Esports Entertainment Group is set to acquire the Esports Gaming League.
The esports betting operator, Esports Entertainment Group, has signed a letter of intent (LOI) to acquire the UK-based Esports Gaming League (EGL).
The league, which was founded in 2010, operates live and online esports contests that bring gamers from Europe, the Middle East, and the Americas together to play via a proprietary platform which has more than 350,000 registered users.
EGL’s other services include live broadcast production and game launches. The company has worked with several high-profile brands including Microsoft, Red Bull, Arsenal and Activision.
The acquisition of the EGL
The terms of the deal to acquire the league were not disclosed, but this transaction marks the latest deal in a series of acquisitions by the betting operator after it applied to list its common shares on the NASDAQ in June 2019.
Grant Johnson, CEO of Esports Entertainment Group said: “At our IPO we committed to having a tournament platform up and operational before the end of the calendar year, and with this transaction, we have delivered on this commitment.
“EGL generated approximately $1.3 million in revenue last year and is positioned for triple-digit growth moving forward. Their complementary platform, large user base, excellent team, and marquee advertising partner relationships are key drivers behind this transaction. Together, I believe we can accelerate growth both in the US and internationally.”
Glen Elliott, CEO of EGL said: “We are extremely excited to be joining the Esports Entertainment Group family, it will give us an opportunity to push our technology and resources to further grow our client roster.
“The vision Grant has around building an esports ecosystem is visionary for the industry and EGL is a perfect fit.”
Earlier this month, the operator also signed a LOI to purchase some aspects of the mobile games studio Flip Sports. Prior to this, the Esports Entertainment completed its acquisition of the online betting and gambling operator Argyll Entertainment and its subsidiaries.
Esports Entertainment secures NJ market access
The plans to acquire the EGL comes after Esports Entertainment partnered with Twin River Worldwide Holdings to launch online esports betting in the state of New Jersey.
With the Twin River deal, Esports Entertainment has managed to secure entry into New Jersey’s sports betting market. The esports betting operator plans to launch a proprietary mobile app which will allow customers in New Jersey to place real-money bets on a variety of esports events.
However, the partnership and subsequent launch of the operator’s app are contingent on Twin River securing the regulatory approvals to complete its acquisition of Bally’s Atlantic City Hotel & Casino in Atlantic City.
If Twin River’s acquisition of Bally’s goes to plan, the casino operator would secure the rights to offer three online sports betting skins in the Garden State. One of these skins would be taken by Esports Entertainment under the terms of the latest partnership.