Esports betting and entertainment company Esports Entertainment Group has closed down its esports-focused sportsbook Vie.gg.
The decision was revealed via an email to users of the platform on October 25th, 2022. The letter was later obtained by esports gambling newsletter Sharpr.
The site will remain active until November 1st, during which time users can log in and close accounts. The remaining balances will be returned via physical check, Trustly or VIP Preferred.
Esports Entertainment Group acquired a betting licence for the state of New Jersey in the US this January, being the first of its kind to do so in the state. The company followed the licensing process with the launch of an esports-focused betting website Vie.gg in partnership with Bally’s Atlantic City Hotel and Casino. However, it seems like the new platform failed to attract the desired number of users and EEG has since decided to pull the plug on the operation not even a year after the launch.
In an interview for NJ Gambling Sites, EEG CEO Grant Johnson said that the company is now “restructuring to last through to more stable markets”, and that EEG will “reduce burn and put cash back in the bank”.
Johnson also added: “Had the market not turned so radically, we had anticipated raising capital and then adding a sportsbook. But by the time we were approved, clearly, the world had changed.”
As for the reasons behind this drastic move, apart from the words of EEG’s CEO, one can just look towards the publicly available numbers. Vie’s last financial results in August show just $590 in revenue, which is not enough to run a profitable operation by no means.
EEG’s financial results are not very impressive lately as well. The company did manage to raise $13.6m (~£10.16m) in a public offering of common stock, but recorded a GAAP loss of $34.5m (£25.38m) for 2021. The company’s stock also fell over 70% percent in the last six months and more than 90% in the last 12 months.
