Allied Esports

Allied Esports Entertainment owns and operates esports properties for esports events and content production, under the Allied Esports brand. Its flagship arena is the Las Vegas HyperX arena, a famous esports events facility. In March 2021, the company announced an unsolicited acquisition bid from Bally’s Corporation, the casino and racetrack owner, to purchase the entire outstanding equity interest of the company for USD 100 million. However, the offer was then revised to purchase only its World Poker Tour (WPT) assets for USD 105 million and the deal was completed in July 2021. In addition, it operates mobile esports trucks and a network of affiliate members whose properties can serve as hubs for content production or events. 

In December 2022, the company rebranded as Allied Gaming & Entertainment Inc. and will be diversifying to a wide range of entertainment and gaming products and services. The company has also appointed Robert Proctor to lead the restructuring of its esports business (housed under Allied Esports International) as its new CEO.

Key customers and partnerships

The company announced a USD 5 million equity investment from real estate company Brookfield Property Partners. The strategic partnership allows Allied Esports to populate Brookfield’s existing properties with its “on-mall” esports venue concept to expand its esports content production spaces. In addition, Allied has a strategic partnership with Simon Property Group to deliver its on-mall concept.

  Funding and financials

The company was listed on the NASDAQ  in October 2017 and in November 2022, Allied announced a stock repurchase program worth up to USD 10 million which was funded using its working capital. 

The company’s preliminary financial filings for FY2020 showed a 57% decline in total esports revenue to USD 3.2 million compared to FY2019. This was primarily due to a 60% decline in the company’s in-person event revenues driven by pandemic-related cancellations. Esports revenue amounted to USD 0.8 million in Q4 FY2020, with it being the first quarter of meaningful revenue generation from its multiplatform content. The company reported a higher adjusted EBITDA loss from continuing operations (excluding its World Poker Tour assets) of USD 11.6 million for FY2020, compared to USD 9.6 million in the previous year.