EBET Likely to Close as It Prepares to Sell Its Brands via Auction

EBET is preparing to shut down and sell its brands, marking the end of an era. Unfortunately, the company failed to navigate the highly competitive iGaming market and defaulted on debt owed to its creditors.

In June 2023, EBET defaulted on the debt it owed to CP BF Lending. Despite attempting to cut costs, reduce redundancies and orient itself toward the highly lucrative iGaming market, EBET still failed to sufficiently boost its profitability. To make matters worse, the attempts to restructure the debt in October last year didn’t have the intended effects either.

As a result, EBET now owes some $37.1 million to the lender, who has a security interest on all assets of the company. In an SEC filing on June 18, EBET noted that CP BF Lending is likely to its rights to foreclose on the aforementioned assets in an attempt to satisfy the operator’s debt obligations.

In its previous filing, EBET noted that such a foreclosure would mean that EBET would likely no longer have any meaningful assets or business operations and would likely cease operations.

The Auction Will Take Place Online

On July 1, EBET confirmed that it will be selling its seven Europe-facing online gambling and sports betting brands via a public auction set to take place on August 1. This means that the company’s European assets, including BetTarget, Dansk 777, Generation VIP, Griffon Casino, Hopa, Karamba and Scratch2Cash will be on sale.

The aforementioned businesses, for context, generated roughly $21 million in revenue in the twelve months to March 2024. Last year, EBET’s European brands also recorded an average of 18,400 monthly players.

Through the auction potential buyers would be able to secure domain names, code and customer and transaction data, as well as patents and copyrights.

Bids are due to Hilco Streambank on July 30. The August auction will be conducted online via Zoom, the market-leading advisory firm added.

Hilco Streambank’s chief commercial officer, Richelle Kalnit, commented on the matter, noting that the buyer of the assets will be able to tap into the iGaming sector and capitalize on EBET’s existing framework.

Kalnit explained: “A buyer of the assets has the opportunity to tap into a rapidly growing online gaming market and to expand upon the brands’ success by emphasizing and/or re-entering certain markets, re-engaging the large player database, and optimizing software and marketing operations.”