss per Common Share (Details) - shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Antidilutive Share	3,796,785	3,796,785
Warrants [Member]
Antidilutive Share	1,089,133	1,089,133
Convertible Debt [Member]
Antidilutive Share	2,707,652	2,707,652

Income Taxes (Details Narrative)	6 Months Ended
Income Taxes (Details Narrative)	Jun. 30, 2019 USD ($)
Income Tax Disclosure [Abstract]
Net operating loss carryforward	$ 4,000,000
Italy corporate tax rate	28.82%
Austrian corporate tax rate	25.00%
U.S. statutory rate	35.00%
Canadian corporate tax rate	26.50%

Subsequent events (Details) - Subsequent Event [Member]	3 Months Ended
Subsequent events (Details) - Subsequent Event [Member]	Sep. 30, 2019 USD ($) shares	Sep. 30, 2019 CAD ($) shares
Principal converted \| $	$ 550,000
Accrued interest	$ 16,400	$ 20,000
Common stock issued with debentures, shares \| shares	195,297	195,297