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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Esports Entertainment Group Announces Strategic Investment in Drafted.gg, a Leading Esports Event Organizer and Producer of Short-Cycle Wagerable Esports Content
Esports Entertainment Group Announces Strategic Investment in Drafted.gg, a Leading Esports Event Organizer and Producer of Short-Cycle Wagerable Esports Content ·newsfile_64
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 30% minority interest, in furtherance of strategic collaboration and revenue sharing agreement with Drafted.gg, a leading wagerable esports content producer based in Czech Republic.
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 70% of Drafted.gg. We firmly believe that the vast array of content-comprising thousands of short-cycle games available each month, with the majority concluding in 8 minutes or less-will be well received by esports bettors in the United States. We are also confident in our ability to successfully onboard Drafted.gg content with leading U.S. sportsbooks."
"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.
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