SharpLink Gaming acquires 10% of CryptoCasino.com for $500,000
Affiliate also holds first refusal to buy controlling interest, although the company’s stock slides more than 10% on the news
SharpLink Gaming has acquired 10% of CryptoCasino.com owner Armchair Enterprises in a bid to become the “first Nasdaq-listed company focused on crypto gaming.”
CryptoCasino.com launched in October 2024 and plans to offer 6,000 online slot and table games, accepting several cryptocurrencies including bitcoin, ethereum, and litecoin, according to SharpLink.
The site already has games from Evolution, Pragmatic Play, Octoplay and Relax Gaming available.
The operator also serves Telegram users via a casino integration.
Armchair Enterprises is a UK-based entity which, according to Companies House, is located near the coastal town of Southend-on-Sea.
The CryptoCasino.com site states that the platform is operated by Costa Rican company EOD Code SRL. The platform also has its own cryptocurrency, $Casino, available to purchase.
Under the terms of the deal, SharpLink will take a 10% equity stake in Armchair for $500,000 in cash.
The deal also comes with the affiliate having first refusal on snapping up the remaining controlling interest of Armchair.
Despite the move, SharpLink’s shares are down more than 10% at the time of writing to just $0.40.
In a statement, SharpLink Gaming said the move is part of its strategy to be the first “Nasdaq-listed company focused on crypto gaming.”
Rob Phythian, SharpLink chair and CEO, said the business looked at a host of companies before landing on investing in a crypto firm.
He added that as more players and operators moved towards “decentralized gambling,” SharpLink was acting quickly to gain an edge over its competitors.
Phythian commented: “Over the past year, our leadership team and highly engaged board of directors have dedicated significant resources and time to identify the best growth opportunities for our company.
“Our goal is to strategically leverage our existing performance-based marketing platform and industry relationships to achieve deeper and more lucrative penetration into the digital gaming and sports betting markets.
“Throughout this process, we carefully evaluated more than two dozen compelling opportunities and determined that the combination of market expansion, cost efficiency, security, and player demand makes crypto gaming one of the most promising growth opportunities in the online gaming industry today.
“Furthermore, we believe that the steps we have already taken — and will continue to take — to execute a well-defined plan centered on the exponential growth of crypto gaming, positions SharpLink to become a future leader in this space.
“We aim to deliver strong, positive cash flow and sustainable long-term value for our stockholders.”
EGR North America has contacted SharpLink for clarity on the ultimate ownership of the acquired asset.