Esports betting company Esports Entertainment Group (EEG) has entered into a share purchase agreement to sell its Bethard iGaming business, the company’s casino and sportsbook brand, for approximately €9.5m (~£8.45m).
The sale of its Bethard iGaming business, which notably has gambling licences in Malta and Sweden, includes €1.65m (~£1.47m) in cash with an additional €6.5m (~£5.78m) of purchase consideration.
Esports Entertainment Group purchased Bethard in 2021 for €16m (~£13.6m at the time) in cash as well as agreeing a 12% net gaming revenue share for two years.
Purchase consideration refers to an agreed amount which the purchasing company agrees to pay in exchange for the business. This can be valued in many forms. In this case, it is attributed to EEG’s release from payment of its ‘contingent consideration liability’ from the Bethard acquisition.
The purchaser of Bethard has not been named, however, the undisclosed entity will assume liabilities of approximately €1.2m (~£1m). The deal is expected to close within the next two weeks, EEG announced.
EEG also holds properties and businesses within the esports space outside of the betting sector. Most notably this includes esports venue software company ggCircuit and the EGL (Esports Gaming League) tournament platform.
EEG has stated that with this sale, alongside the closing of its Argyll business in November, the company will focus on its Lucky Dino iGaming brands. Earlier last year, EEG also closed down its esports-focused sportsbook VIE.GG.
Regarding the sale, Alex Igelman, EEG’s CEO, stated: “I am very pleased at the work that is being undertaken to reduce debt and focus on our core iGaming and esports assets. We remain committed to building a world-class esports gambling operation that is global in reach and that provides esports content and strategic services to those involved in esports gambling, as well as those seeking to enter the market.
“I am extremely encouraged and pleased with the speed and efficiency in which senior management effectuated these important actions.”