Esports Entertainment Group Announces Strategic Investment in Drafted.gg, a Leading Esports Event Organizer and Producer of Short-Cycle Wagerable Esports Content
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Expands Company's B2B Esports Betting Offerings; Provides Revenue-Sharing from Wagerable Content Distribution
Esports Entertainment to Coordinate Comprehensive Third-Party Operations Integrity Audit to Support U.S. Market Expansion
St. Julians, Malta--(Newsfile Corp. - October 31, 2023) - Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLP) (NASDAQ: GMBLW) (NASDAQ: GMBLZ) ("Esports Entertainment" or the "Company"), a leading, global iGaming company and business-to-business (B2B) esports solutions provider, today announced that it has signed a binding Letter of Intent to acquire a
Alex Igelman, CEO of Esports Entertainment, stated, "We are excited to obtain a minority interest and participate in a revenue-sharing agreement that Drafted.gg has in place, as a first step in a broader planned collaboration. Drafted.gg is a top-tier provider of esports content, currently including popular esports titles in eSoccer, eBasketball, and eCricket. Drafted.gg currently operates two content production studios, one in the United Arab Emirates and the other in Prague, Czech Republic. Matches are streamed live and online across Twitch and YouTube, as well as other platforms, and are currently offered in jurisdictions across Europe and Asia. This transaction supports Esport Entertainment's strategy to embed wagerable content into our expanding esports and iGaming offering. This initial investment and collaboration with Drafted.gg allows us to seamlessly add a best-in-class provider of 24/7 esports content and wagering to the Company's robust ecosystem."
"We anticipate that based on the performance of their esports content during the first phase of our collaboration, as well as Esports Entertainment's ability to successfully onboard its first U.S. sportsbook, the Company would then acquire the remaining
"The Company's recent focus has turned towards developing initiatives to further broaden our esports and iGaming solutions in order to create a more comprehensive, end-to-end offering of online betting options for our customers. Today's announcement perfectly complements our impending Delasport sportsbook offering and our collaboration with Oddin.gg, a leading esports betting solution entity. Through these relationships, and coupled with Drafted.gg's live esports content, the Company has built a comprehensive ecosystem for the benefit of our clients and customers."
"Most importantly, our unwavering commitment is to uphold the highest level of gaming integrity standards and audit processes, ensuring that the content we generate complies with rigorous regulatory requirements tied to wagering on skill-based content. While we have the utmost confidence that Drafted.gg's processes and procedures are of the highest caliber, our intention is to commission a thorough integrity audit of Drafted.gg by a third party to meet state-by-state standards and support rapid expansion within the sizable U.S. market. Overall, we could not be more excited about the outlook for this strategic investment and the importance of this collaboration."
About Drafted.gg
Drafted.gg stands as a premier esports event organizer, offering a range of short-cycle esports matches and continuous 24/7 live streams of prominent sports games, including eSoccer and more. The Company proudly hosts both online and offline tournaments, delivering broadcasts of unmatched quality. Beyond this, the Company's gaming house hosts in-person events, fully equipped with top-tier gaming equipment and PCs for an unparalleled gaming experience. Committed to providing non-stop esports streaming, our team is comprised of industry professionals, featuring a leading eSoccer coach from the Czech Republic. For additional information, please visit https://www.drafted.gg/.
About Esports Entertainment Group
Esports Entertainment Group is a global MGA-licensed, "esports-focused" iGaming B2C operator and a US-focused B2B provider of esports solutions. The Company owns and operates the world's leading esport venue management system, currently deployed in over 800 global locations, including more than 100 colleges and universities. The Company's strategy is to capitalize on the multi-billion-dollar market for esports and esports wagering by leveraging its leading position in the industry. The Company is also targeting the rapidly growing market for short-form esports wagerable content, which features competitive, short-cycle head-to-head leagues that are optimized for betting. In addition to its plans to distribute esports content, the Company currently provides B2C-focused wagering through its MGA-licensed suite of brands. For additional information about the Company, please visit www.esportsentertainmentgroup.com.
Forward-Looking Statements
The information contained herein includes forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "will likely result," and similar expressions. These statements relate to future events or to our strategies, targeted markets, and future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements, including the Center serving as a hub for competitive gaming communities, bringing together the brightest minds from all stakeholders to develop bespoke software and hardware solutions that equip both students and educators to thrive in the digital age. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, and those discussed in other documents we file with the SEC, including our ability to maintain compliance with Nasdaq Listing Rules and stay listed on Nasdaq, our obligations under our preferred stock outstanding, and our ability to continue as a going concern. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future, unless required by law. The safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of such Act.
Investor Relations Contact:
Crescendo Communications, LLC
Tel: (212) 671-1021
Email: GMBL@crescendo-ir.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/185738
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