Esports Entertainment Group has announced its acquisition of Bethard, a Swedish sportsbook leader, operating brand by Bethard Group Limited.
Esports Entertainment Group Will Pay $19 Million in Cash
Esports Entertainment Group (EEG) has announced that it will acquire Bethard, a fast-growing iGaming and sportsbook operator, operating under Bethard Group Limited, which generated $31 million in revenue in 2020.
Bethard offers online sports betting and casino games, focusing on responsible gambling, and offers safe products in compliance with regulations in different markets. It is based in St. Julians, Malta.
Under the acquisition deal, EEG will pay $19.5 million in cash and 12% net gaming revenue share for two years. The acquisition is supposed to close on July 1, 2021. EEG raised its fiscal revenue guidance for 2022 from $100 million to $105 million.
In February, Baltimore Ravens recruited EEG as the NFL franchise’s esports tournament provider by signing a multi-year agreement. EEG’s job is to organize esports tournaments for the Ravens twice a year in its Esports Gaming League (EGL) platform.
Last December, EEG signed a multi-year partnership with the Philadelphia Eagles, which is an NFL franchise. The group became the first organization to officially partner up with the football team and launch an esports tournament. As part of the deal, the group became a host of a bi-annual Madden NFL esports tournament and the Eagles joint EEG as a shareholder.
EEG Aims to Acquire New Licenses, Especially in Sweden
EEG CEO Grant Johnson said that this another great addition to the company. EEG plans to increase its revenues and available markets. With this transaction, the company expects to get new licenses, especially for the Swedish market. Johnson said: “After the license hand over we will have 6 tier one licenses.”
At the beginning of the year, EEG made a strong push in New Jersey, intending to acquire a license from the state Division of Gaming Enforcement.
Last week, EEG published its financial results for Q3 of its financial year, showing a total revenue for the period of $5.4 million. The group didn’t generate revenue for the same period in 2020. It recorded a net loss of $12.4 million for Q3 and up to $6.3 million net loss for the corresponding quarter in 2020.
Zlatan Ibrahimovic Could Face a Ban over Bethard
Currently, Gameday Group plc. owns Bethard, and according to a Swedish newspaper, its part-owner is Bethard brand ambassador – Zlatan Ibrahimovic. He could face a 3-year ban due to breaching FIFA and UEFA regulations by partnering up with a betting company. Ibrahimovic became Bethard’s global brand ambassador in 2018, which raised some eyebrows in England when the FA began an official investigation.