Esports Entertainment Pushes Further Into Sports Betting, iGaming With Acquisition

Esports Entertainment Group (NASDAQ: GMBL), a small-cap esports and online casino company, announced an acquisition in the gaming space and a partnership with the Philadelphia Eagles to strengthen its growth ahead.

What Happened: Esports Entertainment will acquire online casino operator Lucky Dino for around $30 million.

Lucky Dino has grown revenue at a compounded annual growth rate of 86% over the last five years.

Lucky Dino had revenue of $21 million in the last fiscal year and EBITDA of $3.8 million. Estimates call for Lucky Dino to hit $29 million in revenue and $6.5 million in EBITDA in fiscal 2022.

The company announced a partnership with the Philadelphia Eagles Tuesday, making it the first NFL team with an esports tournament provider.

Esports Entertainment will host biannual Madden tournaments in a multiyear partnership with the popular game from Electronic Arts (NASDAQ: EA).

Related Link: 3 Esports Execs On How Covid-19 Shifted Landscape, Growth Ahead: The Only Game In Town

Why It’s Important: The acquisition of Lucky Dino gives Esports Entertainment access to multiple new jurisdictions in the European and Scandinavian regions where esports are popular.

The acquisition also gives the company a premium casino platform to add to its lineup of sports betting and online casino brands as it pushes into the space. The company previously acquired Argyll Entertainment to push into online gambling. 

With the new Eagles partnership, the NFL team becomes a shareholder in Esports Entertainment.

The company now has deals with the Eagles, Arsenal, LA Galaxy, Philadelphia Union and LA Kings. The sports partnerships could help the company grow its user base and cross-selling opportunities.

Price Action: Shares of Esports Entertainment ended Wednesday's session down 2.88% at $6.07. 

Shares traded higher to $6.85 earlier in the day on the acquisition announcement.

https://finance.yahoo.com/news/esports-entertainment-pushes-further-sports-212702683.html

in Esports