Esports Entertainment Group

Established in 2008, Esports Entertainment Group (EEG) is a licensed (licenses in the UK, Ireland, Malta, and  Curaçao) European online gambling company with interests in esports. The company operates the VIE.gg wagering platform, allowing users to bet on esports competitions with a percentage of winnings accruing to EEG. It has established partnerships with the Hall of Fame Resort and Entertainment Company (July 2021) to operate a 7,000 sq. ft. entertainment center, scheduled to open in mid-2022. 

Furthermore, it also entered into a partnership with the mobile cricket game Real Cricket 20 and the gaming company Sports in Esports Ltd in September 2021 to oversee the software integration services for the first global Ecricket tournament. In October 2021, EEG announced the launch of EGL ClubClash, a tournament platform through which fans can compete with each other on behalf of the professional sports teams they support.

The company’s recent acquisitions include esports analytics company Helix Esports, online tournament operator ggCircuit, and British tournament organizer Esports Gaming League (EGL).  Helix and ggCircuit were acquired in October 2020 for approximately USD 43 million, while EGL was acquired for GBP 4 million (USD 5.5 million) in January 2021. Through the acquisitions EEG diversified its business into online tournaments, esports center operations, and esports analytics. In line with this, EEG, through ggCircuit, launched a new B2B turnkey solution, Omega, which enables businesses such as movie theaters, restaurants, and malls, to provide on-premise esports experiences to their customers, and also struck a deal to provide ggCircuit’s ALPHA (Automated LAN Programming, Hardware, and Assistance) esports software and cryptocurrency mining application to four Simplicity Esports and Gaming Company locations.

In February 2022, the company finalized the pricing of a USD 15 million public offering of common stock and warrants, following a securities purchase agreement in which it sold 2 million shares at USD 15 per share for gross proceeds of USD 30 million in February 2021. Furthermore, EEG  announced deals with three NFL franchises—the Baltimore Ravens, the New England Patriots (including its MLS franchise the New England Revolution), and the Denver Broncos—to become their official esports tournament operator between February-March 2021 . The financial details of the deals were not disclosed. The partnerships include collaboration on digital marketing content and the use of player appearances by EEG to promote its tournament platform, Esports Gaming League.

In FY 2021, the company reported net revenue of USD 16.8 million with non-GAAP adjusted EBITDA losses of USD 14 million compared to USD 2.3 million in FY 2020. GAAP net losses amounted to USD 26.4 million compared to USD 10.4 million in FY 2020. The company expects to post net revenue in the range of USD 100 million to  USD 105 million in FY2022, driven by the multiple acquisitions in fiscal year 2020.