Esports Entertainment Group (EEG) has reached an agreement to buy Bethard Group Ltd, a Malta-based online gaming operator, as the business strives to grow its European sportsbook image.
EEG, a Nasdaq-listed company, announced that it has signed an agreement with Gameday Group, Bethard’s operational company, to buy its asset for €16 million ($19.5 million) in cash and a two-year guarantee of 12 percent net gaming revenue growth.
EEG plans to complete its Bethard purchase before the start of H2 trading, and has revised its fiscal 2022 sales target to a range of $100 to $105 million.
Fastest-growing sportsbook challenger brand
EEG informed investors that it had purchased Europe’s fastest-growing sportsbook challenger brand, which generated $31 million in revenue during 2020 trading and has a growing market share in the lucrative Nordic online gaming markets.
With the acquisition, EEG will be able to grow its European sportsbook portfolio to three brands, including Bethard, SportNation.com, and Vie.bet.
Grant Johnson, CEO of Esports Entertainment Group said: “This is another great addition for Esports Entertainment Group that substantially increases our revenues, and available markets.
“With this transaction, we expect to gain two new gaming licenses including one in the strategically important Swedish market. At the completion of the license hand over we will have 6 tier one licenses.”
B2B focussed approach
Following the sale of Bethard, Gameday Group management said that the company would focus on a B2B approach, with the company offering services to help white label brands, igaming, and sportsbook operators improve their performance.
In 2018, Gameday introduced the Bethard brand, with Swedish football icon Zlatan Ibrahimovic serving as its global ambassador.
However, Bethard’s association with Ibrahimovic would be controversial, as Swedish media revealed last month that the Swedish footballer owned a 10 percent share in the company, in violation of FIFA and UEFA’s football integrity codes.
Because no registered athlete may directly or indirectly acquire shares in betting organisations, UEFA has begun an inquiry into Ibrahimovic’s participation with Bethard, which carries a potential penalty of a three-year suspension from professional football.