Luckbox raises $17.8 million in private placement round

Real Luck Group Ltd., parent company of esports betting platform Luckbox, has raised $17.8m (~£12.82m) in a private placement round led by Gravitas Securities.

Quentin Martin, Luckbox
Pictured: Quentin Martin, Luckbox CEO, at ESI London in 2019

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This private placement of special warrants, which according to a release was oversubscribed, was partially brokered (led by Gravitas as the lead agent and sole bookrunner, for aggregate gross proceeds of $16.98m) and partially non-brokered (for aggregate gross proceeds of $824,700).

“Luckbox’s strong leadership team paired with the current size and growth potential of esports and sports betting led to the offering being heavily oversubscribed, as investors begin to recognise this attractive sector and opportunity,” company Chairman Drew Green said.

“We are grateful to our investors for their support and this financing puts Luckbox in a strong position to execute on our goals as we strive to further establish the business as a global leader in the esports betting space,” Green added.

Speaking to Proactive about how the funds will be utilised, Quentin Martin, Luckbox CEO said the following: “We’ve got a little war-chest now, and plenty of runway, so we will be looking for some [merger and acquisition] opportunities … But first and foremost it’s going to be investing in our existing team, scaling user acquisition, and really making sure we’re positioned to capitalise on the opportunities that come up in the space.”

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When asked what Luckbox’s M&A strategy might look like, Martin said the company may look to “acquire esports communities to help bootstrap our user acquisition in certain markets.” He also mentioned that the only part of the esports-betting value chain that isn’t done in-house — odds creation — may be targeted through mergers and acquisitions.

Esports Insider says: Luckbox’s growth was accelerated last year by the boom in esports gambling, which was triggered by the pandemic. Company CEO Quentin Martin spoke to ESI last year about listing on the TSXV, and it appears that since then Luckbox has grown faster than even he could have predicted.