People who own shares of Esports Technologies (NASDAQ:EBET) are happy because the company says it has been granted permission to play games in the United Kingdom. It is a “massive strategic milestone” for COO Bart Barden, who says that the move is important.
Today, the company that makes esports betting platforms and other technology is up almost 3%. That’s after trading higher by more than 5% earlier in the day on Tuesday. That temporarily stops some bleeding, but the stock has lost 17.1% in the last week. If you bought Aspire Global’s business-to-consumer (B2C) unit for $75.9 million in cash and stock in October, you got the UK license.
Esports Technologies made a deal with Karamba, Hopa, and Griffon Casino to get 1.25 million deposited customers, most of them from UK-based online sportsbook and casino brands Karamba, Hopa, and Griffon Casino.
This is a big deal for Esports Technologies.
There are a lot of older gamers in the UK, which is a big win for Esports Technologies, which went public earlier this year.
In terms of publicly traded gaming companies, those that have a lot of exposure to online casinos and sports betting are getting a lot of attention. But that could change as more home states allow esports betting. As of Sept. 2020 to Sept. 2021, Esports Technologies had $1.83 billion in cash and $183 million in cash deposits.
In the UK, there is one of the world’s biggest markets for games. A report from the UK Gambling Commission says that from April 2019 to March 2020, Great Britain’s gaming revenue was about $19.2 billion. Online gaming has become the biggest part of the business, accounting for about 40% of the total revenue, says the company.
Esports Technologies’ revenue stream will also be more diverse if they start making money in the UK. This is where gogawi.com sports betting platform does most of its business right now: in Asia and Latin America. Esports Technologies lets people bet on esports and traditional professional sports.
A deal with Aspire could be good for a long time.
In addition to giving E-sports Technologies access to the UK market, the deal with Aspire Global could pay off for the company in other ways.
On June 30, Aspire’s B2C arm made $73.9 million in sales and earned $8.2 million in EBITDA, which is money that Aspire made before taxes, depreciation, and amortization (EBITDA). Over that time, $1.8 billion was bet on that platform.