SBC News Voice of the Sports Betting Industry
Esports Entertainment Group (EEG) has agreed terms to sell its Bethard online casino and sportsbook business for €9.5m.
When announcing the deal, EEG provided no information on the acquirer of Bethard, but did declare that it had reached definitive terms for the brand to be sold for €9.5m, comprising €1.65m of cash proceeds payable at closing.
The transaction’s remaining €6.5m will be “attributed to the Company’s release from payment of its contingent consideration liability from the Bethard acquisition.”
Bethard’s new owner will assume liabilities of approximately €1.2m, as EEG seeks to close the deal within a two-week period following the signing of the purchase agreement.
The deal sees EGG sell Bethard at a loss, having acquired the Nordic markets challenger sportsbook and online casino brand in the summer of 2021 for €16m cash, with further incentives capped at $27m.
EEG continues to restructure its business, which saw it announce the closure of its Argyll subsidiary in the UK last December. The company has prioritised plans to focus growth on its Lucky Dino igaming brands which operate on EEG’s proprietary Idefix platform.
Restructuring directives have seen EEG announce a reduction in outstanding debt from $32m recorded at 30 September 2022 to $15.5m as of 16 February 2023 – results that do not account for new amendments.
During H1 2022, EEG revealed in a financial report that there was “substantial doubt” about its ability to continue as a going concern, as shareholders accounted for compounded GAAP net losses of $34m.
In January, an embattled EEG confirmed the appointment of Alex Igelman as new CEO, replacing incumbent Grant Johnson. Igelman was tasked with prioritising “cash in the bank and securing debt reductions”.
“I am very pleased at the work that is being undertaken to reduce debt and focus on our core iGaming and esports assets.” Igelman stated,
“We remain committed to building a world-class esports gambling operation that is global in reach and that provides esports content and strategic services to those involved in esports gambling, as well as those seeking to enter the market.
“I am extremely encouraged and pleased with the speed and efficiency in which senior management effectuated these important actions.”
