Esports Entertainment Group (EEG) signed an agreement to acquire Swedish and Spanish licensed sports betting operator Bethard. As part of the deal, the company will pay $ 19.5 million in cash and 12% of its share of net gaming revenue over the next two years.
The company said it expects the deal to be finalized and closed by July 1, 2021. In 2020, Bethard generated revenue of $ 31 million; due to the new purchase, Esports Entertainment has now increased its 2022 fiscal guidance from $ 100 million to $ 105 million.
New markets for Esports Entertainment
As Bethard has licenses in Spain and Sweden, the acquisition will allow Esports Entertainment to win licensed game deals in both jurisdictions.
Esports Entertainment Group CEO Grant Johnson said. “This is another big addition for us, which substantially increases our revenues and available markets. With this transaction, we expect to win two new game licenses, including one in the strategically important Swedish market. Upon completion of the license delivery, we will have six tier-one licenses.”
Ibrahimovic’s investigation with Bethard
As of now it is not clear how this deal will affect the investigation of football player Zlatan Ibrahimovic; the Milan AC star entered into a controversy after it was reported last month that he owned Bethard.
The Swedish football player is said to own 10% of Bethard through his own company, Unknown AB. This violates the code of ethics established by FIFA and UEFA.
UEFA is currently investigating the case and has yet to comment on the deal; with the acquisition of Esports Entertainment, it would open the possibility for Ibrahimovic to dispose of his 10% ownership.
About EEG
EEG is a licensed online gaming company with a focus on electronic sports. Using its advanced betting system, the company offers eSports fans and enthusiasts around the world the ability to bet on all professional eSports events for real money in a trusted and licensed structure.
