InFocus turns Codexa ROW into contracted revenue with first customer

First Codexa ROW contract carries USD 2.4 million minimum

InFocus Group Holdings Limited (ASX:IFG) has moved Codexa ROW from platform pitch to conditional customer agreement, signing a deal that carries a minimum USD 2.4 million in fees over an initial 24-month term. The commitment equates to at least USD 100,000 a month once the contract begins, although no fees are payable until several development, regulatory and customer-side conditions are satisfied.

The customer is an unnamed private investor with interests in sports and live music who plans to establish a special purpose vehicle for the gaming business. InFocus says it has completed due diligence on the customer's funding and capacity to meet the obligations, but the customer's identity, exact revenue-share percentage and commercial fee mix remain confidential.

Prediction markets module adds development risk and reusable intellectual property

The customer has asked InFocus's gaming subsidiary to build a prediction markets module for Codexa ROW at its own cost. The module is expected to take about nine months and will add event-based markets, market creation and settlement, and position management to the platform's real-money wallets and compliance tools.

The deal gives commercial shape to InFocus's real-money Codexa ROW expansion, which had been targeting early 2027 availability but still depended on product testing, regulatory registration and customer uptake. InFocus will retain all intellectual property in the module, including customer-requested modifications and improvements. The customer receives six months of exclusivity from commercial launch, after which InFocus can license the module to other operators.

Revenue upside depends on gaming activity and infrastructure demand

Beyond the minimum, InFocus will receive a percentage of gross gaming revenue of up to 5%, together with managed services fees for hosting, infrastructure, deployment, maintenance and support. The GGR calculation includes player stakes and entries less winnings for gaming products, while prediction-market revenue includes commissions, fees and spreads. The fee percentage can vary by product mix and remains undisclosed.

That structure gives InFocus exposure to the customer's operating performance rather than a fixed licence fee alone. It also leaves the larger revenue opportunity unquantified: the announcement guarantees the minimum commitment, but says any amount above it depends on gaming activity, user numbers, traffic and the customer's ability to launch and operate successfully.

Licensing and acceptance conditions remain unresolved

The agreement will not commence until the module passes acceptance testing, Codexa ROW becomes commercially deployable and the customer has secured the licences required to operate, including permissions for prediction-market products where applicable. The customer must also novate the agreement to a suitable SPV after incorporation and complete the relevant licensing and compliance steps.

If those conditions are not met by 30 September 2027, either party may terminate the agreement, subject to the contract's breach provisions. The customer must launch within 90 days after the final condition is met. InFocus says its role is limited to providing technology and that the customer remains responsible for licensing, legal compliance, responsible gambling and anti-money-laundering obligations.

The next test is turning conditional revenue into a live deployment

For shareholders, the immediate milestone is not revenue recognition but execution: completing the nine-month build, passing acceptance testing, achieving commercial availability and watching the customer's SPV and licensing process reach completion. InFocus has also flagged plans to market the module to other operators after the exclusivity period, but that remains a future commercial opportunity rather than contracted revenue today.