May 8, 2024 2 min read

likes:

Elys Signs Agreement to Sell the Newgioco Brand

The agreement is subject to regulatory approvals and the fulfilment of certain closing conditions, Elys said

Elys BMG Group, a gambling operator and provider, announced its intention to sell its Italy-facing B2C subsidiary Multigioco. The latter company, which operates the Italian gambling site Newgioco, will be sold to a buyer that Elys refrained from naming.

Multigioco is based in Rome and, through its Newgioco site, offers gaming to Italian audiences. While the brand does not command a significant presence, it has years of experience in the market. For context, Newgioco has operated in Italy since 2015 and is familiar with the intricacies of the local gaming landscape.

According to Elys BMG Group, its agreement to sell the B2C subsidiary will be effective upon the certification by a notary in Italy. The company added that the transaction will also have to secure the regulatory approval of the Agenzia delle Dogane e dei Monopoli (ADM), Italy’s monopoly regulator. The sale of Newgioco will also need to secure approval from Autorità Garante della Concorrenzae del Mercato, the Italian antitrust competition agency.

Additionally, Elys BMG Group pointed out that the agreement will depend on the fulfillment of certain other conditions outlined in the deal.

Elys’ Growth Was Disrupted by the Nasdaq Exit

Elys is a global gaming industry player with a presence across multiple continents. In July 2023, the company expanded its footprint in New Mexico by agreeing to supply a new retail sportsbook located at Santa Claran Casino Resort in New Mexico.

Several months after that, Elys unveiled a US-facing online and mobile sports betting brand called SportBet.com. The operator has been bullish on tackling the highly lucrative US market and capitalizing on the ongoing growth of the American sports betting sector.

Despite the expansion of its geographical footprint, Elys was recently forced to exit the Nasdaq market after maintaining a share price of below $1 for approximately eight months. The company’s stock, which was listed under the ticker symbol ELYS, couldn’t maintain the minimum closing bid price and was unable to remain compliant with the market’s rule set.

While the company remained relatively debt-free, unlike many of its gaming competitors, its shares couldn’t inspire investor confidence.

Co-editor

Angel has a passion for all forms of writing, be it fiction or nonfiction. His curious nature gives him an ace up his sleeve when researching a new topic. Angel’s thirst for knowledge, paired with adaptability, always helps him find his way around.

Leave a Reply

Your email address will not be published. Required fields are marked *