Esports Entertainment Group ramps up spending spree with €16m Bethard deal
Nasdaq-listed operator targets “strategically important” Swedish and Spanish markets through M&A
Esports Entertainment Group (EEG) has agreed a €16m (£13.8m) deal to acquire Swedish-licensed sports betting operator Bethard.
Under the terms of the contract, EEG will pay an initial cash payment of €16m, together with a 12% net rev share agreement for the next two years.
As a result of the deal, which is expected to complete on 1 July, EEG has increased its fiscal 2022 revenue guidance to between $100-$105m.
At present, most of EEG’s revenue is derived from the acquisition of sports betting businesses such as Bethard.
EEG has been on an aggressive acquisition spree since listing on the Nasdaq Stock Exchange, concluding multiple deals beginning with a $1.25m deal to acquire UK-based sportsbook operator Argyll Entertainment in July 2020.
Since then, deals to acquire FLIP Sports, Esports Gaming League and Lucky Dino Gaming have also been consolidated by the firm, which completed a $30m capital raising exercise in February.
EEG CEO Grant Johnson hailed the purchase as a great addition that would “substantially” increase EEG’s revenue and market access, particularly into Sweden and Spain.
“With this transaction, we expect to gain two new gaming licences, including one in the strategically important Swedish market.
“At the completion of the licence hand over, we will have six tier-one licences,” Johnson added.
Bethard’s current owners, Gameday Group, have said they will move to a B2B strategy following completion of the sale by providing white-label services to third-party branded casino and sportsbook operators.
Founded in 2012, Malta-based Bethard secured licences to operate in Denmark, Sweden, Spain, Ireland and the UK, where it became one of the first operators to impose customised deposit limits on players in 2019.
However, Bethard would later exit the UK market in June 2020, a victim of the ultra-competitive environment combined with stricter enforcement measures.
The firm, which is primarily Nordic-facing, attracted the interest of Swedish football legend Zlatan Ibrahimovic, who later became a brand ambassador and co-owner of the business.