Luckbox shuts down B2C platform as investors plan for B2B future

Luckbox has announced the immediate suspension of its esports betting platform as the company will “transition to a more capital effective B2B strategy”.

The decision was announced by Real Luck Group, the TSX-listed owner of Luckbox, who previously considered a merger-or-acquisition option for the business as reported on 7 September.

Real Luck Group, informed investors that it had been unable to secure the required capital injection due to ‘persistently challenging conditions’ in the capital markets. The initial LOI carried the potential to ensure the company’s immediate prospects and to fund its ongoing growth and operations. 

Instead, the firm has underlined its intent to restructure its operations, meaning an immediate suspension of betting and player registrations on its B2C platform, Luckbox.com, and a shift towards more cost effective B2B activities.

“B2C has generated all the Company’s revenue to date, but achieving profitability will require significantly more capital than launching the B2B platform,” Real Luck revealed in a statement.

Isle of Man-based Luckbox had previously been cited as a key driver of profitability for Luckbox in a Q4 2023 trading update, having reported revenue growth of 120%, but the group now appears fixed on a B2B future.

Meanwhile, the company has also resolved to wind up Real Time Game Services, whilst insolvency practitioners have been engaged in the IOM and the process to wind up RTGS has started.

It is expected that restructuring will be completed this year in the aim of a new optimised and better focused corporate structure with ‘no debt’ and ‘minimal cash burn’.

Furthermore, Real Luck has emphasised that it now continues to explore further strategic and operational options, such as a potential merger, acquisition, or a capital raise for growing its B2B or restarting B2C operations. 

“Any potential transaction which is determined by the board of the Company to be in the interest of the Company and its shareholders may be, ultimately, contingent upon approval from the TSX Venture Exchange and the company’s shareholders, as applicable,” it added. 

“There can be no assurance that this process will result in any specific financial transaction. The Company does not plan to provide updates on the status of the transaction unless there are material developments to report.”